Why Human Resource Management (HRM) Tends to Develop at the Local Level

Case Study 2.1 Analysis: Reasons Why Human Resource Management (HRM) Tends to Develop at the Local Level in the International Expansion of Firms Like Ford Motor Co
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Case Study 2.1 Analysis: Reasons Why Human Resource Management (HRM) Tends to Develop at the Local Level in the International Expansion of Firms Like Ford Motor Co
Human resource management (HRM) plays an important role in the international expansion of firms. One of the primary reasons why HRM develops at the local level is because it allows firms to source and manage their workforce in a cost-effective manner (Tarique et al., 2022). In addition, local HRM systems are typically tailored to the specific needs of the local market. As the case study indicates, the Ford Motor Co. sent Americans to set up new operations in foreign markets during its early internationalization (Tarique et al., 2022). However, this model undermined the sense of local pride within those markets, leading to a cropping up of local manufacturers to compete with Ford. Therefore, Ford and other companies started implementing a regional model aimed at localizing the company cultures to meet the needs of the various markets.
Furthermore, firms ty...