International Performance Management System For New Multinational Companies

Analysis of Literature

Discuss about the International Performance Management System For New Multinational Companies.

The business world has identified the change since the 1990s, and after that competitive benefits had increased, due to continuous knowledge acquisition. Many scholars try to present the knowledge economy (Ahmed 1998). For the purpose of creating the sustained and ongoing value creation companies, it had devised and tried to implement the innovation culture that permits to construct the capabilities required for successfully completing both present and future (Ahmed 1998).

For the companies working in ICT industry, and possessing with the culture of innovation is not merely considered as an aid, rather it is a necessity (Ahmed 1998). Firms that try to conduct their business within the industry of high-technology should innovate, and the presence innovation culture was attempting to serve as the high success factor (Ahmed 1998). Presently, the internationally economic downturn had highly led the scholars to recommend that companies focus on the innovation that garner more opportunities, which competitors shun and stress on innovation for coping with the present issues (Ahmed 1998). Such scholars point over the innovative items introduction such as Miracle, and Kraft macaroni in the time of 1930 great depression and the release of Apple iPod in the year 2011, like the instance of the significance of the building and maintaining the culture of innovation at the time of uncertain period (Badawy 1988).

Relatively the theoretical concept, the importance of the material culture of innovation is attaining momentum in the literature, and it is highly applied to the companies in the industry of high technology, but the beneficial aspects could be involved in the organizations and within the companies (Voelpel, Leibold and Streb 2005). This research tries to explore the characteristics, behavior, and value of the company’s culture that improves or attempts to discourage the innovation. The aim of the study is to highly contribute towards the field through connecting the contemporary writings over the culture of innovation with the application of huge companies having the subsidiaries in the high technology industry (Voelpel, Leibold and Streb 2005).

Beginning with the definition of innovation, Voelpel, Leibold and Streb (2005), mentions that change is profoundly depicted as the cultural component in the company, and its installed through the managers for the purpose of interacting with staff in the mission of company and to drive them towards exploring the different opportunities, and to ensure the aligned opportunities towards meeting strategic direction, and to explore the measurement require to evaluating the success of possibilities and continuous reassessment that opportunities for future and ensure that it remains necessary and advantageous (Voelpel, Leibold and Streb 2005).

Analysis of the Organisations and Countries Chosen

This definition needs that the company should implement the dedication that goes companies wide and pursues towards innovation if the different opportunities are explored as well as applied (Voelpel, Leibold and Streb 2005). The definition is considered as the reference, and it’s profoundly moved towards the innovation discussion through the last conceptualization of process, ideas, procedures and products towards a notion that innovation is considered as the cultural component (Voelpel, Leibold and Streb 2005).

West and Farr (1990) mention that the successful companies often blend and stress over the innovation in the process management and whole culture by the two most important ways (West and Farr 1990). First, is through the process of socialization and its present in the company, in which individuals learn about the previous norms of business and whether or not the innovation tries to provide the rules (West and Farr 1990). Secondly, as the fundamental values, beliefs, and assumptions of the company are highly exposed to the policies, structures and procedures are all connected towards the creativity and innovation level at the workplace (West and Farr 1990).

In connection with the Hit, Ireland and Hoskisson (2005), it is mentioned that the culture is considered as the fundamental determinant of the innovative activity level in the company, but while there are various organizations discuss about the innovation, there are many other that basically tries to implement the same (Hit, Ireland and Hoskisson 2005). To the vast extent, various companies are highly averse to the risk included in innovation process (Hit, Ireland and Hoskisson 2005). Nonetheless, Gibbert, Leibold and Probst (2003), highly remark that the companies should either innovate or either die, and despite the fact that it is challenging to implement the innovation, and it’s considered as the critical factor towards attaining success (Gaynor 2002).

Innovation highly serves as the capability and is highly born out of the ability of the company to act as ambidextrous, which is mainly referred as the capacity to explore and exploit and enhances the variance at the similar period (Hit, Ireland and Hoskisson 2005). Research undertaken by the Urabe (1988) mentions that the deeply rooted and high culture of the company is the essential factor in permitting the sustainable innovation (Urabe 1988). The author says that the high-level culture often leads towards the reduced ability towards innovation if the culture tries to uniformity that also limits the creativity of an individual in the company (Hit, Ireland and Hoskisson 2005).

Analysis of Strategic HRM Issues Identified

Regular innovation in the technology works to generate the climate that is highly characterized through conducting the monthly change and the companies that remain to be competitive in the future time is related to continuous innovation. Gibbert, Leibold and Probst (2003) therefore, implore the companies to emphasize over constructing the continuous innovation or either the steady innovation stream (Gibbert, Leibold and Probst 2003). All the authors recommend that the successful companies will be the one that tries to construct the ability of strategic management towards innovation in connection with the constant changes within the environment (Gibbert, Leibold and Probst 2003).

Innovation and creativity within China are considered as the topic at current, as the discussion moves towards the China notion, just like the people goods manufacturers, such as Made in China, towards the ‘Designed in China’ concept (Gibbert, Leibold and Probst 2003). China is moving by the global highest massive movement of mass migration, with the various moving in the cities through the poorer western regions rural hinterlands, by coming with the dynamic, vibrant and culture of entrepreneurial, mainly in the towns (Gibbert, Leibold and Probst 2003). China holds the potential towards lead frog in various aspects, by developing the creative items, which appeal the global and national markets.

Human resource managers require to take charge as well as empower to undertake the things in different ways, if the one goes relevant in driving the innovation and holds the effect over the war for the high-level talent, that includes hiring to develop, engaging, retaining and rewarding the talent (Gibbert, Leibold and Probst 2003). The report of HR InnovAsian 2014 tries to uncover the innovative practices through the perspective of HR, mainly the areas related to managing the talent within the company (Gibbert, Leibold and Probst 2003). Innovation needs engaged and energetic talent and tries to build the conductive culture in the enterprise and even require new capabilities. Innovation is important for the companies in having sustainable competitiveness (Gibbert, Leibold and Probst 2003).

The study highly focuses on the approaches of innovative HR that are implemented in the process of engagement and development of the talent (Angel 2006). It is believed that the broad issues related to managing the talent is the international and not peculiar to alone Asia. Therefore, the readers from all over the world connects to it (Baldwin 1995). Readers are even highly keen towards learning about approaches to innovation for both retaining and attracting the talent in the company (Baldwin 1995). By focusing towards exploring the present methods to innovation in HR. it is mentioned in the report provides the snapshot of exploring the inappropriate innovation state in complete human resource professionals (Baldwin 1995).

Justification of Issues and Impact of Issues Identified on Future Strategy

The significant issues for the human resource professionals in the present time at enhancing the landscape of competitive operations, and it requires to stretch itself and tries to deliver in the vast influential areas and also attempting to innovate in the approach towards managing the talent (Davenport and Voelpel 2001). The study also tries to explore the particular issues that are faced across the human resource community in the process of innovation (Duncan 1976). The missing empowerment and trust among the leaders is considered as the highest innovative killer in the HR process (Davenport and Voelpel 2001). The 60% of the human resource professionals are mentioned as the leadership trust and support, when the question comes a of highest motivator in the innovation process (Davenport and Voelpel 2001).

The increase in the trade of liberal cross-border, the communication technology usage and the increase in the transactional firms are not considered (Davenport and Voelpel 2001). Attracting the international talent needs to abreast with the new strategies for exploring and talent attraction (Cumming 1998). Technologies like social media are important for recruiting, but the issue is to mainly align the strategies with the goals of the business (Davenport and Voelpel 2001). For example, Aberdeen group, the suppliers of the market research explored that the traditional companies are undertaking the holistic approach towards the recruitment, which includes the branding of businesses, assessment of screening, onboarding and recruiting with the technology, supporting at each step (Davenport and Voelpel 2001). Organizations are also facing with the requirement to highly develop the ways to assess the skills all across the various talent sources and then creating the program for training to fill the gaps after staff is recruited (Davenport and Voelpel 2001). Along with this, they require to analyse how they have to manage and highly integrate the multi-culture staff (Deshpande, Farley and Webster 1993).

Conclusion

The ability of the company towards producing consistently and advantageous innovation primarily provides the culture in the enterprise. Although, it is noted that the culture takes the major role, as compared to individuals in the company culture, and the importance of the role played through the top level managers need not be overlooked. In order to become highly innovative company, top level managers should try to maintain the high emphasis on the management of innovation, by motivating the creativity of the employees and actively focus on the progress the of company. This is considered to ensure about the conducting culture to move towards the constant production of highly valuable innovation. The huge majority of the staff in both the medium and large size firms is the item of the organizational culture and they act accordingly. However, it is noted that the small team of senior managers are the one, who are responsible for stimulating and maintaining the culture of the company, and that’s the reason why individual’s contribution should never be ignored.

References

Ahmed, P. 1998. “Culture and Climate for Innovation”. European Journal of Innovation Management, 1(1), pp. 30â€Â43

Angel, R. 2006. “Putting an Innovation Culture into Practice”. Ivey Business Journal, 1, pp. 1â€Â5

Badawy, M.K. 1988. “How to Prevent Creativity Mismanagement”. IEEE Engineering Management Review, 16(2), pp. 1-12.

Baldwin, J. 1995. Innovation: The Key to Success in Small Firms. Statistics Canada and Canadian Institute for Advanced Research

Cumming, B.S. 1998. “Innovation Overview and Future Challenges”. European Journal of Innovation Management, 1(1), pp.21â€Â29

Davenport, T. and Voelpel, S. 2001. “The Rise of Knowledge Towards Attention Management”. Journal of Knowledge Management, 5(3), pp. 212â€Â221

Deshpande, R., Farley, J.U., and Webster, F.E. 1993. “Corporate Culture, Customer Orientation and Innovativeness in Japanese Firms: A Quadrad Analysis”. Journal of Marketing, 57(1), pp.23â€Â27

Duncan, R.B. 1976. “The Ambidextrous Organisation: Designing Dual Structures for Innovation”, In Killman et al., The Management of Organisation. New York, North Holland.

Gaynor, G.H. 2002. Innovation by Design: What it Takes to Keep Your Company on the Cutting Edge. New York: AMACOM American Management Association.

Gibbert, M., Leibold, M. and Probst, G. 2003. “Five Styles of Customer Knowledge Management, and How Smart Companies Use Them to Create Value”. European Management Journal, 20(5), pp. 459â€Â469

Hit, M.A., Ireland, R.D., and Hoskisson, E. 2005. Strategic Management. Thomson, South Western

Urabe, K. 1988. Innovation and Management. New York: Walter de Gruyter

Voelpel, S., Leibold, M. and Streb, C. 2005. “The Innovation Meme: Managing Innovation Replicators for Organizational Fitness”. Journal of Change Management, 5(1), pp. 57â€Â69

West, M.A. and Farr, J.L. 1990. “Innovation at Work”, in West M.A. and Farr J.L. (Eds), Innovation and Creativity at Work. John Wiley & Sons