HRM 6000 DQ
Human Resources, Competitive Advantage and Global Talent
In the modern era of globalization, the business environment is becoming highly competitive with centralized organizational hierarchies and strict HRM policies regarding global talent. In the wake of such contemporary Human Resource issues; this paper will analyze a correlation between a competitive strategy, the structure of an organization, and an HRM orientation. Moreover, it will also put a spotlight on a comparison and contrast between an emerging market and a developed market.
Competitive strategy, organizational structure, and HRM orientation
In a world where capitalism is at its peak, firms are required to have some unique advantage over their business rivals in a fiercely competitive global market. For this purpose, MNCs should look to expand their business in other nations based on their reputation in the home country. This will give them a competitive advantage regarding global synergy between diversified personnel working across the world as the firm integrate its business operations (Vance & Paik, 2015). Moreover, a larger firm will enjoy different economies of scale which will reduce the overall average costs of MNCs.
Moreover, MNCs can design a global organizational structure that will give them a competitive advantage in the form of having a unified cross-cultural team which can assist each other across the borders to provide competition to the local markets. Having separate structures for every outlet may divide the same MNC in strategy-making and executing policies. An integrated organizational structure on a global level allows the business to act as a corporate empire which can stay unchallenged for a longer period.
The above described competitive strategy and a global organizational structure have a high correlation with the HR practices within a firm. Corporations design HR policies according to the organizational structure and its strategies. A global strategy will enforce the HR orientation to be highly ethnocentric as the MNC will work on to expand on a belief that the people and culture of the other nations they are going to operate in will be inferior to them (Vance & Paik, 2015). They will try to impose their values and culture on the native people of other nations while favoring their race, religion, and beliefs against those of the hosts.
Emerging Market and a Developed Market
An emerging market describes those nations which are the fastest growing economies of the world (Parboteeah & Cullen, 2017). Although not entirely developed, countries in the emerging market tend to have more investment opportunities with fewer labor costs. The GDP of such countries is considered as mediocre where it is not on the extreme points of either side but instead fall somewhere in the middle. These countries tend to be progressive enough to be considered fully developed within the coming years in the future.
On the other hand, a developed market pinpoints those states that have strong economic foundations and are advanced in the business sector (Parboteeah & Cullen, 2017). This market emphasizes the growth of the tertiary sector that feature service-based businesses. The employment percentage is on a high side where people enjoy work incentives on a high pay scale. Therefore, the living standard of the population in a developed market is better than the rest of the world.
This paper will assist the HR experts to extract knowledge regarding the contemporary challenges HRM faces in today’s world. Thus in this regard, a global competitive strategy and a possible organizational structure were presented to counter the modern-day issues faced by HR professionals across the globe. In conclusion, emerging and developed markets were compared with each other along with their features to depict how diverse the economy of the world is in the era of globalization and capitalism.
Parboteeah, K. P., & Cullen, J. B. (2017). International Business: Perspectives from developed and emerging markets. Routledge.
Vance, C. M., & Paik, Y. (2015). Managing a global workforce. Routledge.
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