Managing a Global Workforce Flashcards
Globalization
The inevitable integration of networks, nation-states, and technologies to a degree never witnessed before - enabling to reach around the world faster, farther, deeper, and cheaper than ever before
How global forces should be approached
- through careful analysis - understand which events are significant for the org
- viewed in terms of their connections - home office, subsidiaries, industry, goals, etc.
- unique cultural connotations
4 Components of a successful global org
- physical dispersion - org operates in multiple countries
- diversity of thought, people, and culture that is actively leveraged by a strategic objective
- unified through a single org identity
- global for a reason
Push factors for globalization
- new markets
- natural resources and talent supply
- cost pressure and competition
- government policies
- trade agreements
- globalized supply chain
Pull factors for globalization
- strategic control
- government policies
- trade agreements
Headquarters maintains tight control over subsidiaries, who are expected to follow values, policies, and practices of headquarters
Ethnocentric orientation
Subsidiaries are allowed a large measure of independence as long as they are profitable, may plot own paths based on business and cultural contexts of their countries
Polycentric orientation
Subsidiaries are grouped into regions, coordination within regions is high, but not as high between region and headquarters
Regiocentric orientation
Headquarters and subsidiaries are participants in a network/team, each contributing its unique expertise
Geocentric orientation
Emphasizes consistency of approach, standardization of processes and products, and a common corporate culture across global operations
Global Integration
Adapting to the needs of local markets and allows subsidiaries to develop unique products, structures, and systems
Local Responsiveness
Globalization strategy where firm exports a product or service to foreign countries. May open facilities abroad, but processes and strategy are developed in home country
International
Globalization strategy where org is a decentralized portfolio of subsidiaries. Goals and strategies are developed locally because of competitive demands, knowledge is shared locally
Multidomestic
Globalization strategy where firm views the world as a single global market and offers global products with little national variation. Strategy, ideas, and processes emanate from headquarters
Global
Globalization strategy where firm locates its value chain activities in most advantageous geographic locations. Subsidiaries can adapt global products/services to local markets, knowledge is shared throughout org
Transnational
Decisions are made at headquarters. Decisions apply to strategy and coordination and focus on standardization of processes and integration of resources
Upstream Strategy
Decisions are made at local level. Decisions aim at adapting strategic goals and plans to local realities
Downstream Strategy
Extent to which diversity is embraced, location differences, and product/service offerings and brand identity may be adjusted to accommodate local cultures
Identity Alignment
Extent to which underlying operations (IT, finance, HR) integrate across locations
Process Alignment
Company transfers portions of work to outside suppliers rather than completing internally, with the goal of reducing costs and freeing up personnel/resources
Outsourcing
Relocating processes or production to another country (most commonly to lower costs)
Offshoring
Relocation of business processes or production to a lower-cost location inside the same country as the business
Onshoring
A company contracting part of its processes or production to an external company located in a country relatively close/within its own region
Near-shoring
3 Strategies to address challenges of remote teams
- communication reviews
- site visits
- cross-cultural communication and diversity training
