Management of People in Multinational Enterprises Essay

Management of People in Multinational Enterprises - Essay Example This paper illustrates that while this has generally benefited the people living the country by providing them the wide range of products, availability of all kinds of products, competitive prices and increased job opportunities, it has had a challenging impact on the multinational enterprises. Such companies also are known as MNCs have been facing issues of managing its resources and operations in the global arena. P. V. Morgan defines International Human Resource Management or IHRM as ‘the interplay between three dimensions: †¦ human resource activities, types of employees and countries of operation’. Thus IRHM is an extension of the typical human resource management which includes six functions: human resource planning, staffing, performance appraisal and management, training and development, compensation and motivation and industrial relations. While all these activities are included within IHRM, the function of IHRM is includes managing the different types of e mployees. In IHRM, three kinds of employees are defined: host country employees, home country employees, and other country employees. In the same manner, countries of operation include three kinds of countries: host country, home country, and another country. The host country is where the company is operating; home country refers to the country where the company maintains its headquarters and other country is any country that is related to the company in terms of labor, finance etc. Globalization has greatly changed the way that companies operate and do this and IHRM is one function that has been developed as a result of the increase in globalization at such a rapid rate. The expansion of companies in different countries has made the function of IHRM necessary as globalization has brought together people from different countries, cultures, status, and gender.