Co-Value : Jurnal Ekonomi, Koperasi & Kewirausahaan
Volume 12, Number 1, Januari 2021
p-ISSN: 2086-3306 e-ISSN: 2809-8862
How to cite:
Sri Mulyono. (2021). How Multinational Companies Entrust Digital Applications In Upgrading
Employees' Human Resources. Co-Value: Jurnal Ekonomi, Koperasi Kewirausahaan Vol
12(1):32-41
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HOW MULTINATIONAL COMPANIES ENTRUST DIGITAL APPLICATIONS IN
UPGRADING EMPLOYEES' HUMAN RESOURCES
Sri Mulyono
Institut Daarul Qur'an Jakarta, Indonesia
Email: srimulyono63@gmail.com
Abstract
Background: The problem of International Human Resources management is inseparable
from cultural factors. Due to the cultural differences of each country, it is necessary to adjust
the differences with modernization solutions and changing patterns of technological
solutions.
The purpose of the study: Finally, we set the goal of this study to gain a new understanding
of how and why international HR can be solved with digital applications
Research method: We have analyzed with the help of the Google translation application if
there are difficulties in understanding terms and content, then examine the data and
evaluation and conclude based on valid and reliable information accuracy. Because we found
this data from the results of previous studies, we say our study is secondary data following
experts' opinions. Then we also process this study as a qualitative and descriptive study.
The results of the study: digital technology can convince companies to train their HR;
among others, companies can easily prepare their HR upgrades when they apply their digital
technology applications. Furthermore, technology also has an essential role in implementing
and corporate human resources training, including international companies. Digital has also
been proven to be able to transform human resources for international companies. Our
findings hope that they will become essential inputs and contributions for further studies and
corporate policy issues
Conclusion: we come to our conclusion that the understanding that we get from the study of
many papers published in well-known journals is that the purpose of our study has been
obtained, which, among other things, we conclude that digital applications can increase the
human resources of international companies because digital applications are indeed an
essential element so that companies can easily believe in its superiority.
Keywords: Digital Applications, Upgrading Employees, Human Resources
Diterima: 25-12-2019 Direvisi: 5-01-2021 Disetujui: 6-01-2021
INTRODUCTION
More and more businesses are concentrating on the role of human resources as an
essential component of their core competencies and a source of competitive advantage to
compete effectively in the global marketplace (Porter, 2011). Human resources refer to
the cumulative repository of each individual's knowledge, skills, and talents, which the
business has developed over time into an identifiable set of skills (Rau and Adams, 2012).
The challenge for multinational companies is maintaining and developing their human
resources so that appropriately educated and globally oriented people can support
strategic responses and contribute to core capabilities. More and more global companies
are defining their own “universities” or “schools,” demonstrating the importance of
training and development of employees who operate training facilities assisted by
effective and productive tools such as digital applications (Nda and Fard, 2013).
As we mentioned in the previous theme section, training and development
programs are essential to implementing an international company's HR management
system (Nivlouei, 2014). On the other hand, new employees often get some selection
How Multinational Companies Entrust Digital
Applications In Upgrading Employees' Human Resources
Sri Mulyono 33
training. Some may remember that each employee was given training at least five times
before the store's operation, as is usually the case in small companies. However, this is
not enough if a new HR wants to join a large company. For companies between nations,
HR training and development is defined as strengthening and providing skills and
competencies to carry out company duties. The training seeks to improve skills and
behavior in the workplace, while development seeks to improve future employment,
usually in managerial positions. We will start by looking at training methods and
problems for each of the different types of workers. The influence of foreign assignments
on career paths in multinational business and other development issues will be discussed,
requiring upgrading tools and models with the help of digital technology for depth
reasons (VARDARLIER, 2020).
The author believes that the study and search for understanding international
human resource management are critical to be studied and communicated to many
audiences because International Human Resources management uses international
resources to achieve organizational goals regardless of geographic boundaries. Category
of country or nation involved in International HRM activities: host country where a
branch can be located. So on that basis, the author wants to get an understanding of why
International HR is needed. After this study, of course, the core of the study will aim to
ensure that multinational companies can continue to run and operate optimally in
different countries by managing existing human resources and differing from HR in
general. So, what global HR problems may arise in technology-based HR management or
online evidence support.
The problem of International Human Resource Management remains an essential
issue in the global era, and technology is ready to support it so that there is no reason for
the business world to reject the presence of digital and internet-enabled equipment.
(Nivlouei, 2014). We have to admit that the differences are quite a lot when international
HR workers join as the culture of each country requires adjustment of differences. So this
study will try to discuss it with the support of evidence from previous studies. For
example, in the economic system, differences in regulatory systems also translate into
differences in practice. We try to offer all of that with the help of technology and
communication.
Legal and industrial factors are indeed a new problem, but with digital
technology, they will quickly understand each other, and finally, any global HR problems
that may arise in HR management can be resolved by themselves. The problem of
International Human Resources management is inseparable from cultural factors. Due to
the cultural differences of each country, it is necessary to adjust the differences with
modernization solutions and changing patterns of technological solutions. Finally, we set
the goal of this study to gain a new understanding of how and why international HR can
be solved with digital applications. Parry and Strohmeier, (2014) where they believe that
HRM in the digital era can well as bring challenges new changes.
RESEARCH METHOD
As we said at the beginning, we want to get input on why developing corporate
human resources between nations can be done with the help of internet-based digital
technology and applications was essential (Marler and Fisher, 2013). So then collected
several international publications through internet search engines on high-impact
publications such as Google Book, Wiley, Taylor & France, Elsevier, and other
databases. So, the data can answer our study questions. We have analyzed with the help
of the Google translation application if there are difficulties in understanding terms and
Vol. 12, No.1, pp. 32-41, Januari 2021
34 https://journal.ikopin.ac.id
content, then examine the data and evaluation and conclude based on valid and reliable
information accuracy. Because we found this data from the results of previous studies, we
say our study is secondary data following experts' opinions. Then we also process this
study as a qualitative and descriptive study (Parry and Strohmeier, 2014).
RESULT AND DISCUSSION
Expatriate Education
Most expatriates are well trained and selected from today's multinational business
operations, with proven skills and employability. However, as shown in some instances,
they remain an exception because they have the potential to be trained as they work
(Briscoe et al., 2012). Given that technical competence is a crucial selection criterion,
most of the literature must focus on expatriate training programs before departure,
especially those focused on raising cultural awareness and understanding. When an
employee is selected for an expatriate job, pre-departure training is an essential next step
in ensuring the expatriate's effectiveness and success abroad, especially when country
duties are considered culturally vital. Since many expatriates may know from discussions
of expatriate failures, functional competence alone does not predict success, certain types
of cultural preparation are recommended. Individuals who receive practical, cultural
training adapt to new cultures more quickly. "The ultimate goal of intercultural training is
to help individuals deal with unexpected events in the work culture between countries.
(Helmreich and Merritt, 2017).
Expatriates only 25% of the 1,000 multinational companies in developed
countries are provided with comprehensive pre-departure training sessions. Only 13% of
respondents in 1989 said they would provide programs for expatriates (Cannavale and
Claes, 2019). Another study shows that companies in many US countries use expatriate
training programs less frequently than European and Japanese firms (32 percent
compared to 69 percent). This condition does not make things a problem considering the
current conditions are all digital where all employees can still update themselves with the
help of technology (Chen and Chang, 2016). Even though such training is generally
recognized, a significant percentage of US corporations do not provide it. European
(especially Scandinavian) corporations have been shown to focus on pre-departure
training, notably language training, then American multinationals.
HR strengthening also includes cultural awareness training, which is still the
most common type of pre-departure training, according to a Price Waterhouse study of
European businesses (including non-European multinational subsidiaries) conducted in
1997-98 (Cannavale and Claes, 2019). It is still given voluntarily rather than as a
necessary necessity. Only 13% of businesses surveyed traditionally offer cultural
awareness training to their expatriates, while another 47% are now prepared for a
“difficult” culture (Alkire et al., 2014). Companies typically place less emphasis on
offering pre-departure training for couples and families, regardless of country of origin.
Multinational businesses are increasingly expanding their pre-departure training programs
to include partners or spouses and children, perhaps due to increased awareness of the
growing relationship between expatriate performance and family adjustment (Howe-
Walsh and Schyns, 2010).
Program for Cultural Awareness
It is widely recognized that to become successful workers; expatriates must adjust
to their new environment and avoid feeling alienated from their home country (Wang and
Tran, 2012). A well-designed cultural awareness training program may be of great help,
How Multinational Companies Entrust Digital
Applications In Upgrading Employees' Human Resources
Sri Mulyono 35
as it aims to create an understanding of the host country's culture so that expatriates can
act appropriately or imitate and shape acceptable behavior. Such training can also be
taken with the help of digital technology (Fierbaugh, 2012). To illustrate this idea,
Sieveking, Anchor, and Marston used Middle Eastern civilization. This is a place that
values personal connection, trust, and respect in business dealings; Added to this is a
solid religious focus that pervades almost every facet of life.
In such a scenario, the expatriate is likely to face some problems from the host
country's culture; the expatriate will likely experience some difficulties during the
international assignment (Okpara and Kabongo, 2011). Elements of cultural awareness
programs vary by country of origin, length, transfer destination, and program provider.
Abdullah and Jin, (2015) define five types of pre-departure training as part of their
expatriate management research, based on various learning processes, types of work,
assignments, and available time: Environmental and cultural orientation are two research
areas of cultural program instruction.
Ko and Yang, (2011) suggest a contingency framework to assess the type and
difficulty of expatriate training to understand potential variances better. The level of
involvement required in the local culture and the similarity between local and foreign
cultures are the two determining variables. Important training components of the
framework include the substance of the training and the specificity of the training. If there
is little anticipated contact between people and members of the local culture, and there is
little difference between local and international cultures, training should concentrate on a
task and work-related problems rather than cultural ones. The rigor needed for successful
training should be kept to a minimum.
If the host country expects a high level of engagement and significant cultural
differences, training should develop cross-cultural skills and new tasks (Lokkesmoe et al.,
2016). Such instruction should have a moderate to a high degree of precision. Model
Technological training sets the parameters for selecting a company's HR training method,
including the anticipated interaction and cultural similarity level. One drawback is that it
does not help determine which particular training technique to use or what constitutes a
less or more intense exercise (Shepherd, 2019). The level of cross-cultural rigor must be
high, and the training must be continued for two months if the person is to be acquainted
with a new and different local culture with a high level of interaction. Training
sensitivity, field experience, and culture between experiential workshops, in addition to
the less rigorous techniques mentioned earlier, Therefore, it may be an appropriate
training strategy in this scenario of digital technology training (Kaynak and Herbig,
2014).
According to Abbas et al., (2018) multinational companies currently do not
question why multinational companies do not offer pre-departure training; it may not be
challenging to design an effective pre-departure training program in such circumstances a
real practical obstacle to the application of technology digital with a variety of
applications that are suitable for the application. Contextual and situational variables are
also important. Content, techniques, and procedures in cultural knowledge training
programs can be influenced by cultural resilience, duration of assignment, and nature/type
of work (Wilson et al., 2013). Monitoring and feedback, moreover, should be recognized
as an essential component of individual capacity building. In particular, as a consequence
of cultural knowledge training, as a result of adjustment and performance. So far, the
solution is to return to trust in internet technology-based application tools (Leeflang et al.,
2014).
Vol. 12, No.1, pp. 32-41, Januari 2021
36 https://journal.ikopin.ac.id
The understanding of the components of expatriate HR training above can be
solved with digital technology. This highlights how important it is for prospective
expatriates to pay attention to the behavior and outcomes of cultural awareness training
programs and other job skills. Moreover, considering that application-based training sites
can be easily accessed with no time and space limits, application replication fits the
needs. According to our international workers' HR training management analysis, linking
adjustment and performance to international performance management systems is very
important. Poor performance, for example, can be improved by clarifying the
technology's new incentives for more efficient innovation from the basic to the higher
levels required or by providing additional cultural knowledge training. We examine the
company's HR training management application system and performance-related
achievements; Thite, (2018) treats adjustment and performance as distinct outcomes, with
changes resulting in performance. We suggest that performance may affect adjustment
when workers are given opportunities for innovation and technology adaptation in certain
situations.
Early worker
Hiring foreign workers on their first trip as a host country is one method to direct
them. (Wechtler, 2018). A well-planned vacation abroad for applicants and their spouses
offers an overview to evaluate their suitability for the job. Before departure, a visit to the
host site can aid early adjustment (Harris et al., 2016). A week is the average duration of
the visit. The country of assignment of expatriates is a determining criterion; visits are not
permitted if the expatriate is already acquainted with the country, perhaps through
previous trips on corporate business or as a tourist, or if the country is considered
culturally close Spouses may, understandably, decline assignments based on the first
visit. "We do not offer first assignments when circumstances are terrible, and no one
wants to quit," Price Waterhouse acknowledged in 1997-1998. Most businesses take
advantage of yearly inspections, but they evaluate the dangers of premature recalls and
underemployment. A possible issue that arises during the first visit is often part of the
decision-making process.
English as a Business Language
Even though this type of English is more "international English" than native
English speakers, English is not generally recognized as the world's business language
(Zhang, 2013). This fact is often cited by multinational companies based in English-
speaking countries, such as native speakers, as justification for not considering language
proficiency in the recruitment process or prioritizing language training as part of a pre-
departure program. This attitude can lead to misunderstandings about the importance of
foreign language skills. Being trained in a foreign language" was considered very
important by 19% of US respondents than 64% of non-native respondents.
Aparicio Fenoll and Kuehn, (2016) conducted a study on European multinational
foreign language requirements in the same year, finding that foreign language proficiency
is rarely considered part of cross-cultural knowledge. Language difficulties are generally
thought of as mechanical and controllable problems that can be overcome quickly. This is
an easy problem to fix. Other speakers have power over what is communicated and
understood. There is little room for maneuver for a single English speaker and no way for
him to learn more than what is given to him (Fromm and Read, 2018). Her job forces her
to be reactive rather than proactive in relationships. What he says and understands is
filtered through the competence of other speakers, over which he has no control. Learning
applications can help even though the workers have joined international workers.
How Multinational Companies Entrust Digital
Applications In Upgrading Employees' Human Resources
Sri Mulyono 37
The lower the ethnocentrism workers perceive between nations, the more cultural
awareness and language training will be provided (Shaw, 2020). Multinational companies
in the US require US business schools to incorporate foreign languages into their
curricula and prefer hiring graduates with foreign language skills. Language training is
provided where it is needed for expatriates and spouses (81 percent) and children (42
percent). The constraints of English as the language of multiple nationalities companies
can often be helped by advancing the world of online learning. Therefore, the best
solution can also be entrusted to online learning applications (Riahi, 2015).
Language and adaptation
Being able to communicate in a foreign language improves an expatriate's
effectiveness and bargaining abilities. Language skills have been recognized as a critical
component of performance (Wang and Tran, 2012). The amount of time required to
achieve even a basic level of competency may partially explain the continuing disregard
of training after leaving. Linguistic multinationals' ability is harmed if they rely only on
English. The lack of language proficiency hinders international businesses' capacity to
watch rivals and analyze critical information. Fixman's statement on safeguarding vital
technology in the joint venture's overseas activities was a truly solution (Cooke et al.,
2019).
Application for Business Communication
More studies emphasize the potential effect of adopting a single corporate
language on HRM operations in international companies. Communication skills in
business practice are critical (Psychogios et al., 2016). Workers across nations may find
themselves channeling communications between subsidiaries and headquarters. They may
have access to information they would otherwise be denied if they were not proficient in
the company language. This can also strengthen their status within the subsidiary. A pre-
departure training program can help ex-pats and their families by providing knowledge
that helps in relocation. Many multinational companies are increasingly turning to
relocation experts for help with practical matters (Ostrom et al., 2010).
Practical technology support is essential in assisting expatriates and their families
in adjusting to their new environment. To ensure that practical support is provided, the
company's HR team works closely with shipping line managers and HR departments in
international locations. This solution can also come from various digital applications that
are now getting hotter globally (Li et al., 2017). Expats are often hired due to a shortage
of suitably qualified personnel in the host site. As a consequence, expatriates are often
forced to train HCNs in their place. The obvious issue is how foreigners are trained for
training positions. A successful pre-departure training program may require covering
certain work-related elements. When a multinational chooses to establish a manufacturing
plant in a low-cost country, it quickly realizes that it will need to educate local workers
significantly. HCN competency has significant training and cost implications, which may
not be apparent at the time of national selection. There are many issues with HCN
training, including a lack of emphasis on mode of operation.
Looking at solutions by companies in developed countries such as Japan, Nissin
and Honda have successfully trained large numbers of human resources in their
operations in many countries such as the USA, UK, and Europe (Collinson and Rugman,
2008). Some multinational companies are increasingly taking advantage of satellite
technology to offer tailor-made training courses on-site from home to country to save
money. This is especially true in technical training for operational personnel in areas
where specific skills and work habits are strategic (Maslach and Leiter, 2008).
Workers can be relocated to the parent country and used as headquarters or a
subsidiary operating at home. International employees are transferred for a variety of
Vol. 12, No.1, pp. 32-41, Januari 2021
38 https://journal.ikopin.ac.id
reasons: This allows for company-specific training. For example, the company Ericsson
offers a two-level professional management program for its managers. The top 400
managers are served by 1,600 intermediary managers (Lee and Lee, 2009). Matsushita's
annual import of 200 foreign managers to collaborate with their Japanese counterparts
may be overkill. Inputs require a pre-departure training program comparable to expatriate
placement in a recent paper. They recognize that technology is the most up-to-date
solution, such as the application of strengthening skills and foreign languages (Miorandi
et al., 2012).
Multinational team
One of the most well-known methods of creating multinational teams and
international employees is international job rotation. The business offers external training
programs such as the global leadership program at the University of Michigan (Stahl and
Tung, 2015). International meetings held in different places also promote personal
contacts and networks, forming global teams. According to the study, multinational
companies will benefit from the inherent diversity to promote creativity, organizational
learning, and knowledge transfer, consistent with the overall trend towards collaboration
(Stahl and Tung, 2015). Everything that is done is inseparable from the program of
optimizing high-tech human resources. Creating corporate brands and collaboration
seems to be an essential element of global resources and ideas. In global business, the
goal is to gather the best ideas from around the world. Ideas and experiences can
collaborate through technology and face-to-face meetings. Each team contributes the best
ideas and maintains a consistent approach. Corporate culture is built around it (Abdi et
al., 2018). Those who help others by translating ideas from one location to another. They
may win prizes, be praised, and be promoted. So, they solve every problem with a
technological approach for smooth communication and collaboration (Shneiderman,
2016).
CONCLUSION
Therefore, we come to our conclusion that the understanding that we get from the
study of many papers published in well-known journals is that the purpose of our study
has been obtained, which, among other things, we conclude that digital applications can
increase the human resources of international companies because digital applications are
indeed an essential element so that companies can easily believe in its superiority. Other
reasons, for example, digital technology can convince companies to train their HR;
among others, companies can easily prepare their HR upgrades when they apply their
digital technology applications. Furthermore, technology also has an essential role in
implementing and corporate human resources training, including international companies.
Digital has also been proven to be able to transform human resources for international
companies. Our findings hope that they will become essential inputs and contributions for
further studies and corporate policy issues.
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