International HR Strategies PDF

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As exhibited in the cases of Coca-Cola and Apple, having global human resource policies that apply to all the employees of a company, geographical location notwithstanding, are the pillar of successful global operations. The responsible executives are expected to find the most proper techniques that...

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International Human Resource Strategies: Comparing Coca-Cola and Apple Inc.

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Table of Contents Introduction......................................................................................................................................3 Understanding the Role of Global HR Management.......................................................................3 Prevailing Global HR Management Concepts.................................................................................5 The Case of Coca-Cola....................................................................................................................6 Recruitment and Selection...........................................................................................................7 Training and Development...........................................................................................................8 Managing Diversity and Equal Opportunities.............................................................................9 The Case of Apple.........................................................................................................................10 Employment Conditions............................................................................................................10 Creativity and Innovation...........................................................................................................11 Remuneration Management.......................................................................................................12 Reflecting on the Above Cases......................................................................................................13 Conclusion.....................................................................................................................................13 References......................................................................................................................................15

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Introduction A few years ago, multinational companies were comfortable giving their subsidiaries a free rein and would only send managers from their headquarters. However, the global workforce has undergone massively dynamic changes in the recent past which mean that the former oneway human resource channeling is no longer efficiently applicable. According to the provisions of the modern business world, it is imperative for a company to establish and implement sound human resource strategies that have the capacity to foster practical contributions towards the promotion of the company’s global orientation (Park & Gu, 2016). The insight of the content discussed and highlighted in the following paper aims at establishing the leading international human resource strategies used by various multinationals in the course of running their global operations. The paper starts by evaluating the role of global human resource management, proceeds to the analysis of the current global human resource management concepts, and provides a conclusive comparison of strategies applied by Coca-Cola as well as Apple – two renowned multinationals whose headquarters are in the United States. The rationale behind the insight provided in the following paper is exhibiting the fact that the success of multinational companies, industrial sector notwithstanding, is overly dependent on a company’s approach regarding its global human resource strategies. Understanding the Role of Global HR Management The overall process that features in the redevelopment of a company’s tactics and procedures that suit the global market has made it necessary to reassess the practices and roles of human resource executives constantly. Ideally, the techniques upon which a company adapts to the prevailing global environment is globalization (Thite, 2014). Notably, globalization has made it fundamental for human resource executives and staff in multinationals to seek more

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enlightenment on matters regarding legal jurisdictions, workforce population diversity, as well as the relationship between professional development and employee training. In light of the above, the role of global human resource management features a few primary functions. First, there is the integral role of recruitment and staffing. With the necessity to hire and retain qualified and skilled employees playing an imperative role in facilitating the success of business operations, global human resource management features the preparation of job descriptions, interviewing candidates, and the extension of employment offers. However, it is worth noting that all the above must be conducted within the provisions of conclusive understanding of the extent of international human resource operations (Nolan, 2011). Secondly, there is the aspect of compensation packages. Courtesy of globalization, human resource managers in the current business world, have learned to adapt to new ways through which to offer benefits and rewards to their global workforce. The most important consideration in the above role features the ability to strike a balance between the critical human resource functions and the different perceptions they receive in various parts of the world. The reason for the predisposition above finds its basis in the fact that there are some locations where the society is comfortable with monetary benefits alone while in others non-monetary benefits are part of the expectations. Development and training are also an integral role in global human resource management. Notably, most multinationals start and try out new methods of business operations in their home countries. When such new techniques become instrumental in the promotion of business performance, they are then rolled out to all the overseas subsidiaries. Consequently, it is the role of the global human resource management to ensure the all new techniques that have been tried and certified effective yield positive outcomes everywhere else where various

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multinationals have their global subsidiaries (Perks, 2004). Last, but not least, there is the element of legal compliance. Ideally, the above aspect stands out as one of the most important roles of global human resource management. The reason why the above is so establishes its basis in the reality that operating in different locations around the world translates into encountering different local legal setups and regulations, such as tax laws and trade tariffs, which calls for specific strategies that are independent of one country to another. Prevailing Global HR Management Concepts With globalization becoming more and more widespread, most organizations, irrespective of their size, have increasingly ventured into international business. One of the most important things that have arisen following the above development is the increase in cultural sensitivities as well as workforce diversity – which is what forms the basis of global human resource management (Son, 2015). The primary concept for the establishment of the global human resource management function thus is the creation of an adequate local appeal in the host irrespective of the multinational companies maintaining an international feel. The rationale of the above concept is to overcome the challenge of multinationals trying to strike a balance between not being called local while at the same time establishing a technique that exemplifies a domestic touch in different host countries. Another concept features the generation of awareness regarding cross cultural-based sensitivities amongst the global managers for multinational companies. The foundation of the above theory cuts across the essence of facilitating market expansion and penetration with ease (Yu & Wu, 2009). Ideally, the better a multinational can overcome any cultural-based sensitivities in a new frontier, it manages to establish a good rapport with the local market, which is the primary objective of business expansion. Global human resource management must,

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therefore, be well equipped with the necessary resources that facilitate the hiring of the most preferred and suitable staff across different geographical locations. Last, but not least, the overall concept of global human resource management cuts across the facilitation of measures that ensure that human resource management policies in host countries are aligned with the organizational culture as exhibited by the practices in their countries of origin, the headquarter. That is, ensuring that the human resource management procedures are not only in tandem but also actively support the overall structure, controls, as well as the strategies of the multinational company (Harvey, Speier & Novecevic, 2001). The rationale for the above concept is founded upon the reality that for subsidiaries of a multinational company to operate with coherence, they must be bound by common strategic controls and structures. The Case of Coca-Cola The Coca-Cola company is an American multinational company that was founded back in the year 1886 by an Atlanta pharmacist called John Pemberton. The path of Coca-Cola Company’s success was set as soon as John Pemberton sold the company to Asa Candler a short while later. It is Asa that embarked on branding and marketing campaigns that promoted the acceptability of the above company both within as well as beyond the boundaries of the United States. By the year 1895, the company had opened branches in Los Angeles, Chicago, Texas, as well as Dallas. The company was sold again in the year 1923 to Woodruff Ernest who successfully made the company a multinational. At the moment, the Coca-Cola company has already hit the one billion daily sales for its hugely broad portfolio of its products with an estimated 1.9 billion daily sales. The company has over 150,000 employees throughout the globe

INTERNATIONAL HUMAN RESOURCE STRATEGIES (World of Coca-Cola, 2017). The following are some of the strategies the Coca-Cola Company has featured in its global human resource management. Recruitment and Selection Boasting of expereicne that has been been earned operating for over a century in the soft drink industry within the borders of Untied States, and almost a century of such experience in regions outside the country, the Coca-Cola company stands out as a perfect example of a multinational that is most suitable for application in the evaluation of the development of global human resource management strategies. Notably, the above company operates in almost all countries across the world. Regarding the above, it is inmportant that it acquires highly skilled, ambitious, as well as overly experienced individuals who have the ability to harbor not only goal-oriented strategic thinking but also the capacity to implement programs that promote working in teams (Pandey, Kumari & Bhat, 2010). Regarding the comprehensive nature of the Coca-Cola’s company market, the recruitment process starts with the analysis of the job as well as the design of the levels of skills and duties that are commensurate with the employment position regarding the different expectations that differ from one geographic location to another. The company is sure to designate precise specifications and description of the open jobs, which includes the country where the job holder is expected to establish his or her basis during the job tenure. Being a multinational corporation, the above information is overly critical since the suitability of candidates is also subject to their origin, regarding their home countries, as well as the location where the successful recruit is posted to represent and carry out his or her described operations. Most importantly, the Coca-Cola company, especially for top executive positions, does not limit the chances of selection by locations (Pandey, Kumari & Bhat, 2010). The company advertises the open positions and every person who feels that they are qualified,

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regardless of their country of origin and the country where the position holder is expected to establish his or her basis. Training and Development As soon as the employees are recruited into the Coca-Cola company, they are taken through a training program that is particularly tailored and customized for the purpose of teaching and instilling them with the outstanding procedures that govern the uniformity of operations, rules, regulations, as well as the excellent policies that all Coca-Cola employees must adhere to as long as they are working for the above company from any part of the world. The rationale behind the following practice finds its basis upon the effectiveness of having an entire company workforce thinking towards having a common mentality and perception of the outstanding company objective – both at the company headquarter and in all its subsidiaries across the entire globe. Another reason whey training is a fundamental global human resource management strategy for the Coca-Cola company focuses on the quality of the products of the above company. It is worth noting the fact that the fame and respect accorded to the following company trace its background to the quality products sold by the company. Consumers across the world have always chosen Coca-Cola company products over the substitute products of its competitors based on the level of quality that the company has promised and guaranteed over the years. In light of the above, the company pursues training as a strategy to ensure that all the employees are aware of the above fact and that they are enlightened with the necessary insight that helps the Coca-Cola company always attain its quality target (The Coca-Cola Company, 2017). It is only through training its employees across the world that it gets the capacity to ensure that all its products manufactured in different geographical locations are of standard quality and thus

INTERNATIONAL HUMAN RESOURCE STRATEGIES customer satisfaction is maximized at all times. Notably, the training strategy by the Coca-Cola company features four primary forms. First, there is the instilling of skills in presentation, selling, and public speaking, among others. The second type features technical training aimed at increasing the efficiency of the employees. The third is leadership training which is strategically customized to help in the preparation of future company leaders. Lastly, there is functional training which is aimed at promoting the personal development of the company employees through mentorship programs in the pursuit of fostering better workplace relations amongst the employees as well as between the employees and other company stakeholders. Managing Diversity and Equal Opportunities The Coca-Cola company is committed to offering entirely inclusive employment standards where all its employees are treated fairly. That is, the above company does not discriminate its global workforce regarding race, gender, sexual orientation, among other things. The company’s leadership and employment model is overly diversified and does not conform to outdated societal norms which make it impossible to judge employees by their gender identity or even sexual orientation. Notably, the above aspect of diversity is highlighted and ensured during the recruitment and hiring process where the company hires employees from different nationalities and schools of through into its workforce (Pandey, Kumari & Bhat, 2010). The rationale of the above practice finds its basis upon the Coca-Cola Company’s prioritization scheme. Ideally, the primary goal of the company is revenue growth and the subsequent profit maximization. In light of the above, the company must ensure that all its operations are aligned towards creating as much appeal as possible to as many people as possible. With a team that incorporates different people from the community, the company can simultaneously please as

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almost everybody in a particular community and consequently paving the way ensuring that the sales are always high. The Case of Apple Apple Computer is a multinational company that is incorporated in the United States, just as Coca-Cola. However, it operates in the telecommunication and electronics industry where it majorly deals with designing and marketing computer software, consumer electronics, as well as personal computers. The company’s flagship products currently feature the Macintosh line of personal and business computers, the iPhone line of smartphones, the iPad line of tablets, as well as the iPod line of media players. The software by Apple includes the renowned operating system Mac OS X, iTunes multimedia library, iWork productivity software, the iOS operating system for smartphones and tablets, Logic Studio music production software, among others. Over the years, courtesy of the advancement of the information technology sector, Apple has grown to be the largest company in its industry with hundreds of retail stores across all the continents in the world (Richardson & Terrell, 2008). Consequently, it is imperative to embrace the fact that the above company has attained its current performance status courtesy of its strategic global human resource management practices. Employment Conditions Apple requires successful candidates to attain certain conditions before they can be considered for selection or enlistment in the recruitment process. The rationale for the above finds its basis in the general understanding that it takes more that academic qualifications to qualify for the recruitment and selection into an organization. Ideally, Apple is overly concerned about the legitimacy of its workforce, especially regarding the legal backgrounds. It is worth noting the fact that although both Coca-Cola and Apple are multinational corporations, the nature

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of their operations are different and thus cannot have an entirely similar approach. Coca-Cola deals with the production and distribution of beverages. On the other hand, Apple deals with the manufacturing and marketing of electronic-based consumer products. The nature of such products features the exchange of a significant degree of personal information by the consumers of such products (Wasik, 2016). For instance, an iPad user has to make an account with Apple so that he or she can access the Apple Store to download applications. Accessing other utilities such as the iTunes library also requires one to have an Apple ID. In a nutshell, having and using Apple products requires a higher level of trust between the consumers and the employees at Apple. It is for the above reason that Apple features the strategy of background checking and using additional measures to ensure that its workforce upholds integrity. The above approach applies in the United States, the headquarters of Apple, as well as in other regional jurisdictions in various continents. Notably, the above strategy is overly practical and has helped the above company to stand out as one of the greatest electronics and telecommunication support multinational corporation of all time since despite its massive size and global demand level, it has never had a major employee-based scandal worth significantly damaging its reputation anywhere in the world. Creativity and Innovation One reason why Apple has managed to edge out and maintain an upper hand compared to its main competitors traces its origin on the secretive nature of the above company. Ideally, Apple never opens up about the core details of its human resource strategy. However, it is worth noting the fact that it is as a result of its natural predisposition to non-conformity with the standard industrial strategies employed by other companies. Instead of using the strategy of training and development, Apple prefers the strategy of creativity and innovation (Wasik,...