Challenges Faced by Multinational Companies - Term Paper Example

The paper 'Challenges Faced by Multinational Companies' is a great example of a management term paper. The business has changed rapidly in recent times owing to the development in various domains. This development has been in the form of technological advancement, emergence of new business theories and concepts. This aspect has benefited the business units all over the world and has also led towards augmenting the competition amid the players within the global platform (Noe, 2008). Contextually, companies need to develop effective strategies to sustain and gain a competitive advantage over rivals.

In this regard, business units need to ensure effectiveness in each of the business functions, including marketing, finance, operations, and human resources. This particular study will present an extensive discussion about the importance of human resource management (HRM) in strengthening any business's operational efficacy.Notably, the concept of Human Resource Management (HRM) is a modern-day phenomenon, which primarily involves managing people by determining a particular mode that influences them to accomplish any business's set objectives.

In the present day context, Human Resource (HR) functions for companies include tools that are used to conduct an accurate analysis of individual and group-level efficiencies of the people in the workplace, which are utilized towards enhancing productivity and attaining sustainable growth for the overall business (Broad, 1997). In this particular essay, a few of the significant challenges confronted by the multinational companies in the three domains of human resource management, i.e., International recruitment and selection, reward and compensation, and Performance management, will be depicted.

Contextually, the essay will provide recommendations that will help companies deal with the aforementioned challenges up to an extent. With the advent of globalization, companies are seen to be expanding their operations across regional, national, and international boundaries to develop a strong reputation for themselves in the global business environment.