IntroductionA multinational enterprise (MNE) or multinational corporation refers to an enterprise which operates in various countries but its management is carried out from home country where the firm’s headquarter of is usually situated. It also refers to any firm which derives at least 25% of its revenue from operations in foreign countries. Various multinational corporations exist with four categories best known. The first category entail multinational decentralized corporation which has strong presence in home country. The second category is the global centralized MNC which has operations in areas where cheap resources are found.
The third category is an international firm that builds on the parent firm’s technology or research and development. The final category is a transnational company that has a combination of the above categories. Some MNCs might have enormous influence on the host country’s economy. MNCs workforce is usually diverse in nature. Owing to diverse workforce, most MNCs are involved in workforce diversity management programs. These programs capitalize on personal characteristics of different employees as a strategic approach to business in order to contribute to the firm’s goals.
Moreover, workforce health seems to be prioritized among most MNCs. The UAE consist of seven States namely Abu Dhabi, Dubai, Sharjah, Ajman, Ras al-Khaimah, Fujairah, and Umm al-Quwain (UAE, 2009). Abu Dhabi is the capital as well as holds the key position for cultural, industrial, and political activities of the UAE. There are various multinational companies operational in the UAE such as Ernst & Young, Pepsi, FedEx, Microsoft Gulf FZ LLC, Emirates etc in which a large number of foreign and local employees work (Budhwar, & Mellahi, 2006, pp. 299 - 300). Primarily, it is tough for a multinational corporation to manage its human resource in a foreign country.
Moreover, as people working in the multinational companies in UAE belong to different countries, backgrounds and socio-cultural origins therefore managing them in such a way which will create required performance is a challenging task (Aswathappa & Dash, 2007, pp. 262). This is the reason because of which this research topic has been selected as it aims at revealing how people from other countries working in international companies in the UAE are being managed by those international companies.
Therefore, this research will highlight how multinational companies in the UAE manage their employees who are from other countries. I have personal interest in this topic as it will help me in understanding the diversification of the work force in international companies operating in UAE and the problems faced by the foreign employees in such a diversified working environment. Research aimThe objectives of this study are to review how MNEs in UAE manage their workforce from different countries of the world and to analyze the impact of multicultural workforce on MNEs performance. Literature reviewOver the last two-decade, the scientific and technological advancement and global integration has literally converted the whole world into a global village.
This globalization has enabled instant and easy mobility of capital and labour from one country of the world to another (Busch, 2005, pp. 32 - 34). Due to this ease and interconnectedness amongst the world, many domestic organizations have extended their operations to foreign countries so that they can exploit potential business opportunities present in foreign counties. Moreover, globalization has facilitated the countries where skills and qualified people are in shortage to easy obtain skilled and qualified people from other countries where they are in abundance.
(Evans, 2003, pp. 256 – 269)