There is a relationship between a multinational firm’s international human resource strategy and strategic business imperative because they are all linked together.
post 1: There is a relationship between a multinational firm’s international human resource strategy and strategic business imperative because they are all linked together. They are related because they are the primary tools that play a significant role in connecting the goals of an organization to the human resource programs (DeCenzo et al., 2016). Strategic business imperatives represent the primary goals and change a business undertakes to achieve its goals and objectives. They are both linked so that they can work in solidarity to elevate employee performance and satisfaction. There is a link between international human resource management and domestic human resource strategy in the way they perform duties. International human resource management tackles employees who carry out responsibilities of organizations in more than one country, while domestic human resource deals with employees who work in a single nation (Ayentimi et al., 2018). They are all linked together because they play a pivotal role in dealing with employees who work in different places. International human resource management (IHRM) deals with employing workers from multiple countries, while domestic human resources can be limited to employees of a particular country.
Multinational firms can address local issues by ensuring a link between their operations in local regions. These firms can ensure that their products are customized so that they can meet conditions at the local level. Multinational firms can also address local issues by providing that they render support, for instance, to local charities with financial backing (Ayentimi et al., 2018). These firms must support local economies and ensure that smaller suppliers are sustained. Strategies should be laid effectively to ensure that they don’t lose focus on its global and domestic priorities (Ayentimi et al., 2018). Adequate planning and effective delegation of responsibilities are steps taken to ensure that global and domestic priorities are considered. Multinational firms also ensure that foreign direct investment (FDI) is well maintained to fulfill the goals and objectives of the firm.
Ayentimi, D. T., Burgess, J., & Brown, K. (2018). A conceptual framework for international human resource management research in developing economies. Asia Pacific Journal of Human Resources, 56(2), 216-237. https://onlinelibrary.wiley.com/doi/abs/10.1111/1744-7941.12132
DeCenzo, D. A., Robbins, S. P., & Verhulst, S. L. (2016). Fundamentals of human resource management. John Wiley & Sons. https://books.google.com/books?hl=en&lr=&id=-V4BCgAAQBAJ&oi=fnd&pg=PP18&dq=DeCenzo,+D.+A.,+Robbins,+S.+P.,+%26+Verhulst,+S.+L.+(2016).+Fundamentals+of+human+resource+management.+John+Wiley+%26+Sons.&ots=dWiBxjokMr&sig=oVjJvkhz4ZMPIuG__HNUgnagqg8
post 2: To lead a successful business in the competitive world both international and global HRM has an established strategic plan to run the company. The role of HRM is essential for moving the business in the right direction where collaboration is seen as an integral part of that plan. Strategic management engages methods that managers use for an organization while ensuring the vision and objectives are met (Tarique, Briscoe, Schuler 36). Companies rely on the strategic plan as well as management role to achieve the desired results. From my understanding, both global and international companies use SWOT analysis to see the opportunities and threats they might face in a new country. The analyzed information helps to refine business strategies. Also, environmental scanning is the first step both companies do. As reported by Tarique, Briscoe, and Schuler a strategy is a pledge to a specific market, competitiveness, and the direction of the business. It can be seen as “ “a game plan”” where companies are investing their resources in running the business for superior market success while ensuring the customers are pleased (37).
The domestic and international HRM is very similar in their business strategy where for both the main task is to see the employees as valued assets to the company while ensuring equal employment, rewards and training approaches no matter what culture they are coming from. For domestic HRM the system is less complex, management is in charge only of local business strategies while international HRM must adapt to global settings. Nevertheless, planning, organizing, leading, and controlling mechanisms are used by both domestic and international HRM to implement the mission and goals of the company.
Global business strategy requires centralization and integration. To progress in business development, the government system must be identified as well as the population itself. Multinational companies should know how the political system is structured. Multinational organizations adapt to regional systems while keeping their values constant, but it can also happen that business strategy is unattainable, or objectives are unmet then they withdraw the business from that region. The other option can be that multinational companies might establish in countries with similar cultures and language inheritance or even consider a joint venture.
Tarique, I., Briscoe, D. and Schuler, R. (2021). International Human Resource Management: Policies and Practices for Multinational Enterprises. Sixth edition.