Firms going global aim to broaden their range of sales, production or sourcing. Lee and Makhija (2009) confirmed that international investments (export-related investments and foreign-direct investments) could provide flexibility. What the authors didn´t expound on is how Human Resource Management could contribute. The goal of this paper is to show some possibilities concerning qualitative (e.g. broaden the range of employees skills and competencies), quantitative (e.g. use non-standard contract arrangements) and strategic (e.g. linkage of Human Resource Management and top-management concerning strategy development and implementation) contributions of Human Resource Management.
Table of Contents
1 Introduction
1.1 Problem definition
1.2 Layout of this paper
2 Flexibility in Internationalization
2.1 Theoretical foundation
2.1.1 Operational flexibility
2.1.2 International investments
2.1.3 Human Resource Management
2.2 Contributions to flexibility by HRM
2.2.1 Qualitative dimension
2.2.2 Quantitative dimension
2.2.3 Strategic dimension
3 Conclusion
3.1 Results
3.2 Consequences
Research Objective and Key Topics
The primary objective of this paper is to examine how Human Resource Management (HRM) can effectively contribute to providing organizational flexibility within international enterprises, particularly by bridging the gap between international investment strategies and operational HRM measures.
- Theoretical foundations of flexibility and international investments
- Qualitative dimensions of HRM for workforce competency development
- Quantitative HRM measures for numerical labor flexibility
- Strategic integration of HRM within top-management decision processes
- Managing cultural and ethnic-based diversity in multinational contexts
Excerpt from the Book
2.1.1 Operational flexibility
There are a lot of definitions concerning flexibility and HRM because it is elusive. Most of the definitions conceive flexibility as adaptability of internal and external factors. As mentioned above, the international environment is highly complex and has become increasingly dynamic. Thus, a multinational corporation (MNC) has to cope with this environment by adopting and reacting to diverse and changing contingencies as quickly as possible to ensure their competitive advantages.
According to Lee and Makhija, this form of capability is called operational flexibility and has to provide economical efficiency. Particularly when a MNC has flexibility, it is able to “respond profitably to country-specific environmental shocks and fluctuations by shifting factors of production across national borders”. That is, a MNC can exploit profit opportunities generated by its international investments. But operational flexibility in international contexts has its costs by managing a worldwide network of subsidiaries as well and is associated with a loss of stability. So flexibility is a measure for managing complexity and quick adaptability to dynamic environmental shifts.
Summary of Chapters
1 Introduction: This chapter defines the problem of maintaining competitiveness through flexibility in international markets and outlines the structure of the paper.
2 Flexibility in Internationalization: This central chapter provides the theoretical foundation and explores how qualitative, quantitative, and strategic HRM measures contribute to organizational flexibility.
3 Conclusion: The final chapter summarizes the research results and discusses the inherent costs and consequences of pursuing flexibility in international HRM.
Keywords
Human Resource Management, HRM, Internationalization, Flexibility, Operational flexibility, Export-related investments, Foreign-direct investments, Strategic HRM, Multinational Corporation, MNC, Competitive advantage, Diversity management, Workforce competency, Labor structure, Global strategy
Frequently Asked Questions
What is the primary focus of this research paper?
The paper explores how Human Resource Management can contribute to organizational flexibility in companies that are expanding internationally through export-related or foreign-direct investments.
What is the main research question?
The research seeks to expound on the specific contributions HRM can make to enhance flexibility, moving beyond general investment strategies to address the role of human resources.
What are the key thematic pillars discussed in the work?
The work focuses on three dimensions: the qualitative dimension (employee skills/training), the quantitative dimension (flexible contracts/labor supply), and the strategic dimension (alignment of HR with corporate strategy).
Which scientific approach does the author use?
The paper is based on a review and synthesis of existing literature, specifically building upon the work of Lee and Makhija (2009) and Atkinson (1984) to categorize HRM contributions.
What does the main body of the text cover?
The main body defines core terms like operational flexibility and international investments, then systematically analyzes how HRM strategies—such as intercultural training, non-standard work arrangements, and board-level integration—facilitate global adaptability.
Which keywords best characterize this work?
Key terms include Human Resource Management, Operational flexibility, Multinational Corporation (MNC), Strategic HRM, and international investments.
How do export-related investments differ from foreign-direct investments in this context?
Export-related investments involve shifting sales across markets from a home base, while foreign-direct investments involve establishing subsidiaries in foreign locations, each requiring different HRM support strategies.
What is the strategic role of a Chief Human Resource Officer (CHRO) according to the text?
Placing an HRM representative on the board of directors ensures that HR processes are embedded in strategy development, balancing the "structure follows strategy" and "strategy follows structure" requirements.
Why is diversity management considered a strategic-linked goal?
Effective diversity management allows firms to utilize varied skills and cultural values, thereby increasing operational and organizational flexibility and preventing misinterpretations in global operations.
What are the identified costs of pursuing organizational flexibility?
The author notes that increased flexibility often leads to higher expenditures for training and potential wage premiums for temporary or non-standard workers, which can negatively impact short-term profit.
- Quote paper
- Dipl.-Betriebswirt (FH) Felix Merz (Author), 2011, Flexibility in Internationalization, Munich, GRIN Verlag, https://www.grin.com/document/167547
