International HRM and Global Talent
Added on 2020-01-07
10 Pages2702 Words153 Views
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International HRM
Table of ContentsINTRODUCTION...........................................................................................................................3Reasons Why Companies Decide To Operate Internationally........................................................3Outsourcing:.....................................................................................................................................4Advantages of Outsourcing:........................................................................................................4Disadvantages of Outsourcing:...................................................................................................5Strategic HRM Approaches that Organisations Operating on a Global basis may take:.................5HR Challenges: ..........................................................................................................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONIn order to achieve organisational objectives and take a competitive advantage companiesaim to manage its organisational activities at international level. International human resourcemanagement is a process of procuring, allocating and utilizing the human resources globally. Itcan be difficult for companies to develop, manage and control the business operations atinternational level. In this research report, researcher has focused on the reasons why companiesgo global, approaches of HRM, what are the issues and challenges that they need to face,challenges for HR department and the advantages and disadvantages of outsourcing the businessoperations (Harzing and Pinnington, 2010). Reasons Why Companies Decide To Operate InternationallyThe following are the reasons why the companies decide to operate globally:Competitive Pressure: This is the main reasons why companies choose to carry itsbusiness operations globally. In domestic market, there may be numbers of competitorswho deals in similar products and services. To reduce or avoid this competitive pressureof the competitors, companies choose to carry its business beyond the country. To divertthe attentions and resources of the competitors towards operations at home to safeguardits domestic market (Scullion, 2011). Attractive Cost Structure: It is another reason why the companies operates globally.When companies sees an opportunity of more production at lower cost, companiesdecides to carry its business operations beyond the boundaries of countries. Companiesdecides to go in such areas where the demand is more and cost of production is at lowerside. It becomes easier and profitable to market their products and services in thosegeographic areas. More Customers: When the company sees that there are fewer customers in domesticmarket and more customers in international market, then also companies decide to goglobal (Harris, Brewster and Sparrow, 2008). To attract more number of customers ininternational market companies carry its business operations at global level. Slow Growth in Domestic Market: When the company knows that the growth indomestic market is too slow then also it decides to carry its business operations at globallevel. The reasons for slow growth may be inflations, political or governmentinterruptions, interest rates and other reasons. Higher growth in international market and
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