ASSIGNMENT

Human Resource Management

[Word Count: 3178]Human Resource Management

Introduction

This assignment highlights a scenario where the writer is amongst a team of human resource management specialists, who are hired by an Irish company operating in the food and drink sector, called the NS Group (fictional name). In a short span of time, NS Group has gained unparalled success domestically and as part of its futher growth, the company's management seeks to expand internationally. Knowing that international expansion is not an easy process, the company has hired a team of competent human resource specialists to guide about the possible options and the challenges that the company may face related to its human resource department in form of a report.

For ease of discussion, it is assumed that NS Group plans to expand its operations in the regions of South-East Asia, Middle-East and Europe. Therefore, the report on the possible options and challenges that may be faced by NS Group's human resource deparrtment by the specialists is discussed in the following section of this paper.

Discussion

Internationalization of Firms

Zahra et al, (2000: 925-926) notes that many new and rapidly growing companies are now venturing out globally within the first ten years of their life cycles. Although, a combination of factors such as international regulations, global economic climate and regional business policies, have contributed for the international expansion of the young firms. Earlier expansions by these firms in their business life cycles allow these young firms to achieve their desired goals and attain profitability levels by capitalizing on their capabilities and unique resources. Moreover, through diversity at an international level helps the organization to acquire new knowledge and technological diversity, along with, improving organizational innovation. This is because as a firm operates in new cultural and business environment across different regions, they are likely to develop more competitive and technical knowledge associated with innovation as opposed to those firms who do not expand internationally.

Conversely, Ruigrok & Wagner (2003: 65-67) suggests that the benefits of internationalization is described by two core theoretical themes known as the theories of multinational firm and theories of Foreign Direct Investment (FDI). The latter set of theories is more economics oriented and is associated with factors located in a firm's external environment. For example, external factors such as inflation, business rules and regulations and political conditions, amongst others. Similarly, theories of multinational corporations or MNC focus more on the internal environment of the organization. Thus, through utilizing the opportunities presented by an organization external factors and channelizing the internal competencies helps to reap more benefits of the internationalization of the firm.

Some of the successful examples of firms that transitioned into internationalization are highlighted in the following segment. Through, highlighting such examples provides an insight to the background of these organizations, along with the possible opportunities and challenges faced by them.

Success Examples

Bartlett & Ghoshal (2000:78-80) highlight the case of an Indian pharmaceutical company Ranbaxy. The company launched its exports division back in 1975 when it was positioned the lowest in India's domestic pharmaceutical ...