International Human Resource Management In Volvo Group - Case Study Example

IHRM (international human resource management) Introduction Studies have documented that for any organisation to thrive in a highly competitive market, as Bradley 2007 outlines, the organisation should focus on practicing strategic concepts that develops and maintains competitive advantage. In regard to Volvo, its entry to the Curitiba market can be analysed to represent Volvo’s best practices and competitive advantage. In essence, both managerial and innovation strategies plays a great part in putting the organisation at its current place in Curitiba market. The following sections will deliberate on Volvo’s strategies of maintaining competitive advantage in the Curitiba market. Resources and capabilities that Volvo can obtain from Curitiba It is apparent that for any organisation to develop and maintain competitive advantage, just like Aaker and McLoughlin 2007 stipulated, some concepts of working towards attaining organisation’s goals should be articulated upon. Curitiba, being a region of congested traffic, has been a potential market for Volvo. This is arguably true because, as contingency theory stipulates, the environment in which an organisation operates involves articulation of factors such as size and technology among many other factors (Hooley, Piercy and Nicoulaud 2008). In this regard, it is evident that Volvo has strategized on gaining competitive advantage in the Curitiba market. The fact that Curitiba is traffic congested makes it a strategic market for Curitiba to operate in. in essence, Volvo specialises on providing the buses for public transport. Analytically, this is in line with strategically operating in an environment that can provide market for its automobiles. Basically, the primary goal of any organisation is to enter into a market that has demand for its products, thus offering an opportunity to make profits (Martin 2013). Nevertheless, it is indispensable of the management of organisations to apply principles of leadership and management in order to make the right decisions when entering new markets. In another dimension, Volvo must have considered the issue of corporate social responsibility. In any metropolitan area, organisations should focus on applying both economic and corporate social responsibilities in order to be successful. For example, before entering into the Curitiba market, Volvo was aware of the need to formulate a strategy that would bring growth in this region. For example, in the process of providing buses for public transport, Volvo has simultaneously created jobs for many residents in the city. The CSR issues involve bringing in social and responsibility factors into action (Piercy 2009). When people get jobs through Volvo’s involvement in the public transport, their lives get uplifted, thus bringing the overall growth of the city. In addition, Volvo has been able to create its own organisational culture, through which its competitive advantage has been developed and maintained in Curitiba. Volvo’s organisational culture has been a reflection of its vision statement. However, organisation’s culture is developed strategically by its leaders and managers. It is the reflection of what the leaders and managers believes in and work towards realising their goals (Ranchhod and Gurau 2007). In order for Volvo to have managed to capture the Curitiba market, it is apparent that the management has developed a culture that keeps the company growing and surviving in a highly competitive market. For this to happen, the leadership of the organisation should be well conversant with how to both manage the workforce and focus on customer satisfaction. Studies have document that forms that empowers their employees through various employees wellness and reward programs tend to have a smooth organisational culture development. Therefore, the human resource department must have a grasp of how it can motivate its employees in order to deliver top results. In regard to Volvo’s case, its workforce could be termed as proficient right from the manufacturing department to the marketing department. That is why the company has been able to capture a part of the Curitiba market. It is also apparent that Volvo incorporates good leadership, private sector, public sector, and government in order to have been successful in Curitiba market. Good leadership entails focusing on the government regulations and meeting the desired preferences of the public (Wilson and Gilligan 1997). Besides, Volvo has been cited to have designed an environmental management system in 2001 in accordance with ISO 14001. This ensures that the company adheres to issues of environmental sustainability. In addition its environmental management system is mandated to ensuring that the company becomes a world leader in vehicle safety. In fact, Volvo has been awarded for environmental issues in ensuring that apart from the strategy of growth, Volvo has ensured that its vehicles are lighter, safer, and more fuel efficient. In addition, an option for exhaust filters that reduces emissions of carbon monoxide by 80 to 90%. International Human Resource Management in Volvo Group International human resource management (IHRM) is a worldwide human resource management that entails processes of sourcing, allocations and the effective utilisation of skills, knowledge and ideas in company such as Volvo Brazil. In essence, IHRM at this international company ensures that competition remains high globally, there is efficiency, and the company is locally responsive, flexible and adaptive. Moreover, there is assurance of transformational learning across the globe (Aaker and McLoughlin 2007). Through IHRM, Volvo Brazil carries the responsibility of attending to numerous functions and activities such as the management of international offices, selection and training of employees to work for the company at international levels. Additionally, it is mandated to expand its expertise in understanding and complying with international employment laws, over and above, global organization designs. This ensures that the vision of the company that entails been a world class provider of treasury services, particularly due to the value that is bestowed to the company in relation to the overall Volvo Group Companies is upheld at all cost (Hooley Piercy and Nicoulaud, 2008). Of importance to note is that Volvo Brazil is a subsidiary of Volvo Group of Companies whose mission dictates that the company should be in a position to come up with a shareholder value through optimization of the cost of capital in the entire Group. In essence, IHRM team ensures that there is more coordination in relation to travelling, and access the performance of employees internationally. Besides, Dubois, Jolibert Muhlbacher 2007 argues that resource management team should be prepared to face greater exposure to challenges and liabilities either directly or indirectly. This ensures that company is aware of the channels that produce more capital for the companies, which is further translated into shared capital. Needless to mention, Volvo Brazil aims at limiting the impact but takes the advantage of macroeconomic developments that are under stipulated risks mandates. Principally, IHRM ensures that the company is prepared for any risks that may be incurred the company but setting aside a risk enforcement team and conforming the protection of intellectual properties (Piercy 2009). Consequently, the team should also conduct a market research to have knowledge of the possible risks from similar companies. The finance department should work hand in hand with the human resource department in ensuring there is extensive utilization of macroeconomic development for the benefit of Volvo Group of Companies. Moreover, IHRM has greatly impacted on the core values of Volvo Brazil and the Volvo Group of Companies. It is worth noting that quality, safety and environment care are the three basic core values that have enabled the company to grow swiftly in global competition. In respect to this, it is widely known that the human resource department in any organization or company either local or international is mandated to control the entire functioning of the company (Bradley 2007). Hence, quality as denoted by the Volvo Brazil Company incorporates the ability to offer to the competitive market reliable products and services. Essentially, the IHRM ensures that the workforce that is required to work in the firm is qualified through proper recruitment and selection. In addition, necessary equipments should be of high quality, over and above, ensuring that process of production is highly effective. In relation to environmental care, IHRM ensures that since Volvo Brazil and the entire group deals with heavy combination of metal, the environment is polluted at time and there is need to show concern to the environment both internally and externally for the sake of maintaining a good corporate image as an international company. In fact, companies are expected to abide by the environmental laws of their specific countries (Martin, R., 2013). Similarly, safety is a crucial at Volvo Brazil due to the nature of the business that the company associates itself with. Hence, the company through the IHRM stipulates that safety is a basic principle during designing and the entire production time. Basically, IHRM team ought to provide safety in the company especially to the entire work force to avoid unnecessarily damages and risks which translates to unplanned costs (Piercy 2009). Innovation achieved by Volvo One of the notable innovations of Volvo is Volvo construction equipment (Volvo CE). This innovation strategy has been argued to have helped Volvo in achieving its competitive advantage. Its main goal is to make the organisation the most innovative company in the automobile industry. In essence, this innovative strategy has enabled the company to cultivate a friendly working environment and empowering innovation experts. The new elements of operations are introduced in order to strengthen the already existing ones whilst bringing in new forms of ideas that are developed and nurtured by both the leadership of Volvo and its workforce. Nevertheless, this strategy is believed to be a comprehensive strategy that encourages deliberations of workforce ideas and their modifications. This innovation strategy has become the company’s mindset. It revolves around expertising talents and makes them state of the art. This strategy has been primarily been the center stage for technology department and then channeled to other departments. The first set of this innovation is the incremental strategy. This involves improving the already existing technology. In fact, this strategy is all centered towards encouraging its employees to think outside the box. It helps in identifying current market trends and focusing on customer needs. In addition, Volvo CE strategy expands to other innovation strategies such as safety innovations and new Volvo series innovations. After deliberating on how great ideas can be utilised and nurtured, the experts on the innovation department can now channel the new innovation strategies in every department of the organisation. Competitive advantage of the innovation Through the innovation of Volvo construction equipment (Volvo CE) that makes the company the most innovative in the automobile industry, it is clear that the company will continuously strives toward becoming the world leader in sustaining transport solutions without having to compete with any other similar company in the market. Apparently, the innovation is bound to bring customers closer as business partners, over and above, being able to cultivate growth opportunities that are profitable as it is the only dominating company with such innovation at present, globally (Ranchhod and Gurau 2007). Of most importance is that the global market is aware of the proven ability of Volvo Brazil and the entire Volvo Group of Companies as one in the automobile industry innovations are present in relation to energy valuable transport solutions. The competitive advantage is correlated to the company’s corporate value, which dictates that being one among many automotive industries; it has a unique value that gives its competitors challenge in trying to duplicate their products (Wilson and Gilligan 1997). Simply, Volvo Group of Companies has continuously applied and strengthened the expertise and culture that they have created over the years. Conclusion International Human Resource Management (IHRM) has been greatly contributed to the effective utilisations of skills, knowledge and ideas in company such as Volvo Brazil. Principally, competition remains high globally, there is efficiency, and the company is locally responsive, flexible and adaptive. Moreover, there is assurance of transforming learning across the globe. Of importance to note is that, IHRM has greatly impacted on the core values of Volvo, entire functioning of the company, workforce that is required to work in the firm is qualified through proper recruitment and selection, necessary equipments of high quality, over and above, ensuring that process of production is highly effective. Thus, competitive advantage is correlated to the company’s corporate value which dictates that being one among many automotive industries; it has a unique value that gives its competitors challenge in trying to duplicate their products. Bibliography: Aaker, D. A., and McLoughlin, D., 2007. Strategic Market Management, European Edition. Chichester: John Wiley & Sons Ltd. Bradley, F., 2007. Strategic marketing: in the customer driven organisation. Chichester: John Wiley & Sons Ltd Dubois, P., Jolibert, A., Muhlbacher, H., 2007. 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