Globalization Strategies of DAK
Discuss about the Standardization of Organization for DAK Headquarters.
The international strategies of DAK are focused on offering their customers with a wide range of brands rather than narrowing down their business on the global platform. The central activities of the company are controlled from Zurich and there is a strong cooperation between the European plants. The centralization of DAK is concerned with the matrix company model of European function. To maintain a good relation among the plants, staffs are appointed as coordinators of human resources, manufacturing, materials and quality. However, issues arise sometimes when the local interests of the plants come to focus due to the roles and responsibilities of the European DAK headquarters (Bourne 2012).
One of the largest automobile producers of the world, DAK is constantly in the run of expanding and growing their operations. It has resulted them to become one of the highly developed companies with a wide spread of globalization in the world. Similar to other global economy, its struggle of working on the global platform were not free from hurdles and barriers. They have worked on their growth strategies and setting operations abroad have been a brilliant lesson for the company. They have utilized that lesson as a strategy for own growth and development.
On the contrary, the traditionalists or the opponents of pessimistic globalists look into the standardization process as homogenization and marginalization of the human society. They have stressed on the on the dominating function of significant political and economic interests such as USA and the Western parts of Europe (Brewster, Wood and Brookes 2008). The transformationalists, on the other hand, have countered that the impact of globalization is not limited to the financial condition but technological, cultural and political factors play their role. With the evaluation of the HR policies and procedures of DAK, the issues of similarity and differences can be addressed.
There have been endless debates and arguments on the issue of standardization and localization with respect to DAK. Harzing and Pinnington (2010) mentioned that there are no rigid meaning systems as they can be adapted to new situations or amended according to the circumstances. The local meaning systems are related to the organizational practices. On the other hand, the hurdles, barriers and complexities in the shift of HRM practices were associated with the understanding and cultural concepts between the headquarters and foreign subsidiaries. The critical perspectives between localization and standardization are used as excuses in the organizational culture. Cultural differences are observed as excuses in organization to describe the success or failure of mergers and acquisitions. As a result, the critical action convinces to pay more focus on the construction of discourses and the role played by cultural differences in such discourses.
Challenges and Role of Cultural Differences
In this context, lean manufacturing can be highlighted which refers to an organized method of waste minimization within the manufacturing unit without compromising the productivity of the organization such as DAK. The studies conducted on the theories of HRM within the upcoming market are evaluated by the multinational enterprises. For instance, in the Brazilian MNCs, the standardization and localization of the performance management policies and practices are the prime factors, which influence the design and implementation (Mellahi, Frynas and Collings 2016). The issues were identified and analyzed to find out that there is a strong tendency among the MNCs to standardize and centralize their project management practices. These findings can be contradicted, as there are other MNCs, which apply different HR practices. Such practices vary from a developing country to a developed country.
While discussing about localization and standardization of organizational activity in DAK, it is worth mentioning that the process of repatriation of among the international employees is less highlighted along with the increase in the number of expatriations taking place in the companies. An analysis of the adjustment complications among the expatriates inferred that it could lead to turnover among the employees. The reason behind this can be the differences between local and the global organizational culture, which are further moderated by other organizational practices (Vidal, Valle and Aragón 2007).
It can be recommended on the part of DAK that globalization is a long- running process and most of the business practitioners are acquainted with it. There are certain dominant views on standardization and globalization in the world, which needs to be operated on an authentic global scale. Moreover, the history of mergers and acquisitions should be considered while developing the company abroad by providing an important lesson. Such lessons will be considered while setting up various strategies of globalization, which will help them in their efforts to grow.
In addition, the main difficulties suffered by the international employees are related to repatriation. They should be recommended to create a unique organizational culture in the global organization where they are shifting. The improvement of communication among the organizational divisions is another suggestion, which can be followed by the international employees. The repatriates have awareness about the important knowledge that they have gained during their work in the company. It will be better if they focus more on relocating the repatriates in another job where their skills and values can be recognized properly.
Conclusion
It can be concluded from this paper that there is no such proof of dominance by the HRM domain on the global spread of suitable practices and policies. In this respect, it can be inferred that instead of structuring the HRM strategies based on rationality, the managers combine the practices in order to integrate both opportunities and challenges. The burden on the operating country is not enough strong to imitate the practices of the local subsidiaries. The MNCs do not get the chance to act as an independent organization in implementing a new model of the best practices with specific organizational needs.
References
Bourne, D.J., 2012. The dream’s door: a case of a MNC in Poland. Emerald Emerging Markets Case Studies, 2(4), pp.1-13.
Brewster, C., Wood, G. and Brookes, M., 2008. Similarity, isomorphism or duality? Recent survey evidence on the human resource management policies of multinational corporations. British Journal of Management, 19(4), pp.320-342.
Harzing, A.W. and Pinnington, A. eds., 2010. International human resource management. Sage.
Mellahi, K., Frynas, J.G. and Collings, D.G., 2016. Performance management practices within emerging market multinational enterprises: the case of Brazilian multinationals. The International Journal of Human Resource Management, 27(8), pp.876-905.
Vidal, M.E.S., Valle, R.S. and Aragón, M.I.B., 2007. The adjustment process of Spanish repatriates: A case study. The International Journal of Human Resource Management, 18(8), pp.1396-1417.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
