Week 2 Discussion

Human Resources, Competitive Advantage, and Global Talent

The leaders and HR professionals must understand and be prepared for the challenges of conducting business in another country. Thus, an MNC has the option of using one of the competitive strategies listed below and incorporating a well-de�ned organizational structure. Introducing the right type of organizational structure in accordance with the competitive strategy is critical for the success of the MNC.

Organizational Structure:

Global product division structure

Global area division structure

Global transnational division structure

Regional headquarters structure

Vance and Paik (2015) stated:

What are the implications of these distinctive competitive strategies and organizational structures for HR management practices? HR policies and practices are in�uenced by the company's structure and strategy, which, in turn, must be responsive to the demands of the surrounding institutional and cultural environments. In other words, the strategic deployment of human resources to the foreign subsidiaries of MNCs enables the subsidiaries to successfully ful�ll their strategic roles and effectively respond to local conditions. (p. 123)

The HR professional can gain a better understanding of how the competitive strategy and the HR are linked by analyzing the information given in the table below.

Four Competitive Strategies MNCs should understand the global cost leadership and the multidomestic, transnational, and regional concepts in order to maintain the competitive advantage.

Review each tab to know more.

Competitive Strategy Organizational Structure HRM Orientation

Global Global Product Division Ethnocentric

Multidomestic Global Area Division Polycentric

The organization’s performance will also depend on the HR professionals’ and leaders’ expertise in implementing a cutting-edge global talent management strategy.

Competitive Strategy Organizational Structure HRM Orientation

Transnational Global Matrix Division Geocentric

Regional Regional Headquarters Regiocentric

Additional Materials

From your course textbook, Managing a Global Workforce: Challenges and Opportunities in International Human Resources Management, read the following chapter:

The Key Role of International HR Management in Successful MNC Strategy

From the South University Online Library, read the following article:

Global HR Roles and Factors In�uencing Their Development: Evidence from Emerging Indian IT Services Multinationals (https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp? sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx? direct=true&db=edb&AN=99597990&site=eds-live)

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