Answer the question Essay Example
Current World Event
The recent world event to be discussed involves the current falling oil price that is deemed to affect the export-based countries like Russia, Venezuela and Saudi Arabia.
International Human Resource Issue Arising From the World Event
The probable international human resource issue that might arise from this event is retrenchment of employees from companies directly involved with the production and distribution of oil to other areas of the globe. There is a also a possibility of companies trying to adjust employee compensation packages in order to cut down on costs associated with providing such aspects as salaries and other benefits like health cover.
Possible Policies for Assessing the Involved Foreign Subsidiary Performance
First, the foreign subsidiaries of the major oil companies in place should be evaluated in regards to their financial stability. Their respective financial stability should be able to ascertain that it can generate enough cash flows necessary for sustaining their existing employee base otherwise; retrenchment should be done effectively (Ramsey and Bahia 13). Thus, such notable measures as the ROA, ROE and profit margins for these foreign subsidiaries should be evaluated to determine their viability.
Secondly, these foreign subsidiaries should be evaluated in terms of their operational dimension so that their impact on the current product-market rate is established to guarantee of future possible operations (Ramsey and Bahia 13-14). The subsidiaries’ market shares and efficiencies rate should be determined to ensure that they can support internal outcomes like the aspect of productivity and employee satisfaction.
Ramsey, R Jase, and Bahia, R Bernanrdo. “How to Determine Subsidiary Performance
Based on the Internationalization Strategy”
Journal of Management Policy and Practice 14.1(2013): 11-18
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