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Human resources management is not a new term. It was being used mostly in the United States as a synonym for personnel management. Human resources are the people including their knowledge, skills, and abilities within an organization who perform the actual work of the organization. Their efforts enable the organization to meet its objectives. The intellectual capital of each organization capital of each organization has been a growing focus in our highly competitive world (Buhler, 2002).
Human resources management generally referred to as HRM is the effective use of an organization's human resources to improve its performance. This management is no small order; it takes great skill, ability, and practice (Buhler, 2002).
Recruitment is the generation of an applicant pool for a position or job in order to provide the required number of candidates for a subsequent selection or promotion program. Recruitment is done to achieve management goals and objectives for the organization and must also meet current legal requirements human rights, employment equity, labour law, and other legislation (Catano et al, 2010)
In 21st century, recruitment is the most important process for human resource management. This is the significant challenge for MNCs in the United Kingdom because if the management failed to recruit right employees for the position, it will hazard their daily works. Conversely, recruiting right employees will enhance efficiency of works.
What are the challenges for MNCs in the United Kingdom in their recruitment process?
Importance of study
Multinational company is a large organization with direct or indirect investment in more than one country besides their host country. Multinational company also called an international corporation. Generally, multinational companies have operated in the advance or developing countries. Multinationals will provide finance capital, technologies, career opportunities, educations, infrastructure in return for a profitable market. Therefore, when multinational companies direct invest in the country, they need to recruit a lot of skilled and unskilled labour into their organization. In this situation multinationals bring the opportunities and benefits for their country and labour. This is because; multinationals reduce the unemployment in the country and provide finance capital to the county.
On the other hand, multinational companies will indirectly help the country to develop when they are investing in the country. For instance, multinational corporations will bring their technologies, infrastructure into the country so that people in the country will know the knowledge.
An organization needs a right employee to manage their daily duties. Recruiting employees is an essential way for all companies. According to the research, recruiting effective workers can easily boost up the company revenue. In conversely, it is a great waste to recruit a wrong person into the company. Every company wants to recruit the best employee for their company but it is not easy to hire the right person for your company in order to achieve the company mission, goal and objectives. While, numerous studies have shown that management will develop a lot of recruit criteria before they hire a new workers such as experience variable, lifestyle, personality, attitude, current status and other skill. Recruit a right person is not only benefits for the company itself, also will help the manager or colleague to perform well in the job.
In United Kingdom, it has more than 300 multinational companies in the country. Based on the national statistics of United Kingdom has shown that in 2009 the net earnings from direct investment in the United Kingdom were £96.1 billion, an increase of £3.2 billion from 2008 (Anonymous, 2009). It is a huge amount of direct investment. Meanwhile, it means multinational companies industries need a lot of talents and professionals to increase the net earnings.
Key point 1 - Employee commitment
Employee commitment in multinational companies is a topic of growing importance to scholars and practitioners alike. This is because multinational companies face greater difficulties than pure domestic organizations in creating and maintaining employee commitment. According to Meyer and Allen (1991) noted that employee commitment can be created through the nurturing identification and involvement with the company's goals and objectives. It is difficult to create employee commitment and achieve in multinational companies. This is because cultural diversity can be lower employee trust and commitment; it also will lead to differences in what workers assume from their work experiences. Therefore, it caused different perceptions of fair treatment and different interpretation of whether promises are kept and contributions valued (Taylor, S. et al, 2008)
Key point 2 - Accuracy
The task of today's Human resource managers is to create and nurture a pool of good workers in the company. Initially start from recruit process of the workers. Interview is an important method that using by human resource managers for long time ago. According to Mamin Ullah (2010) said that globalization has made the business world become very competitive. Companies are now fighting for them to survive. In recent years, the important task for the human resource managers is given to recruit of the right employees for the right positions. Companies also realized that the value of good employees is because they are able to make a difference through their job performance. The main purpose of interview is to recruit the right person for the right positions. However, even the human resource managers have doing a lot of effective interview and interview techniques; it does not mean that the manager will recruit the right employee for the company (Ullah, M. 2010).
Topic 3 - Sex discrimination
From the last past decades until recently, sex discrimination is still an issue during recruitment. According to Russo (1998) noted that since female workers have, on average, a weaker attachment to the labour force, one would expect them to behave differently from male. For instance, if female workers have lower probabilities of being accepted for particular jobs, then females would rather apply other jobs. In this case that is noted out in the previous study, according to Riach and Rich (2006) had found that statistically significant discrimination against men in mixed occupations in London. For instance, trainee accountants, 31 percent female; and computer analysis or programmers, 21 percent female and in so called female jobs secretarial, 97 percent female.
Summary of literature review
To sum up, recruitment process is very important for Multinational corporations. However, there are several challenges have occurred in Multinational corporations in recruitment process which are: employee commitment, accuracy and sex discrimination.
Analysis of research question
Key point 1 - Employee commitment
Employee commitment is a term that important for an organization, no matter domestic or Multinational Corporation. It is difficult to gained employee commitment in Multinational Corporation; this is because in UK there are more than 300 Multinational Corporations operate in the country such as America, Germany, Japan, China, Italy and many more organization which are from the foreign countries. Therefore, when foreign Multinational Corporations established in UK, they will face the employee commitment because of cultural diversity. The reason why domestic organizations are having less employee commitment problem is because they do not involve much of cultural diversity. Moreover, if foreign Multinational Corporations are failed to reduce the cultural diversity, they will make lost in the country. Conversely, if they able to cope with the problem, they are much more easy to establish their business in the county.
Foreign Multinationals are able to reduce the cultural diversity problem when they start learning their culture, recruit the British as consultant. Furthermore, when Multinational corporations have reduced the cultural diversity problem, they need to gain the employee commitment through other ways. For example, employee contribution, strategic clarity, divisional performance. In employee contribution encouragement of employees to innovate and challenge management, chances providing to senior employees, allow them to participate in the decision making process.
Key point 2 - Accuracy
The main task for human resource managers is to recruit the right person for the right position. Recruiting the right person will bring a lot of benefits toward the company because the employee will push up the company revenues and reduce the unnecessary mistake. Therefore, a good employee is important for the company, they are the capital of company.
Over the last decade, multinational corporations have fighting for them to survive. Globalization has made the business world become more and more sophisticated. Every domestics and multinationals want the best employees to develop or operate their businesses. In UK, a prosperity and strength country, every Multinational Corporation has tried to recruit the right person for them. However, it is not easy to recruit the right person for the company even though the human resource department has setup the job analysis, job description and job specification for particular position, it does not mean that the manager will hire the 100 percent accurate employee for the company. For instance, there are a lot of candidates apply for certain positions, the human resource managers have doing a lot of effective interview and interview techniques; it does not mean that the manager will recruit the right employees for the company. This is because the manager does not know the employee has passion and sincere toward the jobs.
Analysis 3 - Sex discrimination
For many years ago, gender discrimination is still rife in UK. Gender discrimination is a term that difficult to change. Although UK has the legislation called the sex discrimination Act 1975 and the equal pay Act 1970, yet sex discrimination is still rife in the country. Moreover, these two acts do affected Multinational corporations during recruitment process. Because of that acts, multinationals will think twist before they hiring female as their workers, reason is multinationals refuse conflict against with the law and they do not want to involve in any court cases. These will affect reputations. Finding has shown that the average earning of full time female employees is about 83 percent of male employees (Verkaik, 2008).
Summary of analysis
To summarise, challenges of recruitment process can hazard business routine. This is because, that is not easy for multinational corporations recruiting the right person for their organization. In the industry, every multinationals are combat with each other. Multinationals always want the good employee to combat with their competitor but it is not that easy because multinational might be facing the job hunter issues. Those job hunters are not restriction between multinationals, also including domestic companies.
Recommendation & conclusion
In order to reduce challenges that hazard to multinational corporations, management should allow employees to participate in the decision making process so that it will increase their commitment with the job. Furthermore, management can also create some question for interviewee such as problem solving question, if the candidate able to solve the question, allow them through second and third interview instead of only once. This will make the recruiting more accurately.
Recruitment can help companies improve and harm the business process especially in multinational corporations. It is depending on which type of employees that recruit. Therefore, when multinationals manage to reduce those challenges from recruitment process, for this reason the multinational has the competitive advantages to combat with the rival.