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SHRM CP 2020 > 4 - Workplace: HR in the Global Context > Flashcards

4 - Workplace: HR in the Global Context Flashcards

1
Q

Globalization

A
  • “The inevitable integration of markets, nation-states and technologies to a degree never witnessed before…”

Thomas L. Friedman

  • Changes the way we see the world around us and how we interact with all the dynamic forces.
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2
Q

Connections in a Globalized World

A
  • HR needs to distinguish between large-scale forces and trends and more immediate events and “trendy” phenomena.
  • Global forces (political, economic, social, technological, legal, environmental) are and should be seen as interconnected.
  • While a given force’s effects are global, their impact on different cultures, industries, and organizations may be unique.
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3
Q

Forces Shaping Globalization

A
  1. Foreign Direct Investment
  2. The Diaspora
  3. Demographic Dichotomy
  4. Reverse Innovation
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4
Q

Foreign Direct Investment

(Forces Shaping Globalization)

A
  • Investment of foreign assets into domestic structures, equipment, organizations
  • Leading indicator of shift and major feature of globalization
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5
Q

The Diaspora

(Forces Shaping Globalization)

A
  • Mass migration from homeland to multiple destinations
  • Communities of voluntary emigrants bonded by common heritage
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6
Q

Demographic Dichotomy

(Forces Shaping Globalization)

A
  • Younger workforce in emerging economies; aging workforce in developed economies
  • Creates educational, skills dividends and deficits
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7
Q

Reverse Innovation

(Forces Shaping Globalization)

A

Innovations created for or by emerging markets and then imported to developed markets

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8
Q

Hyperconnectivity

A

Increasing digital interconnection of people - and things - anytime and anyplace

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9
Q

Role of Global HR

A
  • Help create the organization’s global strategy
  • Align HR processes and activities with that strategy
  • Enhance communication between the organization and its stakeholders
  • Ensure that HR can fulfill its role and demonstrate its value
  • Adapt to the cultural and legal contexts of each area of the global organization
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10
Q

Push Factors - Globalization

A
  • Saturated local markets
  • Increased cost pressures
  • Decreased local access to materials and talent
  • Restrictive government policies
  • Trade agreements that increase domestic competition
  • Globalized supply chain
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11
Q

Pull Factors - Globalization

A
  • Greater strategic control
  • Policies promoting outward foreign investment
  • Trade agreements that offer protection of intellectual property
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12
Q

Perlmutter’s Headquarters Orientations

A
  1. Ethnocentric
  2. Polycentric
  3. Regiocentric
  4. Geocentric
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13
Q

Ethnocentric

Perlmutter’s Headquarters Orientations

A
  • Headquarters maintains tight control over subsidiaries.
  • “One best way.”
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14
Q

Polycentric

Perlmutter’s Headquarters Orientations

A
  • Subsidiaries develop strategies consistent with local business practices and cultures.
  • “Many best ways.”
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15
Q

Regiocentric

Perlmutter’s Headquarters Orientations

A

Communication and coordination are high within the region but not between regions and headquarters.

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16
Q

Geocentric

Perlmutter’s Headquarters Orientations

A
  • Headquarters and subsidiaries form a network, each contributing specific expertise.
  • “Team way.”
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17
Q

Global Integration

Strategic Globalization:

A
  • Consistency of approach
  • Standardized processes
  • Common corporate culture across global operations
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18
Q

Advantages of Global Integration

A
  • Economies of scale
  • Integrated value chain activities
  • Serve globally integrated customers
  • Global branding
  • Shared organizational capabilities and knowledge
  • Better quality assurance
  • Leverage global assets for local competition
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19
Q

Local Responsiveness

Strategic Globalization

A
  • Adapt to needs of local markets
  • Allow subsidiaries to develop unique products, structures, and systems
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20
Q

Advantages of Local Responsiveness

A
  • Better respond to local customer needs or specialized local distribution demands
  • Gain efficiencies from using local substitute products and components, local workforce, local networks
  • Better/easier compliance with local laws and regulations
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21
Q

GI-LR Matrix

A
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22
Q

GI-LR Matrix

International Strategy

A
  • Low in global integration; low in local responsiveness.
  • Foreign divisions in host countries are seen as “appendages” to home country.
  • Strategy, research and development, management, and management culture derive from home country.
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23
Q

GI-LR Matrix

Multidomestic Strategy

A
  • Low in global integration; high in local responsiveness.
  • Decentralized portfolio of subsidiaries that operate with fair degree of independence from each other and from headquarters, which remains in home country.
  • Knowledge is shared on local rather than global level.
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24
Q

GI-LR Matrix

Global Strategy

A
  • High in global integration; low in local responsiveness.
  • “Hub and spoke” relationship between headquarters and subsidiaries; headquarters integrates operations to take advantage of conditions in subsidiary markets and standardizes products or services.
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25
Q

GI-LR Matrix

Transnational Strategy

A
  • High in global integration; high in local responsiveness.
  • Locates value chain activities in most advantageous geographic locations.
  • Subsidiaries can adapt global products and services to local markets.
  • Best practices and knowledge are shared throughout organization.
26
Q

GI-LR Matrix

Transnational Strategy

A
  • High in global integration; high in local responsiveness.
  • Locates value chain activities in most advantageous geographic locations.
  • Subsidiaries can adapt global products and services to local markets.
  • Best practices and knowledge are shared throughout organization.
27
Q

Upstream

Global-Local Model

A

Decisions made at headquarters:

  • Strategy and coordination
  • Standardization of processes and integration of resources
28
Q

Global-Local Models: Downstream

A

Decisions made locally:

  • Adapting strategic goals and plans to local realities
29
Q

Identity Alignment

Global-Local Models

A
  • Embraces diversity in management of people, products/services, and branding.
  • Product/service offerings and brand identity may be adjusted for local cultures.
30
Q

Global-Local Models: Process Alignment

A

Are underlying operations integrated across locations?

  • Technology platforms
  • Business performance metrics
  • HR systems
31
Q

Outsourcing

A
  • Transfers portions of work (e.g., processes or production) to outside suppliers rather than completing it internally
  • Contracts out (or subcontracts) activities

Why?

  • Reduces costs
  • Frees up personnel and resources for other activities
32
Q

Offshoring

A

Relocating processes or production to another country

  • From developed countries to distant developing countries

Why?

  • Lower costs
  • Closer proximity to production resources
  • More favorable economic climate for taxation
  • Financial incentives
  • Access to talent
  • Round-the-clock shifts
  • “Follow the sun”

What is Changing?

  • Eroding cost-saving dynamics
  • Creation of a new middle class in offshoring destinations
  • Political fallout in developed countries
33
Q

Onshoring

A
  • Relocation of business processes or production to a lower-cost location inside the same country as the business
  • Sometimes called “home-shoring”
  • May include employees working from home

Why?

  • Lower operation costs
  • Benefits of having local employees
34
Q

Near-Shoring

A

Contracting a part of business processes or production to an external company located in a country that is relatively close.

Why?

  • Similar financial and legal constraints or trade agreements that provide social and economic stability
  • Shared cultural values and similar mindset
  • Proximity benefits (e.g., time differences and reduced travel costs)
35
Q

HR Due Diligence in Moving Work

A
36
Q

Strategic-Systematic

A
  • Approach as long-term investments.
  • Develop executives with global perspectives to create and manage competitive strategies.
  • Improve coordination among home office and foreign operations
  • Disseminate information, technology, and values throughout worldwide organization.
37
Q

Tactical-Reactive

A
  • Approach as short-term expenses.
  • Quick-fix approach to short-term foreign operation problem.
  • Randomly and haphazardly perform assignment functions, shifting focus as problems arise.
  • Fail to integrate worldwide organization’s values, technology, products, and brand.
38
Q

Globalists

A

Spend entire career moving from one locale to another

39
Q

Local hires

A

Host-country nationals

40
Q

Short-term assignees

A

Less than a year but more than a few weeks

41
Q

International assignees

A

Traditional expatriates on one- to three-year assignment

(Expatriate: a person who lives outside their native country)

42
Q

Commuters

A

Travel across country border for work regularly

43
Q

Just-in-time expatriates

A

Ad hoc or contract workers hired for single assignment

(Expatriate: a person who lives outside their native country)

44
Q

Global Assignment Guidelines

A
  • View assignments as a process, not an activity.
  • Recognize and consider all dimensions of the assignment experience.
  • Conduct thorough and professional assessments of candidates.
  • Establish and maintain realistic expectations.
  • Provide training.
  • Provide appropriate health and safety support.
  • Provide well-planned, ongoing training and support.
  • Plan, prepare for, and support repatriation.
  • Address problems quickly, thoroughly, and responsively.
45
Q

Global Assignment Process

A
46
Q

Global Assignees:
Assessment and Selection

A

The right people in the right place at the right times

  1. Develop the selection criteria
  2. Involve the right people
  3. Choose the best selection methods and tools
  4. Complete the assessment/make a recommendation
47
Q

Global Assignees:

Management and Assignee Decision

A

Engage in due diligence regarding costs, benefits, logistics and aspects of global assignment

  1. Analysis of the costs and benefits of the assignment
  2. Preparation of the assignment plan
  3. Candidate acceptance or rejection of the assignment offer
48
Q

Global Assignees:
Pre-Departure Preparation

A
  1. Visas and work permits - adequate time to obtain the necessary documents and awareness of expiration dates
  2. Security briefings - briefings about personal and family safety abroad and business aspects of security
  3. Cross-cultural counseling - counseling before and during the assignment to increase the probability of success
49
Q

Global Assignees:
On Assignment

A
50
Q

Global Assignees:
Completing the Assignment

Repatriation

A
  • Involves reintegrating the employee back into the home country
  • Includes adjustment to a new job and readjustment to the home culture and conditions
51
Q

Global Assignees:
Completing the Assignment

Redeployment

A
  • A different global location
  • A new location or new position in the current host country
52
Q

PESTLE

A

Political

Economic

Social

Technological

Legal

Environmental

53
Q

Global Crisis

A
  • Economics
  • Climate change
  • Pandemics
  • Changes in governmental power
54
Q

The Global Organization

A

Four structural/strategic components:

  1. Physical dispersion - operates in multiple countries
  2. Diversity of thought, people and culture
  3. Unified through a clear single org. identity
  4. Self-aware of their global reach and leveraging geographic and cultural diversity to achieve success
55
Q

Go Global

A
  • Create a new entity
    • Turnkey: purchase an already existing operation
    • Greenfield: build new operation from the ground up
    • Brownfield: repurposing an existing disused facility
  • Aquire a subsidary
  • Enter into a partnership
  • Outsource all or specified tasks
  • Offshore existing capability to a new location
56
Q

Drivers of Globalization Strategy

A
57
Q

Glocalization

A
  • An organization with a strong global image but equally wrong local idenity
  • High in GI & LR
58
Q

Offshoring Risks & Challenges

A
59
Q

Expatriate

A
60
Q

Homebound

A

Refusal to assimilate into the local culture

61
Q

Go Native

A

Full embrace of local culture and work modes

62
Q

Management Knowledge Guidelines

Schell & Solomon

A

Managers should know as much as possible about:

  • The country they are sending assignees to
  • Essential developmental assignments and experiences
  • Specific job function and assignment objectives
  • Process of cross-cultural adjustment to anticipate feelings the assignee may experience
  • Cultural dimensions
  • Potential problem areas

SHRM CP 2020 (19 decks)

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