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.

*Changes the way we see the world around us and how we interact with all the dynamic forces

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2
Q

Globalization Time Line

A
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)
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3
Q

Globalization Considerations

A

HR should strive to understand which globalization events, forces, and trends are significant for a given orgz and for HR responsibilities within the orgz.

  1. Global forces require careful analysis
  2. Global forces should be viewed in terms of their connections (PESTLE)
  3. Global forces have unique cultural connotations
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4
Q

Foreign Direct Investment

A

The investment of foreign assets into domestic structures, equipment, and orgz

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5
Q

The Diaspora

A

A mass migration of a group from its homeland to multiple destinations

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6
Q

Global Demographic Dichotomy

A

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

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7
Q

Reverse Flow of Innovation

A

Refers to innovations created for or by emerging economy markets and then imported to developed economy markets

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8
Q

Hyperconnectivity

A

The increasing digital interconnection of people–and things–anytime and anyplace

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9
Q

Hyperconnectivity ‘Measurability’

A

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

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10
Q

Hyperconnectivity ‘24/7 Global Workplace’

A

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

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11
Q

The Role of Global HR

A
  1. Participating in creating the orgz particular global strategy
  2. Aligning HR processes with the orgz global strategy
  3. Enhancing communication between the orgz and its stakeholders
  4. Ensuring HR function posessess the skills, and resources to fulfill its global role and demonstrate its VALUE
  5. Adapting processess as needed to the cultural and legal contexts of each area of the global orgz
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12
Q

Push Factors ‘Reactions’

A
  1. A need for new markets
  2. Increased cost pressures and competition
  3. Shortfalls in natural resources and talent supply
  4. Government policies
  5. Trade agreement
  6. A globalized supply chain
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13
Q

Pull Factors ‘Attractions’

A
  1. Strategic control
  2. Government policies that promote foreign investment
  3. Trade agreements
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14
Q

Ethnocentric

A

One best way – headquarters maintains control over subsidiaries (policies, practices, strategy etc.)

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15
Q

Polycentric

A

Many best ways –subsidiaries develop strategy consistent with local business practices and cultures

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16
Q

Regiocentric

A

Regional subsidiaries work together to coordinate policies SEPARATELY from headquarters

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17
Q

Geocentric

A

Team way headquarters and all subsidiaries work together as a network to coordinate policies, practices etc.

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18
Q

Global Integration (GI)

A

Emphasizes consistency, standardization of processes, and a common corporate culture across global operations

Advantages:

  1. Achieving economies of scale
  2. Integrating value chain activities
  3. Ability to serve globally integrated customers
  4. Global branding
  5. Sharing orgz capabilities
  6. Better quality assurance
  7. Leveraging global assets for local competition
19
Q

Local Responsiveness (LR)

A

Emphasizes adapting to the needs of local markets and allows subsidiaries to develop unique products, structures, and systems

Advantages:

  1. The ability to respond to local customer needs
  2. Efficiency gained from using local substitutes
  3. The ability to remain compliant with local laws and regulations
20
Q

GI Strategies Focus On

A
  • Building a common orgz culture

- Developing HR practices to manage international assignments

21
Q

LI Strategies Focus On

A
  • Promoting cultural awareness
  • Mitigating cultural bias
  • Ensuring alignment of local HR practices with global HR strategy
  • Developing the entire talent pool
22
Q

GI-LR Matrix of Global Strategies

A

Global: high GI, low LR (Apple)
International: low LR, low GI (Moet)

Transnational: high LR, high GI (McDs)
Multidomestic: high LR, low GI (JJ)

23
Q

International Strategy

A

Export a product or service to foregin countries that are developed in the home country

HR: working with ppl who are traveling
Ex: Moet, Redbull, Porsche

24
Q

Multidomestic Strategy

A

Decentralized, Goals/Strategy developed locally to stay competitive, Knowledge shared at local level

HR: provide training to expats on legal or cultural
issues
Ex: Johnson and Johnson

25
Q

Global Strategy

A

Views the world as a single market, Strategy comes from headquarters, Standardized technology

HR: Standardized hiring, identify EEs who can work in diff cultures
Ex: Apple

26
Q

Transnational Strategy

A
  1. Locates value chain activities in most advantageous geographic locations
  2. Subsidiaries can adapt global products and services to local markets

HR: manage D&I
Ex: McDonalds (Pies)

27
Q

Upstream V. Downstream

A

Upstream: decisions are made at the orgz headquarter level

Downstream: Decisions are made at the local level

28
Q

Identity Alignment V. Process Alignment

A

Identity: local responsivement, differences among locations are embraced. EX: fast food chains offer localized menu

Process: global integration, underlying operations such as IT/Finance/HR integrate across locations. EX: business where units have a common platform (single technology used in all locales)

29
Q

Outsourcing

A

A practice where a company transfers portions of work to outside suppliers rather than completing it internally.

*Reduces costs and frees up personnel and resources for other activities

30
Q

Offshoring

A

Practice of relocating processes or production to another country.

*Resons for offshoring: lower costs, closer proximity to necessary production resources, more favorable economic climate, financial incentives, also:

  1. access to talent
  2. round the clock shifts (24 hours a day)
  3. follow the sun (work can proceed without interruption)
31
Q

Onshoring

A

The relocation of business processes or production to a lower cost location inside the same country as the business.

*Lower costs, having local EEs and avoiding the problems associated with distant offshoring scenarios

32
Q

Near Shoring

A

A company contracting a part of its business processes or production to an external company located in a country that is relatively close (US/Mexiso/CAN).

*Social and economic stability within region, shared cultural values and similar mindsets

33
Q

HR Due Diligence for Moving Work

A

Cost and quality: wage structure, tax structure, real estate

Sociopolitical environment: government receptivity, ethical environment, quality of life, accessability

Risk levels: political and labor unrest, natural disasters, IT security

Talent Pool: language and cultural differences, size of labor force, availability of vendors

34
Q

Approaches to Global Assignments

A

Strategic Systematic (Long term):

  • approach global assignment as long term investments
  • develop future execs with global perspective
  • increase effectiveness of critical coordination and control between home office and foreign operations
  • disseminate information, technology, and values throughout the worldwide orgz

Tactical Systematic (Short term):

  • approach global assignments as short term expenses
  • focus on quick fix approach to a short term problem in a foreign operation
  • perform some functions of assignments and focus attention as problems arise
35
Q

Types of Global Assignments

A
  1. Globalist: spend their entire careers moving from one locale to another
  2. Local hires: hired locally in subsidiary countries
  3. Short term assignees: On assignment for less than a year but more than a few weeks
  4. Intl Assignees: traditional expats on full relocations assignments lasting from 1 to 3 years
  5. Commuters: travel across a country border for work
  6. Just in Time Expats: Ad hoc or contract workers hired for a single assignment
36
Q

Global Assignment Process

A

Stage 1: Assessment & Selection

Stage 2: Mgmt & Assignee Decisions

Stage 3: Pre-departure Prep

Stage 4: On Assignment

Stage 5: Completing the Assignment

37
Q

Stage 1: Assessment & Selection

A
  1. Develop the selection criteria
  2. Involve the right people (Stakeholders)
  3. Choose the best selection methods & tools
  4. Complete the assessment/Make a recommendation
38
Q

Stage 2: Mgmt & Assignee Decisions

A
  1. Analysis of costs & benefits of the assignment: specific and quantifiable benefits to justify funding.
  2. Preparation of assignment plan: clarify the orgz and assignee’s expectations of the assignment.
  3. Candidate acceptance or rejection: the candidate should be given access to ppl and information needed to make a sound decision.
39
Q

Stage 3: Pre-departure Prep

A
  1. Visas and work permits: the orgz must plan for how long it will take to obtain documents, and be aware of time restrictions.
  2. Security briefings: personal and family safety abroad, and business aspects of security.
  3. Cross cultural counseling: conducted before and during the global assignment.
40
Q

Stage 4: On Assignment

A
  1. Honeymoon: everything is new and exciting
  2. Culture shock: the challenges of living and working abroad become clear
  3. Adjustment: working and living in host country gets easier, you have unlocked the code
  4. Mastery: assignees are able to participate fully and comfortably in the host culture
41
Q

Stage 5: Completing the Assignment

A

Repatriation: reintegrating the EE back into the home country after international assignment.

Redeployment: an asignee’s next assignment can be back in the home country, in a different global location, or in a new location or new position in the current host country.

42
Q

Global Crises

A

Global crises have made it apparent that the world itself is a system in which changes in one part can affect other parts:

  1. Economics (recesions)
  2. Climate changes
  3. Pandemics
  4. Changes in Govt power (new policies)
43
Q

The Global Orgz has 4 Strategic Components

A
  1. Physical dispersion-the orgz operates in multiple countries
  2. Diversity of thought, people, and culture that is actively leveraged by a strategic objective
  3. Unified through a clear single orgz identity
  4. Global for a reason, self aware of their global reach and leveraging geographic and cultural diversity to achieve success as they have defined it
44
Q

Guidelines to Enhance Global Assignment Success

A
  • View assignment as a process
  • Recognize 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
  • Plan, prepare, and support repatriation
  • Address problems quickly thoroughly and responsively