Workplace Flashcards
Foreign direct investment
investment of foreign assets into domestic structures
leading indicator of shift and major feature of globalization
Diaspora
Migration from homeland to other location
Communities of voluntary emigrants bonded by common heritage
Demographic dichotomy
Younger workforce in emerging economies
Aging workforce in developed economies
Creates educational, skills dividends and deficits
Reverse innovation
Product innovated in emerging economy, imported to developed markets
Hyperconnectivity
we are all instantly, constantly, globally connected
Measurability
Data mining and analytics enable new types of data to be analyzed
What gets measured is what gets acted on
24/7 global workplace
blurring of public and private lives
achieving work/life balance
Data privacy issues
Role of global HR
Help create org’s global strategy and align HR processes/activities with that strategy
Enhance communication between the org 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
Push into globalization
saturated local market increased costs decreased materials/talent restrictive gov't global supply chain
Pull into globalization
greater strategic control
policies promoting outward investment
trade agreements that offer protection of individual property
Ethnocentric
Headquarters maintain tight control over subsidiaries - There is “one best way.”
Management will usually share a common ethnic background, different from the ethnic make-up of subsidiaries.
Nearshoring
contracting part of a business process to a country relatively close
similar financial/legal constraints shared culture values proximity benefits (time differences, reduced travel costs)
Strategic-systematic method to manage global assignments
approach as long term investments
Develop executives with global perspectives
Improve coordination among home office and foreign operations
Globalists
spend whole career moving between locales
Local hires
host-country nationals
Short-term assignees
Less than a year, more than a few weeks
International assignees
Traditional expatriates on 1-3 year assignments
Just-in-time expatriates
Ad hoc or contract workers hired for single assignment
Equality vs. equity
Equity: promoting fairness via organizational structure (may have to additionally support/lift up those who have been historically underrepresented)
Equality: providing equal support levels to all employees
Four layers of diversity
Organizational - are we working at the same level or are there differences between us?
External - life exp. social status, familial, geographical
Internal - sexual orientation,
Personality
Diversity vs. Inclusion
Diversity: who do we bring to organization?
Inclusion: how do we make people feel welcome? How you leverage value of a diverse organization
Covering
Diversity without inclusion - promotes assimilation, not inclusion
Appearance
Affiliation
Advocacy
Association
Global integration/local differentiation
Global policies but w/ respect of localities
D&I Strategic Process
Prelim Assessment
ID current needs to set goals
Provide benchmarks to measure success/failure of DI strategies
D&I Strategic Process
Infrastructure Creation
Diversity council: set goals and priorities, ID obstacles/opportunities, recommend actions, monitor process, collect/evaluate data
Effective EE resource groups
Percentage of EE’s in a group, racial/gender breakdown, top execs who sponsor groups, if groups are successful in improving retention/engagement/development, if there are rotational positions
D&I Strategic Process
System changes
Review and revise to align organizational systems, operational processes, procedures, practices with diversity goals
Respecting differences of diverse populations - ex. implementing flex tme for single parents
D&I Strategic Process
Training
Diversity awareness courses: intent to elevate awareness. Let experts from outside company lead trainings
Diversity management courses: how are we managing inclusivity, and saying it’s a benefit to our org?
Professional development opportunities: paying attention to wheter your underrepresented population is taking advantage of these (equity concept)
D&I Strategic Process
Measurement and Evaluation
Process measures: how did we do? what went well/didn’t? Why?
Results measures: what differences has this made?
D&I Strategic Process
Integration and Evolution
Integration: make it part of who we are
Evolution: global expansion, initiative’s own success, shifts in focus over time
Risk
effect of uncertainty on objectives
Could take form of threats or opportunities
Risk mgmt
Coordinated activities to direct and control org with regard to risk
change probabilities or magnitude of impact
Known unknowns
KNow they exist but odn’t know likelihood or impact on company
Unknown unknowns
Don’t know they exist, don’t know the likelihood or impact. “black swans.”
Kaplan and Mikes 3 categories of risk
Internal and preventable - could include violations of ethics and failures in routine processes
Strategy- an organization willingly accepts when it commits to a strategy—for example, uncertainty whether loans can be repaid or employees will be fully productive.
External- outside the organization and beyond its control.
Barriers to risk management
Structural: silo org structures
Cognitive: mindset lacking imagination/optimism
Cultural: poor alignment to org’s culture
ISO 31000
11 principles
Framework - mgmt commitment, policies and processes, ethics, values
Risk position
Acceptable gain or loss
Risk appetite/risk tolerance
Acceptable amount of uncertainty
appetite: not on a spectrum
tolerance: could be spectrum
Moral hazard
One party engages in risky behavior knowing that another party will incur any resulting loss
ex. if you have insurance you’ll be more apt to take a risk because insurance pays for it
Principal agent problem
An agent makes decisions on behalf of a principal but with personal incentives in mind not aligned with those of the principal
Duty of care
Every employer is responsible for taking all reasonable steps to ensure health, safety, and wellbeing of employees and protect from foreseeable injury
Risk formula
Probability of occurrence * Magnitude of impact
Risk scorecard
Allows you to rate events based on multiplying: event probability, speed of onset, existing mitigation, severity of incident to get a total ranking index (table)
Risk matrix
Only allows you to rate events based on probability of occurrence and magnitude of impact (XY axis with 4 quadrants)
PAPA model
Prepare, act, park, adapt
4 quadrant grid
Key risk indicators (KRI)
Early signals of increasing risk exposure. Critical part of awareness - should be included in RM strategy
Develop KRIs by ID of root causes of risks/intermediate events
Risk register
put everything on a spreadsheet - category, event, classification, KRIs, controls in place, risk owner, reporting requirements
Redefine ownership
Share
Transfer
Increase/Decrease Effect
Enhance
Mitigate
Residual risk
the amount of risk that remains after all management efforts have been exhausted
Take no action
Ignore
Accept
QA
proactive, preventive, predictive, preemptive
Risk control
An action taken to manage risk outcomes, reduce threats, increase opportunities and successes.
Ex. succession plan: ensures org can continue to operate when leaders cannot serve
Polycentric
Subsidiaries develop strategies consistent with local business practices and cultures
“many best ways”
Regiocentric
Comm and coordination are high within region, but low between regions/headquarters
Geocentric
HQ and subsidiaries form a network, each contributing specific expertise
“team way”
Elements of global integration
Consistency of approach
Standardized processes
Common corporate culture across global operations
Elements of Local responsiveness
Adapt to needs of local markets
Allow subsidiaries to develop unique products, structures, and systems
GI-LR matrix
Puts global integration/local responsiveness on an XY axis to determine global strategy
International Strategy
Low global integration/low local responsiveness
Foreign divisions in home country are seen as appendages
Strategy, research and development, MGMT, and MGMT culture derive from home country
Multidomestic Strategy
Low global integration/high local responsiveness
Decentralized subsidiaries operate independently from each other and HQ in home country
Knowledge shared locally rather than globally
Global Strategy
High global integration, low local responsiveness
Hub and spoke relationship: headquarters integrates operations to take advantage of conditions in subsidiary markets, standardizes products and services
Transnational Strategy
High global integration/high local responsiveness
Locates value chain activities in most advantageous locations
Subsidiaries can adapt global products and services to local markets
Best practices and knowledge are shared throughout the organization
Upstream decisions
made at headquarters
Strategy and coordination
Standardization of processes, integration of resources
Downstream decisions
made locally
Adapting strategic plans and goals to local realities
Identity alignment
Embraces diversity in management of people, products, branding
Product/service offerings/brand identity may be adjusted for local cultures
Process alignment
Are underlying operations integrated across locations? Ex.: technology platforms, business performance, HR systems
Offshoring
Relocating process/production to another country
Lowers cost, closer proximity to resources, access to talent, “follow the sun” round the clock shifts
Onshoring
Relocation of business processes to a lower-cost location in same country as business. May include WFH
Lower operation costs
Benefits of local employees
Tactical-Reactive method of managing global assignments
short term expense approach
Quick fix approach to short-term foreign operation problem
Randomly and haphazardly perform assignment functions
Fails to integrate worldwide org’s values, technology, products, brand
Repatriation
Reintegrating the employee back into the home country; adjustment to new job, home culture, conditions
Redeployment
Involves deployment to a different global location, or a new location/position in the current host country
