Multinational Enterprise
Multinational Enterprise
Introduction
A multinational enterprise is an organization that has operations in a country more than one. An example of a multinational enterprise is Coca Cola Company. Coca cola is an extremely successful multinational enterprise. Coca cola has operations in about two hundred countries with almost eighty percent of its operating income from businesses outside US. Coca cola is a retailer of beverage manufactures and markets non alcoholic beverage syrups and concentrates (Bodden, V 2008).
The company is responsible of only producing syrup concentrates which are then sold to a number of bottlers across the world. The headquarters of the company is based in Atlanta, Georgia. The company has employed more than 146,200 employees. The portfolio of the company features 15 billion dollar brands which include Fanta, Diet coke, Coca cola Zero, minute maid, Georgia, Simply, Vitamin water, and Powerade (Bodden, V 2008).
The goal of the company is to always to provide magic to people once they drink their products. The mission of Coca Cola Company is to produce products that are of the best quality that will inspire moments of confidence while also refreshing the whole world. Coca Cola Company makes use of effective marketing channels in pricing, distribution, promotion, and planning. This has enabled it to be successful in the industry.
Human resource management
Human resource management is an extremely significant part of any organization. HRM is the ground on which every company depends on it; therefore, its development is the first step. HRM in an international company like Coca cola is extremely essential. There are many advantages associated with human resources in Coca Cola Company. Management in Coca Cola Company is focused on acquisition and retention of knowledgeable and highly skilled employees. This is to ensure that the company maintains its top position in the industry and also the market (Ristow, A 2009).
Coca cola treats its employees as essential assets. It is through human resource management that the company has been able to provide employment conditions and procedures that the employees to have a sense of unity with the organization. This has enabled them to work in effective and most willing manner.
Globalization is one concept that is affecting operations of companies and organizations across the globe. The changes of communication and technology have lead to modification of human resource management of Coca Cola Company. In order to meet with the standards of the customers, organizations have to change their human resource so that they can serve in different national boundaries.
Globalization can simply be defined as cross relating and opening of different world economies. Coca Cola Company is usually considered as a global company because has largely participated in globalization. The company has been able to recognize and respect cultural differences in different continents and countries.
With the rise in globalization, the company has been able to educate itself so as to continue serving, meeting, and satisfying the demands of its customers through product development and innovation (Ristow, A 2009). With the success of the company, it has contributed to the process of globalization. Being a global company, the human resource management of the company has taken advantage of data analytics and technology in building a global human resource information system that is used for collecting and storing information from different sources.
This system is capable of analyzing information and providing business insights, predicting future needs, and developing strategies that will fill these needs. By doing this, company will be able to manage the needs of its workforce, and they have been able to gain competitive advantage. Because of the effect of globalization, companies are having a shortage of employees (Ristow, A 2009). In order to ensure that there is enough talent in the company, the human resource management of coca cola is providing its employees with a conducive environment. They ensure that they retain the good talent that the employees have in the organization.
International human resource management
Employees are the most essential assets of an organization. If there is a poor relation among people in the organization, it will definitely lead to conflict, and this will contribute to poor performance of the company. Human resource management is practices or policies that influence people in the company towards the company’s vision and mission. HRM is responsible of selection, training, recruiting, employee relations, compensation, health and safety, and performance management (Dash & Aswathappa 2008).
The international business strategy that the company is using is expanding its services to the less developed countries. Coca cola is doing this by advertising its products to people in less developed countries and also through scholarship. Through advertisement, the company has gained competitive advantage. It has also increased the productivity of its products.
In order to improve the productivity of the company and its competitiveness, IHRM can have staff selection, international training, international assignment, and international development. By sending employees for international assignment, the company will be able to fill different position, develop management, and also the development of the company. The international human resource management should adapt their human resource practices to the global labor market conditions that are changing (Bodden, V 2008). This will enable the company to develop, attain, and retain the right talent in the organization.
By doing this, company will succeed in competitiveness and productivity. The management of geographically dispersed and culturally diverse work force is a goal to the international human resource management. The use of this knowledge enables the company to improve in its productivity and in its competitiveness. The IHRM practices of the companies should be different from one country tom the other. This is because people in different countries have different cultures. The different practices in job analysis, selection and recruitment, performance appraisals, employee relationships, and training and development should be conducted by own strategies and policies.
Conclusion
Globalization and human resource management have an effect on one another on terms of the operations of the business. International human resource management strategies enable a global organization to participate in globalization. The organization has the ability to address any challenges and problems that it might come across. The development of IHRM enables the company to gather relevant and additional knowledge regarding its work force.
The use of this knowledge enables the company to improve in its productivity and in its competitiveness. The company is also able to understand the talent that it requires in the global environment. The impact that globalization on human resource management enable the company to address issues in the organization and improve and develop its management and system.
Reference
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