Summary:

Success in the international business world can be reached by global organizations

through having their employees trained about cusltural diversity, which can provide the
employees as individuals, and the organization as a whole with a competitive advantage. HR
Managers must understand that business customs, work ethics, and sociopolitical norms are not
always the same in every global location of the company. All leaders must take note of the five
areas of cultural importance to respect and understand which are: (1) geography and nationality:
religion, region, ethnicity; (2) profession: field of education, area of work; (3) organizations:
function, union, corporation, industry; (4) social life: family, friends, social class, clubs; and (5)
gender and sexual orientation. Through undergoing global diversity training, leaders and
employees alike, could be able to identify cultural differences, and be able to formulate a more
culturally flexible communication style in their global operations. Also, leaders must recognize
technology as one of the keys to compete and succeed in international industries because it aids
collaborative innovations, acts as the easiest way to learn about cultures, regulations, and
markets in the companys foreign counterparts, helps leaders to coordinate with their co-leaders
about their shared responsibilities, and assists in developing relationships and alliances among
members, leaders, and businesses.

1.
The functions of human resource management described in this case are: (1) Analysis and
design of work through understanding cultural differences, jobs can be specifically designed to
fit a certain corporate culture (2) Training and development global diversity trainings for
leaders and members; (3) Employee relations improved through technology; (4) Personnel
Policies policies are communicated globally, a more efficient record-keeping and information
systems, all through technology; and (5) Support for strategy planning and forecasting through
global technology.
On the other hand, the functions missing and their relevance to building competitive
advantage are: (1) Recruitment and selection the case does not mention the recruitment process
for global organizations; having skilled, competitive employees means having a competitive
advantage in terms of human capital; (2) Performance engagement performance measures
could also be culturally diverse, depending on the customs and norms of global locations; the
only way to know if the company has competitive advantage over other businesses is through
measuring the employees and the companys performance internally against its foreign
counterparts, and externally against industry standards; (3) Compensation and benefits this
pushes leaders and employees to work harder and to be more committed to their jobs, and as was
seen in Fabick CATs experience, greater work engagement means greater sales and profits; (4)
Compliance with laws this is one of the most important factors in building competitive
advantage because in order to compete in international industries, an organization must be able to
satisfy all legal requirements first before starting operations, compliance to laws must be always
observed throughout the companys operation.

2.
The key in applying diversity principles effectively in a global organization is through
good communication. The top executives must distribute instruction to every leader in their
downline, and the leaders shall do the same to those under them. But they must make sure that
only the dissemination of information is broken down into branches, and not the information
itself. Diversity principles must be taught to all leaders and employees, and be incorporated in
the companys corporate culture through expressly stating it in the companys handbook, this is
to ensure the company that the principles that reach the employees are complete. New employees
should be oriented about it, while current employees must be reminded of it. Everyone from top
management level down to operational level employees must undergo diversity trainings because
applying diversity principles should be a companywide effort, not just a shared responsibility
among leaders.

3.
A company cannot operate and be profitable without its employees, no matter how
automated their systems are. In times of corporate struggles, where companies run low on
financial resources, the value of human capital as a primary resource of the company must not be
overseen, because it is a vital line in the companys operation. Like Doug Fabick, owner of
Fabick CAT, when he faced his companys struggle with underperformance, we should
understand that: Success depended on getting the right people in the right positions. Laying off
employees, while it cuts cost, it also cuts resources, we must understand that salaries and wages
paid to skilled workers, leaders and members alike, are not unnecessary expenses, because they
are the companys prime investments. Instead of withdrawing from human resource investments,
the company should learn to work around their current resources and change the way they
manage their resources. Business process reengineering should be looked into, as well as
reshuffling of positions, so that employees are given jobs that maximizes their skills. Even in
times of corporate struggles, it must be kept in mind that employees in todays organizations are
not interchangeable, easily replaced parts of the system but the source of the companys success
or failure. (Gerhart, Hollenbeck, Noe, and Wright 3)