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Case Study Amoco's Global Human Resource Systems

1916 words - 8 pages

IntroductionOrganizations exist to provide goods and services that people and want, and the amount and quality of these good s and services are products of the behaviors and performance of an organization's employees such as, top managers, highly skilled workers in sales, technology or research and development, and those who actually produce or provide the goods and services.There are many factors that have an impact on how individuals and groups respond to and act in organizations and how organizations manage their environments. Understanding how people behave in an organization is important because most people, at some time in their life, work for an organization and are directly affected by their experiences in it. These people may either be the paid employees of small operations or large Fortune 500 corporations, the unpaid volunteers of a non-profit organization or charity, members of a school board, or even a member at a social club. No matter what the organizational settings are, however, people who work in organizations are affected significantly by their experiences in it.In the case study "Amoco's Global Human Resource Systems", we have learnt the important role that human resource system plays in a global company. Let us analyze the case further by defining the meaning of 'global organization', explaining the key business pressures are driving the globalization of human resource systems; and identify the human resource practices that would help Amoco Production in managing the tensions.What is global organization?Global organization! To me, it means a simple definition like "an organization that has offices in many parts of the world". This may sound very simplistic but recognizing this basic fact can go a long way in understanding the work culture that evolves. This may also mean employees who are able to interact and meet their work goals with people and cultures from all over the world. Global organization is defined as "an organization that produces or sells goods or services in more than one country" .A global organization could have a home base that coordinates activity worldwide. Sales, production, sourcing, people management, finance and research and development are coordinated to manage resources more efficiently, and to add value and profit to the organization. For example, a market opportunity may be identified in a U.S. that requires research and development and product development skills from Germany, manufacture in Asia, and support from U.S. but could be controlled from Scotland. Although not all global companies will have the same dispersion of resources, this type of complex behavior is common for most global companies. The company Nokia, a mobile phone maker is a good example of such companies.Apart from being globally presence, a global organization should have a clear mission and objectives to operate internationally and market share and brands of products and services worldwide. A global company is different from...

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