Discuss the strategic value of personnel training and development. What are the implications for the MNC?
Training and development of personnel entail various activities that are intended to improve performance amongst the workforce of an organization or business entity. The training and development usually include the transfer of abilities, skills, and knowledge that are essential in the efficient carrying out of different tasks associated with the business (Salas et al., 2012). Relevant training and development of personnel in the acquisition of much-needed skills may give the organization a competitive advantage especially in carrying out tasks that are changing on a daily basis and need training (Garavan, 2007). Multinational corporations have a wide variety of operations and, therefore, may not get the skills they require in the host country (Clarke & Higgs, 2014). They cannot import more foreign works as this will be more expensive, but they can conduct training that will help them none only get cheap labor but improve their performance when compared to domestic and international competitors.
Look back on your work for the assignments in this course and reflect on the problems and recommendations related to the organizations expanding their operations globally. How do the risk assessments and recommendations for the global organizations compare to domestic organizations?
The domestic organization usually have a steady environment in terms of business and political factors and regulations. On the other hand, the risk assessment of internal organizations differs greatly with the domestic organization in that they have to deal with different work environments that may not be as pleasant as that of their home countries (Butler, 2012). Major risks in international operations of the companies include foreign exchange and political risk. Political risks facing the company are transfer risks, institutional and culture risks. Other risks are international specific risks, which include cyber-attacks, poverty and terrorism to name a few. Political risk includes trade barriers and tariffs, which increase the cost of operations in those countries to the foreign multinational enterprises. Depreciation reduces the value of their goods and hence make them incur losses on their products. Uncertainty in revenues in various international markets increases may impede business in those areas. International business has various advantages like cheap labor and cost of production is low. Large multinationals, therefore, profit much, and since they have a large financial base, they can absorb the various uncertainties unless they gravely affect their operations in those countries. As such, domestic firms have less risk and have more protection from the government than foreign global companies have.