Flashcards in Workplace One Deck (41):
How do you know an organization is truly operating with a global strategy?
* Omni-directional operations
What was the first multilateral trade accord?
* Breton Woods Agreement (1994)
What are BRICS countries?
* South Africa
What is globalization?
* Integration of markets, nation-states, and technology
What are these four forces shaping globalization?
* Foreign investment: more going to developing rather than developed countries
* Diaspora: people leaving their home countries but sending money home
* Demographic dichotomy: established economies have aging workforces whereas emerging economics have younger workforces
* Reverse innovation: products made for emerging markets are made complex for established nations
What is the key strategic decision HR must help global organizations make and how can HR help once the choice has been made?
* Balance between global integration AKA upstream (which gets consistency) and local responsiveness aka downstream (which gives adaptability). For GI, HR focuses on communication and building a common culture. For LR, HR promotes cultural awareness and beware of bias
What are the two considerations in global-local models?
* Identity alignment (adjusts products and branding across cultures) vs. process alignment (integration of operations across locations)
Explain the following GI-LR models:
International, multi-domestic, global, transnational
* International = coordinated federalism: branches seen as appendages to home country
* Multi-domestic = portfolio of independent businesses; headquarters still in control local knowledge not generally shared
* Global= strong headquarters control because of needs to compete globally
* Transnational = truly global, subsidiaries adapt, best practices shared
What is HR's role regarding offshoring and outsourcing in a global company?
* Due diligence (you cannot take a hands off approach ethically just because you source)
What is a global mindset and what is the simple way to develop it?
* The ability to value and consider perspectives to attain early mover advantage; be curious
What is dilemma reconciliation?
* Charting a course through cultural differences
How do you start to create cultural synergy?
* Support managers with global mindset with practice and exposure
Why do so many global assignments fail?
* They are not looked at as long-term investments but rather as short-term problem
How do you maximize the likelihood of a global assignment going well?
* Have a variety of global assignment types available, know the person's allegiance level to home culture(home bound to go native), plan the assignment, and tied it to the organization goals
What are totalization agreements?
* Treaties that prevent double taxation
What is the value of diversity?
Broader perspectives means more innovation
What is the difference between diversity and inclusion?
* Diversity is about who is brought into the organization
* Inclusion is about whether they feel welcome and valued and not just assimilated (where they have to cover)
Why is a Diversity and Inclusion strategy needed and why must it be aligned to the organizational goals?
* So it stays a priority and continues even when champion leaves
Why is assessment needed and what are proper metrics?
* To identify needs and provide benchmarks
* process measures and results measures
How do you know when D & I strategy is successful?
* When there is complete integration
What are the four layers of diversity?
* Internal dimensions (cannot easily change)
* External dimensions (life choices)
* Organizational dimensions (role in organization)
What are the three components of Diversity and Inclusion training?
* Diversity awareness courses
* Diversity management courses
* Professional development opportunities?
What are the four Ts to influence managers regarding Diversity and Inclusion
What should HR insist about policies?
* That they are equitable but not necessarily identical
What is risk and why should one engage in risk management rather than risk avoidance?
* Risk is uncertainty; managing risk means to be more effective and consistent in response and to be anti- fragile (able to benefit from high impact events)
What is a black swan?
* A predictable game changer
What is a moral hazard?
* Insulation against effects of risk-taking (example:insurance) can increase risk tolerance unwisely
What is risk position and risk tolerance?
* Risk position = desired gain or loss
* Risk appetite/tolerance = the amount of uncertainty the organization is willing to pursue for goals
What is the goal of risk identification?
* Identify MECE (mutually exclusive and comprehensively exhaustive) to mean all risks are being considered
What is duty of care?
* An employer's responsibility to take all reasonable steps to ensure the well-being of employees
What is a risk equation?
* Probability and magnitude of a risk
What is the shortcoming of a risk matrix?
* Does not show if risks have already been protected
What is a risk scorecard?
* Gathers assessments of risk regarding event probability, speed of onset, existing mitigation, and severity
What is a KRI?
* Key risk indicator-early signals of increasing risk to you can get to the root cause
What is a risk register?
* Documents information about and decisions regarding risks
What is a secondary risk?
* Action taken to reduce one kind of risk produces another
What is residual risk?
* Uncertainty that exists when all risk management has been exhausted
What is the difference between crisis management and business continuity?
* Crisis management secures employee health and safety whereas business continuity keeps critical business processes going
What must be done with a risk management plan?
* Must be tested and debriefed after action!
* Ethnocentric = Headquarters maintains tight control over subsidiaries. There is "one best way." GI concept or Global Integration
* Polycentric = Subsidiaries are allowed a large measure of independence as long as they are profitable. LR concept or Local Responsiveness
* Regiocentric = Subsidiaries group into regions. Region functions with autonomy. Communication and coordination "high within the region", but less with headquarters. LR concept or Local Responsiveness
* Geocentric = Multiple offices in multiple nations where subsidiaries are neither satellites or independent bodies settling their own course. Headquarters and subsidiaries are participants in a network. "A team way." MULTI DIRECTIONAL