Multi-national companies need to focus on three key areas to succeed: rigorous selection processes to identify the best candidates, preparatory training courses to improve skills, and understanding of cultural differences. The selection process helps filter candidates who are qualified, passionate, and understand their abilities. Training courses increase workforce standards and help achieve business goals. Managing cultural diversity allows firms to integrate locally and create unique products. If multi-national companies concentrate efforts on these three human resource areas, they will likely outperform domestic competitors.
Multi-national companies need to focus on three key areas to succeed: rigorous selection processes to identify the best candidates, preparatory training courses to improve skills, and understanding of cultural differences. The selection process helps filter candidates who are qualified, passionate, and understand their abilities. Training courses increase workforce standards and help achieve business goals. Managing cultural diversity allows firms to integrate locally and create unique products. If multi-national companies concentrate efforts on these three human resource areas, they will likely outperform domestic competitors.
Multi-national companies need to focus on three key areas to succeed: rigorous selection processes to identify the best candidates, preparatory training courses to improve skills, and understanding of cultural differences. The selection process helps filter candidates who are qualified, passionate, and understand their abilities. Training courses increase workforce standards and help achieve business goals. Managing cultural diversity allows firms to integrate locally and create unique products. If multi-national companies concentrate efforts on these three human resource areas, they will likely outperform domestic competitors.
Multi-national companies need to focus on three key areas to succeed: rigorous selection processes to identify the best candidates, preparatory training courses to improve skills, and understanding of cultural differences. The selection process helps filter candidates who are qualified, passionate, and understand their abilities. Training courses increase workforce standards and help achieve business goals. Managing cultural diversity allows firms to integrate locally and create unique products. If multi-national companies concentrate efforts on these three human resource areas, they will likely outperform domestic competitors.
According to Mitroff (1987: ix), for all practical purposes, all business today is global. Those individual businesses, firms, industries, and whole societies that clearly understand the new rules of doing businesses in a world economy will prosper; those that do not will perish.With the concept of a world economy, the business sector has seen significant growth of companies that have registered and expanded their operations in more than one country, or, multi- national companies.However, in prospering, multi-national companies have come up against a different set of issues than just those that only relate to doing business globally. These issues are focused more on the way in which working practices exist in different countries, particularly in respect to selection process, the pressure of training, and culture-shock phenomenon in the working environment. This paper argues that, in long-term, multinational firms need to concentrate on three areas in order to achieve success: the selection process in terms of Human Resource strategies including, preparatory training courses and raising cross-cultural sensitivity awareness. The selection process is the first important reason why multi-national companies would achieve success.Not only could this process support for identifying potential candidates but it also might be a way to respect them. This process has probably included numerous steps such as written tests, oral examinations and handling unexpected situations in order to challenge the applicants. To achieve an occupation in a multinational company, they have to conquer these tests and also be able to speak international different languages. This rigorous selection process could filter those who have real ability, expressing outstanding attitude and a passion for a global job. It leads to fewer challengers, who understand profoundly their ability, applying for a vacancy in a multinational firm while the domestic one has much more applicants who have lower required standard. Because of the surplus of candidates, domestic firms seems to think that they could easily hire and fire their employees. Therefore, the salary of workers could be reduced and they would not be respected because the domestic firms can dismiss them and find the other candidates easily. Moreover, from candidate viewpoint, after conquering all challenging tests, they would feel proud of themselves and then devoting their energy for working. As a result, it is probable that with this concept of the recruitment process, multi- nationals could select the best employees who satisfy required knowledge, appropriate skills and good attitude to support the company to achieve its goal.
Secondly, preparatory training courses for international workers would be another necessary consideration for the success of multinational firms. The main purposes of these courses are building sustainable development and sharpening specifiable skills of workers. In his journal, Columbia Journal of World Business, Tung (1981) remarked that the percentage of Japanese companies conducted preparatory training program was nearly doubled that of US, respectively 57% and 32%. Besides, the same figure reported in early research by Baker and Ivancevich (1971) also noted that this figure has remained virtually unchanged over the last two decades. Then, Mendenhall &Oddou (1985) concluded that the deficiency on US corporations in setting up preparatory trainings led to its high expatriate failure rates 25 40% when compared with Japanese. According to the aforementioned statistics, no sooner do firms contribute the preparatory courses for their international employees than they can increase workforces standard and ultimately achieve sustainable business goals. In addition to the benefits of company, the employees could study necessary skills for the particular recruitment requirements. Consequently, preparatory training courses can be considered as an essential foundation of human resource management of multinational companies. Finally, cross cultural sensitivity would be the final key factor that multinational firm need to understand and manage to get success. Cross-cultural sensitivity is a phrase describing the cultural awareness and acceptance. Multinationals examine and utilize this key not only to integrate with the local market but also to create differences and uniqueness in their products. In fact, to integrate with a particular market, the firm has to investigate about its local custom and flavours, and then, produce appropriate goods. If the firm produce food and services which have similar taste with the local, their products would easily be accepted. For example, Kentucky Fried Chicken (KFC) has been successful in China with more than 4000 outlets because it has adapted with local taste by using local herbs and rice, changing its recipe as similar as the taste preference of Chinese customers and markets. As a result, according to Ruggless (2013), KFC is the most preferred global chain supplying fast food in China, exceeding its rival - McDonalds. Beside, the cultural diversity can create differentiation in firms products. Adler (1986) discussed about the cultural synergy, he stated that when they need differentiation, firms that recognize cultural diversity can use the differences to gain multiple perspectives, develop wider ranges of options ... heighten creativity ... increase flexibility in addressing culturally distinct client. Consequently, recognizing and managing cultural differences would have an essential role for the success of a multination company.
In conclusion, to develop and obtain victory in global business, all kinds of firm have to realize and practice new global business concepts as Ian Mitcroff stated. This essay has provided the reason and evidence about the essential areas in human resource management that these global firms should consider thoroughly. Although multinational firms have struggled with particular difficulties due to its working pressure and high-standard requirement, these firms will expect success and visibly exceed the domestic ones if they provide a focus on three areas, specifically in human resource management: the selection process, the preparatory training courses and the acknowledgement of cultural diversity. These sections potentially might play an important role in the success of global companies not only at the present but also in the future.
Bibliographies: Adler, N. J. (1986), Human Resource Management, New York: Walter de Gruyter. Baker, J. C and J. M. Ivancevich (1971), A Global Perspective. In Pieper, R. (ed.) Human Resource Management: An International Comparision. New York: Walter de Gruyter. Press: 235-244. Mitcroff, Ian I. (1987) Business not as usual, San Francisco: Jossey Bass Publishers. Mendenhall, M. E. and G. R. Oddou (1985), A Global Perspective. In Pieper, R. (ed.) Human Resource Management: An International Comparision. New York: Walter de Gruyter. Press: 235-245. Tung, R. (1981): Selection and training of personnel for overseas assignments, Columbia Journal of World Business, 16/1: 68- 78. Ruggless, R. (2013) KFC, McDonalds among most powerful brands in China. Available from: http://nrn.com/international/kfc-mcdonalds-among-most-powerful-brands-china. Accessed September, 2013.