SlideShare a Scribd company logo
CHALLENGES ASSOCIATED WITH INTERNATIONAL HUMAN RESOURCES
MANAGEMENT
In her article, Mariia Glazyrina, titled ‘Human Resource Management Challenges of International
Business and their possible solutions’ she found the following as main challenges (Glazyrina,
2020).
1. Cultural differences
It was unveiled by the results that human resource managers in international contexts faced
challenges in managing cultural differences among employees. Founded on the outcomes, cultural
distinctions emanated from differences in employees' nationality, ethnicity and religion. The
findings were compared with the assertion that differences in the nationality and background of
workers led to the emergence of cultural issues in IHRM (Adler & Leng, 2014). It was identified
that globalization was the precursor to cultural diversity in multinational corporations since it
enabled parent companies to establish subsidiaries in different parts of the world. Ineffective
management of cultural differences among workers could increase the risk of organisational failure
since employees faced challenges associated with cultural adjustment. The cultural differences had
the potential to bring about diverse negative implications such as the development of cultural shock
among employees, difficulties in cross-cultural communication and cross-cultural conflicts.
Additionally, cross-cultural differences lead to employee turnover in the event where workers were
not able to adjust to new work surroundings (Andresen, Goldmann, & Volodina, 2018).
2. Employee recruitment and selection
Global HR executives continued to face challenges in the identification of the most suitable
expatriates for their organisations. Irrespective of the recruitment and selection approaches that
were applied in Multinational organisations, it was evident that global HR executives faced diverse
constraints in the recruitment procedure such as high advertisement costs, biased recruitment
procedures and ineffective communication amid recruiters and applicants. Availability of the
challenges increased inefficiencies in the recruitment process of multinational organisations.
Additionally, it was further identified that HR managers in international contexts continued to face
challenges in the selection of the workers that were most apt for their organisations since they did
not consider a wide variety of aspects during the process of employee recruitment and selection.
Centred on the results HR executives needed to select individuals with high levels of cultural
intelligence, those willing to work in new work surroundings and with diverse communication
skills as well as those with high levels of self- motivation (Ananthram & Chan, 2013)
3. Career growth and development
The results unveiled that employees that worked in international contexts felt that their skills and
competencies were not effectively utilized or did not match the prevailing technological trends
thus making career growth and development one of the critical challenges in IHRM. This means
that career growth and development entailed the actions that sought to enhance the profession of
workers in international contexts (Imna & Hassan, 2015). The findings showed that career growth
and development opportunities in IHRM were gender-biased, which consequently reduced the
confidence of female workers to engage in international assignments.
4. Legal Risks
From her article, it showed that IHRM continued to face legal challenges, mainly due to the fact
that different nations have diverse policies that govern such aspects as tax and employee
remuneration. It thus meant that it was the role of global HR executives to ensure that when local
firms were established in diverse jurisdictions, there was the evaluation of any distinctions amid
company policies and regulations of the host nation on such matters as tax and remuneration of
staff. The result ascertained that HR administrators in international contexts needed to align firm
policies with national policies in host nations to mitigate incidences of the closure of organizations
due to non-compliance (Prystupa, 2017). Streamlining firm policies on tax, remuneration, business
ethics and sustainability with those of the host country increased the chances of organizational
success since there was minimal organizational disruption by governmental officials due to
deviations of firm regulations from the set national policies. It was, however, apparent that HR
executives needed to be aware that the establishment of new firm policies could affect the firm
and employees (Ananthram & Chan, 2013). In particular, there were incidences where new
policies would increase employee displeasure, which consequently reduced their productivity and
business profitability. The implication of the results was that when adjusting firm policies to meet
national requirements, HR managers needed to involve employees or their representatives in the
process to avoid incidences of employee resistance. Further, it was also evident that whilst
alignment of national and organisational regulations was important in IHRM, HR administrators
needed to ensure that policies of parent and subsidiary companies were interrelated to eliminate
incidences where workers in some jurisdictions would be viewed to receive preferential treatment.
5. Business ethics and values
The establishment of business ethics and values that would direct employees in multinational
corporations (MNCs) was a major challenge in IHRM. In particular, the establishment of
subsidiary firms necessitated the establishment of new ethical guidelines that would govern the
conduct of workers in new jurisdictions. Precisely, ethics guided employees on how to address
aspects related to culture, relationships or even communication. Ethics directed the conduct of
workers in international contexts, thus eliminating an instance where workers in diverse
jurisdictions portrayed distinctive behaviors (Prystupa, 2017). Some of the aspects that made it
challenging for global HR executives to establish universal ethics and values in MNCs were
cultural differences as well as differences in the time zones of various nations. Failure to establish
universal ethical values in parent and subsidiary companies resulted in the emergence of incidences,
where employees in some jurisdictions showed to compromise firm values. This meant that lack
of universal ethical considerations in institutions resulted in the development of occurrence where
workers compromised the set ethical rules (Ananthram & Chan, 2013).
References
Adler,H.,& Leng,X. (2014). AsianJournal of BusinessandManagement,2(2). Issuesfaced by human
resourcesmanagersof multinationalhotelsin China.
Ananthram,S.,& Chan,C. (2013, June).challengesandstrategiesforglobal humanresourceexecutives.
perspectivesfromCanada and theUnited States,31(3),223-233.
Andresen,M.,Goldmann,P.,&Volodina,A.(2018).EuropeanManagementReview. Do overwhelmed
expatriatesintend to leave? The effectsof sensory processing sensitivity,stress,and social
capital on expatriates'turnoverintention,315-328.
Glazyrina,M. (2020, November23).HumanResource ManagementChallengesof InternationalBusiness
and theirpossiblesolutions.
Imna,M., & Hassan,Z. (2015). International Journal of Accounting&BusinessManagement. Influenceof
human resourcemanagementpracticeson employeeretention in Maldivesretail industry,50-80.
Prystupa,K.R. (2017). Journal of Entrepreneurship,ManagementandInnovation. TheRoleof
OrganizationalCulturein KnowledgeManagementin Small Companies,151-174.

More Related Content

Similar to 02-Challenges in IHRM.docx

After readingwatching the attachments, share your views on the foll.docx
After readingwatching the attachments, share your views on the foll.docxAfter readingwatching the attachments, share your views on the foll.docx
After readingwatching the attachments, share your views on the foll.docx
milissaccm
 
388-690-1-SM.pdf
388-690-1-SM.pdf388-690-1-SM.pdf
388-690-1-SM.pdf
ssuser0e7342
 
Employee Profile & Perception of Talent Management in Indian Organizations
Employee Profile & Perception of Talent Management in Indian OrganizationsEmployee Profile & Perception of Talent Management in Indian Organizations
Employee Profile & Perception of Talent Management in Indian Organizations
iosrjce
 
RUNNING HEAD Dynamic OrganizationsDynamic Organizations15.docx
RUNNING HEAD   Dynamic OrganizationsDynamic Organizations15.docxRUNNING HEAD   Dynamic OrganizationsDynamic Organizations15.docx
RUNNING HEAD Dynamic OrganizationsDynamic Organizations15.docx
joellemurphey
 
Assignment 4 Analysis of the Agency’s Policies, Procedures, and P.docx
Assignment 4 Analysis of the Agency’s Policies, Procedures, and P.docxAssignment 4 Analysis of the Agency’s Policies, Procedures, and P.docx
Assignment 4 Analysis of the Agency’s Policies, Procedures, and P.docx
braycarissa250
 
Contemporary issue in human resource management revised
Contemporary issue in human resource management revisedContemporary issue in human resource management revised
Contemporary issue in human resource management revised
musyokasaff
 
MM Bagali...... HR academicians Research paper..... HR Education...... PhD Wo...
MM Bagali...... HR academicians Research paper..... HR Education...... PhD Wo...MM Bagali...... HR academicians Research paper..... HR Education...... PhD Wo...
MM Bagali...... HR academicians Research paper..... HR Education...... PhD Wo...
dr m m bagali, phd in hr
 
12Compiled Comprehensive ResearchRobert Bende
12Compiled Comprehensive ResearchRobert Bende12Compiled Comprehensive ResearchRobert Bende
12Compiled Comprehensive ResearchRobert Bende
AnastaciaShadelb
 
12Compiled Comprehensive ResearchRobert Bende
12Compiled Comprehensive ResearchRobert Bende12Compiled Comprehensive ResearchRobert Bende
12Compiled Comprehensive ResearchRobert Bende
ChantellPantoja184
 
Influence of Compensation and Reward on Performance of Employees at Nakuru Co...
Influence of Compensation and Reward on Performance of Employees at Nakuru Co...Influence of Compensation and Reward on Performance of Employees at Nakuru Co...
Influence of Compensation and Reward on Performance of Employees at Nakuru Co...
iosrjce
 
Effect of Human Resource Management Practices on Employees’ Commitment in Tel...
Effect of Human Resource Management Practices on Employees’ Commitment in Tel...Effect of Human Resource Management Practices on Employees’ Commitment in Tel...
Effect of Human Resource Management Practices on Employees’ Commitment in Tel...
ijtsrd
 
• Ryanairs operations have been consistently plagued with emp.docx
• Ryanairs operations have been consistently plagued with emp.docx• Ryanairs operations have been consistently plagued with emp.docx
• Ryanairs operations have been consistently plagued with emp.docx
VannaJoy20
 
International_Compensation.pptx
International_Compensation.pptxInternational_Compensation.pptx
International_Compensation.pptx
RashmiBendre1
 
Expatriate Programme Development
Expatriate Programme DevelopmentExpatriate Programme Development
Expatriate Programme DevelopmentJames N. Banner
 

Similar to 02-Challenges in IHRM.docx (20)

After readingwatching the attachments, share your views on the foll.docx
After readingwatching the attachments, share your views on the foll.docxAfter readingwatching the attachments, share your views on the foll.docx
After readingwatching the attachments, share your views on the foll.docx
 
HRd practices article
HRd practices articleHRd practices article
HRd practices article
 
ram-2- ijmrss
ram-2- ijmrssram-2- ijmrss
ram-2- ijmrss
 
388-690-1-SM.pdf
388-690-1-SM.pdf388-690-1-SM.pdf
388-690-1-SM.pdf
 
Employee Profile & Perception of Talent Management in Indian Organizations
Employee Profile & Perception of Talent Management in Indian OrganizationsEmployee Profile & Perception of Talent Management in Indian Organizations
Employee Profile & Perception of Talent Management in Indian Organizations
 
RUNNING HEAD Dynamic OrganizationsDynamic Organizations15.docx
RUNNING HEAD   Dynamic OrganizationsDynamic Organizations15.docxRUNNING HEAD   Dynamic OrganizationsDynamic Organizations15.docx
RUNNING HEAD Dynamic OrganizationsDynamic Organizations15.docx
 
304 LON International HRM
304 LON International HRM304 LON International HRM
304 LON International HRM
 
Assignment 4 Analysis of the Agency’s Policies, Procedures, and P.docx
Assignment 4 Analysis of the Agency’s Policies, Procedures, and P.docxAssignment 4 Analysis of the Agency’s Policies, Procedures, and P.docx
Assignment 4 Analysis of the Agency’s Policies, Procedures, and P.docx
 
Contemporary issue in human resource management revised
Contemporary issue in human resource management revisedContemporary issue in human resource management revised
Contemporary issue in human resource management revised
 
HR Practiners FINAL paper
HR Practiners FINAL paperHR Practiners FINAL paper
HR Practiners FINAL paper
 
MM Bagali...... HR academicians Research paper..... HR Education...... PhD Wo...
MM Bagali...... HR academicians Research paper..... HR Education...... PhD Wo...MM Bagali...... HR academicians Research paper..... HR Education...... PhD Wo...
MM Bagali...... HR academicians Research paper..... HR Education...... PhD Wo...
 
12Compiled Comprehensive ResearchRobert Bende
12Compiled Comprehensive ResearchRobert Bende12Compiled Comprehensive ResearchRobert Bende
12Compiled Comprehensive ResearchRobert Bende
 
12Compiled Comprehensive ResearchRobert Bende
12Compiled Comprehensive ResearchRobert Bende12Compiled Comprehensive ResearchRobert Bende
12Compiled Comprehensive ResearchRobert Bende
 
Influence of Compensation and Reward on Performance of Employees at Nakuru Co...
Influence of Compensation and Reward on Performance of Employees at Nakuru Co...Influence of Compensation and Reward on Performance of Employees at Nakuru Co...
Influence of Compensation and Reward on Performance of Employees at Nakuru Co...
 
Effect of Human Resource Management Practices on Employees’ Commitment in Tel...
Effect of Human Resource Management Practices on Employees’ Commitment in Tel...Effect of Human Resource Management Practices on Employees’ Commitment in Tel...
Effect of Human Resource Management Practices on Employees’ Commitment in Tel...
 
• Ryanairs operations have been consistently plagued with emp.docx
• Ryanairs operations have been consistently plagued with emp.docx• Ryanairs operations have been consistently plagued with emp.docx
• Ryanairs operations have been consistently plagued with emp.docx
 
Effect of recruitment and selection on employee retention mediating factor of...
Effect of recruitment and selection on employee retention mediating factor of...Effect of recruitment and selection on employee retention mediating factor of...
Effect of recruitment and selection on employee retention mediating factor of...
 
Recent changes
Recent changesRecent changes
Recent changes
 
International_Compensation.pptx
International_Compensation.pptxInternational_Compensation.pptx
International_Compensation.pptx
 
Expatriate Programme Development
Expatriate Programme DevelopmentExpatriate Programme Development
Expatriate Programme Development
 

02-Challenges in IHRM.docx

  • 1. CHALLENGES ASSOCIATED WITH INTERNATIONAL HUMAN RESOURCES MANAGEMENT In her article, Mariia Glazyrina, titled ‘Human Resource Management Challenges of International Business and their possible solutions’ she found the following as main challenges (Glazyrina, 2020). 1. Cultural differences It was unveiled by the results that human resource managers in international contexts faced challenges in managing cultural differences among employees. Founded on the outcomes, cultural distinctions emanated from differences in employees' nationality, ethnicity and religion. The findings were compared with the assertion that differences in the nationality and background of workers led to the emergence of cultural issues in IHRM (Adler & Leng, 2014). It was identified that globalization was the precursor to cultural diversity in multinational corporations since it enabled parent companies to establish subsidiaries in different parts of the world. Ineffective management of cultural differences among workers could increase the risk of organisational failure since employees faced challenges associated with cultural adjustment. The cultural differences had the potential to bring about diverse negative implications such as the development of cultural shock among employees, difficulties in cross-cultural communication and cross-cultural conflicts. Additionally, cross-cultural differences lead to employee turnover in the event where workers were not able to adjust to new work surroundings (Andresen, Goldmann, & Volodina, 2018). 2. Employee recruitment and selection Global HR executives continued to face challenges in the identification of the most suitable expatriates for their organisations. Irrespective of the recruitment and selection approaches that were applied in Multinational organisations, it was evident that global HR executives faced diverse constraints in the recruitment procedure such as high advertisement costs, biased recruitment procedures and ineffective communication amid recruiters and applicants. Availability of the challenges increased inefficiencies in the recruitment process of multinational organisations. Additionally, it was further identified that HR managers in international contexts continued to face challenges in the selection of the workers that were most apt for their organisations since they did not consider a wide variety of aspects during the process of employee recruitment and selection. Centred on the results HR executives needed to select individuals with high levels of cultural
  • 2. intelligence, those willing to work in new work surroundings and with diverse communication skills as well as those with high levels of self- motivation (Ananthram & Chan, 2013) 3. Career growth and development The results unveiled that employees that worked in international contexts felt that their skills and competencies were not effectively utilized or did not match the prevailing technological trends thus making career growth and development one of the critical challenges in IHRM. This means that career growth and development entailed the actions that sought to enhance the profession of workers in international contexts (Imna & Hassan, 2015). The findings showed that career growth and development opportunities in IHRM were gender-biased, which consequently reduced the confidence of female workers to engage in international assignments. 4. Legal Risks From her article, it showed that IHRM continued to face legal challenges, mainly due to the fact that different nations have diverse policies that govern such aspects as tax and employee remuneration. It thus meant that it was the role of global HR executives to ensure that when local firms were established in diverse jurisdictions, there was the evaluation of any distinctions amid company policies and regulations of the host nation on such matters as tax and remuneration of staff. The result ascertained that HR administrators in international contexts needed to align firm policies with national policies in host nations to mitigate incidences of the closure of organizations due to non-compliance (Prystupa, 2017). Streamlining firm policies on tax, remuneration, business ethics and sustainability with those of the host country increased the chances of organizational success since there was minimal organizational disruption by governmental officials due to deviations of firm regulations from the set national policies. It was, however, apparent that HR executives needed to be aware that the establishment of new firm policies could affect the firm and employees (Ananthram & Chan, 2013). In particular, there were incidences where new policies would increase employee displeasure, which consequently reduced their productivity and business profitability. The implication of the results was that when adjusting firm policies to meet national requirements, HR managers needed to involve employees or their representatives in the process to avoid incidences of employee resistance. Further, it was also evident that whilst alignment of national and organisational regulations was important in IHRM, HR administrators needed to ensure that policies of parent and subsidiary companies were interrelated to eliminate
  • 3. incidences where workers in some jurisdictions would be viewed to receive preferential treatment. 5. Business ethics and values The establishment of business ethics and values that would direct employees in multinational corporations (MNCs) was a major challenge in IHRM. In particular, the establishment of subsidiary firms necessitated the establishment of new ethical guidelines that would govern the conduct of workers in new jurisdictions. Precisely, ethics guided employees on how to address aspects related to culture, relationships or even communication. Ethics directed the conduct of workers in international contexts, thus eliminating an instance where workers in diverse jurisdictions portrayed distinctive behaviors (Prystupa, 2017). Some of the aspects that made it challenging for global HR executives to establish universal ethics and values in MNCs were cultural differences as well as differences in the time zones of various nations. Failure to establish universal ethical values in parent and subsidiary companies resulted in the emergence of incidences, where employees in some jurisdictions showed to compromise firm values. This meant that lack of universal ethical considerations in institutions resulted in the development of occurrence where workers compromised the set ethical rules (Ananthram & Chan, 2013). References Adler,H.,& Leng,X. (2014). AsianJournal of BusinessandManagement,2(2). Issuesfaced by human resourcesmanagersof multinationalhotelsin China.
  • 4. Ananthram,S.,& Chan,C. (2013, June).challengesandstrategiesforglobal humanresourceexecutives. perspectivesfromCanada and theUnited States,31(3),223-233. Andresen,M.,Goldmann,P.,&Volodina,A.(2018).EuropeanManagementReview. Do overwhelmed expatriatesintend to leave? The effectsof sensory processing sensitivity,stress,and social capital on expatriates'turnoverintention,315-328. Glazyrina,M. (2020, November23).HumanResource ManagementChallengesof InternationalBusiness and theirpossiblesolutions. Imna,M., & Hassan,Z. (2015). International Journal of Accounting&BusinessManagement. Influenceof human resourcemanagementpracticeson employeeretention in Maldivesretail industry,50-80. Prystupa,K.R. (2017). Journal of Entrepreneurship,ManagementandInnovation. TheRoleof OrganizationalCulturein KnowledgeManagementin Small Companies,151-174.