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Roles of an International HR Manager to Identify Possible HR Issues, Which Have Led to Crisis Report (Assessment)

Critical evaluation of roles of an International HR Manager (IHRM) to help identify possible HR issues, which have led to this crisis

International HR (IHR) management aspects have numerous roles influencing operations of any given multinational corporation (MNC). Similarly, it can affect the financial performance of any given country; however, this varies from one state to the next. Contextually, it is possible to unveil the HR issues that led to the crisis (evident in the case provided) upon critical evaluation of IHR Managers’ roles.

Financial meltdown, recessions, and inflations are some of the crisis evident in the case. IHR manager’s roles in any MNC might eventually affect the prosperity and financial aspects of the concerned organization and the country of operation. There are HR issues that have led to the noticed economic meltdown (Davies 2010). Firstly, IHR managers should ascertain the nature of international operations that the business intends to assume.

This means that IHR manager must recognize the international labour demands, focus on the available human capital, create more employment opportunities, and provide lucrative working conditions to increase the productivity of the workforce, reduce unemployment cases, and help in averting the localized and globalized economic hitches witnessed in the case provided. This forms the roles of IHR helpful in identifying the possible HR issues evident in the case provided.

HR has the role of sourcing viable employees who can propel the operations and growth of the concerned companies in order to realize remarkable economic results. It is from this context that an IHR can contribute massively to an economic crisis or flourish. It is evident that the aspects of international labour market similarly contribute to the ultimate global production and financial stability. Failure to manage such international human capital properly has a devastating impact on the national and international economic downturn.

In this context, it is the mandate of IHR manager to ensure that he or she sources cheap and competent labour that will help in propelling the productivity of the concerned MNCs (Forrest 2011). For example, the mentioned internationalized banking corporations like Bank of England, European Central Bank, and Halifax Bank of Scotland among others (MNCs) can utilize their IHR provisions in order to avert the witnessed economic meltdown (Ferrell & Fraedrich 2012).

From this context, it is agreeable that IHR has critical roles in managing the global labour market and operation of internationalized businesses hence contributing significantly to the economic prosperity or plunge as noticed in the provided case.

Evidently, IHR manager of any MNC is expected to establish policies and practices that govern the available human capital to conform to the organizational strategies and performance objectives. This relates to overall economic performance of the involved countries. It is evident that the formulated policies should conform to the cultural, social, political, lawful, and fiscal factors of the concerned country (Bauernberger 2007).

Upon establishing and ratifying such policies, IHR manager is capable of regulating the global labour market, source for appropriate human capital, standardize the HR provisions, and help in preventing the noticed economic hiccups that plunged numerous organizations in US, UK, England, and most of the European countries. Precisely, the policies established, enacted, and embraced by the HR is capable of dictating the international presence of any given business.

Additionally, it is agreeable that most businesses (MNCs including banking businesses), which have massive stake in the economic fates of any given country have the mandate of establishing critical economic prowess through their constructive HR policies. No business (especially MNCs) can prosper remarkably if its IHR sectors are not constructive and do not consider the economic aspects of the localized countries.

This forms one of the critical provisions in the HR context. Precisely, a considerable HR issues that might have contributed to the noticed economic downturn is the standardization of HR policies such that the international labour market could operate coherently and productively thus avoiding the mentioned economic crisis, unemployment cases, inflation, and massive recessional prospects.

Additionally, other possible HR issues that might contribute magnificently to the economic mishaps noticed in the case incorporate the aspects of cultural orientation, recruitment norms, training provisions, and communicational strategies. IHR managers must consider these aspects in order to conduct and manage international human capitals proficiently while observing economic growth of such countries.

It is the mandate of MNCs to ensure that their business cultures conform to those of each country or region of operation. This provision contributed to the crisis noticed in the provided case. This helps in averting managerial challenges and unconstructive business decisions that might affect the economy significantly (Punnett 2009). IHR managers have a stake in the economic directions of the concerned countries despite the challenges and the magnitudes involved.

Establishing unconstructive HR behaviours can affect the international labour market and contribute significantly to the economic crisis. It is from this context that numerous business obligations lie with precision. The issue of recruitment, training, and communication within the workforce is a critical phenomenon. Since economy of any country is built by people especially the human capital of such countries, IHR managers has a contributory mandate in this context.

Additionally, it is critical to ensure that the operations of MNC are economically constructive and do not influence the economies of other countries negatively. Precisely, IHR managers endure to formulate and implement ethical and economical programs in multinational enterprises, which might create crisis.

Challenges faced by an IHR Manager of a MNC due to this crisis

Evidently, any international economic crisis fronts considerable challenges to IHR managers managing MNCs. Since the business’s fate and smooth operations of any firm depends on the efficiency of HR department, economic challenges might hinder these provisions. Accordingly, one of the challenges faced by IHR managers is the instability of the international labour markets. Economic crisis interferes with the sourcing and establishment of viable human capital that can help in running MNCs and other related firms.

Evidently, the concerned businesses can plunge due to economic problems affecting the labour market (Schmidtmann 2008). It becomes challenging to get considerable number of employees with the right qualifications and willing to take the salary scale offered. Additionally, it is challenging for the IHR manager to gauge the exact remuneration provisions for different countries (in MNC’s case) due to fluctuating economic problems.

Precisely, the fiscal problems like the ones fronted in the provided case pose various challenges not only to the international businesses but also to the IHR managers who have to source, recruit, train, and nurture appropriate employees for their business growth (Harzing & Ruysseveldt 2004). Economic crisis destabilizes international labour market hence giving IHR managers hard time in getting reliable human capital at a reasonable pay. Additionally, coordinating such employee might be daunting when scrutinized critically.

Another evident challenge in this context is the shortages in the skilled labour required to propel the concerned economy. Fiscal challenges and substantial economic crisis is associated with high rates of unemployment, recession, high interest rates, and other devastating factors that contributes to the lack of skilled personnel who can be employed by MNCs to help in propelling their business (Björkman & Stahl 2006).

This contributes magnificently to the mentioned economic hitches. Such problems will hinder the aspects of education and training meant to establish skilled labourers. Thus, it becomes quite challenging for IHRM to source viable skilled workforce who can work internationally with competency and creativity demanded (Keeley 2001).

Evidently, most industries and organizations have grown due to the presence of skilled workforce, which can innovatively and creatively formulate viable business models usable by such entities. It is from that context that the concerned businesses enhance their competitive advantages, market visibility, and global presence. Since economic crisis hinders its provisions, it becomes a massive challenge to IHR managers and other associated factions.

Another challenge faced by IHR managers in this context is the limited resources unable to fund their entire obligations. Since economic crisis like the one stipulated in the case leads to reduced income, minimized profitability, and retarded growth among the affected MNCs, it becomes hard to finance some of the company’s projects especially the ones proposed by IHR managers. This is a massive challenge to the entire business (Shiller 2008).

Consequently, IHR managers will not be able to train, develop, and delegate opportunities to the concerned labourers. Financial meltdown has bountiful hiccups in numerous contexts as indicated earlier. This forms one of the concerned business orientations and other concerned business mishaps. The aspects of recession, inflation, and redundancy are increasing at alarming rates hence contributing to the mentioned economic tribulations and the challenges faced by the IHR managers with respect to MNC.

Another challenge is that economic meltdown interferes with both short-term and long-term plans of IHR managers due to uncertainties prospected in the entire case. Due to financial hitches and unpredictability of the situation, some plans and business schemes might be forced to halt as the MNC waits for the economy to normalize (Desimone 2011). This will create delays and inefficiencies in operations and managerial aspects of the business.

It is appropriate to consider such factors as the business strives to capture reasonable operational strategies and international presence. From this context, it is evident that numerous IHR managers will experience numerous challenges in their endeavours as they strive to capture reasonable management prowess.

Action plans to assist in the recovery process for this crisis (As an IHR Manager)

There are plans applicable by IHR managers to help in the recovery processes meant to curb the crisis developed in the case. The aspects of redundancy, recession, inflation, and workers shortage are critical in this phenomenon. They constitute the crisis that MNCs must battle in order to stay buoyant in the global market. IRH managers can establish and implement various strategies to help them correct this globalized situation (Aswathappa & Dash 2008).

The plan is to create a viable globalized business environment, establish and nurture skilful employees, prevent the economic plunge, increase the cash flow of the concerned MNCs, and avoid the influence that an economic problem in a given country can impart on the business at large. Enacting a viable business environment both locally and internationally is crucial in this context.

Since most of the MNCs have considerable business establishments in numerous countries, providing flexible, stringent, and appropriate business considerations is significant (Ferrell & Fraedrich 2012). One of the plans that can be used to help in this scenario is the ratification of training & development opportunities.

IHRMs can develop training sessions to educate the entire workforce of the concerned MNC on how to curb the crisis and the appropriate approaches that employees can take in order to remain productive, precise, and relevant. Additionally, offering the required expertise on issues regarding economic recovery and operational stability are helpful and should be executed promptly to help in a timely manner.

Evidently, there are some decisions that a business should not take during economic meltdown and other business challenges shown in the provided case (Mccourt & Eldridge 2003). These might make the business to plunge even more in various contexts. It is from this provision that the entire IHRMs roles and lucrative decisions lie with respect to crisis alleviation.

Another considerable plan in this context is to provide improved communicational channels where all the stakeholders in this crisis can share ideas and come up with a lucrative business provision.

Additionally, it is apparent that most business (MNCs) should actually embrace the aspects of communication amidst employees, managers, subordinate staffs, and other relevant stakeholders in this syndicate. IHR manager, as the head of human capital, should enact these provisions within the organization both at local and international to ensure that there is a viable coordination helpful in alleviating the mentioned crisis.

This is a lucrative plan, which should be embraced by all IRMHs in the MNC’s context. The importance of appropriate communication within the workforce cannot be assumed. It is vital to recognize that most organizations have the mandate to make critical decisions in this phenomenon (Chossudovsky & Marshall 2010).

Another important plan is that the concerned MNC should study the economic trends of the countries of operations and analyze the future economic probabilities in case the noticed trends continue. This will help in noticing the fate of the business in such areas thus the organization can make radical decisions on whether to continue in such markets or not. IHRM has a critical role to assume in this context.

The plans he or she puts with regard to employee recruitment, training, and development will eventually determine the fate of the business in tackling the crisis and remaining competitive in the international limelight. This is a critical provision in various contexts as indicated earlier with precision. It is vital to reflect on diverse aspects of this issue while regarding how they assist in the recovery process of this crisis.

Other viable plans that can be developed and nurtured by the IRH manager in conjunction with other managerial stakeholders include the aspects of horizontal or vertical integration business models (Hill & Jones 2010). IRHM can either propose vertical or horizontal integration depending on the nature of the concerned MNC. Evidently, this might help in resolving the concerned crisis and provide lucrative solutions adoptable by other MNCs.

In the vertical integration, the concerned MNC will singly operate its business processes ranging from production to distribution in a well-orchestrated network that supplies its entire international outlets.

Conversely, horizontal integration operates like a merger where two equal MNCs come together to operate singly, saturate the market with their products, and increase their international presence (Roussel 2011). This is critical plan, which IHR manager can initiate in order to source viable human capital from different places to have a substantial workforce, which can work productively to recover from the entire devastating fiscal crisis indicated earlier.

Identifying positive outcomes of this crisis from a HR practitioner’s perspective

Despite the challenges of this crisis and its general mishaps, there are other positive outcomes it fronts to the concerned businesses when scrutinized from a HR practitioner’s perspective. Firstly, the fact that economic crisis, recession, and inflation emerge with high levels of unemployment means that there will be excessive human capitals in the market. Unemployment creates a desperate need for work hence simplifying the sourcing and hiring processes for IHRMs.

Additionally, HRMs can choose the best employees from the sources stipulated. From this context, it is possible for IHR managers to hire as many employees as they wish. Additionally they can even reduce pay or remunerations since they can source alternatively cheap labours (Heo & Horowitz 2001).

The company can take this opportunity to grow its mandates and submission to global expansion. Precisely, the crisis creates a source of cheap labour, which HRM can utilize to meet the company’s obligations. It is evident that even if economic crisis is devastating in numerous circumstances, creative and entrepreneurial HRMs can utilize the circumstance to their favours. Additionally, it is from this context that numerous HR issues emerge with criticality.

Observing such provisions is important following the roles it plays in the HR sectors. In fact a business can easily expand if it wanted to source cheap labour from the market. The situation can continue until the end of the crisis leaving the concerned companies stable and ready to operate efficiently. It is from this context that most of the demanded HR provisions and strategic plans emerge.

Another positive outcome is the government intervention in the entire issue thus providing some substantial opportunities and regulations that can favour the HR sector with numerous provisions. Since the interest rates are subsidized and fiscal restriction alleviated, IHR can easily use this opportunity to improve the conditions of the workplace and international expansion.

When there is fiscal relief from the concerned government, it is possible for the HR to consult with other departments to ascertain the possibility in improving the condition (Ehrhardt & Brigham 2011).

Additionally, nationalization of the plunging businesses by the government during the crisis helps in stabilizing such businesses. This will help the HR department to strategize a fresh and formulate new policies that will enhance the operations of the concerned business. It is crucial to consider these factors especially in this context.

Additionally, another positive outcome to consider in this provision incorporates the aspects of resources. Despite the economic situation, there are other potential resources, which HRM and other managerial crews can use to expand the concerned businesses. It is from this context that the entire business prospects exist. Despite the crisis, there is still a chance to prosper businesswise and improve the HR sector with success.

This is applicable to both local and globalized organizations (MNCs) indicated earlier. Additionally, the need to have prominent business development is another positive outcome in this crisis. Usually, the corrective measures taken after such crisis emerge with lucrative ideologies and projects that enhance the development of numerous organizations.

Economic crisis and its provisions are rampant phenomenon globally (Gaughan 2011). There are lucrative strategies set to ensure that HR departments in various organizations handle the situation with due positivity. From this context, there has been a massive need to ensure that the concerned organizations develop appropriate structures that enhances their business growth.

As indicated earlier, the aspects of human capital is contributory in this phenomenon. It is possible to attain a considerable human capital that operates with efficiency and precision while enhancing the operations of the HR departments in varying organizations. As for MNCs there is a massive transfer of human capitals from one region to the next with regard to the crisis. This indicates that the crisis can enhance the development of some regions while others will suffer the consequences (Sparrow 2008).

Another positive outcome of the mentioned crisis when scrutinized from the HR’s perspective is that the concerned department can reduce its spending on areas, which hardly matters to the organizational good. Economic hiccups and other characterizing crisis render most organizations into corrective measures.

This gives the exact picture of the company when scrutinized critically. Additionally, it allows the concerned organization to restructure its operational mechanisms, HR department, and other mattering provisions. Precisely, the identified crisis is not only devastating to the concerned MNCs but also beneficial in some aspects when utilized constructively.

Reference List

Aswathappa, K. & Dash, S 2008, International human resource management: text and cases, Tata McGraw-Hill Pub, New Delhi.

Bauernberger, J 2007, Human Resources in the Global Market, GRIN Verlag GmbH, München.

Björkman, I. & Stahl, G 2006, Handbook of research in international human resource management, Edward Elgar, Cheltenham.

Chossudovsky, M. & Marshall, A 2010, The global economic crisis: the Great Depression of the XXI century, Global Research, Montréal.

Davies, H 2010, The financial crisis, Blackwell Publishers, London.

Desimone, R 2011, Human resource development, South-Western Pub, Massachusetts.

Ehrhardt, M. & Brigham, E 2011, Financial management: theory and practice, Cengage Learning, Ohio.

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Mccourt, W. & Eldridge, D 2003, Global human resource management: managing people in developing and transitional countries, Edward Elgar, Cheltenham.

Punnett, B 2009, International perspectives on organizational behavior and human resource management, M.E. Sharpe, New York.

Roussel, L 2011, Management and leadership for nurse administrators, Jones & Bartlett Learning, Massachusetts.

Schmidtmann, L 2008, Global Marketing and Global Human Resources Management – Internationale Unternehmensführung, GRIN Verlag GmbH, München.

Shiller, R 2008, The subprime solution: how today’s global financial crisis happened, and what to do about it, Princeton University Press, New Jersey.

Sparrow, P 2008, Handbook of international HR, Wiley-Blackwell, Oxford.

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IvyPanda. 2019. "Roles of an International HR Manager to Identify Possible HR Issues, Which Have Led to Crisis." June 27, 2019. https://ivypanda.com/essays/roles-of-an-international-hr-manager-to-identify-possible-hr-issues-which-have-led-to-crisis/.


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