Problems in Multinational Human Resource Management, Research Paper Example

It has been reported in studies that multinational human resource management (HRM) experiences constant problems because when companies are scattered all over the world, environmental changes often occur. Environmental changes can be in terms of the cultural environmental change (which has been considered as one of the major problems in HRM), economic environment, legal environment, and lastly the political environment. It has been discovered that multinational companies experience a lot of problems when people of a certain country change their lifestyle. This is not a good thing for HRM because employees of a certain country will want a lot of changes in the whole system so that their values, beliefs, art and customs can be incorporated into the company for them to achieve their goals.

It is also clear that different countries have different cultures and people are so strict in their cultures. When the political environment changes, the HRM also has a problem because some politicians put policies on products for their own personal interests and people become reluctant when it comes to working hard at companies. When the politicians control multinational companies, it has been discovered that they employ close relatives who head companies while they are not skilled and this makes the employees lack confidence in their new leaders. When the economy of a certain country goes down, the HRM has a lot of problems because employees will be paid less money and the benefits might reduce. This in the very end might lead to employees being laid off or employees finding better jobs than those of multinational companies. The legal environment can also cause problems for HRM when a country is laying a lot of taxes on goods and services on products and services. Some countries do not allow employees to enjoy their salaries because the taxes and tariffs put on goods and services are so high people tend to quit legitimate jobs to evade the expensive taxes.

Methods Used to Evaluate a Foreign Subsidiary Manager

The methods used to evaluate a foreign subsidiary manager are quite simple. A person has to know if the personal contacts of the manager are given to clients in case of transactions. This is social exchange in the sense that the manager makes the investor feel secure about trading with a foreign company. It has been discovered that the approach of interacting with clients has already demonstrated that in the industrial markets, the transactions can be made without personal contacts but the importance of personal contacts is often contingent on risk and uncertainty levels that are often perceived by the parties that are interacting.

A person can also look at the infrastructure a foreign manager uses to carry out his business. The manager should be able to exchange information, services or products, money and also warrantee for certain products in case they are damaged or are not perfect. It has been discovered that a manager who exchanges personal contacts and does negotiations influences trust level among the parties that are interacting. Managers should be able to accommodate the different cultures in different countries because clients can be from other countries and negotiations can be misunderstood if they are not well made. Another way to evaluate a foreign manager is by checking how they bridge weak ties in a company. This often helps the firm to have long term survival in the market both locally and also globally. Foreign managers are often evaluated on the basis of their negotiations, business transactions and the level of trust their clients have on them because they deal with their clients personally.