...of HR Running Head: Importance of HRM in International Business Importance of HRM in International Business [Name of Author] [Name of Institution] 1- Outline Importance of human resource management is now globally recognized and business growth is related to better management of human capital of a company. The present research proposal, henceforth, sets ground to investigate the importance of managing, running, and stabilizing human resource in order for the growth of business. It aims to contribute to the existing research of human resource management (HRM) by organizing secondary sources and relating it specially to the expansion of business across borders that has come to be known as multinational companies operating in a number of different countries (INVESTOR, 2008). The paper also examines various facets and implications of across border business activities that aim to take place majorly due to HR issues such as mergers, acquisition, and so on (Chapman, 2001). Another important aspect of HR and business spreading over the international boundaries is cultural aspects of a specific region, country, or state that a business venture must come to recognized as a valid component. It is important to realize that in the flourishing of withering of a business local culture plays a decisive role. Related to this is the issue of workplace culture where, as in today’s global workplace, workers come from different cultures and backgrounds to work together. Hence it is...
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...Multinational corporations Table of contents Preface 4 1. Introduction; General meaning of MNC 4 2. Ranking multinationals 5 3. Entry of Multinational corporation into new markets, 6 4. Three Stages of Evolution 7 5. Motives for Foreign Direct Investment (FDI) 9 6. The comparison of MNC and TNC 11 7. What are the benefits and problems that MNCs face? 11 8. What are the Russian companies that achieve the multinational status? 13 Conclusion 14 Bibliography 14 Appendix 15 Preface We would like to consider the most interesting topic concerning the multinational corporations. If we called it like that, it means that company made a great success in the market, it operate in several foreign countries. In this mini-course work we will investigate more detailed the structure and strategies of MNCs. In the first part we will look through the history of MNCs. The history, in general, is to be considered as an essential part of every project in order everyone may compare the development of the particular sphere. Next part will show us the statistical data of MNCs, where we will recognize all the most reputable companies from the different industries, such as BMW, Nike, Lego, etc. We cannot leave a side the point of entry into the new market. There it will be explained the strategies of MNCs, such as mergering, joint venture and sequential market entries. Also we will consider investing into the particular companies, weather it is risky or not and the motives...
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...lets nations to trade freely and effectively between themselves with no fear of being financially penalised. The retail fashion industry is facing the same issues as other industries and outsourcing, intellectual property and piracy are challenges that they have to address. Nowadays, majority of fashion companies are relocating clothing manufacturing in countries such as China, Taiwan, India or some other cheaper cost manufacturing nations; even the biggest designer companies who normally take pride in making their own clothing locally are among this trend. Several years ago, many small retail companies used to be owned by families for many generations with loyal based customers. Those small family businesses were purchased by multinational companies which now manufactured their own brand to serve the middle market. They will keep their prices generally high and will pretend that the goods are handmade in Europe by artisans. Unfortunately the practice of this strategy is no longer true although they are trying very hard to hide the fact. As the “made in” labels tags for outfit in general, is no longer compulsory in Europe, some companies, specifically designers (Gucci, Prada, Dolce & Gabbana and others) will manufacture part of the clothing in China or in North Africa and will ship back the unfinished products to Europe in order to complete the job. In Europe, buttons will be added to dresses or skirts for example and the finished product will be showing a tag label...
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...Royal Holloway, University of London School of Management THE MANAGEMENT OF EXPATRIATES WITHIN EUROPEAN AND MIDDLE EASTERN AIRLINES By: September 2010 Supervisor: Dr. Yu Zheng This dissertation is submitted as part of the requirement for the award of the Master’s degree MSc in International Human Resource Management THE MANAGEMENT OF EXPATRIATES WITHIN EUROPEAN AND MIDDLE EASTERN AIRLINES Acknowledgements In the name of God, most gracious, most merciful. I would like to take this as an opportunity, to owe my deepest gratitude to all who have made this dissertation possible. Firstly, I am heartily thankful to my supervisor Dr.Yu Zheng for her unlimited advice, guidance and support throughout this journey. Secondly, a big Thank you to my lovely family, for their encouragement, and constant support. Thirdly, a great appreciation should not be forgotten, to my friends who have helped me during this challenging year. 2 THE MANAGEMENT OF EXPATRIATES WITHIN EUROPEAN AND MIDDLE EASTERN AIRLINES Executive Summary This research endeavours to investigate the management of international assignments in a European and a Middle Eastern airline. In-depth qualitative interviews are conducted to get a clearer picture of the motives behind sending out expatriates, the selection procedures and training programs of each airline. Also to find out the role HR department plays towards the preparation of expatriates and their adjustment...
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...and contribute as much of value as I can. • I see myself as a top performing employee in a well-established organization • I plan on enhancing my skills and continuing my involvement in (related) professional associations. • Once I gain additional experience, I would like to move on from a technical position to management. • In the XYZ Corporation, what is a typical career path for someone with my skills and experiences Long accustomed to playing a pivotal role in corporate expansion overseas, traditional country executives began to fall from favor in the 1980s, branded as an obstacle to the spread of globalization. Seeking to exploit the promises of worldwide communication, product standardization, and economies of scale, many multinationals reduced their country executives’ responsibility for decision making and profit and loss. Geographic prior gave way to worldwide strategic business units or product directors operating from central headquarters. In managing this transition, many companies adopted the transnational model. It held that customer needs were growing more homogeneous throughout the world, so companies should no longer duplicate their manufacturing and product development in each national market, but should instead leverage their capabilities across borders to achieve global economies, respond to local markets, and transfer best practices. To implement the model, senior executives were...
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...benefits and advantages to globalization but not everything is perfect. A lot of issues have arisen on how it affects our economy so there are defiantly a lot of considerations on globalization. One of the most general complaints will be that it has made those who are wealthy even richer and those in poverty even poorer. It continues to be a great success for those business heads and stakeholders but has deprived the workers. These individuals can also be seen as a country as a whole where some countries are afraid of losing power so they make restrictions to their citizens so they can’t have access to the better things in life. True democracies can censor their citizens to come to an understanding that there is no better economy. Multinational corporations are another issue that has a negative effect on globalization due to corruption, bribery and theft. The US has many businesses that try to better these corporations by leading as an example of how business should really be done. Sometimes these practices have become a part of their everyday culture to where it can be seemed as a norm. This leads to great disregard for human rights to where a country does the best it can to benefit itself. Globalization has also affected the women of these countries because of gender inequality in some southern countries. Male workers are usually getting the better low paid jobs and better treatment whereas the female employees are given the worst jobs. As the expansion of these corporations...
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...Although academic business ethics is relatively recent, its intellectual roots are found in the corporate social responsibility (CSR) and business and society literatures originating in law and in business in the early and middle 20th century (Marcoux). The corporate focus is evident in the titles of early works of academic business ethics that have done much to shape the subsequent discussion in the field. Velasquez’s "International Business, Morality and the Common Good" 1992 paper takes business ethics to be concerned centrally with questions about the corporation's proper role in and relationship to the social order. These questions are said to surround the moral status of the corporation: Is the corporation a moral agent? Do multinational companies have any moral obligations to contribute to the international common good? While dominant management thinking is steered by profit maximization, this paper proposes that sustained organizational growth can best be stimulated by attention to the common good and the capacity of corporate leaders to create commitment to the common good. However, the complex process of re-orientating corporate priorities towards the common good requires alertness and concerted effort if both business and society are to truly benefit. In our contemporary post-modern context, it has become increasingly awkward to talk about a good that is shared by all. This is particularly true in the context of multi-national corporations operating in global markets...
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...communicate, but today they can communicate with the press of a button. As our interactions with those from cultures much different than our own increases, communicating with one another creates obstacles we normally wouldn’t face when interacting with those from our own culture. This presents the peculiar problem for the business because it must train managers to effectively communicate within the constructs of different cultural norms and values. Communicating to others the importance of diversity in multinational corporations is a difficult task because it essentially involves asking others to reject the idea of their culture being superior to others. As O’Rourke (2010) points out, “failures in an overseas business setting most frequently result from an inability to understand and adapt to foreign ways of thinking and acting, rather than from technical or professional incompetence,” (p. 284). Regardless of difficulty, if a business is going to remain competitive as a multinational corporation, it is absolutely imperative that managers successfully communicate with individuals from different cultures. I chose to research multi-cultural management strategies because I understand how multi-national corporations are growing in number and size. Understanding why some are more successful in the global marketplace than...
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...Chapter 13 Managing Human Resources in an International Business Learning Outcomes Chapter Outline The Internationalization of Business How Intercountry Differences Affect HRM Improving International Assignments Through Selection Training and Maintaining International Employees International Labour Relations Safety Abroad Repatriation: Problems and Solutions After studying this chapter, you should be able to: Explain how to improve international assignments through employee selection. Answer the question, “What sort of special training do overseas candidates need?” Discuss the major considerations in formulating a compensation plan for overseas employees. Describe the main considerations in repatriating employees from abroad. Managing Human Resources in an International Business 2 The Internationalization of Business More and more Canadian-based companies are conducting their business in other countries. Huge global companies like Noranda, Labatt’s, and Molson’s have long had extensive overseas operations. Global changes such as the rapid development of demand in the Pacific Rim and other areas of the world means that business success depends on the ability to market and manage overseas. Of course, to foreign companies like Toyota, Canada is “overseas,” and thousands of foreign firms already have thriving operations in Canada. Increasingly, companies must be managed globally, which confronts managers with several challenges. First, the number of their...
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...others companies with the only purpose of make easier and with the lowest cost each process; that reasons involve the human capital because as the companies have to be more competitive and being always developing new products, human capital have to be more prepared and be competitive always. Multinational enterprises are now key factor in growth of developing countries; also they are, sometimes, providers of training, new skills, information and new technology from countries that are host of them, this trend is a positive one. But the same idea can affect the human capital when they are more prepared and needs more preparation to continue innovating and develop processes, that is when big companies move again to another developing country looking for low costs for different activities but that do not need to be specialized. One thing that is important is that global companies do not look only for work with low cost, for them is important that the new country where they are going to invest have potential for future expansion or at least a good infrastructure and be available to implement technological advances; all of that to help to save time and money. We can conclude that what multinational corporations have imposed as tendency in the human capital is make the lowest effort and investment for the better results with fewer compromises. * What are the effects of the Indian government policies on the Indian BPO industry and on MNC decisions regarding locations for outsourcing...
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...EXECUTIVE SUMMARY BRL Hardy, an Australian wine company, is facing challenging decisions. CEO Millar and his group marketing and export manager want to follow a global strategy with global brands—Carson, responsible for Europe, including the important U.K market, prefers a multinational approach (or rather a transnational solution). In the long run, I consider a solely global approach a risky venture in wine industry. It is not possible to compare it with other industries producing mass products—wine consumers’ habits are usually in contradiction to global brands. But a possibility for changing habits some way may exist, enabling a potential for global brands—especially for capturing young consumers over a limited period of time. Some companies already proofed that global wine brands work—even if their success was not that great in terms of market share or time period. Therefore, I would suggest a “transnational” solution—a combination of a decentralized and centralized organization: to sell global brands (constantly adapting them to consumer needs) as long as they succeed and, simultaneously, to serve different markets according to their local needs. Moreover, the wine industry is dependent on differentiated sources all over the world to guarantee best possible security. It is important to create a strong strategy and vision first—clear, coherent and well communicated by the leader. Everybody within the company must understand it and commit himself to it as well. For effective...
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...3. Cecilio K. Pedro – Lamoiyan Corporation “Fighting multinationals was very tough. At first, everyone thought I was crazy. They told me, how will I survive this? True enough, it’s by the grace of God that I’m still here in the toothpaste industry after 20 years. God is good,” – Cecilio K. Pedro Cecilio K. Pedro is another Filipino businessman of Chinese descent but his story is not the typical rags-to-riches tale but about turning adversity into triumph. He earned his business management degree at the Ateneo de Manila University, one of the more prestigious private schools in the Philippines. He once headed Aluminum Container, Inc. which was the major supplier of the collapsible aluminum toothpaste tubes that were formerly used by local manufacturers of Colgate-Palmolive, Procter and Gamble and the Philippine Refining Company (now Unilever). However, technological innovations and the environmental concerns over aluminum materials prompted the multinational companies to make use of the plastic-laminated toothpaste tubes as an alternative. As a result, Cecilio’s aluminum factory closed shop in 1985, but this didn’t stop him from exploring other ways to put his factory equipment into good use. Cecilio K Pedro decided to compete with the multinational giants by producing locally made toothpastes and hit them where it would hurt the most --- the selling price. He founded the Lamoiyan Corporation, which became the manufacturer of the first locally produced toothpastes...
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...ACCOUNT MANAGEMENT Introduction Due to globalization of economics, advances in communication and information technologies, rapid changes in global market and consumers and availability of a transnational media, makes the world an enormous borderless marketplace. Accordingly many of multinational companies have adopted global account management as a substantial strategic account and integral part of global marketing, and have focused on global consumers’ important demands. Global vs. Nation Account Management Global account management (GAM) emerged as a plan or process of relationship focusing on future of global client’s major demands, and understands them towards to increasing the return on company’s and stakeholders’ investments. Then companies must gain proper perceive of their customer’s demands, and tailoring their approach according to their customer’s needs (Woodburn & McDonald, 2011, pp.5-7). Nation or domestic account management implies on delivering service or serving the demands of consumers that are located in a nation or region; on the other hand, global account management is refer to delivering services or serves the customer’s demand throughout the world. Accordingly multinational companies needs to adopt larger accounts based on their multiple locations around the world while domestic or nations companies doesn’t needs to (Honeycutt et al, 2003, p.102). Then it is obvious that GAM’ faces larger and more sophisticated challenges, and in compare to domestic...
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...activities of SQUARE and its management procedure. We focused on how SQUARE is going with the time properly and most effectively in the field of performing CSR activities. At the first stage of this report, we discussed about the history and also gave a short profile of this company. Then we showed how the CSR activities of SQUARE are actually helping the poor and disadvantaged people as well as the whole society and the country. Then we put some recommendations for the betterment of the company’s in the field of CSR activities. Finally, we included bibnliography, which contains the sources of infotrmation and appendix, which shows the critical word and phrase’s meaning and full forms. Conclusion: SQUARE is one of the most famous and leading multinational company in the country. As the competition is increasing day bay day, SQUARE is making their mission and vision statement according to the plan. In today’s...
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...Moving headquarters overseas has been a growing trend since the 1990s as more and more countries become open to the idea of relocation. In our case, we saw examples of big multi-national companies moving headquarters across continents, like Nokia moving from Finland to the United States, IBM from the United States to China and HSBC from London to Hong Kong. This report will examine the reason behind this phenomenon and what are the consequences as a result of that. There are some key reasons that lead to this trend. i) Moving closer to the Asian market As Asia continues to charge ahead in its development, many companies want to fight for a slice of the pie and are moving into Asia to take advantage of the growing demand there. For example, Procter & Gamble (P&G) has this year moved its global headquarters for their beauty and baby-care business, including its biggest brand, Pampers, from Cincinnati to Singapore. They have expressed that the move to Singapore was motivated by a need for P&G brands to be closer to the growing number of consumers in Asia. As we can see from this, multi-national companies see the importance of the Asian market and believe that in order to take advantage of the potential there, need to relocate their headquarters. It is no longer enough to just have operations in Asia, but it is also helpful to have headquarters within the region to facilitate development. ii) Moving away from heavy corporate taxes The next trend is that of...
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