Essays on International and Comparative HRM - Saudi Aramco Assignment

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The paper "International and Comparative HRM - Saudi Aramco " is a good example of a management assignment. Saudi Aramco is just about the largest oil company in Saudi Arabia and is well-positioned to be successful in the country. However, the company wants to operate in more than one country, meaning that it will have to expand to other countries. The main challenge that the company faces is to have an international presence. Many companies dealing with oil and similar products have international connections and are hence known in more than one country.

Saudi Aramco wishes to go this way. This means that the company must think of the best approach to use in deciding whether to manage its local employees globally. Planning whether to act locally or globally for a company that aims at making an international presence is very challenging. What makes it challenging is that the company must keep performing locally while it aims to make an international presence. Saudi Aramco is already performing very well on the local market and as much as it looks at expanding to newer markets in the international scene, it still can’ t afford to lose the local market.

Therefore, before thinking of whether to manage locally or globally it is important to consider what in the best interests of the company. In this case, Saudi Aramco is determined to make an international presence and so it must be ready for all it takes to achieve that. Chevron has been managing its employees globally and that’ s the reason for their global success. Saudi Aramco too should manage its local employees globally if they are to make it in the international market. Among the various employment practices carried out in the management of the human resource on an international perspective is the Geocentric approach.

The geocentric approach should be used by Saudi Aramco in managing its local employees globally. The Geocentric approach supports equality for all subsidiaries to a company. Saudi Aramco will need international subsidiaries through whom they will attain an international presence. They must recognise each subsidiary as an equal player in the business and allow them to make an equal contribution to the general operations of the company.

Another aspect of the Geocentric approach that supports the answer that Saudi Aramco should manage its local employees globally is the development of a global perspective among the employees. Any company that wants to make it in the international market must be ready to employ workers of different nationalities and use their competencies as the main factor of employment. The employees will then need to have a global perspective that will enable them to think globally and incorporate global ideas and fellow employees.

Managing employees globally will also lead to the selection of the best people for the job. Having to certify local cultures and requirements leads an organization to make decisions that appease the local players. Managing the employees globally will enable the company to select the best employees and improve competence. Going global will be affected by the institutional theory. Saudi Aramco will then be affected only by the socially constructed environments without a defined best way of doing business. When local employees are managed globally and their perspective is supposed to change from local to global, they will be subjected to constraints of social forces.

New employees will have to be brought in as local employees are sent out as managers to new international subsidiaries, but this transfer will be hindered by social forces. It is important that the company manages the employees globally so that they develop a global perspective which will then allow them to accept the transfers across borders. The international success of Saudi Aramco will depend on these cross-border transfers as it will lead to the acquisition of key competencies.

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