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HR in the Global Context Flashcards

1
Q

Global crises include and affect each other

A
  • Economies
  • Climate change
  • Pandemics
  • Changes inglobal power
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2
Q

Globalization

A

Status of growing interconnectedness and interdependency among countries, people, markets, and organizations worldwide

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3
Q

Global forces require careful analysis

A
  • Understand the globalization events, forces, and trends are significant to your organization
  • Be able to tell the difference between trends and large forces (Hurricane Katrina vs. global warming)
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4
Q

Global forces should be viewed in how they are affecting

A
  • The parent organization’s home office and various subsidiary or host countries
  • The industry and competitive landscape
  • Organization’s overall goals and strategies
  • Role HR must play if parent organization is to maximize benefit and minimize the cost of the force, event or trend
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5
Q

Global forces have unique cultural connotations

A

Each culture, organization and industry may feel the impact differently

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6
Q

Foreign Direct Investment

A
  • Record of a country’s income
  • Investment of foreign assets into domestic structures, equipment and organizations
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7
Q

Global remittances

A

Money sent back home by migrants working in a foreign country

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8
Q

Diaspora

A
  • Mass migration of a group from its homeland in multiple destinations
  • Usually for global remittance
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9
Q

Demographic dichotomy

A

Population of emerging economies is disproportionately young and the workforce in developed economies is rapidly aging

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10
Q

Reverse innovation

A
  • Innovations created for or by emerging economy markets and then imported to developed-economy markets.
  • Not always a product
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11
Q

Hyperconnectivity

A
  • Increasing digital interconnection of people—and things—anytime and anyplace.
  • Created a 27/7 global workforce
  • Changed the way organizations gather, store, process and access data about a broad range of human activity
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12
Q

Successful global organizations incorporate these structural/strategic componenets

A
  • Physical dispersion
  • Diversity of thought, people and culture that is leveraged by strategic objective
  • Unified through a clear single organizational identity
  • Global for a reason
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13
Q

HR role in global strategic management

A
  • Participate in creating global strategy
  • Align HR processes and activities with the global strategy
  • Enhance communications between organization and its stakeholders
  • Ensure HR function has skills, knowledge and resources to fulfill global role
  • Adapt processes as needed to the cultural and legal contexts of each area
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14
Q

Push and pull of globalization

A

Organizations have either been:

  • Pulled to globalization in reaction to changes in business environment
  • Pulled to globalization due to the promise of better value
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15
Q

Push factors toward globalization

A
  • Need for new markets
  • Increased cost pressures and competition
  • Shortfalls in natural resources and talent supply
  • Government policies
  • Trade agreements
  • Globalized supply chain
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16
Q

Pull factors toward globalization

A
  • Greater strategic control
  • Government policies that promote outward foreign investment
  • Trade agreements
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17
Q

How to globalize

A
  • Creating a new entity
    • By purchasing an already existing operation, building a new operation from the ground up, or by repurposing an existing disused facility
  • Acquiring a subsidiary that will be wholly owned and operated through merger and acquisition.
  • Entering into an alliance or partnership.
  • Outsourcing all or specified tasks to a supplier or performer in the new market.
  • Offshoring an existing capability to the new location.
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18
Q

What components affect the globalization strategy

A
  • The enterprise’s core strategic goals.
  • Its capabilities and resources, both economic and organizational.
  • The distances (physical, cultural, legal, sociopolitical) that the enterprise will have to bridge.
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19
Q

Orientations for multinational corporations

A
  • Ethnocentric
  • Polycentric
  • Regiocentric
  • Geocentric
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20
Q

Ethnocentric

A
  • Headquarters maintains tight control over subsidiaries
  • Subsidaries are expected to follow the strategic pattern, values, policies, and practices expressed by headquarters.
  • There is “one best way.”
  • The term “ethnocentric” - management will usually share a common ethnic background, different from the ethnic make-up of subsidiaries.
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21
Q

Polycentric

A
  • Subsidiaries are allowed a large measure of independence as long as they are profitable.
  • Their own paths are based on the business and cultural contexts of their countries.
  • There are “many best ways.”
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22
Q

Regiocentric

A
  • Subsidiaries are grouped into regions (such as Europe, North America, or Asia-Pacific).
  • Strategic coordination is high within the region but not as high between the region and headquarters.
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23
Q

Geocentric

A
  • Subsidiaries do not taking orders or act independently setting their own course.
  • Headquarters and subsidiaries are participants in a network, each contributing its unique expertise.
  • There is essentially “a team way,” transcending national borders.
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24
Q

Global integration (GI)

A
  • Globalization strategy that
  • Emphasizes consistency of approach, standardization of processes, and a common corporate culture across global operations.
  • Standard processes and economies of scale help achieve greater efficiency which lowers cost of operation
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25
Q

Local responsiveness (LR)

A
  • Globalization strategy
  • Emphasizes adapting to the needs of local markets
  • Allows subsidiaries to develop unique products, structures, and systems.
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26
Q

Global consumer advantages

A
  • Achieve economies of scale - central critical activities or tightly networking specialized centers around the world
  • Integrate value chain activities, from R&D through delivery logistics
  • Ability to serve globally integrated customers
  • Global branding - increases the efficiency of advertising and merchandising resources
  • Shares organizational capabilities and knowledge
  • Better quality assurance through shared standards and processes
  • Leverage global assets for local competition
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27
Q

Global integration is done through

A
  • People
    • Assignees
  • Processes
  • Performance
  • Culture
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28
Q

Multinational enterprises (MNEs)

A

Organizations that own or control production or service facilities in one or more countries other than the home country.

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29
Q

Multinational enterprises (MNEs) strategies

A
  • International
  • Multidomestic
  • Global
  • Transnational
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30
Q

International strategy

A
  • Low local responsiveness and low global integration
  • Home country develops product/services, processes and strategy
  • Products and services are exported into foreign countries
  • Company may open production facilities or sercice centers
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31
Q

Multidomestic strategy

A
  • High local responsiveness and low global integration
  • Headquarters is in home country
  • Subsidiaries have independents from each other and headquarters
  • Goals and strategies are developed locally due to competitive demands
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32
Q

Global strategy

A
  • Low local responsiveness and high global integration
  • Headquarters creates strategies, ideas and processes
  • Views the world as a single, global market and offers products and global products with little varience
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33
Q

Transnational organizational structure

A
  • High local responsiveness and high global integration
34
Q

Glocalization

A

Characteristic of an organization with a strong global image but an equally strong local identity.

35
Q

International strategies global orientation

A

Ethnocentrism

36
Q

Multidomestic strategies global orientation

A

Polycentrism

37
Q

Global organizations global orientation

A

Regiocentrism

38
Q

Transnational organizations global strategies

A

Geocentrism

39
Q

Strategic choices in GI and LR

A
  • Upstream
  • Downstream
  • Identity alignment
  • Process alignment
40
Q

Upstream strategies

A
  • Decisions are made at the organization’s headquarters level
  • Decisions apply to strategy, coordination and focus on standardization of processes and integration of resources.
41
Q

Downstream strategies

A
  • Decisions are made at the local level.
  • Decisions are based on local responsiveness.
42
Q

Identity alignment

A
  • Diversity is embraced in managing people, products/services, and branding.
  • Location differences are embraced.
  • Product/service offerings and brand identity are adjusted to local cultures.
43
Q

Process alignment

A
  • The amount that operations (HR, IT Finance) integrate across locations
  • Ex:
    • Single technology in all locations
    • Bysiness performance metrics in all locations
44
Q

Outsourcing

A
  • Also called contracting out
  • Company transfers portions of work to outside suppliers rather than completing it internally.
  • Used to reduce costs and free up personnel and resources for other activities.
45
Q

What is considered outsourcing

A
  • Offshoring
  • Onshoring
  • Near-shoring

The difference is based upon the location

46
Q

Offshoring

A
  • Relocating processes or production to another country
  • Done through subsidiaries or third-party
47
Q

Advantages of offshoring

A
  • Lower costs
  • Closer proximity to necessary production resources.
  • More favorable economic climate for corporate taxation.
  • Financial incentives (e.g., direct cash payments, low-interest loans).
  • Access to talent
  • Around-the-clock shifts
  • Follow the sun
48
Q

Risks and challenges of offshoring

A
  • Considered unpatriotic
  • Cultural differences.
  • Distance issues (e.g., different time zones and getting remote teams to work together).
  • High turnover rates.
  • Problems in quality control.
  • Technical degrees that do not reliably indicate actual technical skills.
  • Language issues.
  • Intellectual property loss.
  • Impaired productivity due to political instability.
  • Loss of reputation from unethical behavior or practices of local management.
49
Q

Onshoring

A
  • Also called home shorting
  • Relocation of business processes or production to a lower-cost location inside the same country as the business.
  • Can also include WFH
50
Q

Near-shoring

A
  • Contracting a part of business processes or production to an external company in a country that is relatively close (e.g., within the same own region).
  • Financial, legal and trade agreements are typically the same
  • Cultural values and mindset are similar
  • Cost of travel is cheaper
  • Time difference is less
51
Q

Considerations when moving work

A
  • Cost and quality
  • Sociopolitical environment
  • Risk levels
  • Talent pool
52
Q

Strategic-Systematic Approach to Global Assignments

A
  • Global assignments are seen as long-term investments
  • Develop future executives with global perspectives and experiences to formulate and implement competitive strategies.
  • Increase the effectiveness of critical coordination and control functions between and among the home office and foreign operations.
  • Effectively communicate information, technology, and values throughout the worldwide organization.
53
Q

Tactical-Reactive Approach to Global Assignments

A
  • Seen as a short-term expense
  • Focus on a quick-fix approach to a short-term problem in a foreign operation.
  • Randomly and haphazardly perform some functions of assignments and focus attention as problems arise.
  • Fail to systematically integrate the worldwide organization in terms of values, technology, products, and brand.
54
Q

International Assignee (IA)

A

An employees who is being reassigned to an international jurisdiction

55
Q

Expat

A
56
Q

Types of global assignments

A
  • Globalists
  • Local hires
  • Short-term assignees
  • International assignees
  • Commuters
  • Just-in time expatriates
57
Q

Globalists

A

Spend their entire careers in international assignments, moving from one locale to another

58
Q

Local hires

A
  • Also called HCs, host-country nationals
  • Hired locally in subsidiary countries
59
Q

Short-term assignees

A
  • On assignment for less than a year but more than a few weeks
  • Usally moving without the family
60
Q

International assignees

A
  • Traditional expatriates on full relocation assignments
  • Lasting from one to three years
61
Q

Commuters

A

Travel across a country border for work regularly

62
Q

Just-in-time expatriates

A

Ad hoc or contract workers hired for a single assignment

63
Q

Managers of global assignees should know as much as possible

A
  • The country or countries to which they are sending assignees.
  • Essential developmental assignments and experiences.
  • The specific job function and assignment objectives and what effects the assignment location will have on these factors.
  • The cross-cultural adjustment and feelings the assignee may experience.
  • Cultural dimensions and the effect these dimensions have on the way different cultures look at life.
  • Potential problem areas associated with the assignment.
64
Q

Global assignment process steps

A
  1. Assessment and selection
  2. Management and assignee decision
  3. Pre-departure preparation
  4. On assignment
  5. Completing the assignment

Either redeployed and starts at one or repatriation

65
Q

Assessment and selection step of global assignment

A
  • Develop the selection criteria
  • Involve the right people
  • Choose the best selection method and tools
  • Complete the assessment/make a recommendation
66
Q

Management and assignee decision step of the assignment process

A
  • Analysis of the costs and benefits of the assignment
  • Preparation of the assignment plan
  • Canidate asseptance or rejection of the assignment offer
67
Q

Global letter of assignment

A
  • Memorandum of understanding (MoU) stipulating the business aspects of the assignment
  • Includes compensation, benefits and local work rules
68
Q

Candidate should accept or reject an assignment offer based on

A
  • ong-term career advantages.
  • Adequate financial incentives.
  • Opportunities for growth and learning.
  • Family support and opportunities to balance interruption of children’s education and spouse’s career.
  • Desirability of the location.
69
Q

Pre-Departure Preparation Step of Global Assignment

A
  • At the end assignee and family have knowledge and survival skills for first months in host country
  • Typically done by third party
  • Visas and work permits
  • Security brefings
  • Cross cultural counseling
70
Q

Security breifings for global assignments

A
  • Personal and family safety abroad
  • Business aspects of security
    • Physical and intangible threats to the organization’s employees, assets, and intellectual property
71
Q

Cross-cultural counseling

A
  • Done before and during global assignment
  • Includes
    • A preliminary situation and needs assessment.
    • A country overview and information on everyday life.
    • A business overview.
    • Personal cultural awareness activities.
    • Discussion of family and international relocation issues.
    • Country-specific case studies.
    • A customized and detailed support and settling-in program.
72
Q

On assignment step of global assignment includes these phases

A
  • Honeymoon
  • Culture shock
  • Adjustment
  • Mastery
73
Q

Honeymoon stage of global assignment

A
  • Everything is new and exciting, and everyone is pleased that they made the decision to come abroad.
  • Usually, there is ample support from the home and host countries during the early stages of the assignment.
74
Q

Culture shock stage of assignment

A
  • Novelty and enjoyment turn, into disillusionment and dissatisfaction, as the challenges of living and working abroad become clear.
  • Support structures recede, and the assignee and family must increasingly fend for themselves.
75
Q

Adjustment stage on assignment

A
  • Working and living in the host country gets easier and more familiar.
  • Assignees are unlocking the code, learning the norms and patterns of host-country behavior and how to get things done.
  • This does not occur naturally but takes interest and motivation.
76
Q

Mastery stage on assignment

A
  • Biculturalism stage
  • After several years of adjustment and continual learning
  • Assignees are able to participate fully and comfortably in the host culture.
77
Q

HR Support During an International Assignment

A
  • Assist assignees in obtaining a host-country tax ID number.
  • Assist assignees in obtaining a driver’s license.
  • Coordinate assistance with bank accounts and credit cards in the host country.
  • Perform host-country orientation.
  • Review and approve host-country housing leases and issue security deposits.
  • Update allowances and deductions as conditions change in the host country.
  • Process and track required tax payments.
  • Collect compensation and tax data that is needed for home-country reports.
  • Coordinate emergency leaves and visits to the home country.
  • Communicate regularly with the assignee’s home-country mentor(s).
  • Begin active repatriation efforts at least six months before the assignment ends.
  • Process visa and work permit renewals and extensions.
78
Q

Completing the assignment step in global assignment

A

Either employees go through repatriation or redeployment

79
Q

Repatriation

A
  • Employees return from international assignments reintegrate into their home country’s culture, conditions, and employment.
  • Their international experience allows them to contribute knowledge of gobal mindset
80
Q

To help repatriation provide

A
  • Adequate notice that assignment is ending
  • A clear repatriation plan
  • Assurance that the skills and experience the assignee got during the assignment will be used effecively in their new assignment
  • Repatriation support services

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