Global Human Resource Management - BMW Organization - Essay Example

Using the BMW organization, outline the different staffing strategies employed by BMW when internationalizing their business and discuss alternative staffing strategies that may be more appropriate. In the discussion, identify any recommended order of strategic preference explaining why? Executive summary Globalization rise offers numerous significant challenges to a company seeking presence on the international stage. A number of strategic factors should be taken into account prior to dedication at an international level and later. For a company or organization to adapt to changing patterns, relentless flexibility is needed, at local regional and international levels. The manner in which an organization will use its resources to achieve competitive advantage in the larger environment is defined by strategies. Formulation of strategies and process of management analyzes opportunities and threats in business and resource breaches. Existing values and philosophy of management will also be analyzed. The success of an organization depends on how strategies are formulated and pursued. These strategies should take advantage of the prospects outside, minimize the effect of threats from outside and capitalize on strengths from inside the organization. An organization that has intentions to expand its operations into the international markets should base on the accurate competence. Right competence is necessary so that the organization is relevant in the international markets. An organization should also understand the target markets priorities together with the challenges involved into the environments of the international markets. In response, the organization should develop strategies that would make it a decipherable player in the international stage. This paper sought to locate to locate the staffing strategies and supporting aspects in internalization of organizations in the automobile industry, using the BMW group as a case study. To sum up, the data analyzed identified various staffing strategies that organizations employ to ensure successful process of internalization. The strategies are market dominance position strategy, business models strategy, mode of entry strategy and opportunism on government policies. Introduction Organizations are about people and not strategy, structures or systems. Organizations adapt their human resource management practices for successful strategies execution so as to survive and grow in the international markets. International human resource field has been a focus of all business organizations and its significance will grow in the subsequent years. International organizations use three strategies types for transfer of practices of human resource across different countries. The first strategy is ethnocentric strategy, which uses similar practices of HR of the parent company in its host nations. Secondly, is the Polycentric strategy that employ local people as labor force and adapts the HR practices of host nation. The third one is Geocentric strategy only focuses on talents of the employee and adopts HR practices which are most operational and resourceful irrespective of the nationality. All strategies have their weakneses and strengths that are applied as per the business type, the strategy of the organization, the leadership, and the past experiences of the organization regarding diverse strategies. The international groups can use traditionally sensitive and adaptive practices of HRM for generating modest advantage in foreign tasks. In an effort to discover novel markets and prospects, international corporations are adapting to practices of HRM across diverse borders. Theories and studies on firms’ internalization have received significant attention from many researchers and intellectuals. To some key scholars, internationalization is the process by which organizations gradually increase their involvement in international activities of business. It is also a process where transactions are established and conducted in other countries beyond their national jurisdiction. This paper will analyze and describe the internationalizing staffing strategies of the BMW group. List of staffing strategies employed by BMW when internationalizing their business The world is changing at a quick pace. Personal mobility is still a focus of political regulation and nation industrial policy in most countries (BMW group, 2012). Society shift needs novel mobility solutions. Instability has become persistent in day to day business. Both markets and consumers are still uneasy in this era of economic improbability. To meet these challenges, BMW formulated the first strategy that aligns the organization into two targets. To be profitable and to augment long term value in changing times. This applies to structural, technological as well as the cultural aspects of the company. The company has been implementing numerous strategies in keeping up with four pillars of the strategy, since 2001. The four pillars include shaping the future, growth, profitability and access to consumers and technologies (BMW group, 2012).The company’s activities will remain firmly dedicated on the premium fragments. First and foremost, the company has earned trust and respect of its consumers internationally. The reason for this is its consistent focus on delivering high quality in all activities it does (Smith, 2012). The BMW Company has a department responsible for international HR marketing and recruiting that holds a number of responsibilities. The department supports the global local markets in employer branding and recruitment requirements. It also plans long term strategic initiatives to aid the company in its objectives to internationalize the workforce. However, there are a number of challenges that faces the international HR marketing department. For instance, 70% of the workforces originate from Bavaria and other regions of Germany. This is an unbelievable figure when looks at the company’s presence internationally. The company has production, sales and fiscal entities in over 130 states. Its biggest markets in addition to Germany are China and the US. The BMW group has acknowledged the need to internationalize its workforce. Nonetheless, it cannot do so at the expense of a very Bavarian brand and product. The BMW group has a strategic partner intern initiative that is involved in identifying BMW departments in Munich that would be willing to take on an international intern. It should also be willing to create positions for internship within these departments and also advertising these new positions to students from MIT, Clemson and Georgia (Cibulcis, 2013). Additionally, BMW, has a strong connection with prestige values and power, thus, it has a greater possibility of getting liked with the self-concept of an individual who has salient personality and prestige values. Another strategy that the company is using is ethnocentrism which is a significant determinant of the attitude of consumer’s formation in international advertising. This method of staffing strategy offers the chance to transfer the BMW group’s value to a foreign country. Personnel who have worked in the parent company have the knowledge how the organization perceives work ethic, service of customers and other related issues. The workforce from the parent BMW Company can bring the values of the company to bear on the foreign branch building. The BMW group gives its management staff international exposure when it send them overseas. Additionally, sending them in foreign land broadens their thinking. This can assist them to rise to greater levels in the organization, as it goes international and permit them to bring their international sensitivity to novel positions. In addition, when an organization opens an operation overseas, it is in the stage of growth. Making use of ethnocentric staffing can avert expanding interests into region that the company does not want to invest in. the BMW company has attained continuity by placing its management staff in its host country since they possess a working knowledge of the parent company’s long-range goals. BMW has deliberately developed an international strategy in addition to its domestic strategy (Fill & Baines, 2014) Discuss alternative staffing strategies that may be more appropriate if BMW used The BMW group should support in recruiting and employer branding. The company can do this specifically at its strategic partner universities. This move has a higherrr5rtrt possibility of creating a number of employer profiles on the career website of the universities. After creating the accounts, the group can regularly post positions and promotes the BMW image of the employer on the online career portals, for which the students are searching for employment. Findings Conclusion and recommendation Business globalization has had an important effect on human resource managemen. human resource manage across borders is very different and can be quite difficult for a Human Resource Professional un-accustom to cross border management Even though there has been large scale regional integrations, such as the European Union.  The purpose of this course is gain insights into employee relations from a cultural and international perspective References BMW group, 2012, company portrait: strategy, available from: http://www.bmwgroup.com/e/0_0_www_bmwgroup_com/unternehmen/unternehmensprofil/strategie/strategie.html Ahmad, S,Z & Kitchen, P, J, 2008, Transnational corporations from Asian developing countries: The internationalization characteristics and Business strategies of Sime Darby Berhad, Int. Int. Journal of Business Science and Applied Management, Volume 3, Issue 2, p1 Smith, J, 2012, Leadership, The World’s most Famous Reputable Companies, available from: http://www.forbes.com/sites/jacquelynsmith/2012/06/07/the-worlds-most-reputable-companies/2/ Cibulcis, R, 2013, Internship at BMW Group, International HR Marketing & Recruiting, available from: https://sites.google.com/a/g.clemson.edu/rebeccacibulskis/home/professional-experience/munich-bmw-group Read More