Today, most French companies have had the "great leap" in international markets. With increased trade and international context, the phenomenon of globalization has forced companies to open their activities abroad. Even if we can see significant differences in their degree of internationalization, all companies show the same willingness to develop their international business.
With this phenomenon, companies had to adapt their entire organization to better manage this change. Thus, even human resources companies have transformed themselves. We will therefore consider the implications of this development on international companies and their management of human resources. First, we will present the summary of the text "The internationalization of business and human resource management," and later, we will analyze this phenomenon with two examples and conclude with our personal analysis.
Nowadays there are two main strategic logics: the movement of globalization on the one hand and national realities on the other. Large companies, who want to follow this trend of internationalization, should adapt their strategy and organization. That is why the great problem of this text lies in the nature of the consequences of international development companies on their policies and their management of human resources. We will follow the lines and text to outline first the different internationalization strategies, then we will see how to organize international and finally we will study the management of human resources abroad.
Internationalization strategies have evolved over the years. In fact before 1945 there were few companies in the CAC 40, which opened to international companies such as Michelin or Saint-Gobain. It was only after 1980 we could see a real acceleration of the internationalization that remained was that point. Many factors are to blame as the European Development or the crash of 1987. Since 1995, the major French companies that have mostly made the leap to the international emphasis on a policy of aggressive acquisitions and thus follows a wave of off-shoring and major acquisitions.
This internationalization is nowadays indispensable for the economic health of companies so that 65% of the turnover of the CAC 40 is made outside our borders in 2000. Moreover, it leads to higher numbers working abroad.
This openness to international meets not only will business growth, profitability and profit, but also at the opening and liberalization of trade in recent years. International trade is greatly facilitated and less expensive giving rise to the creation of companies with no national identity as EADS, entirely European.
Four factors are cited as pushing for internationalization: cost factors: lower production costs and distribution, economies of scale, experience effect; market factors: new markets, new markets, risk spreading; competitive factors: the anticipated demand in new markets, escape the competitive constraints; human factors: new rare skills.
To internationalize, there are different modes of internationalization, while acquisitions and alliances are the most common:
Takeovers and acquisitions of existing companies: This mode is the most widely used because it represents a fast and convenient as it is based on environments already formed (existing market, sites run in, knowledge acquired, and trainees).
Partnerships and joint ventures: This mode of internationalization will enable companies to develop relationships that eventually help them access to skills or a sales network while sharing the risks.
Creation of new bodies in the name of the company: This method, although more risky, still has seduced many companies wishing to relocate abroad directly as Renault and Carrefour.
Tags: human resource management, internationalization of companies, factors contributing to internationalization
[...] while ending up with a head on the back and less than prerogative. This is certainly not negligible and yet according to a Taylor Nelson Sofres survey of companies have not established policy of returns management. A member of the board of the Carrefour group of expatriates is less than three years. Time of the expatriate life is disconnected from its country of origin and life of his business is finished. "We could not rehabilitate an employee who had spent fifteen to twenty years abroad," says Brigitte Froidure. [...]
[...] In addition, the purchasing company also benefits from the reputation of the company purchased. • Partnerships and joint ventures: This mode of internationalization will enable companies to develop special relationships that eventually help them access skills or a commercial network, while sharing the risks. • Creation of new entities on behalf of the company: This method, although more risky, has still managed to seduce many companies interested in doing business abroad directly as Renault and Carrefour. B. Organizing for the International To get organized, it must first adopt an international organization that requires changing the structure and the nationality of senior management, a sign of international development. [...]
[...] Thus, it is to avoid structural conflicts of the company, but also the well-being of employees abroad. To overcome the problem of adapting to different cultures, intercultural training are offered to employees working abroad in large companies. Companies integrate more in terms of employment contracts of international mobility to meet future needs. It is therefore to prepare before, during and after the departure abroad. In this context of companies want to review their HR organization to the International : • Improve services and maximize profitability • Make HR more strategic • Improved management reporting • Respond to business changes The shape of the most common HRM internationally is that expatriation is under control of the company and it must actively manage the situation. [...]
[...] The human resources management adopts an international dimension: the IWRM. The human resources management must adapt to a global environment where employee rhymes with international mobility. This adaptation requires strategic adjustments in terms of human resource management: new employment contracts, compliance with new legal frameworks . The internationalization of the company through several strategic models according to Perlmutter: • The ethnocentric approach where the company's international strategy layer on the model of the parent company through the expatriation of managers of the parent company. [...]
[...] Nestle uses the term expatriation experiences abroad for duration of 4 or 5 years and that are repeated several times in different countries. Moreover, we note that there is no VIE (international business) possible with Nestle. The international experiences are seen as a means of sharing experience and know-how Nestlé in countries with high growth potential and increase in the potential of executives. IV. Personal analysis The international business development is part of globalization; companies need to internationalize to conquer new markets. This purely economic logic that governs the lives of large companies has implications for human resource management. [...]
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