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International Human resource management programme

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16 DICEMBRE 2015. PRIMO INTERNATIONAL HRM PROGRAMME DI STOA'

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International Human resource management programme

  1. 1. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME International Human Resource Management Programme MDGI – HRM Joint Project Stoà – Alumni Network
  2. 2. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Senior Faculty Maria Rosaria Bonifacio, NOKIA Francesca Contardi, PAGE GROUP Giovanni de Liso, ANSALDO STS HITACHI Salvatore Iorio, UNILEVER
  3. 3. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME M1. International Strategic Management Enrico Viceconte, 16 - 12 - 2015 The objectives of the course include: 1. an understanding of the conceptual and analytical tools of strategic management and economics as applied to international strategy; 2. an understanding of the complexity that accompanies international operations and global supply chains as a result of geographical diversification and changing market, and technological, conditions.
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  5. 5. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Globalizzazione • Brainstorming FLUSSI DI CAPITALI, MERCI, PERSONE, COSE ARMONIZZAZIONE DELLE LEGISLAZIONI OMOGEINIZZAZIONE DELLE CULTURE ICT
  6. 6. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME What is globalization? Globalization is the inexorable integration of markets, capital, nation-states, and technologies to a degree never seen before. Thomas Friedman
  7. 7. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Globalization drivers • Increased customer demands and access to competing products and services. • Increased technological innovation and application. • Increased power and influence of emerging markets and economies. • Shared R&D and global sourcing. • Increased globalization of financial markets. • Evolving government trade policies. • Global trade liberalisation; Trade barriers diminishing • Multi-national companies evolving into real global organisations • Production out-sourcing to lower cost regions • Improved logistics infrastructure and operations
  8. 8. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Tipologia di strategie globali • Integrazione globale • Differenziazione nazionale (adattamento, segmentazione)
  9. 9. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Tipologia di strategie globali • International business - engages in cross-border transactions • Multinational Corporation - has extensive involvement in international business, owning or controlling facilities in more than one country • Global company - integrates operations from different countries, and views world as a single marketplace • Transnational company - seeks to combine the benefits of global-scale efficiencies with the benefits of local responsiveness
  10. 10. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Tipologia di strategie globali • International Strategy: uses exports and licenses to penetrate the global area • Multidomestic Strategy: uses decentralized authority with substantial autonomy at each business • Global Strategy: Uses a high degree of centralization, with headquarters coordinating to seek standardization and learning between plants • Transnational Strategy: Exploits economies of scale and learning, as well as pressure for responsiveness, by recognizing that core competencies reside everywhere in the organization
  11. 11. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Come sarà il mondo? • Più uniforme (“Flat”, Ghemawt) • Più diversificato
  12. 12. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Organization Structure • Organization is defined by the formal structure, coordination and control systems, and the organization culture. • It’s the formal arrangement of roles, responsibilities and relationships within an organization. • It’s a powerful tool with which to implement strategy.
  13. 13. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Vertical Differentiation: Centralization V/S Decentralization. • Vertical Integration: The issue of determining where in the hierarchy, the authority to make decisions stand. • Centralization is the degree to which high level managers, usually above the country level, make strategic decisions and pass them over to lower levels for implementation. • Decisions made at foreign subsidiary level are considered decentralized, and those made at HQ are considered to be centralized.
  14. 14. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Centralization V/S Decentralization Centralization • Decisions made by senior level managers at HQ. • Facilitates coordination of value chain • Ensures decisions are consistent with strategic objectives. • Senior executives have authority to direct major change. • Preempts duplication of activities • Reduces the risk of making wrong decisions at low level • Ensures consistent dealings with all stakeholders. • Discourages initiative among lower – level employees. Decentralization • Decisions made by employees, who are closest to the situation. • Employees who directly deal with customers, markets, etc • Motivates employees to exercise initiative. • Enables more flexible response to rapid environmental changes. • Permits to fix better accountability. • Puts the org at risk for bad decision making. • Cross – unit coordination is at stake for favouritism.
  15. 15. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Horizontal Differentiation: The Design of the Formal Structure • Horizontal Differentiation: The way a firm designs its formal structure to perform the following functions; 1.Specify the set of organizational tasks. 2.Divide these tasks into jobs, departments, subsidiaries and divisions to get the work done. 3.Assign authority relationships to get the work done in a way that supports co. strategy.
  16. 16. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Types of Organizational Structures 1. Functional Structure 2. International Division Structure 3. Product Division Structure 4. Geographic (Area) Division Structure 5. Matrix Division Structure
  17. 17. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME 1. Functional Structure • Specialized jobs are grouped according to traditional business functions. • Ideal for Co. having a narrow product line, sharing similar technology. • Helps maximize economies of scale • Highly efficient.
  18. 18. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME 2. International division structure. • Grouping each international business activity into its own division. • Creates a critical mass of international expertise. • Creates quick response to environmental changes enabling them to deal with different markets. • Prevents duplication of activities. • Often struggles to get resources from domestic divisions. • This structure is suited for multidomestic strategies that demand little integration and standardization between domestic and foreign operations. • Frustrates its ability to exploit economies of scale.
  19. 19. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME 3. Product Division Structure • These are popular among international companies with diverse products. • Similar products are grouped under one product head e.g. Perfumes and Cosmetics, each focusing on a single product segment for its global market. • Suited for a global strategy • There may be duplicate functions and activities among divisions. • No formal means by which one product divison can learn from another international expertise.
  20. 20. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME 4. Geographic (Area) Division Structure • These are used when foreign operations are large and not dominated by a single country or region. • Useful when managers can gain economies of scale on a regional rather than on global basis. • Drawback is the potential of duplication of work among areas as the company locates similar value activities in several places rather than consolidating them in the most efficient place.
  21. 21. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME 5. Matrix Division Structure • This tries simultaneously to deal with competing pressures for global integration and local responsiveness. • Institutes overlaps among functional and divisional forms. • Gives functional, product, and geographic groups a common focus. • It makes each group share responsibility for foreign operations and enables each group exchange information and resources more willingly. • Drawbacks- Stop championing their group’s unique needs, and thereby eliminate the multiple knowledge- generating and decision making relationship that it is supposed to engage. CEO
  22. 22. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Dal libro Risorse Umane Internazionali • Di Francesca Prandstraller e Barbara Quaquarelli
  23. 23. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Il caso Danieli Spinte • Competitività: vantaggi di costo • Impiego di competenze in bacino più vasto • Vicinanza ai clienti asiatici • Logistica HR policy • Localizzazione: si è assunti in Tailandia
  24. 24. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Come saranno le aziende?
  25. 25. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Con quale velocità? • Per salti (fusioni e acquisizioni) • Quindi una maggiore enfasi sull’integrazione tra culture aziendali e nazionali
  26. 26. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Il caso di Massimo Lupi “Think global, act local!”
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  32. 32. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Network organizations
  33. 33. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Network organizations
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  40. 40. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Il sistema Procter & Gamble della tecnologia
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  43. 43. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME In today’s global economy, firms must decide • where to locate productive activities • what the long-term strategic role of foreign production sites should be • whether to own foreign production activities or outsource those activities • how to manage a globally dispersed supply chain and what the role of Internet-based information technology should be in the management of global logistics • whether to manage global logistics or outsource
  44. 44. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Concepts of Global Business Internazionalization • A process by which firms increase their awareness of the influence of international activities on their future and conduct transactions with firms from other countries Globalization •The global economic integration of many formerly national economies into one global economy
  45. 45. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME The new global manager • Managers are responsible for utilizing human, financial, informational, and physical resources in ways that facilitate their organization’s overall objectives in turbulent and sometimes hostile environments about which they often understand very little. • These challenges can be particularly problematic when operations cross national boundaries.
  46. 46. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Strategy, Production, and Logistics Question: How can production and logistics be conducted internationally to 1. lower the costs of value creation and 2. add value by better serving customer needs? • Production refers to activities involved in creating a product • Logistics refers to the procurement and physical transmission of material through the supply chain, from suppliers to customers
  47. 47. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Technological Forces Related to the products • Various subcomponents and technologies available in different regions and locations • Successful firms need to use these resources quickly and effectively. • Locate research, design, and production facilities close to these regions. • Frequently collaborate, resulting in the location of joint facilities close to one of the partners. • Global location of research-and-development facilities driven by two main reasons: • As product cycles shrink, locate research facilities close to manufacturing facilities. • Specific technical expertise may be available in certain areas or regions
  48. 48. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Technological Forces “Access to special technologies” -- e.g. • India & China -- IT/software technologies • Taiwan -- Electrical & computer engineering “Integrating R&D and manufacturing” Many companies outsource manufacturing to Asian countries. It may be necessary to have R&D locally. Why? 1. Use local human resources for R&D 2. Speed to market 3. easier to integrate with manufacturing
  49. 49. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Global Cost Forces • Often dictate global location decisions • Costs of cheaper unskilled labor more than offset by the increase in other costs associated with operating facilities in remote locations. • In some cases cheaper labor is sufficient justification for overseas manufacturing. • Other global cost forces have become more significant • Cheaper skilled labor (Engineers) is drawing an increasing number of companies overseas.
  50. 50. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Global Operations (supply chains) are Not Simple • Infrastructure in developing countries • Cultural, language, labor skill differences • Government stability, legal systems, regulations • Currency exchange rate fluctuation • Duties & tariffs • Different corporate tax rates • Import/export quotas • Local content rules • Product design issues (local customer needs) • Longer transportation lead times • Quality/reliability of local suppliers
  51. 51. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Nike: the logistics challenge of global business • Nike: re-created the sport shoe as “high-tech, high- performance” products that is an icon of youth subculture, with a price to match! • Core business: • state-of-the-art R&D capabilities • ruthless low-cost manufacturing • “Air Max Penny” basketball shoe: • designed in Oregon and Tennessee • manufactured in South Korea and Indonesia • from 52 components sourced from Japan, South Korea, Taiwan, Indonesia and USA. • (Long lead times!)
  52. 52. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Nike: the logistics challenge of global business • Nike markets over 300 new shoe design each year, leading to costly overstocks if sales forecasts not achieved. • Distribution in USA is outsourced to third-party logistics providers with IT linkage to Nike’s global sales and customer support systems, enabling sales/inventory information to be accessible to all decision makers concerned. • When the supply chain is global and the products are fashion-oriented, the management of logistics becomes a key determinant of business success or failure.
  53. 53. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME The new organisational paradigm • Traditionally, organisations are hierarchical, vertical and functionally defined • Current and future business environment: • focus on “speed”, just-in-time, short product life-cycles • volatile demand • flexibility in customer requirements • Challenge: how to be a responsive organisation?
  54. 54. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Distinguishing features of the responsive organisation • Focus will shift: • From functions to processes • From profit to performance • From products to customers • From inventory to information • From transactions to relationships
  55. 55. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Summary • Continuing trend towards globalisation • global brands, global sourcing, focussed factories serving the world market • Increased complexities: longer supply chains, more out-sourcing • Need to balance the varying needs of local markets against the economic advantages of standardised procedures/products • Challenge: a flexible and agile supply chain yet achieves economies of scale/scope • Requires organisational change within firm and with supply change partners • Integrated logistics planning; information technologies
  56. 56. INTERNATIONAL HUMAN RESOURCE MANAGEMENT PROGRAMME Assignement • Identify the concepts of internationalization and globalization of business. • Explain the evolving role and problems with multinational corporations in the global environment.

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