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European Relations and Human Resource Management > GLOBALISATION, EUROPEANISATION AND INTERNATIONAL HRM STRATEGIES > Flashcards

GLOBALISATION, EUROPEANISATION AND INTERNATIONAL HRM STRATEGIES Flashcards

1
Q

What is a Multinational Corporation?

A

Company operating in several countries but managed from one (home) country

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2
Q

What are the four distinct approaches to IHRM?

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

Ethnocentric (4)

A
  1. Home country practice prevails
  2. Place people from home country in key positions at home and abroad
  3. Company not aware of foreign talent
  4. Struggles to communicate across countries
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4
Q

Ethnocentric - Aspects of the Enterprise

  1. Complexity of organization
  2. Authority/ decision making
  3. Evaluation and control
  4. Rewards; punishment; incentives
A
  1. Complex in home country; simple in subsidiaries
  2. High in headquarters
  3. Home standards applied for persons and performance
  4. High in headquarters; low in subsidiaries
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5
Q

Polycentric (4)

A
  1. Cultures of different countries vary
  2. As long as work is profitable, no need to intervene
  3. Local nationals hold key positions
  4. Local managers have power over their area
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6
Q

Polycentric - Aspects of the Enterprise

  1. Complexity of organization
  2. Authority/ decision making
  3. Evaluation and control
  4. Rewards; punishment; incentives
A
  1. Varied and independent
  2. Relatively low in headquarters
  3. Determined locally
  4. Wide variation; can be high or low rewards for subsidiary performance
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7
Q

Regiocentric (3)

A
  1. Advantages to using regional managers - train and develop local, regional individuals
  2. Strong connection across regions but, weak connections to separate regions and HQ
  3. Autonomy among regions
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8
Q

Regiocentric - Aspects of the Enterprise

  1. Complexity of organization
  2. Authority/ decision making
  3. Evaluation and control
  4. Rewards; punishment; incentives
A
  1. Highly interdependent on regional basis
  2. High regional headquarters and/or high collaboration among subsidiaries
  3. Determined regionally
  4. Rewards for contribution to regional objectives
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9
Q

Geocentric (4)

A
  1. Truly multinational firm
  2. Headquarters and subsidiaries see each as part of single entity
  3. Optimize resource allocation on global basis
  4. Good flow of information
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10
Q

Geocentric - Aspects of the Enterprise

  1. Complexity of organization
  2. Authority/ decision making
  3. Evaluation and control
  4. Rewards; punishment; incentives
A
  1. Increasingly complex and highly interdependent on a worldwide basis
  2. Collaboration of HQ and subsidiaries around the world
  3. Standards which are universal and local
  4. Rewards to international and local executives for reaching local and worldwide objectives
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11
Q

Evolution of an MNC

A
  • Spectrum of attitudes in MNC’s

- Company can change and evolve

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12
Q

Specific approaches may offer strategic importance

A
  1. Targeted advice
  2. Superior service
  3. Quicker and more efficient interactions
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13
Q

Globalization (3)

A

Organizations gain international influence and/or operate on global scale

Transformation in social relations and transaction

“transcontinental or interregional flows and networks of activity, interaction and power” - Held & McGrew

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14
Q

According to Held & McGrew, globalization occurs when:

A
  1. Expansion of social and economic actors
  2. Greater Interconnectedness
  3. Quicker Global Interactions
  4. Greater Impacts
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15
Q

Three fields of thought on globalization

A
  1. Hyperglobalist
  2. Skeptical
  3. Transformationalist
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16
Q

The Hyperglobalist

A

View that the world is transitioning into a de-nationalized, integrated
global economy, both qualitatively and quantitatively.

17
Q

A Hyperglobalist would most likely take a ________ approach to HRM

A

Geocentric

18
Q

Hyperglobalist HRM Strategies: (4)

A

Most efficient and effective strategies in every location

  1. Hire best people for job irrespective of nationality
  2. Top management has international experience and contacts
  3. Clear performance standards across company
19
Q

Geocentric Approach and

Hyperglobalists Disadvantages and Challenges (3)

A
  1. A constant commitment of
    resources and time to keep the system functional.
  2. Constantly and consistently
    having good people in key
    positions across the company is difficult.
  3. Always evolving and may be a drain on the workforce.
20
Q

Geocentric Approach and

Hyperglobalists Advantages

A
  1. Strong Company Culture
  2. Expertise of each manager and employee can be used to
    accomplish MNC’s goals
  3. Less resentment as feeling of
    fairness increases
  4. Shared learning across company
  5. Effective flows of information
21
Q

Skeptic

A

View that globalization today is exaggerated (see 1890-1914); dismisses idea of a truly global, interdependent economy.

The world is divided into economic and political blocs; at best, a regiocentric world

22
Q

A sceptic would most likely take an _________ or

possibly a ______ HRM approach.

A

ethnocentric or polycentric

23
Q

Skeptic HRM strategies (2)

A
  1. Use same HR practices in subsidiary as headquarters
    (ethnocentric) or
  2. Adapt HR practices to fit country (polycentric)
24
Q

Polycentric Approach and Sceptics Disadvantages and Challenges: (4)

A
  1. May miss the signs of issues,
    that will need to get larger and
    more complicated before they
    are noticed
  2. Weak integration of company
  3. Lack of company culture
  4. Low accountability from subsidiaries towards
    headquarters
25
Q

Polycentric Approach and Sceptics Advantages (5)

A
  1. Cheaper to hire locals
  2. Increase in morale
  3. Local managers may know best
  4. Enhanced productivity
  5. Less cultural tension
26
Q

Ethnocentric Approach

and Sceptics Disadvantages and Challenges: (5)

A 
1. May not have best people in
area
2. Cultural insensitivity
3. Lack of connections to local
area
4. Workplace tensions
5. Easy to misinterpret or
misguide people
27
Q

Ethnocentric Approach

and Sceptics Advantages: (4)

A
  1. A new company may not have reliable, local people to trust yet, so they place trusted individuals in place of key leadership roles
  2. Single parent company culture
  3. Headquarters has control
  4. No need for well developed
    international labor market
28
Q

Transformationalist

A

View that globalization’s outcomes and processes are unclear and undetermined

Transformationalists argue that the flow of culture is a two-way
exchange

29
Q

A Transformationalist would likely take the ______ approach to HRM

A

Regiocentric

30
Q

Transformatinalist HRM strategies: (2)

A

Develop practices that best fit region

Managers selected from different countries within the defined region

31
Q

Transformationalist and Regiocentric Approach

Disadvantages and Challenges:

A
  1. Managers from regions may not understand viewpoint of
    headquarters
  2. Communication barriers between regions
  3. Weak company culture from one region to the next
  4. Discrepancy between regional objectives and MNC’s global objectives
32
Q

Transformationalist and Regiocentric Approach

Advantages

A
  1. Culture fit within regions
  2. Lower costs to hire people from regional area
  3. Good communication across regions
  4. May be easier and more
    profitable to have integrated
    region

European Relations and Human Resource Management (8 decks)

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