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Global hr forum2007-reiji_ohtaki-global talent sourcing-challenge of korean corporations Presentation Transcript

  • 1. Global Talent Sourcing - Challenge of Korean Corporations - Reiji Ohtaki, Ph.D. HayGroup 0 © 2006 Hay Group. All rights reserved.
  • 2. Globalization Model High Global Global Transnational Transnational Standardization •Centralized Operations •Balanced Operations •Global Culture •GLocal Culture International International Multinational Multinational •Export Model •Decentralized Operations •Early stage of doing •Diversified Culture business overseas Low Low Localization High 1 © 2006 Hay Group. All rights reserved.
  • 3. Globalization Model High Global Global Transnational Transnational GE ABB Ericsson Standardization Coca-Cola P&G J&J Nestle International International Multinational Multinational Many Many Low Low Localization High 2 © 2006 Hay Group. All rights reserved.
  • 4. Globalization Progression l ization De-centra Multinational Transnational International Global Centraliz ation 3 © 2006 Hay Group. All rights reserved.
  • 5. Required Human Resources High Global Global Transnational Transnational Standardization Experienced expatriates Global Leaders Local leaders* *well-trained by HQ International International Multinational Multinational Local Partners Local leaders Diplomatic expatriates Low Low Localization High 4 © 2006 Hay Group. All rights reserved.
  • 6. Korean Firms  Trying to hire local leaders  Sending many in-experienced expatriates 5 © 2006 Hay Group. All rights reserved.
  • 7. Korean Firms High Global Global Transnational Transnational But now, want Product Standardization Quality and Operations to be here International International Multinational Multinational wanted Korean Products Firms to be locally Low accepted Low Localization High 6 © 2006 Hay Group. All rights reserved.
  • 8. Korean Firms What needs to be done,  Develop home-country expatriates  Develop local managers as ‘core manager’ For further advancement to be ‘Transnational’,  Develop ‘Global Leaders’ 7 © 2006 Hay Group. All rights reserved.
  • 9. Common issues seen in Korean Firms  Not very successful in recruiting top-notch local talent  Slow in localizing overseas leadership positions  Big communication gap between Korean expat’s and local staff  Expat’s always looking at the HQ for the direction  Not much effort to develop local staff  Expat’s and their families living within a small Korean community 8 © 2006 Hay Group. All rights reserved.
  • 10. Western Firms are utilizing Asian talent, but Korean Firms are not paying much attentions  Western Firms are aggressive in recruiting top-notch Asian talent as global resource  Advantages of Asian talent (for Korean Firms) – Language Capability – Cross-cultural Capability – Many prefers Asian way, rather than American way – Mid-Career talents. Ready to contribute – Resources are readily available – Many interested in Korea 9 © 2006 Hay Group. All rights reserved.
  • 11. Asians as Global Talent Western Firms is already practicing  Chinese, Indian students in the USA -> Managers, Executives  Many CFO’s are Indian  Asian Returnees as Head of their home country operation Indra K. Nooyi  Indians and Singaporeans as their region heads President & CEO Recent trends among Japanese companies  Identifying high potential employees in their Asian operations  Having Asian talent in Corporate HQ positions  “We cannot achieve globalization by Japanese expat’s only” 10 © 2006 Hay Group. All rights reserved.
  • 12. Japanese companies utilizing Asian talent  Global HR manager/staff  OO Way project staff  “Monozukuri” (manufacturing spirit) handing-down project  Corporate Planning Staff  Global Management Meeting facilitator  Global Marketing, Branding  Global PR  Corporate Finance  Corporate Legal 11 © 2006 Hay Group. All rights reserved.
  • 13. Web Survey by HayGroup/ChinaHR.com in 2005 Ranking of nationality of companies Chinese young people prefer to work for: ① American/European ② Korean ③ Hong Kong/Taiwan ④ Chinese ⑤ Japanese 12 © 2006 Hay Group. All rights reserved.
  • 14. - Top 50 companies in China people want to join - Result in 2005 (27,106 ) Nationality (Current 3 years) Japanese Company Korean Company Target:Undergraduate Students all over China Survey Report:中華英才網 ChinaHR.com 13 © 2006 Hay Group. All rights reserved.
  • 15. Chinese people’s view on Korean Firms Positives  Exciting and innovative products.  Dynamic organizational climate.  Can learn new technology. Negatives  Glass ceiling.  Much more training opportunities are available in Western Firms  Korean expat’s are so proud of, and over confident of their way of doing things. They believe it works in China.  Low pay and too much overtime. 14 © 2006 Hay Group. All rights reserved.
  • 16. Indian staff vs. Korean expat’s Interview findings in the consulting projects Indian Staff No career opportunities for Indian beyond Indian boarder Uncompetitive reward Not unusual to receive offers with more than 50% increase No clear performance measurement No feedback of performance appraisal No management training except technical training for engineers and operators Company is only interested in making money, no social contributions 15 © 2006 Hay Group. All rights reserved.
  • 17. Indian staff vs. Korean expat’s Korean expat’s  Local employees complain too much on salary  The company cannot make any profit if it raises the pay as local employees demand  Indian people are too much self-centered  Too demanding on everything  Not very proficient in the jobs even though they are from top-ranked universities  Not easy to communicate due to their accent 16 © 2006 Hay Group. All rights reserved.
  • 18. Typical Challenges for Korean Firms Overseas 1. Lack of top-notch local talent  Cannot attract/retain local talent  They leave for Western firms 2. Lack of clarity  Subjective judgment of performance  No formal communication on one’s performance 3. High HR Cost  Even-pay increase across the board  No mechanism to distinguish good/poor performers 17 © 2006 Hay Group. All rights reserved.
  • 19. Reasons behind this problem Hardware No Clear Policies, No Disclosure, No Communication 1. Grading structure - Seniority-driven, not much performance-orientation - Unclear promotion standard and career path 2. Compensation Program - Lack of internal equity and external competitiveness - Performance variables too small 3. Performance Appraisal Program - Unclear performance objectives, evaluation criteria - Weak linkage to variable pay and bonus 18 © 2006 Hay Group. All rights reserved.
  • 20. Reasons behind this problem Software 1. Talent selection, development and succession are not done systematically - Definition of leadership is not clear - Unclear process - Do not know what kind of development programs fit well 2. Lack of communication between local and Korean expat’s - Language issue - No support of company for such communication 19 © 2006 Hay Group. All rights reserved.
  • 21. Three important actions suggested:  Further improvement of Employer Branding  Global HRM Policy/Programs  Headquarters Initiative 20 © 2006 Hay Group. All rights reserved.