Effective Management of Human Resources Essay

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Numerous researchers have recognized effective management of human resources internationally as a major determinant of success or failure in international business (Tung, 1984; Dowling, 1999). A definite link exists between an organization’s strategic human resource management and its business success or failure (Hays, 1971; Tayeb, 2005). Businesses have learned success often depends on forming strategic alliances but successful managing of these alliances is difficult due to differences in the company and country cultures, which often interferes with the ability of organizations to reap economic benefits and rewards from such alliances (Schuler, et al. 2006). This is true for domestic businesses and businesses operating in the …show more content…
Miller, while researching over 200 companies, found only 19 of 100 Fortune 100 companies started in 1996 were still around ten years later, and concluded that success imperils an organization through the momentum it creates. He then described the rise and fall of major corporations after periods of apparent success. Vermeulen (2009) similarly concluded that the same thing that made Icarus successful led to his downfall. His overconfidence made him blind to the dangers of flying to close to the sun.
How does it happen? Over the years companies begin to focus on the thing that made them successful (a particular product, service, production method, etc.). Initially it serves them well, and they become even better at it. It will also come at the expense of other products, processes, and viewpoints that the company considers less important and off the mark, and that are discarded or brushed aside (para. 6).
As a result, firms are too late to adapt to fundamental changes in their business environments such as new competitors, different customer demands, radical new technologies, or newer business models. In his article, “Is Your Company Brave Enough to Survive”, Vermeluen (2009) concluded that there are a few downturn survival strategies companies might utilize in order to survive. He noted firms are better off opening up, exploring new sources of potential revenue, experimenting with bottom-up processes
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