Factors Influencing HRM Strategies
� Describe how parent-company strategies are relevant to host country operations.
� Select and provide rationale for the best parent-company strategy for your chosen country.
� Describe how workforce demographics affect recruitment and selection in your chosen country.
Question one
Many multinational companies have opened up many daughters company in the global market and emerging market especially in the developing countries. to open up a foreign subsidiaries, it will force the parent company to formulate a strategy that will make the daughter company to be competitive in the host country where its been launched or been ventured to. These strategies will be of more relevance to the host country because of the following reasons:
First, the technological advancement, in order for the foreign subsidiaries companies to be competitive in the market and be strong enough to survive the stiff competition among the domestic or local; companies in the host country, it will force the parent company to be unique by bring some technology that is more advanced than that for the local industries, (Henry, 2011, pg 47). By this, the host country will be force to pull up its socks and make a mile to advance in technology and by doing do, it will develop its economic and its economy will be likely to grow if all other factor are considered to be constant. For example, in Kenya, the introduction of mobile phones and Telecommunication Company such as Safaricom, has gained market in the Kenyan economy. This made the Kenya government to pull up its socks and be able to invest in the information communication and technology. Recently, it advanced its technology in terms of security.
Secondly, the host government’s economy will grow. This is because the parent company to bring a daughter company for example in Kenya, it will have to adhere to the legal terms of opening up a business or a company in the Kenya territory. This will have to involve them paying corporate tax and the tax will in turn increase the government revenue which will therefore pinch the government harder to increase its spending on the projects that will likely lead to economic growth. For example infrastructures
The third point is that parent company to open up a business or a company in a host country like Kenya; it will open up many job opportunities for the unemployed people in Kenya. This will in turn increase the per capita income for all employed and unemployed people in that particular country. Creating job opportunity will mean many people will be employed and they will have to pay taxes to the government either direct or indirect and this will therefore increase the government revenue.
Last but not least, the strategy to open up a business will reduce externalities like for example the issue of insecurity. This is because many people will be busy creating value for the company they work foe and also a lot of security will be put into place to protect the daughter company investments.
Question two
Marketing strategy is mostly used by many companies in the global market. But in Kenya, one of the telecommunication companies uses this strategy to win over the market share and also be able to attain its target market in the telecommunication industries. This company is known as Safaricom limited. It utilizes the marketing strategies of the four ps. these four ps include people, product, price and places, (Ip, 2010, pg 45). For Safaricom limited its main target is the young generation. It ensures that the people who are the customer and the heart of the organization does gets their demand in time and incase of any complain, they are able to solve with an efficient and effective way and more so amicably. Also, the company products are of high quality and any change that will adhere to the customers taste and preference will have to be put into place by the company. in addition to this, the pricing of their products and services are of low prices as compared to other telecommunication company in the Kenya economy. Last but not least, the place or the distribution strategy is the key to the marketing of the Safaricom’s products and services. for example M-pesa lines are been distributed free of charge from the Safaricom headquarters and dealers to the final customer in need. Also internet connection can reach everybody no matter their financial wealth or location, (Noe, 2013, pg 223).
Question three
In an organization, there are many people from different cultures and tribes. All of this people do not share the same cultural beliefs and customs. For example in Kenya there are many forty two tribes. All of them speak different languages and their cultures are different. If the manager is from a different tribe, he or she will always chose employees from his community and recruit them even if they do not have the necessary skills needed to do the work. This will affect the recruitment process because people with skills will be left out because they do not come from the same tribe with the top officials. Also, religion will affect the recruitment process. This is because people from different religion will at times fail to integrate and when recruiting employees will always base on one religion. This will affect the performance of the company, (Strikwerda, 2009, pg 87).
References
Henry, A. (2011). Understanding strategic management. Oxford: Oxford University Press.
Strikwerda, J. (2009). Executing strategy in turbulent times: How capital markets impact corporate strategy. Zeist: Nolan, Norton & Co.
Noe, R. A. (2013). Fundamentals of human resource management. New York, NY: McGraw-Hill/Irwin.
Ip, G. (2010). The little book of economics: How the economy works in the real world. Hoboken: John Wiley & Sons
