CHAPTER 1: The Globalization of Human Resource Management
IHRM in action 1.1: Harry Ramsden’s goes international
What are some of the difficulties Harry Ramsden faces as the company internationalizes? •
Adapting the product to local markets
Deciding on a market entry strategy
Finding the right partners
Managing a more complex organization (because of legal and cultural context) Does a small to medium-sized enterprise face a different set of challenges than a large multinational enterprise when it goes international?
Less resources than a large company
More flexible than a large company
More likely to have a close-knit organizational culture
IHRM in action 1.2: International expansion for a local U.S. accounting firm How is the global expansion of this firm serving its employees and customers?
• More services and locations
• More expertise
• Uses own employees rather than outsourcing
• Cyclical nature of global business allows for better HR planning
End of chapter 1 vignette: Global integration in action: Career development at IBM
How do the three laws of global integration apply to career development?
Law of economics: focuses on the marketplace for jobs within IBM (career tracks) Law of expertise: deals with skills and experience needed now and in the future (personalized learning, expertise management)
Law of openness: access to learning, knowledge, people, opportunities and living the values of IBM (pervasive mentoring, expertise management, my development, blue pages)
How attractive is the new career development model for the new millennium generation of knowledge workers?
Enables IBM to attract, retain and motivate talent by giving employees an opportunity to be stimulated, advance and grow within the company.
The utilization of technology is also attractive to millennial workers who can use online space to focus learning opportunities, connect with other
IBM’ers and navigate future development opportunities.
End of chapter 1 vignette: From Start USA to StarGlobal
Why did Herman Wouters resign?
• He is past the “cultural” retirement age in Belgium.
• There is no career opportunity for him.
• Pressure from corporate to perform.
• He does not want any control or interference from corporate.
• Business is not doing so well.
• His variable pay has not been good for the past couple of years.
• He wants to enjoy life.
What is the internationalization strategy of StarUSA?
• They were an international company, multinational at best, and they want to move towards a transnational company.
good practices in global succession planning would you recommend?
Build an acceleration pool.
Inpatriate future leaders to corporate HQ.
Expatriate managers to subsidiaries.
Build global teams.
How has StarUSA’s development affected its HR function?
• HR can no longer be domestic in orientation but must be managed internationally Why is Cindy Fratelli unprepared to play an international HR role?
She has a domestic HR outlook
She is not involved in the internationalization strategy of the company
She has no international HR competencies
How can she prepare herself?
• Read a number of international HR books
• Take necessary steps to develop a global mindset
• Attend the international HR conferences and build a network of global HR practitioners • Pursue GPHR certification
• Find a global HR mentor
Discussion Question & Answers
CHAPTER 2: Creating the international organization:
Strategy and structure
IHRM in action 2.1: Comex- A Mexican firm goes international
What are proactive and reactive reasons for going international?
• Search for new markets and resources (materials and labor)
• Incentives provided by governments and trade agreements.
• Following existing customers into foreign markets
• Being closer to suppliers and customers
How will Comex’s family