Professional Documents
Culture Documents
Terms
offshoring global mindset performance culture national business system reverse diffusion BPO guanxi
country-of-origin effect host-country effect home-country effect
Culture constructs:
power distance uncertainty avoidance human orientation collectivism I and II assertiveness gender egalitarianism future orientation performance orientation
global standardization local responsiveness
OpeningVignette
Four Seasons: Beyond National Borders balancing global integration and local responsiveness requires an understanding of the importance of the various facets of the host country context sensitivity and adaptation to the various host country requirements and customs regarding employment, such as hiring, reward and promotion practices, and respect for local cultural and institutional traditions
5 (c) 2008 by Nelson, a division of Thomson Canada Limited.
Managing people the most culture-bound resource in an international context high level of complexity because of the diverse cultural environment
6 (c) 2008 by Nelson, a division of Thomson Canada Limited.
The challenge of MNEs is to create a system that operates effectively in multiple countries by exploiting local differences and interdependencies and at the same time sustaining global consistency.
Global Standardization
reaching consistency, transparency and an alignment of a geographically fragmented workforce around common principles and objectives. use of common management practices is intended to foster a feeling of equal treatment and clear expectations
8 (c) 2008 by Nelson, a division of Thomson Canada Limited.
Local Responsiveness
respecting local cultural values, traditions, legislation or other institutional constraints such as government policy and / or education systems regarding HRM and work practices
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organizational strategy and structures organizational culture firm size and stage of maturity (degree of international experience)
11 (c) 2008 by Nelson, a division of Thomson Canada Limited.
cultural environment institutional environment firm size maturity mode of operation subsidiary role
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Leaders encourage (should encourage) group loyalty even if individual goals suffer.
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Education System
spread and reputation of such a training system recruitment process and the selection criteria reflect the importance of qualifications
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Employment Legislation
minimum conditions human rights labour relations pay equity
17 (c) 2008 by Nelson, a division of Thomson Canada Limited.
Country-of-Origin Effect
MNEs are shaped by institutions existing in their country of origin, and attempt to introduce these parent-country-based HRM practices in their foreign subsidiaries
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Host-Country Effect
extent to which HRM practices in subsidiaries are impacted by the host country context
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Home-Country Effect
extent to which MNEs try to transfer HRM activities shaped by their home-country environment to foreign locations.
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Reverse Diffusion
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(Figure 9.2)
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ownership control
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Subsidiary Roles
Global Innovators provide significant knowledge for other units (the IHRM policies and practices are transferred to the MNE affiliates) Integrated Players create and receive knowledge (the IHRM practices and policies of the MNE and subsidiary are similar, characterized by global standardization and localization)
27 (c) 2008 by Nelson, a division of Thomson Canada Limited.
Subsidiary Roles
Implementers rely on knowledge from the parent or peer subsidiaries and create a relatively small amount of knowledge themselves (IHRM policies and practices are mainly made in the parent company and implemented at the local level) Local Innovators engage in the creation of relevant country/regionspecific knowledge and have complete local responsibility ( the HRM policies and practices are localized)
28 (c) 2008 by Nelson, a division of Thomson Canada Limited.
Transfer of Knowledge
sticky nature of knowledge corporate immune system
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Transfer of knowledge is dependent on the competence of the management style and practices requires building personal relationships and trust through face to face interactions and meetings between managers and subsidiaries.
30 (c) 2008 by Nelson, a division of Thomson Canada Limited.
1. drawing up and reviewing codes of conduct 2. conducting a cost benefit analysis to oversee compliance of employees and relevant alliance partners 3. championing the need to train employees and alliance partners in elements of the code of conduct 4. checking that performance and rewards systems take into consideration compliance to codes of conduct
31 (c) 2008 by Nelson, a division of Thomson Canada Limited.
Outsourcing
transferring some of a company s recurring interval activities and decision rights to outside providers, as set in a contract
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(Table 9.3)
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