HR global Strategies

[amina_98]

Discuss TWO types of global strategies in human resource management. (4 marks)

I came across this question and I'm just not sure if my answer is correct or not.

Is talking about bascially entering an international market and accessing a cheaper and higher skilled workforce, complying with their laws and regulations correct? Do they fall under one global strategy or two?
 

[Essej]

Discuss TWO types of global strategies in human resource management. (4 marks)

I came across this question and I'm just not sure if my answer is correct or not.

Is talking about bascially entering an international market and accessing a cheaper and higher skilled workforce, complying with their laws and regulations correct? Do they fall under one global strategy or two?
 

Hi Amina, you're definitely on the right track!

This is a fairly vague part of the syllabus, but the three global strategies in Human Resources management are related to cost, skills and supply - all interrelated.

Although not explicitly stated in the syllabus, you could also talk about offshoring (where the business itself works in another country to leverage a cost advantage) and outsourcing (contracting work to a global third party e.g. QANTAS outsourcing its IT functions to India).



Cost: This involves, like you mentioned, accessing a cheaper workforce through entering the international market wherein a weaker labour market framework exists. This is generally a form of offshoring as a business could establish a subsidiary in a foreign country (so there is no external ownership ie outsourcing) and create high demand for lower cost labour. As this is a DISCUSS question however, I would also mention how this is ethically questionable as global businesses take advantage of overseas labour market regulations (see Nike sweatshops).

Skills: Here you would explicitly mention how a firm outsources rather than offshores to gain specialisation in skills not efficiently exercised in the original country of the business. There's a whole economics explanation i can give you on the idea of comparative advantage, however its best just to know that we OUTSOURCE to gain access to HIGHER SKILL LEVELS which leads to a COMPETITIVE ADVANTAGE. In terms of discussing, the level of skilled labour able to be recruited is dependant upon the education levels and overall economic development of the country being outsourced to.

Hope this helps 

[amina_98]

Hi Amina, you're definitely on the right track!

This is a fairly vague part of the syllabus, but the three global strategies in Human Resources management are related to cost, skills and supply - all interrelated.

Although not explicitly stated in the syllabus, you could also talk about offshoring (where the business itself works in another country to leverage a cost advantage) and outsourcing (contracting work to a global third party e.g. QANTAS outsourcing its IT functions to India).



Cost: This involves, like you mentioned, accessing a cheaper workforce through entering the international market wherein a weaker labour market framework exists. This is generally a form of offshoring as a business could establish a subsidiary in a foreign country (so there is no external ownership ie outsourcing) and create high demand for lower cost labour. As this is a DISCUSS question however, I would also mention how this is ethically questionable as global businesses take advantage of overseas labour market regulations (see Nike sweatshops).

Skills: Here you would explicitly mention how a firm outsources rather than offshores to gain specialisation in skills not efficiently exercised in the original country of the business. There's a whole economics explanation i can give you on the idea of comparative advantage, however its best just to know that we OUTSOURCE to gain access to HIGHER SKILL LEVELS which leads to a COMPETITIVE ADVANTAGE. In terms of discussing, the level of skilled labour able to be recruited is dependant upon the education levels and overall economic development of the country being outsourced to.

Hope this helps 

Once again your assistance was very helpful and highly appreciated