Response To Argument Globalized Intense Competition

Question: Describe about the Response To Argument for Globalized Intense Competition. Answer: Response 1: With pressures on costs, is outsourcing inevitable? I completely support that with the advent of globalization and intense competition in the market, every company has to think of cost effective formulas to attract more consumers. In order to support low cost, Kotabe et al. (2012) commented that outsourcing is one of the most suitable ways. By utilizing the work force of other countries, overall cost of the company can be reduced to a large extent. However, managing the business overseas ultimately results in mismanagement of the business that might cause the company to invest more to overcome the crisis situation. Thus, I support both the points for the argument. Response 2: Should outsourcing always be under consideration as part of an organisations strategic HR management? HRs role does not limit to the process of recruitment but there are other major responsibilities as well. Thus, reducing the burden of recruitment will not reduce the overall responsibilities and roles of the HR. Managing Human Capital still falls under the responsibility of the HR even if the responsibility has been outsourced (Monks et al. 2013). However, there is a better possibility of getting skilled and cheap labourer when the idea of outsourcing is used by a Company. As it has been pointed that getting knowledge of the individual working in an Organization actually helps to flourish the business activities is correct. Reference list: Kotabe, M., Mol, M.J., Murray, J.Y. and Parente, R., 2012. Outsourcing and its implications for market success: negative curvilinearity, firm resources, and competition.Journal of the Academy of Marketing Science,40(2), pp.329-346. Monks, K., Kelly, G., Conway, E., Flood, P., Truss, K. and Hannon, E., 2013. Understanding how HR systems work: the role of HR philosophy and HR processes.Human resource management journal,23(4), pp.379-395.