GI Net 6 - Strategic International HR Process: Best Practices from Indonesia and Abroad


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The growing demands that companies are facing nowadays to expand their competitiveness in the global market, makes the presence of best talents - regardless of their origins - very crucial. In line with the phenomenon, international assignments become an important - yet problematic topic in HR strategic function. Materials presented during The 6th GI Net, Strategic International HR Process, September 25, 2013 by Prof. Dr. Hora Tjitra, Director of Tjitra & associates

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GI Net 6 - Strategic International HR Process: Best Practices from Indonesia and Abroad

  1. 1. Media Partner : StrategicInternational HR Process Successful in Doing Business Abroad 6th Roundtable Discussion of Global Indonesian Network Prof. Dr. Hora Tjitra Tuesday, September 25th 2012
  2. 2. Agenda 1 Internationalization Strategy and Process 2 The Strategic Role of International Assignment and Talent Development 3 Managing Cultural Differences 4 Measurement of Cross-cultural Effectiveness 5 a Culture-sensitive International HRMStrategic International HR Process / Sep. 2012 2
  3. 3. Internationalization   Strategy  and  ProcessStrategic International HR Process / Sep. 2012 3
  4. 4. Why  is  Business  More  Global? Technological Advances Shorter Product Reduced Trade Life Cycles New Motivations Barriers Lower New Production Market Ballooning R&D Cost Increased Economic Investments Development Traditional Motivations Key Supplies Scale of Materials Economies / Energy Go International / GlobalStrategic International HR Process / Sep. 2012 4
  5. 5. The  World  is  Flat Innovation & Collaboration Information & Technology Competition / Threats Opportunities The world is flat ...Strategic International HR Process / Sep. 2012 5
  6. 6. The  Strategic  Focus  of  Globalization Globalization is two-pronged, incorporating both market opportunities and resources. • Companies may choose to compete in the domestic market or in global market. • Companies can leverage resources domestically or globally. Global Global Resourcers Global Players Resource Utilization Local Players Competes solely in the domestic Domestic market with domestic resources, such is the case for numerous food Global Exporters and beverage companies, retail and department stores and supermarkets. Domestic Global Market Opportunities A. Yeung, K. Xin, W. Pfoertsch, S. Liu, The Globalization of Chinese Companies, 2011Strategic International HR Process / Sep. 2012 6
  7. 7. Globalization  Tree:  Depth  of  a  Company’s  Globalization Global business Global market share opportunities Global sales revenue • Number of overseas employees • Number of oversea R&D centers Distribution and utilization of global • Number of overseas manufacturing centers resources • Establishment of overseas sales channels • Capital sourced overseas • Procurement sourced oversea Global leadership Global Global mindset and cross-culture integration organizational capabilities Global structure and processes Sharing of global knowledge/best practices A. Yeung, K. Xin, W. Pfoertsch, S. Liu, The Globalization of Chinese Companies, 2011Strategic International HR Process / Sep. 2012 7
  8. 8. The  Strategic  Role  of International  Assignment   and  Talent  DevelopmentStrategic International HR Process / Sep. 2012 8
  9. 9. International  HR  and  Talent  Development  Strategy International Coordinated Approach International Multinational Decentralized Approach Export Multinational Transnational Global Centralized Approach Domestic GlobalStrategic International HR Process / Sep. 2012 9
  10. 10. The  Role  of  Culture  in  Organizations Domestic Export International Multinational Global/ Transnational Domestic Ability Must adapt Localized Need to multiculturalis required to approach and structure reduces manage m making an negotiate and its products need for cross- cultural impact do business and services to cultural diversity inside with foreign local cultures. awareness and outside distributors Global cultural the firm. All diversity levels need strongly affects cross-cultural external management relationships, skill for especially with maximum potential flexibility buyers and foreign workers HIGH Strategic Importance of Culture LOWStrategic International HR Process / Sep. 2012 10
  11. 11. Internationalization  Process  is  High  Investment  on  Talent  too Globalization has led to more and more employees been sent on international assignment. (Torbiorn, 1994; Dolins,1999, Hechanova,2003). However, 16% to 40% of assignments end in failure (Black, 1988). Therefore, the effective management of expatriate assignments is an important challenge . Of the many factors affecting the success of international assignments, cross- cultural adjustment has probably received the most attention from researchers (Shaffer et al,1999).Strategic International HR Process / Sep. 2012 11
  12. 12. Why  Sending  Expatriates? Control by Finding suitable country nationals putting trusted expatriate staff is often more difficult than finding in key jobs especially secondees within a Head Office in the early stages of a venture Expatriates as a Difficulty of finding means of control suitable host country nationals Competence Development & Global Talent Resources Carriers of organizational Expatriates as a culture symbol commitment To have a cadre of expatriates to Many people in developing countries act as ‘cultural standard bearers’ for believe that the developed world fears the employing organization them catching upStrategic International HR Process / Sep. 2012 12
  13. 13. Managing  International  Assignment  Circle   10% - 50% of expatriates returning early from their assignment. Expatriates’ difficulties are costly for MNCs, ranging from $250,000 to $1 million. (Eschbach et al., 2001) • Internal marketing to motivate employee for international assignment Marketing Reintegration Selection • Return planing and International   • Developing expatriate-profiles reintegration seminar Assignment and conducting selection Supporting Preparation • Conceptualization of an escorting • Preparation of the expatriates and system during the assignment their families (e.g. cultural (e.g. coaching, mentoring, etc.) awareness training, etc.) Different types of cultural awareness training is helpful for each stage of the circleStrategic International HR Process / Sep. 2012 13
  14. 14. Managing  Cultural  Differences: Being  Sensitive  and  EffectiveStrategic International HR Process / Sep. 2012 14
  15. 15. International  Assignees’  Adjustment  Process • Oberg (1960) proposed a most discussed U-curve model of adjustment overtime. Stress level Euphoric phase Surface Adjustment Adaptation Backsliding Disorientation and Rejection phase Time • Bhaskar-Shrinivas et al. (2005) examined the trajectory • Recently, Friedman et al. (2009) found that adjustment may not of adjustment overtime , proposed a “S” model. always be a single continuous process but instead may sometimes be a discontinuous process of gains and losses– repeated cycles of confusion and clarity.Strategic International HR Process / Sep. 2012 15
  16. 16. À Rome, 郷に入っては郷に従う. fais comme les Romains. 入乡随俗Allá donde fueres, Lain ladang lain belalang,haz lo que vieres. lain lubuk lain ikannya. Andere Länder, andere Sitten. Is Cross-Culture Adaptation a Universal Value? Tolerance? Heightened Sensitivity? Differences Harmonization? 16
  17. 17. What  is  Intercultural  Competence  and  Sensitivity? “To be effective in another culture, people must be interested in other cultures, be sensitive enough to notice cultural differences, and then also be willing to modify their behavior as an indication of respect for the people of other cultures ” (Bhawuk and Brislin, 1992) Intercultural Competence Motivation Intercultural Intercultural Sensitivity Communication Technical Competence knowledge & skill Cultural empathy Respect for Language skill differences Awareness of Stress tolerance communication symbols Verbal & non verbal Harmony Attribution process expression Self Control preservation of informationStrategic International HR Process / Sep. 2012 17
  18. 18. Assessment  and  Selection   for  International  AssigneeStrategic International HR Process / Sep. 2012 18
  19. 19. Basis  of  Selection  Procedure:  International  Assignee  Competencies Stress Management • Basis of the selection process are defined competencies Intercultural Context Decision Making • Professional competence is already taken account in the pre-selection Analytical Thinking • The compilation of personal competence should be done through a personnel Teamwork diagnostic procedure • The different competencies should be Conflict Management verified in an intercultural context.Strategic International HR Process / Sep. 2012 19
  20. 20. Intercultural  Assessment  Center:  Tools  and  Players Intercultural Diagnostic Expert Expert Presentation in front foreign Audience Intercultural Group Discussion Case Study Intercultural Assessment Center Activities “Critical Incident” Intercultural Questionnaire Role Play Computer Based Business Simulation Company Foreign Representative Role PlayerStrategic International HR Process / Sep. 2012 20
  21. 21. Sample  Agenda  Applied  in  2-­‐Days  Intercultural  Assessment  Center Day 1 15:00 17:00 19:00 21:00 Day 2 8:00 10:00 12:00 14:00 16:00 18:00 20:00 Feedback Single task incl. presentation 1: Team task 2: Team task Arrival Observer conference Welcome informal get together Introduction Case Study Interview Presentation QuestionnaireStrategic International HR Process / Sep. 2012 21
  22. 22. a  Culture  Sensitive   International  HRM   Developing  Intercultural  Competence  Strategic International HR Process / Sep. 2012 22
  23. 23. “I hear and I forget, I see and I remember, I do and I understand.”Learning is a process whereby the learners study their own actionsand experience in order to improve performance.While classroom learning focuses on presentation of knowledge andskills, action learning focuses on research into action taken andknowledge emerges as a result that should lead to the improvement ofskills and performance. 23
  24. 24. Culture  sensitive  International  HRM Individual Level Type Field Culture • International Assignees • Sales and Marketing & Family • Country Specific • Negotiation • Virtual Worker • Regional focus • Leadership & Teamwork • Local Employees • General Awareness • Technology Transfer • Global Manager • (Diversity approach) • Purchasing and Sourcing • Decision Maker • .... • ... Group Level Organizational Level • Cross-cultural Team Building • Business and Corporate Strategy • International Project Management • HR and Diversity Policy (Guideline) • Global Virtual Teamwork • Organizational Culture and DevelopmentStrategic International HR Process / Sep. 2012 24
  25. 25. Diverse  Intercultural  Competence  Development  for  Different  Levels   • for Young Professionals: Accelerated Learning Program One month One month Classroom Learning Social Learning Action Learning Culture Experience Best Practice Discussion • for Executives: Executive Coaching • for Management Team: Cross-Cultural Training/Workshop In-Depth Biography & Profiling Interviews Personality w. Superiors Interview Behavioral Coaching Feedback & Development Plan around 9 months Short Lecture Overview on ... Coaching discussion Critical Incidents Behavioral Coaching Intercultural CompetenceStrategic International HR Process / Sep. 2012 25
  26. 26. International  Management  and  Leadership  Program Utilization & Optimization Individual & Team Development Knowledge Assessment Team Coaching Flash analysis & Material development & Profiling Individual Coaching Nine-months Action & Web-based Learning Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Acquisition & Possession Multiple Modules Classroom Learning & Benchmarking Study Knowledge Creating Action Managing Developing Creating Leading Benchmark Final Presentation aspirational Learning social network & Corporate Strategy & asp. org. transformation & Study & Graduation organization (1) Kick-Off enterprise knowledge Technology Innovation (2) diversity workforce - Event 1 - - Event 2 - - Event 3 - - Event 4 - - Event 5 - 3 Days in Singapore 3 Days in Germany 4 Days in Switzerland 4 Days in China 1 Day in IndonesiaStrategic International HR Process / Sep. 2012 26
  27. 27. Tjitra&associates Companies and Organizations we have been working with ... * • Tjitra & associates is a management consultancy founded by Dr. Tjitra with offices in Hong Kong, Shanghai, Hangzhou and Jakarta. Our work focuses on the CULTURE, TALENT and CHANGE. • Over the last fifteen years, Dr. Tjitra and his team have collected International project experiences at the global, regional and national level in the US, Europe and Asia with senior leaders from over forty countries. • A team of multilingual psychologists are dedicated to strive for excellence and provide tailor-made service solutions. We devote ourselves in ensuring sustainable business results by understanding the exact needs and situation of our clients. * only selected list and not completeStrategic International HR Process / Sep. 2012 27
  28. 28. Contact  Address Hong Kong: Shanghai: 31/F, Tower One, Times Square 1F, No. 1388 Shan Xi North Road, Putuo District,  1 Matheson Street, Causeway Bay, HONG KONG Shanghai, 200060, P.R. China 香港銅鑼灣勿地臣街 1 號時代廣場⼀一座31樓 中国上海市普陀区陕西北路1388号⼀一楼 Phone +852 2824 8521 Phone +86 21 6149 8264 Fax +852 2107 3699 Fax +86 21 6149 8001 Contact Person: Hangzhou: Jakarta: Kristina Aryanti Suite 810, Guangyin Plaza, 42 East Fengqi Rd., Menara BCA 50th Floor, Jl. MH. Thamrin No. 1 Hangzhou 310010 P.R. CHINA Jakarta 10310, INDONESIA Phone + 62 21 2358 4616 Fax + 62 21 2358 4401 中国浙江省杭州市凤起东路42号广茵大厦810 Phone + 62 21 2358 4616 Fax + 62 21 2358 4401 Email: Phone + 86 571 8763 1203 Fax + 86 571 8763 1210Strategic International HR Process / Sep. 2012 28