Discuss the challenges and opportunities multinational organisations face when seeking to recruit a more diverse workforce across different subsidiaries

Assignment Brief

This paper deals with the core theme of Human Resource Management in which the student has to creata a report that carries the discussion of challenges, issues, and opportunities that multinational organisations encounter in the recruitment and selection process. You are supposed to explain the element of allowing diversity with the reference to geocentric, ethnocentric and polycentric approach in order to identify similarities and differences. Moreover, you have to focus on the following points in detail:

• The factors that are involved in flexible recruitment process

• The distribution of information and organizational learning

• The concept of cross‐cultural theories

• The phenomenon of global talent management

Instructions 

HRM93 Exam January 2018

Discuss the challenges and opportunities multinational organisations face when seeking to recruit a more diverse workforce across different subsidiaries

Challenges organizations face include of recruitment and selection methods that are subjected to regional practices dominant with a particular region. Organizations have to decide whether they are going to exert influence from the centre by getting policies to be equally applied throughout the organization. Allowing diversity can lead to conflict and disagreement between different parts of the organization with the result of generating more demands for how employee differences are managed. Good answers here will make reference to the geocentric, ethnocentric and polycentric approach in order to identify similarities and differences and how they can translate to the recruitment and selection methods.

Opportunities include the creation of a more flexible recruitment and selection approach where multinationals utilise strengths and as these are situated between and across the different subsidiaries. The distribution of information and organizational learning can become an important advantage for identify methods by which change can be successfully integrated into the organization. Students will need to draw on their knowledge of the cross‐cultural theories and global talent management to give depth to their answers.

Sample Answer

Challenges and Opportunities Multinational Organisations Face in Recruiting a Diverse Workforce Across Different Subsidiaries

In the context of increasing globalisation, multinational corporations (MNCs) face complex challenges and opportunities when recruiting and selecting a diverse workforce across multiple international subsidiaries. These challenges are influenced by cultural, legal, and organisational factors that shape the recruitment strategies and practices employed. A central issue lies in balancing standardisation with localisation of human resource management (HRM) practices, especially regarding diversity and inclusion.

Challenges in Global Recruitment and Selection

One major challenge is the variation in recruitment and selection methods due to regional customs and legal frameworks. For example, in some countries, personal connections or academic pedigree may carry more weight than formal interview processes, while in others, anti-discrimination laws impose strict hiring guidelines. MNCs must decide whether to adopt a centralised (ethnocentric) approach, where headquarters dictates policies, or allow local autonomy (polycentric), potentially leading to inconsistent standards. A geocentric approach, seeking the best talent regardless of nationality, offers a compromise but can be difficult to implement uniformly due to differing regional practices and expectations.

Allowing diversity in hiring can lead to conflict and disagreement between subsidiaries and the parent organisation, especially when subsidiaries resist centralised mandates on diversity due to cultural or societal norms. For instance, an MNC promoting gender diversity in management may face pushback in countries with less progressive gender roles. These tensions require careful management and culturally sensitive leadership.

Another critical challenge is ensuring equity and fairness in selection while respecting cultural differences. Hofstede’s cultural dimensions theory highlights how power distance, individualism vs collectivism, and uncertainty avoidance can influence perceptions of fair hiring practices. Recruitment campaigns that appeal in one culture may alienate candidates in another.

Opportunities in Global Talent Management

Despite these challenges, MNCs can leverage the opportunity to develop flexible recruitment processes that harness the strengths of both centralised and localised practices. A flexible recruitment model allows adaptation to local conditions while maintaining overarching principles of diversity and meritocracy. For example, using local job boards or university partnerships for sourcing talent, while applying a global competency framework during selection, balances global consistency with local relevance.

Organisational learning is also enhanced through diverse recruitment strategies. Sharing best practices across subsidiaries allows for cross-border knowledge transfer, improving overall HR capabilities. A diverse workforce can contribute to innovation and problem-solving, offering varied perspectives that reflect global markets.

Global talent management (GTM) becomes a critical strategic asset in this context. GTM includes succession planning, leadership development, and mobility programs to ensure that diverse talents are identified and nurtured globally. MNCs can develop talent pools from various regions, supporting internal mobility and career progression, which in turn promotes employee engagement and retention.

Continued...