Explain some of the reasons for Talent Management failure in MNEs, and Essay

Explain some of the reasons for Talent Management failure in MNEs, and how would you advise organisations to address these issues - Essay Example In a global business environment, the competition is stiff and MNCs need to prepare adequately for the anticipated challenges with regard to their human capital. For instance, most of the MNCs are centrally managed from the headquarters and this creates rigidity in their subsidiaries in terms of giving the middle management the mandate to provide training and promotion of the local personnel as a way of managing the diversity of talent in MNCs (Story et al. 2014). In a knowledge-based industry, the knowledge of the personnel with regard to adapting to the constantly changing business environment is critical. As such, those responsible for the human resource management in these MNCs need to ensure that talent management is enhanced through training of personnel to improve their skills and knowledge management. In essence, where the human resource management of MNCs recognises the importance of knowledge management, innovation and creativity are enhanced. Conversely, the focus on expat riates rather than nurturing the local talent is a major contributor to talent management failure in MNES. This is because they deny HR the opportunity to embrace internal development by attracting, developing and retaining highly performing personnel (Story et al. 2014). This paper examines the reasons for talent management failure in MNEs and how they can be addressed. The human resource management in MNCs has failed to recognise the importance of training their personnel to handle future challenges effectively. Instead, MNEs are focusing on their more experienced personnel to handle the different task in their subsidiaries around the world. This has led to a situation where the local talent is ignored, and managers sent from the headquarters are given the mandate to handle only business functions at MNEs subsidiaries around the world. However, most of the managers sent from the headquarters lack the knowledge and understanding needed to develop a talent pool that can move a