International Business Strategies Nad Hrm Strategies

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Essay

«International business strategies and HRM strategies»

Made by:

Saint-Petersburg
2012
Table of Contents
Introduction3
International Business Strategies5
Human Resource Management Strategies8
Conclusion10
References11

Introduction

Internationalization today is one of the crucial strategies of many companies throughout the world. During the process of going global companies are trying to extend their business on the overseas markets by searching new customers, acquiring new technologies, getting the access to resources and decreasing the production expenses. In the era of developed communications the borders are neutralizing and interactions between companies are becoming more and more important. Another important issue as well as business strategy is the human resource strategy. Companies should reorganize their staff in order to operate on the global market. The future of multinational corporations' competitiveness in the global market is contingent on corporations’ ability to change and adapt their resources strategically to the nuances of the broadening global playing field. Business strategies, which organizations adopt to maintain competitiveness, should be developed in conjunction with their human resource departments. The human resource practices need to be congruent with the organizations' strategic plans in order to 'facilitate successful implementation' of their business strategies. Given that it is the people within organizations who sell and market, develop and create products, make decisions and implement programs, human resources are vital to the success of an organization. To be strategic human resource practices are expected to maximize employees’ effectiveness in accordance with their organizations' missions, objectives and goals. International human resource managers have a challenging task: they must develop practice which will maintain congruence with the overall strategic plan of their respective multinational corporations (MNCs) while balancing the economic, social, political and legal constraints of the various host countries. This paper addresses: the various international management strategies proposed in the theoretical literature, the HR practices associated with these international management strategies and the ultimate effect the strategies have on the bottom line effectiveness of MNCs. In my essay I will analyze different international business strategies and human resource managements strategies that are implemented in the companies all over the world. My essay will have the following structure: * Introduction

* 1st Chapter: International business strategies
* 2nd Chapter: Human Resource Strategies
* Conclusion

International Business Strategies

International business strategies in various MNCs differ a lot. The practices, processes, systems and structures developed to implement given strategies will vary greatly. Developing global strategies can be difficult, given the conflicting demands the global environment places on multinational companies. Usually the more autonomy the overseas branches have to act independently and respond to local demands, the less integrated the global organization becomes – and vice versa. The MNCs strategies previously developed by Heenan and Perlmutter have been recently reconceptualized in terms of the MNC life cycle - consistent with the product generation and sales phases of developing MNCs. Using either the life-cycle model or classification model, the resulting management strategies involve the interplay between global integration and local responsiveness. In Heenan and Perlmutter's language, 4 such management strategies are: * Ethnocentric (Domestic Strategy)

* Polycentric (International Strategy)
* Regiocentric (Multinational Strategy)
* Geocentric (Global Strategy)
In general, the ethnocentric strategy suggests that companies should maximize their parent company control in order to...
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