Human Resource Managers (HRM) Challenges In A Networked Firm

Question: What are the specific HRM challenges in a networked firm? Answer: Introduction The transition in economies is posing a challenge in the human resource practices. HR managers are finding difficulties in imbibing cross-cultural differences in their practices. Big multinational organizations are using centralized networking system to manage and control its branches across the border. Globalization has led to worldwide cross cultural exchange of technology, goods, and services. It has created a competitive environment, which has posed major challenge on managing the human resource practices (Armstrong, 2016). HRM Challenges Controlling international operations and routines while implementing polices in different countries causes critical issues. The diverse culture has caused high level of complexity in managing the resources as per the local environment. Multinational organization is focusing on utilizing the local people by instilling the company culture through training process. The aim of realizing the local receptiveness is to value the culture, law, education system. Cross cultural operations legal compliances The IHRM is facing multiple challenges while managing cross cultural operations. It is difficult for a company to manage an integrated system when it is operating in different countries. Every country has different work environment which makes it difficult to manage from a centralized zone. Moreover the legal compliances are causing difficulty in managing the human resource practices. Certain countries has developed a strict labor law which is imposing difficulty in smooth operations (Briscoe,Schuler Tarique,2012). Delegating authority Communicating information across different countries has caused difficulty while implementing the policies. Centralized system has caused various issues related to policies implementation. It becomes difficult to frame policies according to the different country culture and law. Creating authority in networked firm is a serious challenge. The HRM is facing serious troubles while delegating authority on various people. Creating responsibility on staff is a serious concern to be taken care with proper measures. Introducing the local staff with the training process is sometimes difficult to handle. (Dowling, Festing,Engle,2008). Dispersing of the crucial functions The success of a firm depends upon the choices of standardizing the factors which are held liable to balance the operation. A successful enterprise runs on the multinational strategy which is supported by the organizational structure. Scattering the crucial functions in a networked firm poses difficulty on a long run. Standardization localization Standardizing the human resource practices in different countries has created the complexities for the multinational organizations. It is causing a threat on pursuing the inherent mission. While expanding a business function in other countries, it becomes difficult for the company to carry forward its aim while managing the local staff (Evans,Bjrkman. Pucik,2011). Conclusion Managing the cross cultural organization is a crucial issue while managing human resource practices. The differentiation of the model in the home and host country affects the human resource practices. International human resource practices vary from country to country due to different environment. It has become important for an organization to adopt a dynamic human resource practices to ensure a focus on the mission of the organization. References: Armstrong, M.2016. Strategic Human Resource Management. Kogan Page Publishers Briscoe, D. Schuler, R. Tarique, I.2012. International Human Resource Management: Policies and Practices for Multinational Enterprises. Taylor Francis Dowling,P., Festing,M.. Engle, A.2008. International Human Resource Management: Managing People in a Multinational Context. Cengage Learning EMEA Evans, P., Bjrkman, I. Pucik, V. 2011. The Global Challenge: International Human Resource. McGraw-Hill Management