Essay Example on International Human Resource Management

Published: 2019-05-30
Essay Example on International Human Resource Management
Type of paper:  Essay
Categories:  Management Human resources International relations
Pages: 3
Wordcount: 587 words
5 min read

Differences between MNCs and Single-Nation Firms

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According to Bonanno & Antonio (2012), a multinational corporation (MNC) is an enterprise that owns and controls assets in one or more countries other than its home country. Single-nation firms are those organizations that have a nationwide operation in one particular country. Similarly, the operations of single nation firms do not extend beyond the borders of their country of operation while those of multinational corporations are operated throughout the world. Additionally, the ownership of MNCs is mostly uninational (owned by people of different nationalities) while that of single nation firms is national (Bonanno & Antonio, 2012). The other difference between multinational corporations and single nation firms is pegged on the nature of their businesses. While multinational corporations are mostly exporters, single nation firms are in most cases, importers. Specifically, MNCs export their products to the other countries where their other businesses are in operation. Single-nation firms having the presence in only one country, imports goods and services from other countries to foster their growth in their country of registration and operation.

How MNCs Manage Their HR and Challenges They Face

Due to their global nature, MNCs have many employees who perform different roles in different countries. To manage their human resources, MNCs have to holistically consider their foreign assignment. In order to ensure efficiency, they must train the employee so as to familiarize them with the challenges of their work. The human resources must be adequately remunerated since most of them have to leave their native countries and work abroad. In particular, their labor relations must be harmonious to avoid unrests and strikes by trade unions (Bonanno & Antonio, 2012).

Stahl and Morris (2012) underscore challenges that are faced in management of human resource in MNCs. The assignment of foreign jobs is an aspect that gives MNCs food for thought. To move an individual from his native country requires the making of very critical decisions. Also, the movement is costly especially when a person has to move with his family. The cost of salaries is also another challenge that MNCs face. They have to pay a lot of money to expatriates as well as the many employees that work for the company.

Top Three Challenges for the US- Based Businesses in Expanding Overseas

The United States has many multinational corporations that are important to the economic welfare of the country. Notably, they account for almost 75% of the US of labor productivity (Bonanno & Antonio, 2012). However, these organizations face many challenges that if not well handled can contribute to their failure. First, MNCs may get the wrong impression of the international market that in turn contributes to their stagnation. The underestimation of the operating costs in those other countries is the second challenge that leads to narrow expansion. Lastly, the wrong advice or the failure to get expert advice offered to those companies is very detrimental to their success. Specifically, the companies rely on the advice of professionals to make major decisions that can affect their market profitability. If that advice is incorrect; the failure of the company is inevitable according to Becker-Olsen and Moynihan (2013).


Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management practice. Kogan Page Publishers.

Becker-Olsen, K., & Moynihan, K. (2013). Business for Social Responsibility. In Encyclopedia of Corporate Social Responsibility (pp. 260-262). Springer Berlin Heidelberg.

Bonanno, A., & Antonio, R. J. (2012). Multinational Corporations. The Wiley-Blackwell Encyclopedia of Globalization.

Stahl, G. K., Bj, I., & Morris, S. (Eds.). (2012). Handbook of research in international human resource management. Edward Elgar Publishing.

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