CHAPTER 2 msdm dowling

CHAPTER 2 THE ORGANIZATIONAL CONTEXT

The human resource (HR) function oes not o!erate in a "acuum# As $ith other areas of the or%ani&ation' the shift from a omestic to a %oa focus affects the HR  acti"ities escrie in Cha!ter *# As a conse+uence' HR acti"ities ac ti"ities are etermine ,# an infuence' "arious or%ani&ationa#factors' such as. /ta%e of internationai&ation0 . 1oe of o!eration use in the "arious forei%n marets0 . metho of contro an coorination0 an . /trate%ic im!ortance of the o"erseas o!erations to to ta cor!orate !rofitaiit,# !rofitaiit,#

To a certain e3tent' ho$ the internationai&in% firm co!es $ith# the HR emans of its "arious forei%n o!erations etermines its aiit, to e3ecute Its chosen e3!ansion strate%ies# inee 4innish research su%%ests that !ersonne !oicies shou ea rather than foo$ internationa o!eration ecisions' ,et one cou ar%ue that most com!anies tae the o!!osite a!!roich that is' foo$ 5maret ri"en strate%ies# 4or e3am!e' after reain% the cases in E3hiit 26*' one cou as $hether GE5s to! mana%ers fu, antici!ate the HR in"estment that the Tun%sram ac+uisition $ou entai !rior to its ecision to !urchase the Hu n%arian firm GE is a ar%e mutinationa $ith e3!erience an resources to ra$ on 6 4or smaer' ne$, internationai&in% firms' ac of suitae staff ma, e a ma7or constraint' as the e3!erience of the Austraian firm in E3hiit 26*emonstrates#

EXI8IT 26* In 9anuar, *::; the Percent# the

e3!ansion hun%arian o!eration ha *? e3istin% factories em!o,in% *@'>;; $orers# GE initia, a!!ointe a hun%arian orn