Every state has its specifics that need to be considered when managing human resources. Flex Limited is just entering a new market, and it is imperative to develop the human resources strategy that considers the needs and traditions of the society in which the company intends to operate. It is crucial to implement adaptation strategies to create global value by changing one or more elements of the organization’s offering to meet local needs or preferences (Butler et al., 2018). Some degree of adaptation is necessary or unavoidable for virtually all product types in all parts of the world.
HR Structural Forms
A management system is called centralized if all issues are managed at the highest administration level. A small enterprise can resolve all the hardships from the center. If the size of the enterprise increases, this becomes challenging, and the manager has to delegate some of their authority to lower levels. Under a decentralized personnel management system, the role of personnel departments is insignificant, and most of the work is performed directly by the head of the subdivision (Butler et al., 2018). It will be challenging to apply only a centralized or decentralized management system in Flex Limited’s case. Therefore, the transition HR structure will be beneficial as it entails previous human resources functions shifting or improving with time depending on the current requirements.
Control Mechanisms and Standardization
The control mechanisms should include creating a dedicated position and a person responsible for compliance with international standards. It is critical to train employees because everyone should understand which measures must be respected. International agreements have their specificities, and awareness is crucial. Furthermore, standardization is a voluntary definition or formalization of working methods and their consequences according to an agreed action plan for the future. To facilitate this process, it is essential to involve employees in improving through their participation in the development of standards (Butler et al., 2018). That is why planners, managerial forces, and implementers should work together to develop and optimize working practices.
Merger and Acquisition
Market motives stimulate the international activities of enterprises. Moreover, increased competition or the intention to gain a competitive advantage over competitors is a striving factor for internationalization (Butler el al., 2018). It is crucial to define the employee’s role in the new company concept in a typical merger and acquisition. As production volumes increase, additional staff may be required in existing areas and specialists in the organization’s newly created development services (Piszczek & Berg, 2020). At the outset of organizational change, creating a competitive environment for staff is imperative. The competition will provide an opportunity to identify employees who can participate in the reorganization in positions of innovators, supervisors, and organizers (Dowling et al., 2017). Moreover, in integrating companies, each of these groups needs to be handled differently. When dealing with key players, maintaining stability and predictability is crucial. When managing talents, motivation for change and consideration of individual and collective goals should be considered.
Joint Venture Challenges and SME
The general advantage of joint ventures in any of their records is the creation of favorable starting conditions for new production. However, the potential speed of bringing partners together and establishing operations raises problems of strategy (Piszczek & Berg, 2020). This refers to the costs of preparing for the joint venture that may be incurred from the initial contact with potential joint venture partners, through negotiations. In addition to the initial costs of the preparatory period, there can be difficulties associated with the high costs of communication between the parties and issues of coordination of the partners (Butler el al., 2018). Moreover, it is essential considering that small and medium-sized enterprises have several distinguishing characteristics that determine their management characteristics. These include flexibility, rapid response to change, regional market orientation. Among the characteristics of personnel management in SMEs, the following are usually highlighted: less formalization of work and the proximity of employees to the source of power, and the owner’s availability for communication.
References
Butler, C. L., Minbaeva, D., Mäkelä, K., Maloney, M. M., Nardon, L., Paunova, M., & Zimmermann, A. (2018). Towards a strategic understanding of global teams and their HR implications: an expert dialogue. The International Journal of Human Resource Management, 29(14), 2209-2229. Web.
Dowling, P. J., Festing, M., & Engle, A. D., Sr. (2017). International human resource management (7th ed.). Cengage Learning.
Piszczek, M. M., & Berg, P. (2020). HR policy attribution: Implications for work-family person-environment fit. Human Resource Management Review, 30(2), 100701. Web.