Question

Answer the following question in short essay form. Identify the three most critical human resource management challenges that multinational companies operating in developing countries face. Explain your answer.

Answer 1

All multinational firms encounter complex legal and ethical issues when conducting business abroad. HR must build a global employee community that aligns with the parent company's values and identity. But diverse languages, cultures and customs can hinder this alignment. Multinational firms can also expect to confront human rights, social equity and environmental problems in developing countries, which often undermine their ability to compete fairly in the global marketplace. In addition, risks are especially high for multinational companies with subsidiaries in politically or physically vulnerable regions of the world. Multinational companies require to focus on protecting employees and the workplace from harm.