Over the past couple of years organizations have been identifying the link of HARM with organizational treated in order to develop a strategic approach to HARM and to also offer an understanding of how single country or domestic human resource management practices can contribute to organizational performance by leveraging people’s capabilities (e. G. Schuler, et al. , 1993). In order to understand which activities change when HARM goes international, we have to define IHRAM first. Broadly speaking, the consensus is that IHRAM is about the worldwide management of human resources (Brewster, 2002).
In other words, the purpose of IHRAM is to enable the multinational enterprise (MEN) to be successful on a global level. Strategic international human resource management (SHIRR) focuses on strategic HARM in Mines and recognizes the importance of linking HARM with organizational strategies in order to achieve sustainable competitive advantage (Schuler & Torque, 2007:718). 2. Examine two (2) of the factors that drive standardization of HARM practices. Determine whether or not it is advantageous for an MEN to adopt a worldwide corporate culture for each of its subsidiaries.
The two factors that drive standardization of HARM practices are having a multinational or transnational corporate strategy and also have an organizational Truckee that is reinforced by a shared worldwide corporate culture (Dowling et al 2013). A multinational strategy is when a firm’s subsidiaries is in the foreign countries enjoying strong local autonomy of business decision-making. Transnational strategy enables the firm to simultaneously achieve local flexibility while rapidly absorbing and differing parent company’s innovations.
Transnational strategy implies seeking global integration, operational efficiency and performance on a continuous basis. 3. Examine the role of the subsidiary. Compare and contrast global innovators, the integrated player, implementers, and local innovators as subsidiaries. Determine the best role for a company that is just beginning to expand internationally. Provide a rationale for your response. Now will examine the role of the subsidiary. A subsidiary is the reflection of purchase of a controlling interest that differs from a merger and the parent corporation.
It can acquire the controlling interest with a smaller investment. Additionally, stockholder approval is not required in the formation of a subsidiary as it would be in the event of a merger. The subsidiary role specifies the position of a particular unit in relation to the rest of the organization and defines what is expected of it in terms of contribution to the efficiency of the whole MEN (Dowling et al 2013). Subsidiaries can take of different roles. These roles consist of global innovators, the integrated player, the implementers, and the local innovators.
The global innovators role assists with the parent firm and helps develops HARM policies and practices which are then transferred to its overseas subsidiaries. The integrated player creates knowledge but at the same time is the sapient of knowledge flows. The implementers rely on the knowledge from the parent or peer subsidiaries and create a relatively small of amount of knowledge themselves. Lastly, there are the local innovators. These subsidiaries engage in the creation of relevant country and region specific knowledge in all key functional areas.
For a company that is just starting to expand internationally in my opinion the best way to start is the initial stage, export. The benefit of trading internationally has the potential to increase sales and profits that international trade will bring. However, this is significantly influenced by the quality and success of your product. With an expanded market, sales of products will definitely increase if consumers discover how much they need or desire these products and if the company continuously supplies and retains good quality products, innovates and invests in product development when needed. . Analyze two (2) of the factors that drive the localization of HARM practices for an MEN. Determine two (2) advantages of the localization of HARM practices. Localization is the practice of adjusting a product’s functional properties ND characteristics to accommodate the language, culture, political, and legal difference of a foreign market or country. The two factors that drive the localization of HARM practices for an MEN is the cultural environment and the institutional environment.
Institutional environment helps impact the growth of your employees through proper training. Another example of institutional factors which have HARM-radiated effects are the: “scope of labor legislation and its regency of codification, [it] creates new codes of conduct through issues such as ex discrimination, equal pay for equal work, and minimum wages” (Downing et al, 2013). Also, since many companies are already selling abroad, they are looking for ways to expand their international sales, localization helps lead that.
They can do that either by increasing market penetration or by selling to new international regions. Companies should consider localizing products for both. It will give customers in new markets a compelling reason to buy your products and enable a market penetration otherwise unattainable. Another advantage of localization is a there reduced liability and copy infringement. Many countries require that products be sold on their turfs to speak the official local language or languages.
Furthermore, the translation of contracts, agreements, product use agreements, and end-user license agreements will minimize conflicts due to miscommunication or language barriers. 5. Determine the impact of the culture and institutional context (environment) on: a. Recruitment and selection b. Training and development c. Compensation d. Task distribution The impact of the culture and institutional context when it comes to a. Recruitment and selection is the education system. The reputation of the educational institutions such as public and private universities varies in different countries (Dowling, et al 2013).
Recruitment and selection should include procedures directed to analyze the need and purpose of a position, the culture of the institution, and ultimately to select and hire the person that best fits the position. B. Training and development also looking at the education system differs between different countries (existence of a dual vocational training system, quality and reputation of higher education institutions). This will have n effect on the training needs perceived and fulfilled by Mines (Dowling, et al 2013). C.
Compensation, when it comes to legislation as the regulation of minimum wages or respective union agreements. D. Task distribution also pairs up with legislations and the respective norms support gender-based division of labor to differing extent in different countries. However, in other countries the percentage of female managers is relatively high; in other countries it is not common at all (Dowling, et al 2013).