SOURCING STRATEGY IMPLICATIONS

 

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Global sourcing refers to sourcing employees all over the world transversely and proactively identifying, contacting and engaging qualified candidates for a job opening (Bamboo HR LLC, 2022). This process involve  developing, implementing, planning, and evaluation staffing strategies on a worldwide in order to make sure that ability of organizations to achieve their goals and objectives. Considering demand for talent converges on a small group of critical skill, recruiting teams today must source in increasingly hyper-competitive labor markets. To address this challenge, most recruiting teams have built a sourcing strategy to fulfill the organization's defined hiring needs (Gartner,lnc 2022). 

As more companies move to the global market, they have own company operations in many part of the world. HR executives and organization are compelled to make decision about sourcing in order to ensure where and how tasks can be accomplished. In this process ability of the company to achieve their overall objectives is a decisive factor and operational cost cannot be the only criteria for concern of sourcing but also how to hedge our bets against the risk of failure (P Cappelli, 2011). Beyond the cost P Cappelli (2011) has identified two main issues for selecting sourcing choices. The first obvious fact is reliability and other major concern is responsiveness. Cooke and Budhwar (2008) have drawn attention to some specific challenges created for corporate IHRM function such as problem with the recruitment and retention of local talent, differences in career advancement behavior, potential for hidden discrimination, a heightened importance of boundary spanning and coordination role and the fragmentation of HR career.

The changing nature of the international work reveals that selection mechanism has become imperative. However, in most of organization selection decision for staffing international assignments based on informal and low utility selection strategies and criteria. Johnson (2006) explain set of cross cultural capabilities that describe a person’s capacity to function effectively in culturally diverse international assignment. An extensive proportion of people working abroad are not following the traditional expatriate route to leave for international assignment as an internal transfer within a multinational cooperation, but instead look for international job possibilities on their own from external job markets. Andresen et al (2021) define these people as self-initiated assignment.

Many researchers have argued that globalization is empowering for some particularly unskilled employees in developing countries, but also to woman (De Cieri, 2009). Existence of gender issues in international working diversity has been identified by Cieri(2009) and indicate that woman represent about 19 per cent of the international assignee community and woman are more highly represented among self-initiated expatriates, than in the corporate expatriate sector.

It is obvious that globalization has brought remarkable development in the diversity and complexity of international business and multinational cooperation. Geopolitical, social, economic and technological changes have created opportunities for managers and employees to interact with diverse populations. Concomitant with these developments has been increasing awareness that the management of global workforce is a critical dimension of international human resources management.

 

Reference:

Andresen, M., Brewster, C. and Suutari, V. (2021) Self-Initiated Expatriates in Context Recognizing Space, Time, and Institutions. 1st Edition. United Kingdom: Routledge.

Budhwar, P. and Cooke, P.L.(2008) Offshoring and Outsourcing.

Bamboo (2022) Glossary of Human Resources Management and Employee Benefit Terms. [online] Bamboo HR LLC. Available from https://www.bamboohr.com/hr-glossary/sourcing/, [Accessed on 24^th March 2022).

Cappelli, P.(2011) HR sourcing decision and risk management. International Journal of Organizational Dynamics, 2011(40), pp.310-316.

De Cieri, H. (2009) The International Journal of Human Resource Management. Do global firms measure expatriate return on investment? An empirical examination of measures, barriers and variables influencing global staffing practices. [online] London:Taylor and francis online. Available from https://www.tandfonline.com/doi/full/10.1080/09585190902909830?scroll=top&needAccess=true [Access on 02^nd May 2022]

Gartner,lnc (2022) Sourcing strategies that win. Available athttps://www.gartner.com/en/human-resources/insights/sourcing-strategy, (Accessed 23^rd March 2022).

Johnson, J.P.,Tomasz, L. and Salvador, A. (2006) Cross-cultural competence in international business: toward a definition and a model. Journal of International Business Studies, 37(4):525-543. Available from https://www.researchgate.net/publication/5223211_Cross-cultural_competence_in_international_business_Toward_a_definition_and_a_model [Access on 02nd May 2022].

Sparrow, R. (2009) Hand book of international HRM. 1^st edition, John & Sons ltd.

Sparrow, P.R. and Braun, W. (2007) HR Sourcing and shoring: strategies, Drivers, Success factory and implication for HR. Lancaster university management school center of performance- led HR working paper, number 2007-05.

Teddy, (2018) Techniques for an Effective Global Sourcing Strategy. [online] Singapore: Singapore Institute of Purchasing and Materials Management. Available from https://publication.sipmm.edu.sg/techniques-effective-global-sourcing-strategy/ [Access on 02^nd May 2022].