Potential Strategic Problems Facing Human Resource Managers (HRM) Assignment - 1

Potential Strategic Problems Facing Human Resource Managers (HRM) Operating in Multi-National Companies (MNC) - Assignment Example The researcher states that multi-national companies are often located in other international countries apart from the parent country in which it was originally founded.   These multinational companies specialize in the production of a variety of goods or services that are distributed to their other branches in other countries. In addition, there are also those companies that deal with the provision of services that are also spread out in a number of countries all over the world. These include companies engaged in the finance and property investment sector. Banks are often located in various locations all over the world such as Barclays which has its parent country in the United Kingdom but has got branches all over the world. These multinational companies have got high annual sales likely to surpass the economic output of some medium-sized countries. This is realized in the example of General Motors and Shell which have got annual sales higher than the economic output of countries like South Africa and Nigeria. There are about 63,000 multinational companies currently in operation in various locations in the world. These companies contribute to about two-thirds of the global trading activities injecting 80 percent of the investment currently circulating in the money market. Multinational companies enjoy a variety of benefits while operating in other host countries. These include physical proximity to markets whereby they are exposed to larger markets owing to their local and international presence. They also receive host country incentives that are aimed at increasing investment in these countries hence internationalizing production of their products and services. There are numerous challenges that HRM faces when managing members of staff in an organization. Human beings, owing to their cultural, social, political and economic diversity have presented challenges not only to HRM but also among themselves as they seek to interact. The situation is thus made more complex by the relatively higher staffing requirements of MNC. However, such multinational companies pose significant challenges to the human resource managers (HRM) resulting to the complex structures involved in the development of multinational companies (MNC).