Traveling businesses. Being successful by bringing your own human capital abroad
March 14, 2017
In the Italian dictionary of Economics and Finance, the definition for human capital is “a set of skills, capabilities, knowledge, professional and relational abilities generally possessed by an individual, acquired not only through school education but also through a long learning process or workplace experience and therefore not easily replaceable as they are intrinsically developed by the subject who acquired them”.
In today’s market environment, this issue has become central to companies. In specific cases, such as, for example, in the event of a firm’s internationalization process, the art of being able to invest in human capital can be a key factor. A strategic analysis of this process can be found in the new edition of Gestione delle imprese internazionali (Managing international businesses), particularly on Chapter 12, by Luca Giustiniano, titled La gestione internazionale del capitale umano (International management of human capital).
Strategically planning complex operations such as the cardinal organization most appropriate for the target market or the continuous tuning of organizational responsibilities and operating mechanisms can be a difficult task, especially when confronted with global pressures. This is the reason why a business entering the international market must provide for precise strategic choices that are the perfect balance between central standardization and local adaptation.
Handling human capital wisely under these circumstances is paramount and Giustiniano brilliantly describes the necessary strategies for international employee mobility, subsidiary coordination and the chain of process control associated, as well as career paths and resource mobility in the human resources sector also from the standpoint of compensation incentives.
An invaluable strategic reflection on the company asset human capital represent, with a focus organizing and implementing skills and an interesting final insight into the prospects for developing local talents.