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A cosmetics company opens a division in a new geographical area, opting for a strategy of localization. What is the likely effect on HR?

A. HR must budget for training of local employees in headquarters policies and procedures
B. The assignment of personnel across geographical areas will become easier.
C. The local HR office will develop a code of conduct, policies, and procedures and submit them for headquarters review.
D. HR management will schedule more frequent audits of the new function to identify instances of lax policy enforcement

User Dmle
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1 Answer

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Final answer:

The likely effect on HR when a cosmetics company opens a division in a new geographical area with a localization strategy is primarily focused on budgeting for local employees' training in headquarters' policies and procedures, adapted to local contexts.

Step-by-step explanation:

When a cosmetics company opens a division in a new geographical area with a localization strategy, the likely effect on HR would be Option A: HR must budget for training of local employees in headquarters policies and procedures. This is because localization focuses on adapting to the local environment, including culture, regulations, and market practices. HR will need to train local employees not only in the company's global standards but also ensure these standards are adapted to fit within the local context. Moreover, professionalizing HR reduces the chance of discriminatory practices and biases in hiring, which can be crucial in a new geographical setting.

On the matter of the other options, Option B could be misunderstood since while personnel assignments may benefit from a diverse pool of candidates, localization doesn't inherently make the process easier. It may introduce new challenges in balancing local preferences with global best practices. Option C suggests a more decentralized approach which might not be typical in a localization strategy where guidelines usually come from headquarters but are then adapted locally. Option D presupposes an adversarial relationship and may be more relevant in an initial setup phase or areas with marked compliance issues. Regular audits are part of maintaining standards but are not directly influenced by localization per se.

User Fred Smith
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