Workforce Management Flashcards
Kyle Lundby- 4 components to successful global footprint
Physical dispersion—the organization operates in multiple countries
Diversity of thought, people, and culture that is actively leveraged by a strategic objective
Unified through a clear single organizational identity
Global for a reason; self-aware of their global reach and leveraging geographic and cultural diversity to achieve success as they have defined it
The roe of HR in supporting Globalization
Participating in creating the organization’s particular global strategy.
Aligning HR processes and activities with the organization’s global strategy. These activities include:
Attracting and retaining leaders and employees with the knowledge and skills needed to implement the organization’s strategy.
Developing an organizational awareness of globalization and an appreciation of the organization’s constituent cultures.
Implementing processes to increase integration and exchange of knowledge.
Enhancing communication between the organization and its stakeholders.
Ensuring that the HR function possesses the skills, knowledge, and resources to fulfill its global role and demonstrate its value in global strategic management.
Adapting processes as needed to the cultural and legal contexts of each area of the global organization.
Push’s or Pulls for Globalization
Push:
New Markets
Cost pressures & competition
Natural resources & talent supply
government policies
trade agreements
globalized supply chain
Pull:
Strategic control
government policies
trade agreements
Multinational Orientations- Ethnocentric
Headquarters maintains tight control over subsidiaries, who are expected to follow the strategic pattern, values, policies, and practices expressed by headquarters.
There is “one best way.”
Management will usually share a common ethnic background, different from the ethnic make-up of subsidiaries.
Multinational Orientations- Polycentric
Subsidiaries are allowed a large measure of independence as long as they are profitable.
They may plot their own paths based on the business and cultural contexts of their countries.
There are “many best ways.”
Multinational Orientations- Regiocentric
Subsidiaries are grouped into regions (such as Europe, North America, or Asia-Pacific).
Strategic coordination is high within the region but not as high between the region and headquarters.
Multinational Orientations- Geocentric
Subsidiaries are neither satellites taking orders nor independent bodies setting their own course. Headquarters and subsidiaries are participants in a network, each contributing its unique expertise.
There is essentially “a team way,” transcending national borders.
Global Integration (GI)
emphasizes consistency of approach, standardization of processes and products, and a common corporate culture across global operations. It allows organizations to take advantage of standard processes and economies of scale to achieve greater efficiency, which can lower costs of operation, create greater pricing flexibility, and increase profit.
Achieved through:
People
Process
Performance
Culture
Local Responsiveness (LR)
emphasizes adapting to the needs of local markets and allows subsidiaries to develop unique products, structures, and systems. It can make organizations more flexible and agile—equipped to identify and capitalize quickly on local market opportunities, correct misalignments of products and services with customers’ desires and habits, and adjust to local regulations and business practices.
Drivers of globalization strategy
Market
Cost
Governmental
Competitive
Globalization Strategies/Structures for Globalization
International- A firm exports a product or service to foreign countries. The company may open production facilities or service centers, but the product/service, processes, and strategy are developed in the home country.
Multidomestic-The organization is a decentralized portfolio of subsidiaries. Goals and strategies are developed locally because of competitive demands. Knowledge is shared on a local rather than global level.
Global- The firm views the world as a single global market and offers global products that have little or no national variation or that have been designed with customizable elements. Strategy, ideas, and processes emanate from headquarters.
Transnational- The firm locates its value chain activities in the most advantageous geographic locations. Subsidiaries are allowed to adapt global products and services to local markets. Best practices and knowledge are shared throughout the organization.
Briscoe, Schuler, and Tarique
Upstream/Downstream
Upstream:
- Decisions are made at the organization’s headquarters level.
- Decisions apply to strategy and coordination and focus on standardization of processes and integration of resources.
Downstream:
Decisions are made at the local level.
Decisions aim at adapting strategic goals and plans to local realities—in other words, local responsiveness.
Outsourcing
(sometimes referred to as “contracting out”) is a practice where a company transfers portions of work (for example, processes or production) to outside suppliers rather than completing it internally. Generally, outsourcing contracts out (or subcontracts) activities with the goal of reducing costs and freeing up personnel and resources for other activities.
Offshoring
the practice of relocating processes or production to another country. Common reasons for offshoring include:
- Lower costs (for example, lower wages, less expensive facilities).
- Closer proximity to necessary production resources.
- More favorable economic climate for corporate taxation.
- Financial incentives (for example, direct cash payments, low-interest loans).
Onshoring
the relocation of business processes or production to a lower-cost location inside the same country as the business. Sometimes called “home-shoring,” onshoring can also include the situation where businesses allow employees to work from home. Beyond the potential for lower operations costs, onshoring offers the added benefits of having local employees and avoiding many of the problems associated with distant offshoring scenarios.
