Inter-country Diferences

Running Head: BUSINESS 1

Inter-Country Differences

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BUSINESS 2

Managing human resources in different countries with diverse economies, culture and

political systems poses a great challenge to managers. However, when carefully tackled, it

becomes easier to perform functions and the management pays dividends. Many global

companies have the opportunity of employing a workforce that can be competitive in the world

market from the large population, globally. Equally, these companies face challenges that can

jeopardize their businesses leading to collapse. This paper shows how inter-country differences

affect human resources in different markets.

To start with, there is the problem of adapting hiring and holding strategies to prepare for

the future changing workforce. Developed countries have a dwindling population that has little to

offer in terms of providing a workforce (Brewster, Houldsworth, Sparrow, & Vernon, 2016,

p.67). On the other hand, developing economies have a large population of unemployed youth

who in most cases are not that skilled. These two factors combined cause shortages in the

companies. To gain market efficiencies as well as acquire strategic assets pushes a need for the

vacancies to be filled with older workers and sometimes cross-border migration. Organizations

also have a challenge in dealing with older workers because they are prone to several physical

disabilities compared to the youth, despite their experience.

Secondly, there are difficulties that arise from hiring, managing and integrating a global

workforce. Transnational companies have to do a lot in terms of hiring a talented workforce in

order to maintain their stand in the market (Briggs & Whalen, 2010, p.59). Using

communications technology and cross-border migration are just some of the methods that will

work for such companies. Sourcing for workers in different countries cost effectively is not

cheap and may come with challenges. For example, a business consulting company, Infosys, had

to hire Chinese graduates for their task force in Mysore, India. The company had to hire an

BUSINESS 3

English teacher for these Chinese to teach them how to speak the English language. It was very

expensive.

Different countries have different economic systems. Therefore, the cost of living in

various cities in different parts of the world vary greatly. In developed countries, for instance,

salary levels are high and the cost of living low (Marinova, Larimo, & Nummela, 2016, p.93).

Global corporations have to consider the cost of living in different countries while establishing

and expanding their businesses. A look into the United States market system shows this

differentiation. United States has a mixed economy integrating both capitalism and socialism.

The government of the U.S. plays a crucial role in ensuring free use of capital while at the same

time attaining social goals.

Unlike the U.S., communism is the dominant economic approach in China. The Chinese

government is aspiring to have a diversified economic approach based on services, finance and

consumption from the middle class, just like the United States (Brewster, Houldsworth, Sparrow,

& Vernon, 2016, p.89). Countries in the European Union have their economies depending almost

entirely on bank lending as opposed to the United States.

Sometimes a multinational company may face challenges that arise from the host

country. Given that different countries have different economic systems and values, it may be

hard for an international organization to carry out its activities without being affected. For

instance, a country may experience high levels of debt at a time when other countries in the

region are enjoying an economic boom. The demand for goods produced by companies in the

particular country becomes low affecting the multinational companies. Firms may no longer opt

to invest in such countries. In times of economic strains by a country, the makeup policies may

not be favorable for international companies and they may be forced to lay off some workers.

BUSINESS 4

Sourcing for workers in a foreign country is a challenge to many international businesses.

It is important that the human resource of a company be able to identify the competitiveness of

potential applicants (Marinova, Larimo, & Nummela, 2016, p.78). The firm’s ability to attract

good candidates while recruiting workers lies heavily on its reputation and its profitability. If the

firm pays its employees well, then more people will apply for their jobs, including skilled

workers.

In as much as government may want to encourage businesses opportunities in their

countries and attract foreign investors, there is also the urgency to enact laws that control

business activities and ensure that its citizens also benefit (Briggs & Whalen, 2010, p.31).

Multinational corporations have found it difficult to manage their business in a country like

China. This is due to the assumption that the large population would provide labor for their

companies yet in real sense, the growing economy of China has taken up most of the skilled

workers and has a policy of retaining them for the country’s benefit. Therefore, such companies

experience labor shortage hampering their activities.

Summarily, international human resource undergoes challenges. The boost in global trade

and expansion of multinational companies have continued to increase as they try to sell their

products and services due to technology. Equally, the risks taken by such businesses have made

it difficult for some of them to thrive in other countries. Managing workers, coping up with

diverse cultures and dwindling economic growth in countries make it difficult to do businesses

while traversing the borders.

BUSINESS 5

References

Brewster, C., Houldsworth, E., Sparrow, P. R., & Vernon, G. (2016). International human

resource management.

Marinova, S., Larimo, J., & Nummela, N. (2016). Value Creation in International Business:

Volume 1: An MNC Perspective.

Briggs, V. M., & Whalen, C. J. (2010). Human resource economics and public policy: Essays in

honor of Vernon M. Briggs Jr. Kalamazoo, MI: W.E. Upjohn Institute for Employment

Research.

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Inter-country diferences

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