ISSUES IN

INTERNATIONAL
MANAGEMENT

Mohammad Sabbir Ahmed

Student ID: 30046820
ASSESSMENT: 1

GLOBALISATION AND
EMPLOYMENT
RELATIONSHIP
 Objective
The purpose of this paper is to investigate the role
of global market forces to move multinational
organizations towards a standardized approach to
managing the employment relationship.
Globalization
In business term, Globalization involve managing employee immigration, international
recruiting, access to new talent, access to a new market, higher standards of living
across the globe, lower cost of products, the spread of technology and innovation,
and access to new cultures.
(Baker, 2009)
Strategic Management
The increasing competition in the market forces multinational companies to
formulate decent strategies to ensure the quality of the service or product to
Improve the production processes and human resource management.

(Sony and
Baporikar, 2021)
Organizational Culture
Organizational culture involves the practices,
expectations, assumptions, and values that
inform and guide the activities, actions, and
decisions of the employees.

According to the organizational structure model

the competition in the market directly influences
the organizational culture and the employment
relationship.

(Hur and Riyanto ,

2012)
Standardized Approaches
 The increasing competition around the globe has forced MNCs to
adopt the standardized approach to handle employment relationships.
 Consequently, MNCs follow a standardized and systematic approach
for developing good relations with their employees
 According to the research by Winter and Jackson (2014), the employee
retention rate is increased to 87 % due to the standardized approach
 Therefore, the appropriate approaches to employee management are
important for multinational companies to assure successful business
operations.
 Case Studies
The case studies of different MNCs below reveal the
influence of global market forces to adopt a standardized
approach for managing the employment relationship.
 Nestle -Case Study
Nestle is a Multinational Company that
operates its business activities in 186 countries
around the globe. The company aims to
provide services and products that evolve
with consumer demands. The company has
revised its employee relations policy in 2010
because of the changing market trends
globally.
 Objective of the
Company
The company’s objective is to
formulate policies regarding external
open social dialogue, collective
negotiations, collective dialogue,
compliance, corporate labour
priorities, corporate culture, and a
focused and proactive approach
 Nestle Employee Managment Policies
 The company has a proactive approach to uphold and develop an open
dialogue on labour matters with representative associations, employee
unions, and external stakeholders.

 The company also offers a competitive salary to the workers to meet

their financial needs.

 The employees are treated with dignity and have zero tolerance for
abuse, harassment, and discrimination.

 The annual revenue of Nestle in 2005 and 2006 are $ 73 million and $ 78
million respectively due to effective management policies regarding
employment relationships.
PRAN-RFL Case Study(Bangladesh)
 PRAN-RFL is one of the largest business groups in
Bangladesh. The company is operating in 145 countries
around the globe. The company has around 5500 products
related to different categories including industrial solutions,
mother and kids care, kitchenware, medical OTC, paint, safety
and security, stationery, and toys. The company owns 100
brands. The total number of employees at RFL is 110000.
Policies and Regulations at RFL

 The company provides several benefits to their employees to

maintain the required number of worker like free insurance, transport
facility and medical services.
 The compensation to the workers is dependent on various factors
involving revenues generated, cost-saving, and performance.
 The company also provides training to the employees to enhance
their operational efficiency and the employees have also been given
training for success planning (RFL Annual Report 2018-2019, 2019).
The Key Concern of the Company
 The key concern of the company is to increase the retention rate of the
employees in a competitive business environment because the company
requires a huge workforce for its business operations.

 The human resource policies and strategies have helped the

company to develop long-lasting employment relationships.

 The corresponding policies have assisted in enhancing the loyalty of the

workers.

 The case study of PRAN-RFL reveals that the workforce is a potential global
market force that can impact organizational performance and business.
 Conclusions
The case studies of large MNCs have revealed
that these companies have appropriate
employee management policies to enhance
employees’ loyalty, retention rate, and
performance.
Thanks!