The company was founded inby J. Williard and Alice S.
At the same time, it also improves the competition among the markets. In this situation, several organisations have undergone changes in order to increase their competitive advantage and expend the market size. Due to the internationalisation and globalisation, the human resources have presented a significant relationship with such changes.
This essay will use Hrm strategies case study which is the change in expansion strategy of Amazon to identify the human resources involved in this change. In more detailed, the essay will explain why and how Amazon changes its expansion strategy at the beginning.
Furthermore, it will discuss how the revolution affect or be affected by the human resources and the discussion will focus on two aspects of human resources that are training and recruitment and selection.
Finally, this essay will investigate the meaning Hrm strategies wider human resources management HRM practices. Although the sales of online shopping is keeping growth, the rate of return and the gross margin of online retailers are reducing and present a low level.
The low margin is mainly caused by the increased competition because the selling costs for online retailers are relatively lower than for traditional retail outlets Chakrabarti and Scholnick, Therefore, the e-retailers should maintain the operation through the expansion across product lines or the international expansion.
Particularly, the volume of sales is more important for the e-retailers because of the limited margins. Therefore, the increased market size is the major success factor for e-retailers.
Comparing with the diversified product line, the international expansion which improve the amount of customer though seek new geographical markets is more suitable for Amazon that is the one of the largest online book retailer in the US The Economist,because it can attract the foreign customers through its strong brand name recognition and meanwhile it significant reduce the international transaction costs Chakrabarti and Scholnick, The appropriate international expansion strategies for the online retailer are the directly export, foreign direct investment FDIand e-mediation.
Although the international price comparison and shipping are easily for customer under the online environment, the direct export strategy is not an appropriate strategy for Amazon expands to the Canadian market because the market for books is not included in the North Atlantic Free Trade Agreement NAFTA Chakrabarti and Scholnick, The Canadian firms have greater advantages than Amazon when they sell books online.
Particularly, the key benefit for them is coming from the shipping costs. The foreign retailer cannot serve the local customer as effectively as it serves its domestic customers.
The international transaction cost has been declined by the search costs, though the significant shipping cost differences is to protect the local online retailer and make Amazon fails to compete with them. Therefore, the boarder-related shipping cost disadvantage make FDI necessary in the online environment.
Amazon has separated retail in many countries based on the language of the country, such as in the UK, France, German, Japan, China and many other countries Barr, According the method of FDI, Amazon could get a better contact with the local customers based on the preferences in the specific countries.
Besides, the most important advantage of FDI is to help the consumer save large amount of shipping costs and thereby increase the competitive advantage of Amazon in the local markets.
Nevertheless, the FDI strategy may not operate well in Canadian market due to the national policies which set restriction on the foreign subsidiaries or FDI.
Therefore, the failures of two common expansion strategies make Amazon out of the Canadian market. In this situation, the Amazon developed a new method which is called e-mediation to serve the Canadian market through the books directly from Canada and do not need any physical presence in Canada Chakrabarti and Scholnick, In more detailed, the Canadian consumers can make order though the US website of Amazon and the books will be shipped by a Canadian source.
Hence, the shipping charges will sharply reduce.
This new form separates the source of the physical commodity and the source of the information about it. The strategy change from FDI to e-mediation has a remarkable impact on the human resources.
In the first aspect, it has changed the features of training. When the company has operation in different countries, it should relocated employees to international assignments.
More specifically, the FDI is direct investing in the Canadian market and establish or purchase a business to support the operation of Amazon in Canada. Hence, the Canadian business is operated by the local employees who better understand the needs and preferences of local customers.
Meanwhile, Amazon will send staffs from headquarters to perform a specific function in the Canadian business. According to Harristhe international business managers are responsible for expand across borders and cultures, control and develop the local market, and transfer their domestic knowledge to the local markets.
Therefore, the required knowledge and skills for international managers are above the normal business expertise. For instance, they should understand the business environment of nations in which the organisation operates.
It will lead to then change in training programme that the concern of international businesses are not normally investigated by domestic managers.
The training programme for international managers should include knowledge of business practices in target country and the local market dynamics.
Furthermore, the mangers also should be able to understand the legal and sociocultural traits of target market Nordstrom and Kleiner, They can increase marketability for higher positions through these knowledge and skills and thereby help Amazon gain a competitive advantage in the Canadian market.
However, the expansion strategy of e-mediation does not require the physical assets like inventory in Canada because Amazon just needs to matchmaking consumers and wholesalers. It can meet the customer orders through the inventories of book wholesalers in Canada.
Thus managers are not assigned to Canada and Amazon could direct employ a Canadian employee to serve Canadian markets from the domestic base Chakrabarti and Scholnick, The Impact of Strategic Human Resource Management on Employee Outcomes in Private and Public Limited Companies in Malaysia.
Abstract. This study investigates the interaction effects of two business strategies (differentiation and. retention compensation strategies has seen significant growth over the last several years. A study significant impact of HRM practices on employees performance.
Employee performance is directly linked The research study was conducted to determine the impact of HRM practices on employee [s performance.
Data Collection Instruments. Human resource management (HRM) has frequently been described as a concept with two distinct forms: soft and hard.
The soft model emphasizes individuals and their self-direction and places commitment, trust, and self-regulated behaviour at the centre of any strategic approach to people.
Strategies of KIA Motors FONTS Recruitment Process The initial attraction, screening and interviewing of the applicants and it includes Job Analysis, which is the process whereby jobs are investigated in sufficient detail to enable recruitment of people into the firm or assessment of the performance of people who are already working in the firm (Decenzo, ).
The concept of strategic HRM is based on the important part of the HRM philosophy that emphasizes the strategic nature of HRM and the need to integrate HR strategy with the business strategy. Human resource planning is a process that identifies current and future human resources needs for an organization to achieve its goals.
Human resource planning should serve as a link between human resource management and the overall strategic plan of an organization.