Global Talent Management Flashcards
1
Q
MNEs & Internationalization. What are the three different approaches?
A
- Ethnocentric
- Polycentric
- Geocentric
- Regiocentric
2
Q
What is Ethnocentric approach?
A
HQ –> Subsidiary
- Home country orientated 🡪 orientated toward HQ & main control from HQ (= dominate)
- Managers tend to be from the home country (headquarters of the organisation)
- Home country policies and practices are likely to be used in the subsidiaries 🡪 policies & practices more consistent in national companies
- Knowledge from the home country is seen as the most useful
- The organisation tries to replicate the corporate culture
- Consistency gained across subsidiaries 🡪 global consistency
- Economies of scale may be gained as subsidiaries adopt the same practice 🡪 economies of scale because they use it everywhere
3
Q
What is Polycentric approach?
A
- Host country orientated 🡪 more local focused
- Host country nationals will usually fill management positions
- Managers usually report to the parent company (headquarters) but have autonomy to make decisions
- There is not an exact corporate culture 🡪 different cultural outlook
- HR policies and procedures are usually adapted from the parent company (HQ) so that they are more in line with requirements of the subsidiary and the context in which it is situated 🡪 these are usually adapted or not
- Limited controls/interventions from parent company
- Fewer language and cultural barriers
4
Q
What is the geocentric approach?
A
HQ Subsidiary
- collaborative approach between the parent company & its subsidiaries 🡪 dialogue between home & host
- Managers usually have previous international management experience
- Communication and more interactions.
- Looks for the best person for a specific job, regardless of country of origin
- Facilitates the development of an international team of employees
- best person but also best approach
5
Q
What is the regiocentric approach?
A
- Big HQ multinational responsible for the whole region
- Hybrid approach
- Recognition that national cultures are influenced by regional cultures 🡪 do recognize needs to some degree but not very local; it is very hybrid
- Allows balance and control
- Could be only a co-ordinating role
6
Q
Which strategy to choose?
A
Balance between local & global: global integration & strong brand focus.
E.g. McDonalds: Brand focused 🡪 very strong
To some degree adapted local content focused
7
Q
How to choose the strategy?
A
It is a question between Global integration vs. Local responsiveness.
- Global: Desire to control control from HQ
Recruit people you want to recruit
8
Q
What is global integration?
A
- It requires controlling policies and procedures to ensure uniformity.
- It is likely to restrict local creativity and development.
- As time goes on, more and more controls are needed.
9
Q
What is local responsiveness?
A
- It allows more autonomy at a local level, but brings the risk that the global brand is diluted and subsidiaries operate entirely separately.
- If global coordination is important, differentiation can damage this.
10
Q
What are the factors influencing the decision between local responsiveness and global integration? (Taylor et al., 1996)
A
- How different factors influence strategic behaviour at HQ? (Ethnocentric, polycentric, geocentric or regiocentric)
- Multifaceted complex
- Top managers beliefs ( philosophy, strength of cultural beliefs etc.)
11
Q
What are the factors influencing the decision for global integration?
A
- Operational integration
E.g. product consistency, processes need to be consistent (by training people similarly) - Strategic coordination
Some functions might be integrated (e.g. R&D) but others may not (e.g. Sales)
E.g. Global R&D and local Sales @ Samsung - Multinational customers
Multinational customers can compare prices and products worldwide so consistency is essential
12
Q
What are the factors influencing the decision for local responsiveness?
A
- Market demands
If demand is from local market or customization is required - Legislative demands
Local legislation may require operations to be tailored (because legislations differ) - Political demands (this is about political expectations)
Political pressures may created barriers to entry for MNEs so local subsidiaries with host country nationals may be needed
13
Q
What are the other factors influencing the decision?
A
- Country of origin:
e.g. Japan and US have tendency for centralised control (ethnocentric), less in European MNEs - Nature of subsidiary country:
Answers the question: why are we based at that country?
e.g. available workforce, rules & regulations - Type of industry:
e.g. banking & finance tend to be more ethnocentric (thus more HQ)
14
Q
How to align SHRM orientation to international strategy - Taylor et al. (1996)?
A
- Exportive 🡪 Best practice HR
- Wholesale transfer of HR practices from HQ to subsidiary.
- High internal consistency but low external consistency
Aligned to ethnocentric strategy. - Adaptive 🡪 Best fit HRM
- Local HR practices reflect local environment
- Low internal consistency with HQ and other subsidiaries, but high external consistency with external environment.
- Almost no transfer of HR philosophy to subsidiary.
Aligned to polycentric (or regiocentric) strategy. - Integrative 🡪 Balance
- Takes the “best” from HQ and local situation (balancing between best practice & best fit HRM)
- Focus on global integration with some recognition of local needs.
- High internal consistency, moderate external consistency.
- Aligned to geocentric strategy.
15
Q
What is the best strategy?
A
Best strategy? 🡪 Balance - Local 🡪 more adaptive - Global 🡪 if we want to be consistent 🡪 more ethnocentric - Middle 🡪 integrative HRM
