22 Jul 2022

118

Strategic HR and International Business: The Essential Guide

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Academic level: College

Paper type: Essay (Any Type)

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Introduction 

The role of human resource management has continued to change particularly in the realm of international business. HRM has become a strategic partner in enabling multinationals achieve their goals. Majority of international organizations have continued to embrace best global HRM practices to increase their competitiveness. The essay explores three peer reviewed articles that are based on Strategic HR and international business 

The first article explores a topic on strategic human resource management in the context of international organizations. The authors underscore the need to have a correspondence between organizational objectives and human resource policies ( Nuangjamnong & Maj, 2017) . The strategic human resource management focusses on linking international business strategy and the human resource. According to this perspective, a key source of competitive advantage in international business can emanate from people management. Integrating HRM with international business strategy improves organizational performance and leads to overall business success. Strategic human resource management practices positively impacts international organizations. 

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Organizations such as Microsoft have invested in employee training, a best global HRM practice that affects various dimensions of an organization. Optimal training which is one of the strategic HRM goals advances the growth of employees by giving them requisite skills ( Nuangjamnong & Maj, 2017) . I agree with the author’s assertions on the essence of integrating training as a best practice in international business. In my opinion, employee training enable workers to generate new understanding, become culturally competent and are able to appreciate diversity in the context of international business. Manufacturing firms in Thailand have integrated training programs for employees to enable them apply the knowledge acquired from training on their jobs. I concur with the author that training on the job instils new ideas, increases organizational learning leading to increased productivity. 

Other best practices incorporated by manufacturing firms in Thailand include performance appraisal, career management and reward system. The international businesses in Thailand such as G.E. Medical Systems integrate other best global practices such as leveraging on diversity as an international business tool, including change management, transforming service delivery, moving technology solutions to the cloud and engaging in valuable global talent management. The best practices not only improve the organization’s overall efficiency but also gives the company a competitive advantage in today’s dynamic global environment. 

The second article bases its topic on the need for international organizations to adapt to the age of globalization. As expatiated by Wright (2020), the increased international expansion by organizations globally requires implementation of HRM goals to overcome the competition that is ever rising. As the article posits, responding to global competition requires employment of new technologies and low cost solutions for customers. Technological innovations have constantly triggered customer movement and shift in competition. The global capital markets have continued to pressure firms with international presence to reduce costs and innovate. 

Delta Air Lines has integrated a human resource strategy that is oriented towards building skills, improving worker motivation and creating opportunities for employees to deliver unparalleled customer service. Incorporation of the strategic HRM strategy has enabled Delta Airlines to attract travelers who pay premium prices for air travel. The organization has implemented a series of best global practices which have led to significant improvement in overall performance ( Wright, 2020) . The HRM best global practices include investing more in airline training as well as recruiting and selecting the best employees. IBM, an organization with international presence has implemented a strategy that focusses on four areas that is, innovation, on-demand infrastructure, business value and global integration. 

I agree with the authors sentiments on the need to integrate a globally competitive HRM strategy. Training is a critical component that global organizations should incorporate in their HRM strategies. The strategy keeps employees abreast with skills needed to perform various tasks and operate the advanced technological machines. In my opinion, diversity should also be priority in international business since the strategy enables organizations to pool a wealth of knowledge and skills from employees in different national origins and backgrounds. Additional best global practices which the organizations ought to consider incorporating include providing security to employees, self-managed and effective teams, as well as creating a flat and egalitarian organization. 

The third article undertakes a study on globalization and the essence of strategic human resource management. The article notes that the main concern for CEOs whose businesses are expanding at a global level is strategic human resource management. Succeeding in the global business environment requires integration of HRM policies, strategies and practices. Strategic human resource management is an important aspect of the HRM practices in accomplishing of goals in international business ( Alharthey, 2018) . Homogenizing the strategies and organization processes is instrumental in assuring international organizations long term success in the global market place. Empowering employees and centralization of human resource practices is pivotal in creating a competitive advantage for organizations with an international presence. Training of employees is a key strategy that stimulates innovation and creativity in the global business arena. 

Challenges that are pertinent in the international environment require consideration of performance appraisals, training and development, labor relations and compensation packages in accordance with set rules and regulations. Strategic human resource management is a proactive approach that enables international organizations to manage diverse workforce ( Alharthey, 2018) . The practice emphasizes on need to link the key organization workforce and strategic goals in bid to sustain improvements, promote innovation and flexibility in multinational organizations. I concur with the postulations made by the author on the need to integrate strategies such as a diverse workforce and employee training. Apple, a multinational organization incorporates best global practices such as environmental scanning and assessment of organizational performance. The practices are critical in earning the organization a competitive edge over other international competitors. 

Conclusion 

Effective management of human resource management in international business requires incorporation of best global practices discussed by the three articles. Employee training is a key HRM strategy that enables multinational organizations to become competitive due to increased creativity and stimulated innovation. International HRM also underscores need to integrate diversity and consideration of labor laws to foster increased success. 

References 

Alharthey, B. K. (2018). Review on Globalization and Importance of Strategic Human Resource Management.  International Journal of Scientific Research and Management 6 (03). 

Nuangjamnong, C., & Maj, S. P. (2017). Strategic Human Resource Management in International Organizations.  Modern Applied Science 11 (5). 

Wright, M. (2020). Human Resource Strategy. Adapting to the Age of Globalization [Electronic resource]/P. Wright.  SHRM Foundation Publ.–Mode of access: https://www. shrm. Org/hr-today/trends-andforecasting/special-reports-and-expert-views/Documents/HR-Strategy-Globalization. pdf.–Date of access 10

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StudyBounty. (2023, September 16). Strategic HR and International Business: The Essential Guide.
https://studybounty.com/strategic-hr-and-international-business-the-essential-guide-essay

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