HR in the Global Context Flashcards
Globalization
The inevitable integration of markets, nation states and technologies to a degree never witnessed before.
*Changes the way we see the world around us and how we interact with all the dynamic forces
Globalization Time Line
Intro of Apple Macintosh First web page posted on the internet Ratification of NAFTA Smartphones Tech companies Recession Global shift in FDI (foreign direct investment) TPP (trans pacific partnership) Brexit (British voters to exit EU) Tarrifs General Data Protection Regulation (UE Privacy Law)
Globalization Considerations
HR should strive to understand which globalization events, forces, and trends are significant for a given orgz and for HR responsibilities within the orgz.
- Global forces require careful analysis
- Global forces should be viewed in terms of their connections (PESTLE)
- Global forces have unique cultural connotations
Foreign Direct Investment
The investment of foreign assets into domestic structures, equipment, and orgz
The Diaspora
A mass migration of a group from its homeland to multiple destinations
Global Demographic Dichotomy
Basically, the workforce in emerging economies is becoming disproportionately young while the workforce in developed economies is rapidly aging
*A demographic bulge that is now preparing to leave the workforce, creating a deficit of experienced workers
Reverse Flow of Innovation
Refers to innovations created for or by emerging economy markets and then imported to developed economy markets
Hyperconnectivity
The increasing digital interconnection of people–and things–anytime and anyplace
Hyperconnectivity ‘Measurability’
Increased data mining and analytics are enabling new types of data to be measured and analyzed, new questions to be asked, and new criteria to be established
Hyperconnectivity ‘24/7 Global Workplace’
Worker can be fully connected to work via mobile phone or tablet, any time of day or night, and from anywhere around the world.
*Concern is data privacy
The Role of Global HR
- Participating in creating the orgz particular global strategy
- Aligning HR processes with the orgz global strategy
- Enhancing communication between the orgz and its stakeholders
- Ensuring HR function posessess the skills, and resources to fulfill its global role and demonstrate its VALUE
- Adapting processess as needed to the cultural and legal contexts of each area of the global orgz
Push Factors ‘Reactions’
- A need for new markets
- Increased cost pressures and competition
- Shortfalls in natural resources and talent supply
- Government policies
- Trade agreement
- A globalized supply chain
Pull Factors ‘Attractions’
- Strategic control
- Government policies that promote foreign investment
- Trade agreements
Ethnocentric
One best way – headquarters maintains control over subsidiaries (policies, practices, strategy etc.)
Polycentric
Many best ways –subsidiaries develop strategy consistent with local business practices and cultures
Regiocentric
Regional subsidiaries work together to coordinate policies SEPARATELY from headquarters
Geocentric
Team way headquarters and all subsidiaries work together as a network to coordinate policies, practices etc.