Content
What is globalisation
Globalisation and SHRM
Supply chains & SHRM
Some conclusions
What is globalisation?
Ambiguous term for array of often interrelated
changes
Growth and elaboration of international value chains in
goods & services (waves of substantial trade growth not
new, eg late 1850-1920 but now facilitated by changes in
transport & communication technologies)
Growth of large multinational corporations with operations in
many countries & rise of corporate political influence
New and larger wave of movement of labour to match that
of goods and services
Rise of Asia especially as manufacturing and economic hub
Growing global reach/influence of the finance sector &
determination of economic policy (abandonment of closed
economy Keynesianism for Neoliberalism) and associated
changes)
Globalisation in a local
context
Approaches to SIHRM
Key issue for global HRM practitioners what is the most suitable
approach to adopt when developing SIHRM practices?
Number of different approaches proposed:
1.
2.
3.
Globalised approach
Localised approach
Adaptation approach
Global approach:
1.
2.
Localised approach:
Adaptation approach
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Staffing Approaches
Perlmutter (1969) three approaches
to staffing
Ethnocentric
This approach is a result of a home country
attitude
That is, power and decision-making centralised
at the head office
Key positions are filled by people from the
home country
Standards applied in the parent country are
used in the evaluation and control of employees
Advantages
Disadvantages
Polycentric
Likely to be used by organisations who are less concerned
with maintaining a common culture
Headquarters give more control to subsidiary, managed by
individuals from the host country
Managers in the host country are given autonomy in
determining suitable strategies and practices
As such, the standards for evaluating and controlling staff are
determined locally
Advantages
Alleviates cultural myopia
Relatively inexpensive to implement
Disadvantages
Limits ability of host country employees to gain experience
outside their culture
Can create a gap between the parent and host country
operations
Regiocentric
Similar to polycentric but as well as
being managed by host nationals,
these organisations may also be
managed by third-country nationals
This occurs because these
organisations are divided into
regions
Example Asia-Pacific and managers are developed and
selected for positions within these regions
Geocentric
Generally adopted by multinational organisations aiming to
develop a worldwide corporate culture
Managerial positions filled by the best person for the job
Have a highly unified corporate culture, which is not
necessarily dictated by the home culture
The unified corporate culture tends to lead to a certain level of
integration
Advantages
Enables the organisation to make the best use of its HR
Equips managers to work in a number of cultures
Helps build a strong unifying culture and informal management
network
Disadvantages
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Strategic HR Issues
Organisational Issues
Individual Issues
Management of subsidiaries
Coordinate or integrate foreign
operation with domestic
Fill vacant positions
Develop local management
talent
Knowledge management
Skill development
Preparation for top management
Dual-career partner/spouse
Selection, training and support
of expatriates
National culture
There are many different theories of the
dimensions of national culture
Suggests that national culture has been
shown to influence between 20 50% of
the variation in managers and
employees attitudes at work
We will look at Hofstede (2001), however,
this is a widely contested
categorisation
Power distance
Individualism vs collectivism
Uncertainty avoidance
Masculinity-femininity
Short term vs long term orientation
Power distance
Level of inequality between people
that is considered normal in a culture
In organisational settings, high power
distance involves:
Individualism-collectivism
Degree to which people think of themselves as
individuals rather than group members
In the organisation setting, high individualism involves:
Hiring and firing based on skills only
Management is management of individuals
Incentives given to individuals
Leadership property of the leader
High individualism countries US, Australia, Great
Britain
Low individualism Pakistan, Indonesia, Venezuela
Masculinity-femininity
Degree to which attitudes typically perceived as
masculine (e.g., assertiveness, success, compensation)
prevail over attitudes typically perceived as feminine
(e.g., sensitivity, concern for others)
In organisational settings, high masculinity involves:
High levels of competition
Advancement and earnings important
Higher job stress
High masculinity countries Japan, Austria, Venezuela
Low masculinity countries Netherlands, Norway,
Sweden
Australia 16th out of 53 countries
Uncertainty avoidance
Degree to which individuals prefer structure to a
lack of structure, or are uncomfortable with risk
Cultures high in uncertainty avoidance design
rules and norms to reduce uncertainty
In the organisational setting, high uncertainty
avoidance involves:
Long vs short-term
orientation
Sense of time that goals and actions
are mapped against
In the workplace this influences:
Expatriates
Expatriate is a citizen of one country working
in another
Expatriate failure
Most commonly measured by premature
return of a manager to his/her home country
Failure to complete strategic tasks
Lack of knowledge transfer
Cost of failure is high 3 X the expatriates
annual salary plus the cost of relocation
(influenced by exchange rates and country)
Expatriates Issues
Language barriers
Different work policies and practices
New organisational culture
National cultural differences
Lack of social networks
Identity issues.
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Repatriation
Once an expatiate has completed their
assignment they must return home
repatriation
An individual must acclimatise to their
home country and organisation
Problems that may occur:
Feelings of reverse culture shock may occur
Feeling that others do not share multicultural identification can
create sense of isolation
Frequent loss of autonomy
Unrealistic expectations about being promoted upon return
Lack of utilisation of international experience
High levels of turnover- often move to competitors.
SHRM Factors
SHRM Factors
Alternatives to expats
Utilize expert SWAT teams deployed
on short-term basis for operational
problems technical projects
Virtual teams
Self-initiated expatriates
Utilisation of job rotation through
different business locations
These each have their own SHRM
issues to overcome.
Supply chains
Supply chains
What are supply chains
Sequence of contracts for the provision
of goods or services, commonly entailing
elaborate webs of subcontracting at
national or global level
Global trend to using and subcontracting
means complex & disparate array of HR
conditions in different suppliers, both
local & overseas
Corporate strategies
Labour market
Licensing and training reforms
Employment conditions
Regulation of Aviation
Safety
Global regulatory framework (International Civil Aviation
Number
Per cent
20
3.5
205
35.4
181
31.3
111
19.2
62
10.7
579
100.0