International HRM Essay Example | Topics and Well Written Essays - 1000 words

International HRM - Essay Example In this paper, the potential issues that are encountered by the HR managers during overseas operations will be discussed. In order the evaluate the potential problems that are posed to arise in the way of managing an internal level ethnically and culturally diverse workforce, situational analysis appears to be a basic necessity. This situational analysis is aimed at evaluating the global business conditions that are responsible for creation of ethnically and culturally diverse workforces. So the first sub-topic in this discussion is that what are the importance and role of a multi national company (MNC) in the age of globalization? Traditionally, most of the functional MNCs had headquarters located either in USA or UK. Particularly after World War II, the US and UK companies embarked on a policy of consistent world wide expansion, especially in Europe following the implementation of politico-economic measures such as the Marshall Plan (Ferner et al, 2004). But after the break up of Soviet Union, situation changed dramatically. Developing countries and erstwhile communist states began shifting from a conservative socialist economic model towards a liberalist capitalist market framework. Therefore, just after little more than a decade of the fall of communism and decline of international Soviet financial aid, powerful corporations emerged in the developing economies too. In this way, the â€Å"new geography of FDI flows† came into being (UNCTAD, 2004). These FDI flows were not exclusively outflows or inflows. In fact, combinations of FDI outflow and inflow began to germinate between Western countries and Asia Pacific region as early as the 1980s when Japan, China, and Taiwan initiated industrial reforms (Glover and Wilkinson, 2007). In this way, it should be understood that today’s MNCs represent the zeal of the early phases of globalization which advocated for adoption of global standards