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Role of HRD in Multinational Corporations Name Professor Institution Date Introduction Given the rapid pace of international competition, it is argued that the main elements essential to every organization in order to remain competitively viable are knowledge and skills…
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Download file to see previous pages... Some of the continuous changes in the environment these organizations operate in include international competition, increasing acquisitions and mergers, reformations of individual organizations, and technological advances as identified by Dowling & Welch (2004). The implications of these changes on various aspects of the organization vary depending on the individual organization, however, for international corporations that experience the impact of these changing dynamic environments it is necessary to adopt a greater level of flexibility and search for novel sources of competitive advantage. As mentioned above, skills and core competencies are regarded as the key elements essential for driving effective innovation and desired change, and therefore are the major source of competitive advantage (Gratton, 2000). As highlighted by Boxall and Purcell (2003), these changes do indeed qualify knowledge work and employee skills. In tandem, this offers the suggestion that Human Resource Development (HRD) is the core function around which Multinational Corporations (MRCs) succeed and maintain competitive advantage. Although all organizations are bound in such external environments, particular organizational features put emphasis on some important disparities in the role profiles of the people who have been tasked with carrying out the operations in each specific organization. It is widely held that the prevailing competitive environmental condition and appreciation of the significance of knowledge and learning to gain a competitive edge are increase the status and power of the HRD function and lead to the emergence of varied opportunities for HRD professionals (Boud and Garrick, 2001: Carter, Hirsh and Aston, 2002: Harrison, 2006). The increasing challenges manifest in the organizational structure of MNCs lead to the creation of distinctive roles for HR and HRD professionals that are not available in domestic organizations or the national context (Peterson and Thomas, 2007). This paper therefore discusses the role played by the HRD function in MNCs in an international context concerning the changing environmental circumstances that have been highlighted above. In addition, draws on the conclusion that the role of HRD in maintaining a competitive advantage in a global stage has become greater than ever before, and is mainly influenced by the international factors that come into play. The International Context and the Role of HRD in MNCs The extant surge in globalization has been identified as a central environmental factor that continues to shape the operations of HRD professionals in MNCs across the world. Globalization entails a large quantity of issues such as the growth in international, multinational and transnational organizations’ advances in technology, mergers, acquisitions, ad strategic alliances. Short and Callahan (2005) state that in the quest for organizations to go global or maintain their position at the international stage, they are likely to turn to HRD professional to offer advice and support on the most viable strategies and practices to adopt. However, globalization forces the HRD function of such organizations to transform their way of thinking about the nature radically, role and tools of people development in order to remain competitive. The methods, therefore, adopted by the HRD function in MNCs is mainly influenced by the decision of the organization to lean toward international convergence, divergence or to operate as a transnational ...Download file to see next pagesRead More
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