Relationship between Organization strategy, HR strategy and performance of organization in international context

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International Human Resource Management
9/1/2019
Student details

HR ORIENTATION 1
Contents
Task 1...................................................................................................................... 2
Introduction............................................................................................................ 2
Human Resource Management and its Rising Importance in last decades................................2
The Impact of globalisation on HR function....................................................................4
Ethnocentric, polycentric, geocentric and regiocentric orientation.........................................4
Relationship between strategy and organisational performance.............................................5
Conclusion............................................................................................................. 7
Task 2...................................................................................................................... 8
Introduction............................................................................................................ 8
Approaches to International staffing.............................................................................. 8
The ethnocentric orientation........................................................................................ 9
The polycentric orientation......................................................................................... 9
The geocentric orientation........................................................................................ 10
The regiocentric orientation...................................................................................... 11
Conclusion........................................................................................................... 13
References.............................................................................................................. 14

HR ORIENTATION 2
Task 1
Relationship between Organization strategy, HR strategy and performance of organization in
international context
Introduction
Human resources is considered as the most crucial asset as the way business are evolving in
the digitalization era. It is also important to note that recruiting right talent for the
organization has become difficult task. It can be explained by various reasons but the major
reason is globalization. Retaining talented workforce itself gives organization the opportunity
to achieve strategic and competitive edge in the market. With this the companies are
investing huge finances to formulate Human resource (HR) strategy with the organization
strategy as the integration of both the strategy can lead to achievement of high organization
performance.
In this report, the relationship of HR strategy, organization strategy and the performance of
the organization are discussed.
Human Resource Management and its Rising Importance in last decades
Human resource management refers to implementation of policies and practices which helps
the organization to manage its human resources effectively (Iles and Zhang, 2013). The major
HR activities include recruitment, selection, induction, and performance appraisal of the
employees. Maintaining good labor relations and providing health and friendly working
environment is goal of human resource managers.
In last decade the organizations have witnessed huge shift in the human resources practices
and its impact in the overall performance of the organization. In traditional approach, the
managers considered Human resource function as an operational duty to manage human
resources through following the orders although with time the approach to managing HR has
changed into strategically goal setting for the employees (Ulrich et al, 2001).
As in changing era the goals and objectives of the organization are changed robustly, the
changing demands require employees to be innovative, fast and flexible with changing
strategic requirements of the organization. It is important to note that to retain the talented
workforce it is important that the organization provide flexible and innovative environment to
grow and work towards increasing the firm’s ability to achieve competitive edge (Truss et al,
2012). Therefore, it is important for the organization to align HR strategy with organization
vision and mission to achieve effectiveness and high productivity.
CIPD (2019) states that Strategic Human Resource management (SHRM) can be defined as
development of strategy plan putting organization goals liked with individual goals in order
to provide right direction and collaboration to the organization. The SHRM is the base of

HR ORIENTATION 3
growth in long term progress as the objectives are linked with employee’s individual
objectives. The SHRM facilitates ownership to the employees to innovate and improvise the
methods to achieve goals of the objective in a better and effective manner.
In international business the criticality and strategic importance of human resource
management is complicated and complex compared to domestic business in all the sectors.
As the different countries and different economies have different culture and backgrounds
which impact all the function of the management including staffing, organising, performance
evaluation and compensation methods. The major reasons for this impact are change in
different Government, Economic and labor policies which are implemented in different
countries.
International Human Resource management (IHRM) can be defined as implementation of
healthy practices including the issues and concerns of global environment to manage and
improve efficiency of human resources (Briscoe et al, 2009).
According to (Schuller et al, 1993) there are several reasons for the growth and development
of SHRM in recent years and the major reasons for the impact are described below:
 Implementation of strategic human resource management is crucial in each and every
step of management to link the objectives of the organization,
 Multinational companies has huge influences on international management issues
with policies and practices implemented strategically by them,
 SHRM major characteristics have power to influence the performance of
multinational enterprises,
 There are various factors which make study of relationship of human resource
management and multination corporation complex and puzzling in relation to
strategic implementation in global market,
The Impact of globalisation on HR function
The interest and need to globalize is enhanced by tourism, free trade, advancement in
technology, communication, education, and increase in global options, migration and
knowledge sharing aspect of human resources. It is important to note that the companies’ has
to grow globally if they want to survive in market as the global environment has left no
barriers and the competition is increasing rapidly. All these factors have created a new set of
global realities for large or small enterprises, which will lead to impact in human resource
functions of the concerned organization enterprises (Briscoe et al, 2009).
The international business growth is continuing in the way the companies are investing across
borders. The important element which is growing international business is foreign direct
investment (FDI). To develop business strategies the companies need to take advantage of all
the global resources and markets which leads in evolving the human resources management.