Write 13 pages with APA style on Faculty of Business Environment and Society 2. based on the principle that managing employees in a multinational environment increases complexities for the managers unless there is a uniform set of policies to govern the diversified workforce. In this regard, Du Plessis and Beaver (2008) mentioned that companies operating in multiple markets across the world should not engage in changing the pay and work conditions of the employees as it may create discrepancies among the employees of various sector. This statement will be analysed in the following sections of the essay in reference to the changes and the challenges in managing the human resource departments of the multinational organisations.

Buckley and Monks (2004) noted that previously reward and compensations structures of a company were formed depending on the financial stability and the profit earning ability of companies with short-term focus. However, now as firms are trying to formulate strategies for developing long-term benefits and employee needs and expectations perform an important role in this system. According to the studies of Greer (2010), the role of the human resource management processes is to ensure that an organisation has the necessary resources for achieving their organisational objectives. The primary considerations behind the HRM strategies should be to focus on the requirements of the organisation and align the interests of the employees with the organisational needs. Kozami (2008) stated that in the contemporary scenario, the business processes of the firms include the aspect of sustainable business practices along with improved productivity and performance from the workforce of the firms. Hence, in order to motivate and encourage the employee, compensation and rewards structures are used as a primary method.