January 10th, 2018
International Human Resource Issues Affecting United Parcel Services (UPS)|conclusion
Multinational corporations are faced with numerous challenges that arise out of expansion into different markets. Such challenges include marketing, human resource, legal issues and operating management issues. The focus on this paper was to delineate the international human resource issues facing multinational corporations by using United Parcel Services (UPS), as the case in point. Having operations in different countries the corporation employs an approximately 426,000 workforce mainly through international union groups. With this diverse workforce a number of international human resource challenges are noted to affect the company and similar multinational corporations. These challenges include developing an effective method to promote work-place efficiency and flexibility; improving talent sourcing and management approaches; promoting employee relations at work; developing better methods to foster better industrial relations with labor force providers and ensuring fairness in the corporate ethical programs to enhance employee compliance with the guidelines.
In improving efficiency and flexibility at work the major challenge noted for international organizations is the balance between part-time and permanent work. The duration into which the company can engage individuals as part-time workers is for instance affected by different countries’ labor force laws and regulations. To ensure that part-time engagement caters for the needs of the workforce; UPS has for instance been forced to incorporate certain benefit schemes into the part-time engagement program. Proponents for structuring flexibility in workforce through offering part-time jobs have additionally advanced that; offering flexible work arrangements gives individuals the chance to balance between home and work-place involvement which in some cultures and societies would provide the needed basis to achieve equality in opportunity for marginalized groups (such as women) where the multinational corporations conduct their business.
Secondly, multinational corporations are faced with a challenge of talent sourcing and management. Corporations whose human resource needs span thousands of individuals may for instance find it difficult to review each applicant qualification and thus hire the best qualified persons for the job. Such firms are hence forced to outsource the hiring process to recruitment agencies to minimize the workload for the human resource department and ensure maximum review of applicants’ qualification. The challenge for the organizations in this respect however is to maintain the costs involved in the hiring processes within desirable limits which might be improbable when third party firms are involved. Related to hiring is establishing training and development programs for existing employees. It is notable that well run programs that ensure individual development in the workforce help increase employee satisfaction thus minimizing turnover rate in the firm. UPS for instance focuses on this area by providing massive annual amounts towards employee development programs. With the increasing cross boarder expansion of entity’s however organizations must not only focus on in-house training of employees but also establish programs that cater for employee training not offered by work experience or job-related training.
Thirdly human resource managers are faced with the challenge of improving employee and industrial relations. For employee relations the organization needs to first establish an informed compensation and benefit program that do not create a wide difference in income between members playing similar roles and functions. Secondly effective communication at all levels is core to ensuring organizational success. Such can be provided through organizing the organization into multicultural teams that are empowered to perform various roles in the organization.
Improving industrial relations is also a core challenge to an entity’s successful existence. The effects of this are for instance noted in UPS whose workforce is mainly union affiliated. To enable good industrial relations, managers are thus challenged to learn different labor laws applicable in every country where the entity operates. This enables them to not only avoid plunging the entity into legal liability while dealing with labor issues, but to also apply the provisions to impartially hear out individual workers while resolving their issues.
Finally a challenge to human resource managers is ensuring fairness of ethical programs in the organizations. The perception of employees into the fairness of the ethical guidelines at the company is identified as core to ensuring employees’ compliance with the code. Human resource managers must therefore establish ways through which employees are able to communicate their concerns on the code by creating a family atmosphere in the workplace. By creating such a family atmosphere, the entity is able to obtain the trust and dedication of the employees which ensures the longevity of the moral guidelines that have been established.
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