A Report on Factors Influencing HRM Strategies

Question: Describe how parent-company strategies are relevant to host country operations. Select and provide rationale for the best parent-company strategy for your chosen country. Describe how workforce demographics affect recruitment and selection in your chosen country. Answer: Introduction: The rapid increment in the number of multinational Corporations (MNCs) from emergent economies has resulted in the increased interest as well as urgency in having a better idea of the deployment as well as diffusion of strategic managerial strategies from personal perceptive without assumption of prevailing Western ethnocentric orthodoxy (Mellahi, Demirbag, Tamer Cavusgil Danis, 2010). The report represents a conceptual framework of global human resource strategies as well as practices within MNCs from emergent economies throughout their subsidiaries in developed as well as developing markets. How parent-company strategies are relevant to host country operations? When any parent company in one country aims at expanding and operating its business in other host countries, the strategic management of the parent company is incorporated in a manner that supports the business operations at the host countries. In the recent years, the efforts of host governments for maintaining adequate control over own national economies are restricting the independence of managers at MNCs in deployment of economic resources. Thus, host governments often interfere with the process of strategy formulation of the MNCs. Those managers who are most likely to face restrictions of that sort may compare two different government interventions (Gomez Werner, 2004). One that determines the fiscal as well as regulatory ground rules for decisions of MNCs to operate in the host country may be better interpreted as limitation of strategic independence. Another influencing internal decision-making process of MNCs may be understood as challenge to managerial autonomy. All parent companies thus make it a point to adopt relevant effective strategies that may prove beneficial at the host nations in order to ensure effective operations and sustainability. Rationale for the best parent-company strategy for your chosen country The chosen country for this report is the United States. There are several international companies which originate from other parts of the world and are working with increasing effectiveness in the United States. One such instance can be given of Aldi supermarket. The supermarket is the parent company in Germany and successfully operates in the United States. The company adopts some key strategies for operating in the US. These strategies are in-sourcing, purchasing foreign competition, etc. the concept of in-sourcing allows the supermarket to reduce its cost of transportation, and materials (Ellis, 2000). By the concept of in-sourcing, instead of contracting with a different company in US, Aldi opts for keeping its business activities within itself. This reduces the overall cost considerably in terms of less expensive labor, etc. Also, the supermarket opts for purchasing foreign competition for overcoming some key challenges. The supermarket learns business practices of a firm that is newly purchased with concern to corresponding business culture of US. How workforce demographics affect recruitment and selection in your chosen country? The process of recruitment as well as selection in the United States would be affected by the workforce demographics. In US, the percentage of youth population has reduced considerably since past few years and this is said to impact upon the orientation of recruitment and selection in the country (Duran Bajo, 2012). For becoming an effective employer of choice, an organization needs to develop a climate for enhanced achievement in the very beginning. The Aldi supermarket must develop a climate where key potential prospects may feel that they would pursue an accomplishment to earn a job at the organization. Ever since the year 2011, it has been observed through research studies in US that the workforce demographic has been steadily improving, thereby creating enhanced opportunities for the local people, and in turn for the business firm (Mellahi, Demirbag, Tamer Cavusgil Danis, 2010). It may influence fairness in perceptions by communication methods it implements fir framing its mes sage of affirmative action. The communication approaches must focus that affirmative approach enables reduction of discriminatory barriers as well as storing equity to minor employees. Conclusion: From the above study, it may be concluded that multinational company strategies in the human resource management and that of other operations differ considerably than any other form of business firms. The management of MNCs need to focus upon the needs, demands, environment, and internal and external business conditions within the host country to achieve effectiveness and excellence at the work front. Since these companies operate in a totally different nation with varied cultures and business environment, it is important for these companies tohave a fair understanding of the strategies appropriate for host nations. References: Duran, J., Bajo, N. (2012). Institutions as Determinant Factors of Corporate Responsibility Strategies of Multinational Firms.Corporate Social Responsibility And Environmental Management,21(6), 301-317. doi:10.1002/csr.1308 Ellis, K. (2000). STRATEGIC CONTEXTS, KNOWLEDGE FLOWS, AND THE COMPETITIVENESS OF MNCs: A PROCEDURAL JUSTICE APPROACH.Competitiveness Review,10(1), 9-24. doi:10.1108/eb046386 Gomez, C., Werner, S. (2004). 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