Trade Unions Constrain the Strategic Choices of Multinationals - Essay Example

Section/# Human Resources Questions and Answers It has been suggested that trade unions constrain the strategicchoices of multinationals; however, there is always two sides to a story – discuss. To disregard the level and extent to which trade unions affect and/or constrain a given multinational companies choice with respect to a given market or region of production should not be understated. However, such a determinant is but one concern among dozens that multinationals take into account when choosing whether to engage with a given economy within a given nation (Rubin 2012). Moreover, due to the highly nuanced decision factors that help guide the growth and development of international business, one can safely assume that such a determinant is not at the very top of the company’s priority list. As cost incessantly drives business, labor unions and/or trade unions are but one mechanism through which the labor market is able to leverage their own interests and work together in order to derive a better salary and result from the multinational company interested in doing business within the borders of a given state (Kanter et al 1998). Accordingly, if the other factors that the multinational firm is specifically interested in have positive associations and work to attract the interest of key economic development authorities and key decision makers, the level of trade unionism is likely to have little impact upon the final decision. 2-why might the internationalization process of Chinese companies, such as CFS differ from those of other companies? Discuss. Whereas most companies greet the process of internationalization from a more or less equal footing as a corporate citizen of a domestic entity that has a full level of integration with the world’s economy, the case of CFS was quite different than most due to the fact that it had been under Chinese state ownership for a period of around 40 years prior to the first movements towards privatization and the subsequent internationalization that developed as a result of the firm attempting to integrate with the remainder of the world’s economy (Zhenquan et al 2009). Accordingly this disintegration with the remainder of the world’s economy for such a long period of time effected many issues within CFS as it began to re-organize and rely heavily on layers of middle and lower management to affect the key goals and strategies that the firm needed in order to maintain its vision (Barnes 1994). Furthermore, key levels of retraining and re-engagement by the firm with regards to its workforce were necessitated as shareholders were unfamiliar with the management practices and implied intent of other leadership around the globe. As a means of rapidly acquainting them with these differentials, a series of seminars and trainers needed to be rapidly engaged with the shareholders to reorient their approach to key issues. As a means to accomplish this end and as a means to rapidly aquire the skills that they did not possess, CFS invested heavily in their European headquarters in London as a means to rapidly bring their staff up to speed with respect to the latter’s prowess in the field of HR management. 3-What lesson(s) may be drawn from the Gillette Singapore experience? Mergers and acquisitions of international firms oftentimes become synonymous with a breakdown of integration and months, quarters, or even years of non-aligned business goals and strategies. As a function of this, the case of Gillette in Singapore is unique. When Gillette acquired Parker Pen, the approach that was followed was one of full local integration from the very beginning (Rowley 2007). Although many firms tout such a desire, few are able to achieve it. Yet, Gillette and Parker Pen mapped out a very basic local integration scheme whereby the local norms and cultural differences between the other markets that Gillette currently leveraged and that of Parker Pen’s subsidiaries and market niche were considered. As a function of this, Gillette and Parker Pen were able to congeal a reasonable and moderate approach to the market and seek to penetrate it in a way that leveraged Parker Pen’s previous experience and layers of HR expertise while all the while paying careful note of the importance of the local country units and seeking to strengthen rather than weaken these unique relationships that had previously existed between them (Scullion 2007). 4. What do you regard as the major challenge(s) facing international human resource managers in the 21 century? Although coming up with the most pressing needs of Human Resource management that faces the current system is difficult to fully capture and or appreciate in a single page of text, this author would like to proffer that a deeper and more nuanced understanding of the differing ways in which cross cultural factors influence the face of human resources is likely the most important of all (Wright 1998). Whereas each of the factors that have been discussed during the course of this semester have a powerful role on determining the future viability of a firm and its human resource management, the fact of the matter is that in an increasingly globalized world, the necessity of an employer to fully understanding and appreciate the nuanced needs and cultural beliefs of diverse shareholders is paramount to its survival. Moreover, as workers regularly shift from one environment to the next and work out of more than one office, the potential for a better development of cross-cultural human resources development exists than it has previously. Additionally, the shift in the way that human resources have been viewed within the past 20 years should necessarily continue (Hathcock 1996). However, one of the key challenges that still continues to face this field is the fact that HR is still oftentimes viewed as a mere extension of purely profit driven interests with little if any focus afforded to the integral working units (personnel) that necessarily make up the company/firm/corporation. The recent shift in HR management has seen a primarily different approach emerge that is more focused on acting as a mediator and assisting both personnel and employer to come to amicable agreements concerning training needs, worker safety, pay, and a plethora of other issues; however, such a trend must continue if the field is to continue to advance within the 21st century. References Barnes, J., United Nations Educational, S. (France)., & And, O. (1994). Higher Education Staff Development: Directions for the 21st Century. Hathcock, B. C. (1996). The New-Breed Approach to 21st Century Human Resources. Human Resource Management, 35(2), 243-250. Kanter, R., & Dretler, T. D. (1998). "Global strategy" and its impact on local operations: Lessons from Gillette Singapore. Academy Of Management Executive, 12(4), 60-68. doi:10.5465/AME.1998.1333948 Rowley, C., & Warner, M. (2007). The Management of Human Resources in the Asia Pacific: Into the 21st Century. Management Revue, 18(4), 374-391. Rubin, E. V. (2012). INNOVATIONS IN HUMAN RESOURCE MANAGEMENT: GETTING THE PUBLIC'S WORK DONE IN THE 21ST CENTURY - edited by H. Sistare, M. Shiplett and T. Buss. Public Administration, 90(1), 276-278. doi:10.1111/j.1467-9299.2012.02027.x Scullion, H., Collings, D. G., & Gunnigle, P. (2007). International human resource management in the 21st century: emerging themes and contemporary debates. Human Resource Management Journal, 17(4), 309-319. doi:10.1111/j.1748-8583.2007.00047.x Wright, P. M. (1998). Introduction: Strategic human resource management research in the 21st century. Human Resource Management Review, 8(3), 187. Zhenquan, W., Shouyang, W., & Tonghua, H. (2009). Re-estimation of capital flights from China: 1982-2005. Applied Economics Letters, 16(9), 971-976. doi:10.1080/13504850701222038 Read More