Midterm Study Guide

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* organizational design - Organizational design involves the arrangement of work tasks based on the interaction of people, technology, and the tasks to be performed in the context of the mission, goals, and strategic plan of the organization. HRM activities such as human resources planning, job and work analysis, organizational restructuring, job design, team building, * international business - all business transactions that involve two or more countries. P.5 * multinational company - more than 2 countries. the market-based, cost-based, and strategic motives a firm has to expand internationally. After this, we studied how global companies exploit economies of scale, economies of scope, and national differences to achieve their three generic objectives: (1) efficiency in current operations, (2) managing risks, and (3) innovation, learning, and adaptation. We concluded by introducing the nature and complexity of the international environment of international companies. (University 20) * economies of scope - is based on the notion that savings and cost reductions will accrue when two or more products can share the same asset, such as a production plant, distribution channel, brand name, or staff services (legal, public relations, etc.). A global company like Coca-Cola enjoys a competitive advantage because it is in a position to produce two or more products in one plant rather than two separate plants, market its products through common distribution channels, and share its world-famous brand name across a wide range of products. (University 16) * economies of scale - lower costs and higher quality resulting from specialization by designating one plant to serve as the sole producer of a component for use in the final assembly of a product. For example, a plant in the Philippines may make transmissions, another in Malaysia the steering mechanisms, and one in Thailand the engines. Each country would then do the final assembly of the complete automobile. Toyota Motor Company is rapidly moving in this direction. Practical Insight 1.1 illustrates steps taken by Dell Computer to take advantage of scale economies and proximity to key markets to reduce transportation costs. (University 16) * ethnocentric, polycentric and geocentric management approach * 1.Ethnocentric staffing approach. The company uses the approach developed in the home country, and the values, attitudes, practices, and priorities of headquarters determine the human resources policies and practices. Managers from the home country are preferred for leadership and other major positions in the subsidiary. Foreign staffing decisions are made in the headquarters. * 2.Polycentric staffing approach. The company considers the needs of the local subsidiary when formulating human resources policies and practices. Individuals from host countries are selected for managerial positions; however, promotion of a manager from foreign subsidiaries to headquarters is rare. Human resources decisions, policies, and practices are developed at the local level. * 3.Regiocentric staffing approach. The company considers the needs of an entire region when developing human resources policies and practices. Managers from the host country are often selected for managerial positions in their own countries, and some may be promoted to regional positions. Subsidiaries in a given region, such as Latin America, may develop a common set of human resources management policies that are uniquely applicable in the particular regional context. * 4.Geocentric (global) staffing approach. The company’s priority is the optimal use of all resources, including human resources, and local or regional considerations are not considered important for the success of the corporate strategy. Managers are selected and promoted on a global basis without regard to their country of origin or cultural background. HRM policies are developed at headquarters, and these policies are generally...
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