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Global competitive environment

competitive environment
The competitive environment, also known as the market structure, is the dynamic system in which your business
The state of the system as a whole limits the flexibility of your business. World economic conditions, for example,
might increase the prices of raw materials, forcing companies that supply your industry to charge more, raising your
overhead costs. At the other end of the scale, local events, such as regional labor shortages or natural disasters, also
affect the competitive environment.
Environmental analysis is very important for global marketing .Environmental analysis is a strategic business
activity involving examination of a businesss external circumstances, including the remote, operating and
competitive environment.
A marketing environment is composed of specific elements of a businesss external operating and competitive
environment related to the needs of a products intended consumer, also known as the target market member.
Marketing environments are often tied to the products stage in the business marketing life cycle.
Differentiate your product
Differentiating your product or service in a competitive environment entails developing an element of your business
that competitors cant imitate.
Differentiate your product as larger, better tasting or stylistically distinct.
Use new Technology:
Technological innovation also affects the competitive environment, hindering those who dont adapt.
Online take-out ordering through their websites, which some consumers find more convenient than phone ordering.
Not adjusting to this new competitive environment might be at a disadvantage.

Globalization (or globalization) is the process of integration across world-space arising from the interchange
of world views, products, ideas, and other aspects of culture.
Globalization promotes economic interdependence among countries in the world; Integrates national economy into
global economy; requires absence of trade barriers and controls with free flow of products capital human resources
technology management across borders.
Emergence of Globalization
The term globalization has been increasingly used since the mid-1980s and especially since the mid-1990s. In 2000,
the International Monetary Fund(IMF) identified four basic aspects of globalization: trade and transactions,
capital and investment movements, migration and movement of people, and the dissemination of knowledge.
Further, environmental challenges such as climate change, cross-boundary water, air pollution, and over-fishing of
globalization. Globalizing
by business and work organization, economics, socio-cultural resources, and the natural environment.

Todays job market is rapidly becoming globalized and more companies are entering into international markets in a
variety of ways. Some companies are building plants in other countries, some companies are exporting products
overseas, and some are entering into alliances with foreign companies.
The reality is that in todays world, managing global human resources is something that is growing.
Global competition is driving changes in organizations throughout the world. Companies are attempting to gain a
competitive advantage and a way to accomplish this is to expand internationally. When a company decides to enter
into a foreign market, whether to develop plants or other facilities in other countries, it is no simple task and many
human resource issues surface.
Types of Competition
1. On the basis of procurement of goods and services:
Consistent with the procurement principles cited in the previous section, the neutrality, economy and efficiency of a
procurement process can be only be achieved by ensuring a competitive playing field among prospective offertory to
a requirement. Similarly, the UNDP Financial Regulations and Rules (Rule 121.03) emphasize the reliance on
competition on as wide a geographical basis as practicable and suited to the market circumstances, as basis for the
procurement of goods and services.
Depending on the nature of the requirement, and the total contract value involved, UNDP adopts any of the
following types of competition:
Open International Competition
The purpose of opening competition to the international market is to provide equal opportunity to the universe of
eligible vendors.
An open international competition can be achieved by initiating a public advertisement of the procurement
opportunity in any or any combination of media (print or electronic/digital) that are accessible globally and freely by
any interested entity from both the national and international markets.
At a minimum, in order to establish the openness of the competition to the international market, the following
conditions must be met:
Limited International Competition
Limited international competition is conducted by narrowing the competitive field into a short list of prospective
offertory pre-determined through a non-discriminate assessment of eligibility and evaluation of qualifications that
establish their ability to meet the requirements of UNDP. Such a process may be done through various sourcing
methods, such as:

Todays job market is rapidly becoming globalized and more companies are entering into international markets in a
variety of ways. Some companies are building plants in other countries, some companies are exporting products
overseas, and some are entering into alliances with foreign companies. No matter how the involvements begin, the
reality is that in todays world, managing global human resources is something that is growing.
Global competition is driving changes in organizations throughout the world. Companies are attempting to gain a
competitive advantage and a way to accomplish this is to expand internationally. When a company decides to enter
into a foreign market, whether to develop plants or other facilities in other countries, it is no simple task and many
human resource issues surface. (Nol, Hollenbeck, Gerhard, and Wright; 534)
Doing business globally requires Adaptations be made to reflect cultural and other factors that differ from each
country. Legislation: Human resource regulations and laws vary among countries in character and detail. Equal
employment legislation exists to varying degrees. Employment discrimination and sexual harassment. Pay and
Benefits differ from each Recruitment criteria: differ from country to country Cultural Differences :differ from
each country to country communications technologies .
2. On the basis of Industry and market :
(a) Industry competition
Industry is the production of a goods or services within an economy .Economic activity concerned with the
processing of raw materials and manufacture of goods in factories.
Competitors as all companies making the same product or class of products.

Many companies produce their products and supply it to the international market. Same type of product has been
producing by the different companies. For example many branded toothpastes are available in market.
Industry competition is based on:
Industry structure indicated by various numbers of sellers and their product differentiation.
Entry barriers requiring licensing and trademark of the product or significant investment.
Mobility or Customs and duties vary from country to country that affects the mobility
in markets.
Low cost is an advantage.
(b) Market competition:
Market :A market is one of the many varieties of systems, institutions, procedures,
social and infrastructures whereby parties engage in exchange. While parties may exchange goods and
services by barter, most markets rely on sellers offering their goods or services (including labor) in
exchange for money from buyers. It can be said that a market is the process by which the prices of goods
and services are established.
competition : Most companies are in competition with at least one other firm over the same group of
customers, and also competition inside a company is usually stimulated for meeting and reaching higher
quality of services or products that the company produce or develop.
Market competition
In economics, competition is the rivalry among sellers trying to achieve such goals as increasing profits, market
share, and sales volume by varying the elements of the marketing mix: price, product, distribution, and promotion.
Market competition refers to many companies engaged in satisfying the same customer need.
It is based on :
Product class : homogeneous products that are substitutes for each other.
similar brand competing with each other : Coke with Pepsi
price and non price competition.
Key Factors in Global Competitive Environment
Talent is Key Factor in Global Competitiveness. Access to talented workers capable of supporting innovation is the
key factor driving global competitiveness at manufacturing companies -- well ahead of 'classic' factors typically
associated with competitive manufacturing, such as labor, materials and energy.
1.Developed human resources and other resources are regarded as valuable assets by global companies.
2.Product strategy: company should adopt low cost strategy and developing product with unique

Need and Importance of HRD

Need of HRD
Increasing need for highly educated people and skilled professionals :In order to integrate into the
globalization process. These professionals include scholars, philosophers and leaders with vision. Leaders
are our human capital.
Growth of organization: Growth of organization is associated with the development of its workforce. In
changing situation HRD must be viewed as the total system interrelated and interacting with other systems
at work: production, finance, and marketing.
Development of work culture: The need of HRD is felt as it improves the efficiency of employees, checks
monotony at work, better communication, development of mutual cooperation and creativity of all the
members comes into limelight.
Developing potentialities: The focus of HRD manager essentially is on enabling people to self-actualize
through a systematic approach by which their existing talents are further developed.
Growth of employees: HRD is associated with growth of employees. It helps employees to know their
strengths and weaknesses and enable them to improve their performance. The management should provide
adequate opportunity for the development of human resource management for the development of their talents
so that their development will benefits the organizational growth.

The importance of HRD can be explained as follows:

1. HRD Develops Competent HR
HRD develops the skills and knowledge of individual, hence, it helps to provide competent and efficient HR
as per the job requirement. To develop employment's skill and competencies, different training and
development programs are launched.

2. HRD Creates Opportunity For Career Development

HRD helps to grasp the career development opportunities through development of human skills and
knowledge. Career development consists of personal development efforts through a proper match between
training and development opportunities with employee's need.
3. Committed to the work and organization
Trained and efficient employees are committed towards their jobs which is possible through HRD. If
employees are provided with proper training and development opportunities, they will feel committed to the
work and the organization.
4. Increase Job Satisfaction
When people in the organization are well oriented and developed, they show higher degree of commitment in
actual work place. This inspires them for better performance, which ultimately leads to job satisfaction.
5. Manage Change and conflicts:
Change is making things different .HRD facilitates planning, and management of change in an organization. It
also manages conflicts through improved labor management relation. It develops organizational health, culture
and environment which lead to change management.
6. Opportunities For Training And Development
Trainings and development programs are tools of HRD. They provide opportunity for employee's development
by matching training needs with organizational requirement. Moreover, HRD facilitates integrated growth of
employees through training and development activities.
7. Improve capabilities:
HRD develops necessary skills and abilities required to perform organizational activities. As a result of which,
employees can contribute for better performance in an organization. This leads to greater organizational

HRD at micro and macro levels
The human is recognized as the most effective input for maximum output and efficiency of any organization. Hence
the development of competency of this human input is very necessary for the lasting growth and development of the
organization. Human resource development is process of helping people to acquire new competencies. In
organizational context, it is continuous and planned way to acquiring news capabilities of employees and creating
opportunities for them and developing a sound organizational culture. HRD is often taken as synonym of training
but besides training, it is overall development of the employees.
HRD applies to both micro as well as macro issues. HRD develops the newer capabilities in people to enable them
to achieve organizational goals. It ensures the long-term growth and development of the organization which helps
the economy of the nation.

Micro level

At micro level, human resource development is related with grass-root development in organizations. It is well
received by companies management as they realized its importance and foresee its future contribution for the
individual and organizational development. Generally, HRD at micro level talks about organizations human
resource planning, selection, training, performance appraisal, development, potential appraisal, compensation,
organizational development etc. HRD involvement in all these areas mainly aims at developing new capabilities in
people so that they could meet the present job challenges and prepare to accept future job requirements.

Macro level
At micro level, HRD is related with development of people for the nations well being. At this level, it involves
health, skills, capabilities and attitudes of people which are more useful in development of nation as a whole. While
calculating the national income and economic growth, HRD examines the individuals potential, attitudes, skill,
aspirations, knowledge etc; and develops a concrete base for economic planning. However, HRD at macro level is
not yet popular as it is at micro level.

Human resources Policy

A policy is a principle or protocol --to guide decisions and achieve rational outcomes.
Human resoures policies are systems of codified decisions, established by an organization, to support
administrative personnel functions, performance management, employee relations and resource planning.
Each company has a different set of circumstances, and so develops an individual set of human resource

Scope of HR Policies
HR policies generally covers the following aspects:
1. selection of employees:

The process of interviewing and evaluating candidates for

specific job and selecting an individual for employment based on certain criteria.
They provide guideline for:
Selection from where Within or outside organization.
based on: Merit or seniority
Is there reservation:
Local people or people from national level..
role of labour unions in selection.
Process of selection : Screening , written tests ,Interview.

2. Training and Management development: training is the process by which people are taught
critical skills. Participants gain knowledge to carry out their current responsibilities.
Management Development activities, on the other hand, tend to prepare people for additional job roles for
the long term. Guideline for:
Determination of needs.
Types of programmmes and time duration
Curriculum, matters, trainers
target groups and selection criteria

Responsibility for administratio of HRD

evaluation criteria and folloew up

3.Compensation of employees: Compensation of employees is defined as the total remuneration,

in cash or in kind, payable by an enterprise to an employee in return for work done by the latter during the
accounting period.

Equity in compensation
rate of compensation
Benefits and services
Performance based compensation
Incentive system related to HRD



Hour of work, rests, vacations ,working environment

welfare activities for employees.
Formulation of Human Resource Policy

Steps that should be followed in the formulation of human resource policy are mentioned

The development of HR policies depends upon the day-to-day problems arising in an

organisation and their solutions.

The main purpose of formulating the HR policy is to assist the top executives in reaching the
decision in a given situation. The process of policy formulation involves the following steps:

1. Identifying the Need:

If an organisation does not already have an appropriate personnel policy, the personnel
manager should feel its needs.

He should also convince the chief executive of the need of a personnel policy. Policies are
required in various areas of personnel management such as hiring, training, compensation,
industrial relations etc.

A staff expert, a first-line supervisor, a UN ion leader or a rank-and-file employee may voice
the need for revision of an existing policy.

2. Gathering Information:

Once the need for a policy has been accepted, the next step is to collect necessary facts for
its formulation. A committee or a specialist may be assigned the task of collecting the
required information from inside and outside the organisation.

Facts may be gathered from any of the following sources:

(i) Past practice in the organisation.

(ii) Prevailing practice among the companies in the community and throughout the nation in
the same industry.

(iii) The attitudes and philosophy of the top management.

(iv) The attitudes and philosophy of middle and lower management.

(v) The knowledge and experience gained from handling countless problems on a day-to-day

The HR department should study existing documents, survey industry and community
practices and interview people within the organisation to collect appropriate information.

Special attention should be paid to attitudes and philosophy of top management, social
customs and values, aspirations of employees, labour legislation etc.

Widespread consultations and discussions at this stage prove helpful later on when it comes
to applying the policies.


Examining Policy Alternatives:

On the basis of data collected, alternatives are appraised in terms of their contributions to
organisational objectives. It is necessary to secure active participation of those who are to
use and live with the policies.

4. Putting the Policy in Writing:

After the necessary information has been gathered and the alternatives examined, the HR
department can begin the actual work of formulating the written expressions of the
companys HR policy. While writing the policy, emotional phrases should be avoided.

5. Getting Approval:

The HR department should send the policy draft to the top management for its approval. It is
the top management which has the final authority to decide whether a policy adequately
represents the organisations objectives or not.

6. Communicating the Policy:

After getting the approval of the top management, the policy should be communicated
throughout the organisation. A real education programme should be set up to teach people
how to handle various personnel problems in the light of this newly formulated policy.

7. Evaluating the Policy:

From time to time the policy should be evaluated in terms of experience of those who use it
and of those who are affected by it. There may be situations when an organisation is not
getting the expected results.

This requires modifications in the policies. Any serious difficulty with a policy along with
suggestions should be reported to the top management.

Such knowledge will enable the management to decide whether there is a need to restate or
reformulate the policy.

Read more: http://www.businessdictionary.com/definition/employee-selection.html#ixzz30Aytb8a6

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