1. What is meant by the globalization of human capital? Is this inevitable as firms increase their global operations
Globalization of human capital is where, human resources are sook after by companies from all over the world. Due to the increased demand for skills at a lower cost, companies will tend to look for employees to work in their premises from all over the world (Webforum, 2015). In this regard, since companies are extending their operations the entire world over, human capital globalization is inevitable since they will need to work with people from these countries for them to successfully exploit global markets.
2. How does this case illustrate the threats and opportunities facing global companies in developing their strategies?
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What is meant by the globalization of human capital? Is this inevitable as firms increase their global operations
Globalization of human capital is where, human resources are sook after by companies from all over the world. Due to the increased demand for skills at a lower cost, companies will tend to look for employees to work in their premises from all over the world (Webforum, 2015). In this regard, since companies are extending their operations the entire world over, human capital globalization is inevitable since they will need to work with people from these countries for them to successfully exploit global markets.
2. How does this case illustrate the threats and opportunities facing global companies in developing their strategies?
This case from Apple, a multinational corporation, shows that there are threats that are facing companies like her as they strive to set foot in global markets. The company’s fallout in terms of salaries and fair compensation is one of such threats that are expressly found in Apples case. Companies seeking global markets will need to strategize and foresee such developments to avoid such developments. Due to the diversity of global markets, the threat of failing to comply with laws in these locations is always
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It is expected for such a company to feel obligated to deliver upon the American dream. The publicity of such comments does not only affect a company’s reputation but also financial performance. Apple have a role in ensuring that America as a nation grows, itself having been molded by the country’s economic muscle and enabling environment for business. The point in this is that, although the company is obliged to make better products, America is one of her best markets and it has an obligation to its market.
4. Who are the stakeholders in this situation and what obligations do they have?
As pointed out, the company has an obligation to various stakeholders. These stakeholders are her investors, the government and the customers. To the government, the company must ensure that it remits all taxes as required by the law. Secondly, Apple is obliged to work with the consumers through corporate social initiatives and lastly, to the investors, the company must work to yield returns for their investment.
5. How much extra are you prepared to pay for an iPhone if assembled in the United
“The people who are crazy enough to think they can change the world are the ones who do” (Isaacson). When the late Steve Jobs was a child he was abandoned by his real mother and adopted by the Jobs family. Steve was a stubborn rude man who was ruthless, however he was focused, crazy, and inspirational. His characteristics drove him to form one of the greatest companies today, Apple. The computer company revolutionized the world with a frontline of the greatest products the world has ever seen. Although facing many hardships, the company managed to change the music industry, computer industry, phone industry, design industry and created a tablet industry. Apple envisioned products that did not exist and it thrived from the reaction of its consumers. After becoming a fortune five hundred company, it has continued to develop its products and has remained one of Americans most pristine companies however has also been put in the spotlight on social and ethical responsibilities. Ethical businesses use principles and standards that determine if conduct in organizations is acceptable. The big question has arose, is Apple socially and ethically responsible with their suppliers, the economy, its workers, and its consumers? Is Apple responsible for its supplier chains? Does apple have programs through which they help solve social and ethical issues? Has apple made any financial contributions to address issues?
A company’s character traits can enable them to act in accordance with reason. Possessing good virtues is what makes a company or person moral and actions taken reflect those virtues. Apple has possessed some unmoral virtues that have caused them to do business with an unethical company. These traits can hurt their business and could cause the public to no longer purchase from them. Walmart is prime example, when people found out about how they were treating their employees. There are several people who choose not give them business. Apple is attempting to earn trust back from the public by doing what is necessary to turn things around with their suppliers. They have stated that will not tolerate inhumane working conditions or the use of child labor and are becoming more accountable.
While there are many various global issues that affect the International Human Resource Management to run efficiently, there are two key concepts that play a major role in understanding how to approach them with cohesive and a well coherent strategy; they are the International Human Recourse Management Strategy and Understanding the Cultural Environment. In the International Resource Management strategy, many companies will do their research in finding companies that offer the following:
The history of how Apple was founded gives a clear picture that Apple should be a company that is socially responsible, both to its customers and its stockholders. It is a company that manufactures software and hardware components and is very well known for its series of personal computers, the iPod and its marketing strategies that are always innovative for its products. Everyone finds the history of Apple to be an interesting technological fairy tale of three friends that were once in a single garage and had very humble beginnings. The humble beginnings of the founders of Apple show that the company should be responsible since its founders have to strive so that the company becomes what it is today. In the business world of the modern times, providing a shopping and product experience that is great gets a business very far since if a business wants the customers to make uncountable trips back then, they should be informed that their dollars are doing some good.
Globalization is an “interrelated transformation in economic, political, social, and cultural practices and processes toward increased global integration”. It has some benefits to it but, those benefits do not out way the disadvantages of globalization. One disadvantage of globalization is outsourcing. In the article by Callero Tim Dewey was laid off by United Airline because they found out that they could outsource his job and pay his counterpart less than him. This illustrates that today it is not enough to have the right education, or have a good work ethic if the company you are employed for finds a way to cut costs so that they save money they’ll do it. Another example of outsourcing but, from the perspective of person getting paid less
With the proliferation of the internet international Business transactions are more common today than ever. Globalization is now a key factor when creating a business strategy for most companies whether they are small family own businesses or huge corporations. Globalization however does not just involve selling a product in other countries. There are legal and cultural concerns that must be addressed. The legal aspects are fairly simple because in most places the laws are spelled out. It's the local customs, and regional way of doing things that can be tricky. Research on globalization has shown that it is not an omnipotent, unidirectional force leveling everything in its path. Because a global culture does not exist, any search for it would be futile. It is more fruitful to instead focus on particular aspects of life that are indeed affected by the globalizing process. (1). In this new economy, as it has been in the past, it will be the people not the machines who will determine a company's success. Having an effective Human Resource Management team that effectively analyze your company's current and future personnel needs is key in any business organization.
The development of free-market economics has, since the 18th century, resulted in the spread of a set of ideas, creeds and practices all over the developed and much of the developing world. Today, the globalisation of trade, capital, technology and innovation has accelerated competitive conditions for businesses all over the world. Globalisation may be defined as the opening of markets to the forces of neoliberalism and capitalism; it is characterised by the free movement of people, talent, skills, capital (intellectual, social and economic) across international borders. All kinds of barriers have either been swept away, diffused or made obsolete by the forces of globalisation: trade barriers, subsidies, geographical boundaries, linguistic and cultural differences. Technological advancements have pulled the world closer and, in the process, affected how labour relations and worker/employer relations operate and develop. The multinational corporation as well as the public sector alike are affected by global competition.
In today's global business environment, managing diversity in human resources has become a very important and crucial issue. Human resources management has a lot to deal with managing workers/employees from different countries and nationalities. Managing multinational human resources becomes an issue not only in the multinational corporations, having their offices or plants in different countries, but also in the domestic companies, with domestic workforce becoming more and more diverse each day. Creating an HR that has the ability to recruit and select the right people and the ability to effectively socialize and train employees will allow multinational companies to excel in all business aspects.
...e located and the human resource management to effectively manage the global workforce diversity. Furthermore, management practices across nations should be more focused in terms of enhancing expatriates’ experience with cross-cultural training. It is also highlighted that executives of international firms must efficiently devise the best strategies and plans to increase the business positive performance and for controlling resources of their foreign subsidiaries. As a consequence, global managers play a very important role in the development and success of multinational corporations in the current competitive international market since there are numerous issues that they have to deal with in the operating process. If the enterprises could overcome the management challenges, they would gain great opportunities in the global economy and achieve favorable outcomes.
In dynamic, global competitive markets, successful organizations are likely to be staffed with managers capable of adapting to constantly evolving roles, and with the capacity to achieve and sustain optimal levels of performance. The global market place has currently impacted the practice of human resources management in the United States and will continue in the next ten years.
Although primary objective for managers is to maximise shareholders’ wealth, but many firms are started to focus on other stakeholders’ interests in recent years. Company can prevent transfer the damage of stakeholders’ wealth to shareholders when focus on stakeholders’ interests. In other words, “social responsibility” for the companies is to maintenance stakeholders’ relations in order to provide long-term interests to shareholders. By this way, conflict, turnover and litigation of stakeholders can be minimise. Obviously, company can achieve their primary objective by cooperation with stakeholders instead of conflict with stakeholders (Smart, Megginson, Gitman, 2002).
Globalization refers to the absence of barriers that every country had. Yes, it has helped to demolish the walls that separated us .Globalization, which is the process of growing interdependence among every country in this planet, can be seen as a sign of hopeful and better future by some, but for others it represents a huge disaster for the whole world. That’s why we are going to see the negative effect that globalization has on culture then focus on the ethical disadvantage it brought, to finally talk about the damage it did to skilled workers.
A globalizing business sector advertises viability through rivalry and the division of the work it permits individuals and economies to keep tabs on what they specialize in. It also allows people to go globally. Globalization has stretched the assets, items, administrations and markets accessible to individuals. The increasing set of reliable connections around individuals from distinctive parts of a world that happens to be separated into countries.
This paper is about leading people through a management system called Human Resource (HR), that does more than payroll, design training, and avoiding lawsuits. It provides essential components that will ensure that human talent is used effectively and efficiently to accomplish organizational goals. It is a case study of the Rio Tinto company 's Human Resources global approach after a significant downsizing in 2008.
- Volberda, H. Morgan, R. Et al. 2011, “Strategic Management: Competitiveness and Globalization”, Cengage Learning EMEA ,Pg 244-258