Challenges Faced by Multinational Companies - Term Paper Example

The paper 'Challenges Faced by Multinational Companies" is a perfect example of a human resources term paper. Globalisation along with revolutionary changes in technologies has provided tremendous opportunities for domestic business organisations to expand their business beyond the national periphery to overseas markets (Geiersbach, 2010). In the present competitive environment, proper application of human resources has become much necessary and for that reason, all multinational companies have become aware regarding the recruitment of talented and competent human resources in their organization (Farndale, Scullion and Sparrow 2010).

Most international organizations not only focuses on the profits and labour markets but also keeps proper track of the needs for skilled staff members along with the implementation of effective human resource (HR) practices. Effective practice of HRM encourages the effectiveness of the staff members to achieve their set goals and objectives. The role of the staff members does not end with the meeting of the goals but also understand the organizational culture in a more comprehensive and face all kinds of organizational challenges.

It is also observable that multinational companies, strive to develop effective human resource policies and practices in order to educate employees regarding their multiple tasks and also come up with the changing employment laws of the foreign countries (Perkins and Shortland 2006). Effective human resource management (HRM) policies have been the basis for the success of all the multinational companies in the world (Farndale and Paauwe 2005). Thus, in this essay, three of the major challenges that are being confronted by multinational companies in the modern-day context will be discussed i.e. International recruitment and selection, reward and compensation and performance management.

In the subsequent section, recommendations will be provided for the organizations to deal with the aforesaid challenges in the modern context.Challenges Faced by Multinational Companies It has been stated in the earlier description that in the current scenario, most multinational companies are confronting several challenges in their operation. Few of the challenges have been described in the below-mentioned study.