different types of HRM problems arise. In this section we examine Nancy Adler's categorization of the various levels of international participation from which a company may choose. Figure 15.4 depicts these levels of involvement. 15.12.3 Domestic Most companies begin by operating within a domestic marketplace. For example, an entrepreneur may have an idea for a product that meets a need in the U.S. marketplace. This individual then obtains capital to build a facility that produces the product or service in a quantity that meets the needs of a small market niche. This requires recruiting, hiring, training, and compensating a number of individuals who will be involved in the production process, and these individuals are usually drawn from the local labour market. The focus of the selection and training programs is often on the employees' technical competence to perform job-related duties and to some extend on interpersonal skills. In addition, because the company is usually involved in only one labour market, determining the market rate of pay for various jobs is relatively e 15.12.4 International As more competitors enter the domestic market, companies face the possibility of losing market share; thus they often seek other markets for their products. This usually requires entering international markets, initially by exporting products but ultimately by building production facilities in other countries. The decision to participate in international competition raises a host of human resource issues. All the problems regarding locating facilities are magnified. One must consider whether a particular location provides an environment where human resources can be successfully acquired and managed. 15.12.5 Multinational Whereas international companies - build one or a few facilities in another country, they become multinational when may build facilities in a number of different countries, attempting to capitalize on lower production and distribution costs in different locations. The lower production costs are gained by shifting production from higher cost locations to lower-cost locations.
different types of HRM problems arise. In this section we examine Nancy Adler's categorization of the various levels of international participation from which a company may choose. Figure 15.4 depicts these levels of involvement. 15.12.3 Domestic Most companies begin by operating within a domestic marketplace. For example, an entrepreneur may have an idea for a product that meets a need in the U.S. marketplace. This individual then obtains capital to build a facility that produces the product or service in a quantity that meets the needs of a small market niche. This requires recruiting, hiring, training, and compensating a number of individuals who will be involved in the production process, and these individuals are usually drawn from the local labour market. The focus of the selection and training programs is often on the employees' technical competence to perform job-related duties and to some extend on interpersonal skills. In addition, because the company is usually involved in only one labour market, determining the market rate of pay for various jobs is relatively e 15.12.4 International As more competitors enter the domestic market, companies face the possibility of losing market share; thus they often seek other markets for their products. This usually requires entering international markets, initially by exporting products but ultimately by building production facilities in other countries. The decision to participate in international competition raises a host of human resource issues. All the problems regarding locating facilities are magnified. One must consider whether a particular location provides an environment where human resources can be successfully acquired and managed. 15.12.5 Multinational Whereas international companies - build one or a few facilities in another country, they become multinational when may build facilities in a number of different countries, attempting to capitalize on lower production and distribution costs in different locations. The lower production costs are gained by shifting production from higher cost locations to lower-cost locations.
GBS780-1-2014-3.docx