Successfully reported this slideshow.

More Related Content

Related Audiobooks

Free with a 14 day trial from Scribd

See all

Strategic Human Resources and Globalization

  1. 1. Strategic Human Resources and Globalization Developed and Presented by John Anthony
  2. 2. Multiple Meanings of Globalization How do you Define it? <ul><li>Globalization has different meanings to different people </li></ul><ul><ul><li>Commerce without Borders </li></ul></ul><ul><ul><li>A Worldwide Marketplace </li></ul></ul><ul><ul><li>The Influence on Marketing of Products and Services </li></ul></ul><ul><ul><li>The Management and Delivery of Products and Services from anywhere to anywhere </li></ul></ul>
  3. 3. Causes and Trends in Globalization Causes and Trends <ul><li>Conducting business and making decisions online </li></ul><ul><li>International politics connecting economic relationships </li></ul><ul><li>Trade Agreements </li></ul><ul><ul><li>European Economic Community </li></ul></ul><ul><ul><li>NAFTA </li></ul></ul><ul><ul><li>Asia Pacific Economic Cooperation </li></ul></ul>
  4. 4. Importance of Access to Certain Markets <ul><li>Demonstrated product desirability </li></ul><ul><li>Size of the market – Amortized costs of development in large markets </li></ul><ul><li>Dynamics of market growth germane to specific regions </li></ul><ul><li>Competition </li></ul>Why go Global?
  5. 5. <ul><li>Develop core ideology (values & purpose) and ability to envision future transcending international borders </li></ul><ul><li>Organizations must strive to define which core values are really central to creating a global corporation </li></ul><ul><li>To envision future, important to have clear picture of where organization is headed in global market place </li></ul><ul><li>Create BHAGG = Big, Hairy, Audacious, “Global” Goals </li></ul><ul><li>Once organizations reach their goals, they need to embrace them and look forward to new challenges that lie ahead </li></ul>Development of New Company Vision Building Company Vision
  6. 6. Strategy with Regard to Globalization <ul><li>To achieve success, company must have global strategy, vision, and appropriate positioning in international marketplace </li></ul><ul><li>Fit drives both competitive advantage and sustainability of the global corporation </li></ul><ul><li>Strategy helps the global corporation achieve best local practices and rapid response to competitive market changes in every region </li></ul>Strategy, Vision, Positioning
  7. 7. Strategic HR Role in Support of Globalization <ul><li>Understand HR is no longer an isolated support role </li></ul><ul><li>Integrate corporate global strategies with human resource strategies </li></ul><ul><li>Integrate competency hierarchy effectively within various stages of global evolution (reviewed later) </li></ul><ul><li>Develop specific competencies that include networking, international job rotation, and on-the job (foreign) training </li></ul><ul><li>Understand nature of global corporation; know how to support international HR function </li></ul>Seizing the Future
  8. 8. Global Corporation Must Redefine Core Competencies <ul><li>Understand collective learning and communication, involvement, and commitment to working across organizational & international boundaries </li></ul><ul><li>Bridge gaps between core competencies and diverse end products and services </li></ul><ul><li>Deploy “tree analogy” where </li></ul><ul><ul><li>Trunk represents HQ </li></ul></ul><ul><ul><li>Branches represent countries of operation </li></ul></ul><ul><ul><li>Leaves, flowers, fruits represent combined end products or services </li></ul></ul><ul><ul><li>Root system represents core competencies of international firm </li></ul></ul>Tree Analogy
  9. 9. Global Organizations Require New Mindset Breaking Functional Mindset <ul><li>Develop collective sense of responsibility to international colleagues </li></ul><ul><li>Integrate information systems into shared process-focused database and network across borders </li></ul><ul><li>Know what actions are required to transform employee behaviors to culture of international collaboration </li></ul><ul><li>Understand importance of increasing ties among “borderless” duties to achieve greater organizational benefits </li></ul>
  10. 10. Outperform Competition in International Marketplace Competing on Capabilities <ul><li>Respond quickly to demands of international customer & marketplace </li></ul><ul><li>Develop products and services that unfailingly satisfy diverse customer expectations </li></ul><ul><li>See competitive environment clearly and anticipate and respond to needs of international customer </li></ul><ul><li>Adapt simultaneously to many different business environments; locally, regionally, nationally, & internationally </li></ul><ul><li>Generate new ideas and create new sources of value for each customer base </li></ul>
  11. 11. Adaptation of Strategies; Shifting of Paradigms <ul><li>Globalization requires both revitalization and transformation </li></ul><ul><li>Globalization requires operating outside comfort zone and accepting ambiguity and adversity that comes with international assignments </li></ul><ul><li>Globalization requires interventions that restore companies’ vital agility and keep them healthy by </li></ul><ul><ul><li>Integrating employees in process </li></ul></ul><ul><ul><li>Leading from “a different place” </li></ul></ul><ul><ul><li>Instilling new mental disciplines </li></ul></ul>Shifting of Paradigms
  12. 12. Changing Role of Senior Managers Broadening Perspective <ul><li>Shift global paradigm to one that incorporates purpose, process, and people </li></ul><ul><li>Recognize that organization’s relationships with diverse stakeholders are interdependent </li></ul><ul><li>Access and manage existing resources, knowledge, and expertise of different countries </li></ul><ul><li>Create momentum by developing and broadening employee capabilities and perspectives </li></ul><ul><li>Examine existing values and incorporate new values that align with global vision </li></ul>
  13. 13. Realignment of People, Process, & Systems Benchmarks and Milestones <ul><li>Organizations need to reach out to their diverse customer base continuously </li></ul><ul><li>New product strategies provide context and direction against which all product development projects will be measured on the international front </li></ul><ul><li>HR professionals can act as catalysts in monitoring impact of HR policies on multinational team projects and help them function cohesively by establishing clear benchmarks and measurable objectives </li></ul><ul><li>Create change “from local to global” through effective training and development to address corporate strategy and competitive edge </li></ul>
  14. 14. Change Leading the Target <ul><li>Change factors such as technology, automatization, and new business practices need to be understood by all managers </li></ul><ul><li>Organizations must anticipate and manage resistance to change on three levels (strategic, tactical, and operational) </li></ul><ul><li>Shifting to a corporate global mindset requires HR professionals to tap into various Change Models </li></ul><ul><ul><li>Action Research </li></ul></ul><ul><ul><li>Instructional Systems Design </li></ul></ul><ul><ul><li>Action Learning </li></ul></ul><ul><ul><li>Self-Directed or Experiential Learning </li></ul></ul>HR as Change Agents
  15. 15. Consequences of Globalization Benefits and Consequences <ul><li>More attention to diversity and open thinking </li></ul><ul><li>Human Resources professionals develop greater familiarity with cross-national laws </li></ul><ul><li>Constant need to embrace change is created </li></ul><ul><li>Greater market penetration </li></ul><ul><li>Greater market share </li></ul>
  16. 16. Opportunities & Threats of Globalization Opportunities and Threats <ul><li>Exploitation of new markets and flow of international capital into developing countries </li></ul><ul><li>International activity has an impact on domestic competition </li></ul><ul><li>Constant corporate and national competition for resources </li></ul><ul><li>Ease of market penetration due to advances in communication and travel </li></ul><ul><li>Different work ethics such as longer work weeks or work days in some countries </li></ul>
  17. 17. Strategies to Meet Increasing Global Demands <ul><li>Develop firm’s capacity to build and maintain coalitions </li></ul><ul><li>Build successful core competencies to increase global customer value </li></ul><ul><li>Manage rapid accumulation of knowledge base about the global market </li></ul><ul><li>Develop a global “share of mind” – Thinking global; acting local </li></ul>Meeting Global Demands
  18. 18. Development of Successful Global Alliances <ul><li>Develop heightened sensitivity to ethics of commerce without borders </li></ul><ul><li>Understand strategies, motives, goals, and objectives of various business partners </li></ul><ul><li>Become aware of management practices in different countries; appreciate different methodologies </li></ul><ul><li>Consider how organizational actions impact various world markets </li></ul><ul><li>Develop long-term perspective that is based on trust, openness, and mutual respect </li></ul><ul><li>Understand that worldview standards determine how companies are judged </li></ul>Trust, Openness, and Respect
  19. 19. Development of Global Cultural Awareness <ul><li>Establish leadership team that models diversity of the business in global setting </li></ul><ul><li>Ensure working groups represent various cultures of the countries were organization maintains corporate interests </li></ul><ul><li>Provide cultural sensitivity training to managers involved in international assignments </li></ul><ul><li>Foster concept of the “multicultural experiential learning organization” </li></ul>Global Cultural Awareness
  20. 20. Organizational Evolution Toward Globalization Ethnocentrism to Geocentrism <ul><li>Ethnocentric Stage – Companies focus on domestic production and exporting </li></ul><ul><li>Polycentric Stage – Companies pursue a strategy of responsiveness to local needs </li></ul><ul><li>Regiocentric Stage – Companies coordinate subsidiary production and marketing on a regional basis </li></ul><ul><li>Geocentric Stage – Companies plan production and marketing at the global level </li></ul>
  21. 21. HR Professional Role in Global Organization <ul><li>Develop short-term assignments for select talent before dispatching to long-term foreign tours of duty </li></ul><ul><li>Match strategic business purpose of each position with talent holding the job </li></ul><ul><li>Whenever possible, conduct feasibility studies before each allocation of assignment </li></ul><ul><li>Develop orientation programs for talent and their families to ensure foreign assignment success </li></ul><ul><li>Develop score cards to measure talent contributions and accomplishments </li></ul>Paving the Road to Success
  22. 22. International Recruitment Considerations <ul><li>Foreign Nationals – Employees who are native to the country of operation </li></ul><ul><li>Third-country Nationals – Employees originating from a country that is neither the country of operation nor the country of the company’s headquarters </li></ul><ul><li>Corporate Headquarters Nationals – Employees who are native to the country where HQ is located </li></ul><ul><li>Ability to manage local workforce </li></ul><ul><li>Having access to local suppliers and research centers </li></ul><ul><li>Modifying performance evaluation systems to include local distinctions </li></ul><ul><li>Setting up predeparture and repatriation programs </li></ul><ul><li>Understanding of various languages & cultures </li></ul><ul><li>Knowing that local talent is more mobile and less expensive than in U. S. </li></ul>Where are You From?
  23. 23. Multicultural Variables in Global Diversity Training <ul><li>Social etiquette and customs of each country </li></ul><ul><li>Dress codes for men and women </li></ul><ul><li>Knowledge of local laws, regulations, and taboos </li></ul><ul><li>Medical and health issues </li></ul><ul><li>Women’s roles in various cultures </li></ul><ul><li>Time control vs. time fluidity </li></ul><ul><li>Group orientation vs. individualism </li></ul><ul><li>Equality vs. hierarchy and authority </li></ul><ul><li>Task emphasis vs. social emphasis </li></ul><ul><li>Direct & explicit vs. indirect and implicit communications </li></ul>We do Things Differently Here
  24. 24. Strategies for Resource & Productivity Management <ul><li>Delay first performance evaluation to allow for local adaptation (culture shock) </li></ul><ul><li>Plan for global rotation programs that enhance talent knowledge base </li></ul><ul><li>Create corporate culture that values international experience as a critical factor for promotion to top management </li></ul>Resource and Productivity Management
  25. 25. International Talent Compensation Factors <ul><li>Expenses associated with home leave </li></ul><ul><li>Ground and air transportation </li></ul><ul><li>Education costs for children </li></ul><ul><li>Spousal allowance and other family related assistance </li></ul><ul><li>Medical and dental insurance coverage and existing reciprocal arrangements </li></ul><ul><li>Hardship, taxes, and moving expenses </li></ul><ul><li>Others based on nature of assignment </li></ul>Compensation Packages
  26. 26. Economic Factors to Consider How Much Will it Cost? <ul><li>Cost of local social systems such as welfare and health care programs </li></ul><ul><li>Impact of aging population </li></ul><ul><li>Higher rates of taxation in different countries </li></ul><ul><li>Fluctuations in foreign currency and other inflationary concerns </li></ul><ul><li>Personal safety of talent and family members </li></ul>
  27. 27. Conclusions on Strategic HR Role in Globalization <ul><li>Building strategic coalitions that enhance business interaction </li></ul><ul><li>Developing awareness of various and diverse cultures </li></ul><ul><li>Understanding impact of cross-national regulations and labor laws </li></ul><ul><li>Creating knowledge base of different management practices </li></ul><ul><li>Fostering concept of global experiential learning at the organizational level </li></ul><ul><li>Knowing various categories of international staffing </li></ul><ul><li>Developing compensation programs germane to and reflecting local needs </li></ul><ul><li>Understanding budgetary impact of globalization on the HR budget </li></ul>What Have We Learned?
  28. 28. Strategic Human Resources and Globalization Developed and Presented by John Anthony