The Global Organization Approach

The Global Organization Approach 0
Title: The Global Organization Approach
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The Global Organization Approach 1
Contents
Introduction................................................................................................................................2
Globalization of Firms...............................................................................................................2
Multinational Strategy............................................................................................................3
International Strategy.............................................................................................................3
Global Strategy.......................................................................................................................4
Transactional Strategy............................................................................................................4
Impact of Global Organization Strategy on Human Resource Policies & Procedures..............4
People Resourcing..................................................................................................................5
Human Resource Planning.................................................................................................5
Recruitment & Selection Procedures.................................................................................5
Training & Development.......................................................................................................6
Benefits & Limitations of Standardization Strategy..................................................................7
Benefits to the Organization & HRM....................................................................................7
Limitations to the Organization & HRM...............................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................11

The Global Organization Approach 2
Introduction
With the globalization of businesses, the responsibilities of the organizations are
increasing to adapt to the practices which fulfill the three main objectives which are local
responsiveness, global innovation, and strategic integration. Also, it is crucial for the
organizations to adapt to the political, economic, social, and cultural environment of the host
country and should formulate strategies according to these factors. Thus, the role of human
resource management in the globalization of the organization is paramount. In this
assignment, all these different aspects have been explored. The assignment discusses the
different changes that the organization will experience in their human resource management
due to the standardization strategy. The impact of globalization on the organization’s policies
and procedures is also discussed in detail. Along with this, the new approach of the
organization Leisure Choice International (LCI), which is the Global Organization will be
provided with effective approaches which the organization can adapt to develop sustainable
management approaches. According to some of the prominent findings in this report, the four
types of strategies of the MNC strategies are global, multinational, transactional, and
international. All these different strategies provides different structures for the organization
which governs the functioning of the organization. These strategies help the human resource
department of the organization to increase the productivity and quality of the employee.
Globalization of Firms
Globalization can be defined as the transformation that is happening in the world
which is changing the self-contained countries into a world which is more integrated. With
the globalization of businesses, the organizations are expanding their focus from one country
to multiple ones. Now, with the expansion of the business into different countries, there is a
significant impact that occurs on the organization’s management and human resource
development. It is crucial for the human resource department of the organization to adhere to
the diverse cultural workforce and along with this, there is a need to hire new employees,
train them, support them and retain them, for effective implementation of the standardization
strategy. Therefore, human resource practices should be built around foreign regulations,
cultural differences, and technological development (Alharthey, 2018).
With the globalization of the organization, the human resource departments of the
organization are not restricted to small markets to hire the appropriate employees, but the
organization now has the opportunity to hire employees from all around the world. Also,

The Global Organization Approach 3
through the effective database, the work of the human resource department has been made
both simple and effective.
But with the expansion of the organization in the global market, there are certain
challenges, which include –
 Managing and handling a diverse workforce.
 The pressure of labor rights.
 The management of outsourcing employees.
 The management of productivity and quality of work.
 Adjusting to the new workforce and their different working hours (Jahanian, 2016).
There are four main forms of multinational companies. They are –
Multinational Strategy
This strategy main aim is to focus on the individual domestic market and thus,
functions in collaboration with individual and independent subsidiaries. The role of the
headquarter in managing the global business of the organization is minimal, under this
strategy. The strategy develops global efficiency and increases its revenues by developing
differentiating products and services that address the needs, demands, tastes, and preferences
of the targeted consumers. All these different approaches are governed by government rules
and regulations. By this differentiating approach, it helps the organizations to identify the
various opportunities related to the multinational flexibility (Kaufman, 2016). Thus, this
strategy is country-centric, thus, the various subsidiaries recognize the local needs of the
customers and utilize the local resources. Thus, this strategy works with the main focus of
local to local innovation.
According to the approach of Leisure Choice International (LCI) for the Global
Organization, this strategy will be helpful in fulfilling the objective of local responsiveness,
but the aspect global innovation and strategic integration will not be achieved through this
approach.
International Strategy
Under this strategy, the main focus on worldwide learning, through a well-structured
approach that utilizes the attribute of sharing worldwide innovation. The workforce functions
in a well-organized manner, with the help of an effective communication system that this
strategy helps in developing. Also, the centralization of core competencies helps in better