HUMAN RESOURCE MANAGEMENT

Employment Relations and Human Resource Management



Employment Relations and Human Resource Management

Introduction

This paper elaborates the role of Multinational Corporations in the economic development of the countries and its expansion in the United Kingdom. It elucidates the Human resources and employment relationship management. Multinational corporation's policies and procedures reviews are presented and its impact on local economy.

Multinational Corporations (MNC) are also known as Transnational Corporations (TNC). These are such corporations that not only run its business operations locally but also internationally. These corporations run its business operations in more than one company. MNCs are also known as global corporations and these are very crucial for the economic development of any of the countries.

There are four groups of MNCs,

Multinational Corporation

Global Corporation

International Company

Transnational Enterprise

Multinational Corporation

A Multinational Corporation decentralizes its business operations with emphatic home country presence.

Global Corporation

A global corporation is centralized and it enjoys cost benefits through centralized production. Wherever the corporation sight for cheaper resources it will start its operations out there for acquiring raw materials and carry out its production for productivity.

International Company

An International Company usually enjoys the parent corporation's technology or research and Development.

Transnational Enterprise

A transnational corporation amalgam all the other strategic formations of corporations and become a wide accepted corporation.

According to UN data, 35,000 companies approximately have direct investment in foreign countries, and the chief 100 of them manage about 40 percent of world trade.

Discussion

Role of Multinational Corporation in the Economic Development

Multinational Corporation plays a significant role in the economic development of any of countries because MNCs become s great sources of generating businesses, providing employment opportunities, reducing poverty and generating economic revenue for the host country in form of taxes. Multinational Corporations are exceptionally organized having diverse business units and promoting or expending its businesses.

The production facilities are generally decentralized and located in each country, and for generating economies of scales from all the countries, wherever these are operating its businesses in. Generally, the products and services of MNCs are catered to its host countries. MNCs are having many subsidies, and the parent company that aligns it with its vision and mission by commanding it to run its operations, with respect to the core objectivity of vision.

Parent Company always tries to integrate the operations in each country with its subsidies to achieve its long term and short term goals either these are concerned with economy, monetary repatriation, surplus, growth, etc.

Advantages of MNCs

Hosting countries enjoy various sorts of benefits from MNCs because these corporations ensure the growth of financial sectors of economy of the hosting country.

MNCs assist the host country in the following ways;

The levels of gross domestic product, Income, employment and investments increase by the operations of MNCs.

The management and leadership styles of the local company are also enhanced by the practices of MNCs.

The latest technologies are also brought by the multinationals in the hosting country which influences the other to start their business operations in the same way as MNCs are carrying out it.

Other sectors of economy of the host country like Banking, ...