Global

competitiveness
&
SHRM

VIPIN N

ROLL NO : 46
Global Competitiveness

Ability of nation to provide quality products and services at

competitive prices thereby providing adequate returns.
Competitiveness is the Comparative concept of the ability and
performance of a firm, sub-sector or a country

The World Economic Forum defines global competitiveness as

"the ability of a country to achieve sustained high rates of growth
in gross domestic product (GDP) per capita.“
Factors Affecting Global Competitiveness

– Physical infrastructure
– coordination among public-sector agencies.
– High total factor productivity
– Productivity campaigns
– Intensifying R&D activities
– Improving the capacities of SMEs
 Global competitiveness and
strategic HR
– Human resources management faces quite a few
obstacles when an organisation enters into a global
market. However implementing a proper HRM strategy,
the business can fight off competitors.
– SHRM is significant towards the assurance of long term
success of the business organisation in the global market
place.
 Global competitiveness and
strategic HR
– In order to harmonize the global operations successfully, it is necessary
for the HR managers to focus on the balancing of the complementary
forces, so that centralization and teamwork can be maximized in the
organization
– SHRM practices are vital for the alignment and integration of the diverse
workforce acquired through the expansion of business globally.
– With the assistance of the adoption of SHRM practices, the skills and
professional competence of the HR managers get developed.
– Impact of SHRM on the organizations can be managed by establishing
best fit between the policy framework and strategies.
HR strategies
– To survive companies must compete in international markets. Be
prepared to deal with the global economy.
– Offshoring – exporting jobs from developed countries to less developed
countries
– Onshoring – exporting jobs to rural parts of the United States
– Expatriate – Citizen of one country employed in a second country by a
company in the first country Leadership development is critical. Leading in
different cultures requires skill.
Meeting Competitive Challenges
Through HRM Practices
HRM practices that help companies deal with the four competitive challenges can
be grouped into four dimensions:
– The HR environment
– Acquiring and preparing HR
– Assessment and development of HR
– Compensating HR

HRM practices that help companies deal with the four competitive challenges can
be grouped into four dimensions :
– A. Managing the Human Resource Environment—HRM practices should be
linked to strategy, legal compliance must be assured, and work should be
designed to maximize employee effectiveness and motivation
– B. Acquiring and Preparing Human Resources—Human resource planning
must occur, employees must be recruited and placed in appropriate jobs,
methods of employee selection must be determined, and ensuring
employees have skills to perform particular jobs.
– C. Assessment and Development of Human Resources—This area of HRM deals
with measuring employee performance, preparing employees for future
work roles, identifying and responding to employee interests, and creating
a beneficial and effective work environment.
– D. Compensating Human Resources—Appropriate pay systems must be
developed, employee contributions must be rewarded, and employees
must be provided with benefits.
TARGETS TO FOCUS

 COMPANY ITSELF
 CUSTOMERS
 DISTRIBUTORS
 SUPPLIERS
If the human resource manager finds the right strategy to successfully
implement all of these four targets then they can definitely beat their
competition and successfully compete in the global market.
THANK
YOU