Essay on Global Companies

2466 WordsMay 1, 201310 Pages
RESEARCH ESSAY ON GLOBAL COMPANIES Introduction International companies are characterized by many factors among them geographical dispersion, demand for rationalization and differentiation and cultural diversity. These factors pose numerous challenges to international HR managers on how to ensure successful performance of their functions. The paper highlights various challenges the mentioned factors presents to IHRM in their work. It assembles evidence and previous research findings done by other writers. The paper also demonstrates why managing international HR is more difficult than managing HR in a large domestic firm. Challenges presented by geographical dispersion to international HR directors As employees in an international…show more content…
International HR managers also face difficulties determining compensation package among various categories of workers. This is so because of varied nationalities of workers and different levels of economic development in home countries. It therefore becomes hard to determine some form of compensation for instance hardship allowance (Hofstede, 1992). International scene is also more complex due to language differences. This becomes a challenge in ease of accessing company’s documents such as vision and mission statements, company’s records and procedure manuals. Language barriers could also impede communication and sharing of information among the workers. This can only be solved by language standardization (Laurent, 1986). The nature of employee involvement also varies depending on country and institutional factors. Employee involvement is crucial in any organization and results into enhanced communication, coordination of tasks, enhanced information sharing and reduced turnover. Employee involvement is however is influenced by organization and national factors such as industrial relations, financial system, social forces and market forces (Petti and Fadel, 1997). Consequently in a global context, the nature of employment will vary due to diverse national forces. Challenges occasioned by need for rationalization and differentiation to international HR directors. Process of rationalization normally involves lowering of organizations
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