Workplace - HR in Global Context

Question 1

Globalization

Answer 1

The inevitable integration of markets, nation states and technologies to a degree never witnessed before–in a way that is enabling individuals, corporations and nation states to reach around the world farther, faster, deeper and cheaper than ever before.

Question 2

Globalization Time Line

Answer 2

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)

Question 3

Globalization Considerations

Answer 3

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

Question 4

Foreign Direct Investment

Answer 4

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

Question 5

The Diaspora

Answer 5

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

Question 6

Global Demographic Dichotomy

Answer 6

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

Question 7

Reverse Flow of Innovation

Answer 7

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

Question 8

Hyperconnectivity

Answer 8

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

Question 9

Hyperconnectivity ‘Measurability’

Answer 9

Increased data mining and analytics capabilities are enabling new types of data to be measured and analyzed, new questions to be asked, and new criteria to be established

Question 10

Hyperconnectivity ‘24/7 Global Workplace’

Answer 10

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

Question 11

The Role of Global HR

Answer 11

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 possesses the skills, and resources to fulfill its global role and demonstrate its VALUE
5. Adapting processes as needed to the cultural and legal contexts of each area of the global orgz

Question 12

Push Factors ‘Reactions’

Answer 12

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

Question 13

Pull Factors ‘Attractions’

Answer 13

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

Question 14

Ethnocentric

Answer 14

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

Question 15

Polycentric

Answer 15

Many best ways –strategy is closely aligned with local practices and culture

Question 16

Regiocentric

Answer 16

Regional subsidiaries work together to coordinate policies SEPARATELY from headquarters

Question 17

Geocentric

Answer 17

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

Question 18

Global Integration (GI)

Answer 18

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

Question 19

Local Responsiveness (LR)

Answer 19

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

Question 20

GI Strategies Focus On

Answer 20

• Building a common orgz culture

- Developing HR practices to manage international assignments

Question 21

LI Strategies Focus On

Answer 21

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

Question 22

GI-LR Matrix of Global Strategies

Answer 22

Global: high GI, low LR
Multidomestic: high LR, low GI

International: low LR, low GI
Transnational: high LR, high GI

Question 23

International Strategy

Answer 23

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

HR: working with ppl who are traveling

Question 24

Multidomestic Strategy

Answer 24

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

HR: provide training to expats on legal or cultural issues

Question 25

Global Strategy

Answer 25

Views the world as a single market, Strategy comes from headquarters, Standardized technology HR: Standardized hiring, identify EEs who can work in diff cultures

Question 26

Transnational Strategy

Answer 26

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

Question 27

Upstream V. Downstream

Answer 27

Upstream: decisions are made at the orgz headquarter level Downstream: Decisions are made at the local level

Question 28

Identity Alignment V. Process Alignment

Answer 28

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)

Question 29

Outsourcing

Answer 29

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

Question 30

Offshoring

Answer 30

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)

Question 31

Onshoring

Answer 31

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

Question 32

Near Shoring

Answer 32

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

Question 33

HR Due Diligence for Moving Work

Answer 33

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

Question 34

Approaches to Global Assignments

Answer 34

``` 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

Question 35

Types of Global Assignments

Answer 35

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

Question 36

Global Assignment Process

Answer 36

Stage 1: Assessment & Selection Stage 2: Mgmt & Assignee Decisions Stage 3: Pre-departure Prep Stage 4: On Assignment Stage 5: Completing the Assignment

Question 37

Stage 1: Assessment & Selection

Answer 37

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

Question 38

Stage 2: Mgmt & Assignee Decisions

Answer 38

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.

Question 39

Stage 3: Pre-departure Prep

Answer 39

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.

Question 40

Stage 4: On Assignment

Answer 40

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

Question 41

Stage 5: Completing the Assignment

Answer 41

Repatriation: reintegrating the EE back into the home country after international assignment. Redeployment: an assignee'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.