Issues for Multi-national Organisation Essay Example | Topics and Well Written Essays - 1500 words

Issues for Multi-national Organisation - Essay Example Through operating in various economies in the world, these companies have not only enhanced their brand value but have also done the same for the living standard of many individuals worldwide. However, it cannot be ignored that internationalization of business increases the overall risks of the corporate firms in the modern world. The essay will analyze about the various types of business problems faced by the multinational corporations in the contemporary world. Critical Literature Review Comparing and Contrasting Theories Concepts and Research Findings The business challenges and opportunities faced by the multinational corporations in the contemporary world are increasing rapidly overtime. Especially after the emergence of globalization and liberalization, the developing countries have turned out to be the emerging economies in the world. In China, by the year 2003, about 41000 foreign investors had set up their business operations (Weisert, 2001). With the benefits and help provi ded by the World Trade Organization, the country has also rendered several opportunities for these new foreign companies operating in their economy. However, inspite of these lucrative opportunities, most of them set up their business in China through joint ventures or mergers. For instance, Siemens has set its business firm in China long back in 1982 through a representative’s office (Fryxell, Butler, and Choi, 2004). Coca-cola is another company that operates in China through a joint business with a company which provides similar facilities in Tianjin (Weisert, 2001).These economies (emerging ones like, China) have significantly helped to increase the opportunities of multinational corporations. However, it is also observed that with these growing opportunities, the risks of these firms are also increasing over time. A detailed analysis shows that the extent of challenges faced by these giant organizations is unlimited. The context of this essay will focus on only one of th ese issues which are faced by these corporations. The human resource challenges that are faced by the multinational business firms would be discussed in this essay in details. McKinsey Company in Shanghai has reported that the scope of hiring skilled analysts in China is very low (Farrell and Grant, 2005). Ford in Geelong Australia has claimed to cease its manufacturing unit in the country because the nation’s high currency value have forced the employees to demand for higher wage rates that has excessively augmented the operating cost of the company. One of the most important operations that are executed by any multinational corporation is human resource management. Noe, et al. (2006, p.5) stated that human resource management is that segment of an organization which helps to recruit and develop officials in an organization and also facilitates in sufficing an organizations objectives. The use of human resource management model by the multinational corporations has increased in order to reduce the difficulties in of human resource management (Chen and Wilson, 2003). The practice of standardization of human resource management has been abolished because the impact of environmental and structural changes in the multinational corporations has heightened overtime (McGraw and Harley, 2003). Individuals from different economies differ