Transcript Global Human Resource Management & Strategic Management By: Solmon N Raja, M.B.A, B.Sc Beginning of Global HRM The dramatic and discontinuous changes taking place in the.

Global Human Resource Management
&
Strategic Management
By:
Solmon N Raja, M.B.A, B.Sc
Beginning of Global HRM
The dramatic and discontinuous changes taking place in
the global environment have contributed to the evolution
of traditional multinational corporations (MNCs) into
Global Organisations that are more of a network nature.
- Gimeno & Woo 1996, Wolf 1997, Galunic &
Rodan 1998, Westney 1999.
Beginning of Global HRM
The global network form of organizing roles and activities
infuses into the firm a heightened need for cross-functional
interdependence, which in turn, can increase role ambiguity
for a human resource manager.
- Grimm & Smith 1997.
INTRODUCTION
An important function of a Global Human Resource Manager is to
shape a Culture of Developing External linkages (i.e., to local
organisations and critical stakeholders) for a global organisation. On
the other hand, it is vital the global human resource manager
facilitates the integration of internal functional (i.e., international
human
resource
management)
and
crossfunctional
(i.e., GlobalMarketing, R&D and operations) relationships within the
various competency centres of the global organisation.
- Mudambi & Helper 1998
INTRODUCTION
Moreover, the expanded number of relationships needed
in both the internal and external global network settings
further increases the complexity of establishing an
appropriate Global Human Resource System
- Zucker 1987
Based on previous discussions….
Concepts of Global HRM
Cross Cultural - Diverse
Cross-Functional Interdependence
Local organisations
Stakeholders
Golbal Marketing, R&D, Operations
Integrated – Knowledge
Strategic Management
Need for Global HRM – Strategic Management
Company's most expensive assets is its human capital, the human
resources of the organization. The management of your human
resources focuses on:
 Recruitment and selection of employees who can succeed at their
jobs and who will stay with your organization, and
 Making sure that employees' abilities are optimally nurtured and
developed so that the company can receive an optimal return on the
investment made in these employees.
Strategy - HRM
HR professionals should have a thorough knowledge of global
business or it may outsource this function to strongly established
companies in new geographies and the needs of the local
workers in country with competence.
Since a company's strategy will impact its employees, HR should
understand the Global Landscape and everything from the
recruitment and hiring techniques used in other countries, to
the establishment of contracts, and compensation and
benefits packages.
Globalizing the HR - Function
As companies Globalize, their HR departments need to
understand the challenges of working internationally and
serving a global organization like:
 Supporting personnel to serve the needs of their global
organizations.
 Acquiring competent personnel to work in a Global Environment.
 Train or explain alliance about and be a better global business
partner.
 Administration and use supplement the capabilities for existing
professionals.
 Frame and Practice HR polices that adopt multinational Cultural,
Political, Legal and Industrial framework.
Change-Management
The development of organization and, particularly, manage change
impacts the success of your business.
Managing change and growth across cultures and geographies requires
specific knowledge of the impact of change and growth needs in
particular cultures.
Collecting and analyzing data on work culture
Employee climate surveys to assure responses are culturally
appropriate.
Understanding of cross-border change initiatives
greatly reduce the usual issues created by change initiatives and address
culturally specific issues relating to such cultural dimensions as Need for
Certainty.
Change-Management..
Companies that institute either small or large scale change need
to attend to the needs of the employees before, during and after
this process. Organisation should support the Change process
throughout its life cycle. It must
•Facilitate the charter of change implementation teams
•Effective employee communications
•Design and deliver cross-cultural training for multi-cultural or virtual
implementation teams
•Provide change team leader support and
•Data/information from assessment results - the impact of the change
RECRUITMENT and SELECTION
This is particularly challenging in a global organization where
biggest challenges will be Finding, Retaining and Developing a
Superior Global Workforce.
Models used for effective Selection and Hiring:
 Well written Job Descriptions and
 Competency Models that clearly delineate success behaviors.
Understanding Cultural Differences in the recruitment process,
the selection of candidates and what motivates employees in
various cultures is crucial to the success of global organizations
RECRUITMENT and SELECTION….
Interview Techniques
Behavior Event Interviewing (BEI) or Targeted
Interviewing (TI)
are far more effective at identifying exactly what
capabilities particular candidates could bring to your
organization. This is particularly important when
recruiting and selecting across cultures.
Assimilating New Employees
In this competitive environment for attracting good global talent,
companies need to pay particular attention to the perception of
the company on the part of candidates and new hires.
A well thought out and extensive assimilation process often makes
new employees more likely to stay. This process should start
before the offer is made, and many companies have assimilation
plans for at least the initial six months on the job.
This is especially important in group and relationship cultures
as it helps the new employees feel welcomed into the group and
gives them time and structure to establish relationships that will
be important to the employee as well as anchor their loyalty to the
company.
Global Workforce Development
Helping employees recognize that they work in a Multi-Cultural
Environment or a Global Environment
General awareness programs are a good start. In addition, specific
programs targeted to functional needs like
Global Marketing
and
Global e-learning Development on culture-specific needs,.
Performance Management
Cultures with a preference for Certainty (prefer to know the Structure
and Rules rather than handle Ambiguity) prefer Competency Based
Performance Systems.
Communicating Exactly:
 What is expected
 Defining the levels of behaviors
 Assessing employees all against the same criteria
 Standardization of Performance
feels more fair and responsive to many employees.
Global Leadership Selection and
Retention
Differentiating successful employees based on their Competency Vs
Behaviors, recruiting (external) and selecting (internal) reduces the
need for development since they already have the skills necessary to
succeed.
The global leadership competencies required for success include:
The flexibility to work and manage across cultures
The ability to be the voice of the local culture to home office while
being the voice of home office to the local employees
Understanding of and ability to adapt to cultural differences as they
impact business practices
Global Leadership Selection and Retention…
Practices to Succeed and Stay Global Leaders:
Define the behaviors associated with the actual success factors in
YOUR company
 Identify internal and external candidates who already have those
success factors
 Provide Accurate, Reliable and Detailed selection or recruitment
data
 Provide detailed developmental reports
 Accurately Asses and match Role ( Job-Demand) and Individual (
Capability)
Global Succession Management and
Development
Organisation demand Talent Development
or Succession
Management to retain top talent and stay competitive. Linking both
to a Leadership Competency Model leverages Investments,
Communicates Expectations, and Rewards (and retains) deserving
talent through:
•Define Leadership and Management competencies
•Develop Succession processes
•Assess talent
•Identify areas for Individual Development
Strategy Map and Action Learning
Strategy Map for business and helps organizations manage the strategy
implementation through a Balanced Score Card and Strategic Action Plans.
Organizations can benefit from the Strategy Map output to prioritize investments and
their change initiatives, as well as putting figures to targets and preparing appropriate
action plans.
Action Learning involves some parameters about expected outcomes,
timeframes, and how to collect information – and monitor team learn. Periodic reviews using the questionnaire insures they:
Learn about cross-functional issues
Meet people from all over the company
Get into" the day to day issues these people face.
Well defined action learning projects can resolve seemingly insurmountable business
issues, develop and challenge talent, and cost nowhere near what a month at
business school would cost
ABSTRACT
 The need for highly qualified multicultural managers will
increase as more organizations globalize their operations. These
global managers may be perceived as organizational resources
and, therefore, a resource-based view of human resource
management is utilized. At the same time, relational view of
human capital provides insight into the value of managers who
have unique local market knowledge (i.e., social knowledge)
ABSTRACT…..
By integrating the two aspects of the resource-based view, one
can develop a dynamic capabilities approach to staffing global
assignments. Within this integrative theoretical perspective, crossdimensional managers (i.e., host or third country managers who
are transferred into the home country organization on a semipermanent to permanent basis) can be explored as a potential
pool of uniquely qualified global managers to be utilized in global
organizations.
CONCLUSION
It is envisioned that through this unique building of
managerial talents, organizations can develop / maintain
a distinct competitive advantage in the markets they
enter. Inpatriation as an innovative means to develop
managers as strategic resources to be used in
formulating and implementing a global strategic plan.
Thank You…!
Solmon N Raja, M.B.A, B.Sc
E-Mail: [email protected]