Presentation on theme: "Cross-functional issues"— Presentation transcript:
1 Cross-functional issues Part 7Cross-functional issues
2 Slide 30.1Global ThinkingConcerned with all things that are different in doing business in more than one country at a strategic levelLocal thinking is informed by global thinking but carried out separately, as all action is local
3 Global Thinking - HR Issues Slide 30.2Global Thinking - HR IssuesHow cultural differences between countries can be accommodatedHow effective communication can be maintained across national boundariesReference to employment aspects in localities
4 Globalisation Has become a dirty word Slide 30.3GlobalisationHas become a dirty wordBlamed for many ills in the developing worldHRM has to contend with human resource implication of globalisation
5 Internationalisation Slide 30.4InternationalisationMost complex form of decentralising operationsInvolves differences in language, culture, economic, political, legislative systems, etcHRM helps to shape strategic directionHR remains one of the last centralising forcesDecentralisation needed to empower subsidiariesInternational HR still lacks accepted definition
6 Importance of National Culture Slide 30.5Importance of National CultureNationality has an effect on human behaviourCertain elements of national culture remain deeply rootedCultural diversityFramework for fitting together the maze of cultural diversity - Hofstede
7 Differences in National Cultures Slide 30.6Differences in National CulturesIndividualismPower distanceUncertainty avoidanceMasculinityConfucian dynamism (added later)(Hofstede, 1991)
8 Cultural Differences Between Nations (1 of 4) Slide 30.7Cultural Differences Between Nations (1 of 4)Table 30.1 Cultural differences between nations Source: Based on material in G. Hofstede (1991) Cultures and Organizations: Software of the Mind. London: McGraw Hill.
9 Cultural Differences Between Nations (2 of 4) Slide 30.8Cultural Differences Between Nations (2 of 4)Table 30.1 Cultural differences between nations Source: Based on material in G. Hofstede (1991) Cultures and Organizations: Software of the Mind. London: McGraw Hill.
10 Cultural Differences Between Nations (3 of 4) Slide 30.9Cultural Differences Between Nations (3 of 4)Table 30.1 Cultural differences between nations Source: Based on material in G. Hofstede (1991) Cultures and Organizations: Software of the Mind. London: McGraw Hill.
11 Cultural Differences Between Nations (4 of 4) Slide 30.10Cultural Differences Between Nations (4 of 4)Table 30.1 Cultural differences between nations Source: Based on material in G. Hofstede (1991) Cultures and Organizations: Software of the Mind. London: McGraw Hill.
12 Clusters of National Cultures Slide 30.11Clusters of National CulturesPyramid of people – examples: Arab speaking, Greece, SpainWell oiled machine – examples: Austria, Finland, GermanyVillage market – examples: Britain, Denmark, USAFamily – examples: India, Singapore, West Africa
13 Strategic Implications of Cultural Diversity Slide 30.12Strategic Implications of Cultural DiversityCentrality of decision makingRewards & competitionRiskFormalityOrganisational loyaltyShort- or long-term orientation(Hodgetts & Luthans, 1991)
14 International Communication Slide 30.13International CommunicationA major challenge for HRWhat did he say?What did he mean?
15 Barriers to Effective International Communication Slide 30.14Barriers to Effective International CommunicationFrame of referenceStereotypesCognitive dissonanceLanguageJargonCorporate culture
16 Purposes of International Communication (1 of 2) Slide 30.15Purposes of International Communication (1 of 2)Reinforce group culture so as to improve speed & effectiveness of decision makingEncourage information exchange in internationally related activitiesForm the background to succession planning activityEstablish in people’s mind what is expected of them by parent company
17 Purposes of International Communication (2 of 2) Slide 30.16Purposes of International Communication (2 of 2)Facilitate change in a way acceptable to the parent companyUndermine the ‘not invented here’ attitudes and thereby encourage changesImprove the attractiveness of the company in the recruitment fieldEncourage small activities which may be tomorrow’s cream & give activities perspective(Foulds & Mallet, 1989)
18 Conventional Approaches to Co-ordination Slide 30.17Conventional Approaches to Co-ordinationJapanese centralisationAmerican formalisationEuropean socialisation(Bartlett & Ghoshal, 1989)
19 Increasing the Range Evangelisation Standards and norms Systems Slide 30.18Increasing the RangeEvangelisationStandards and normsSystemsConcentration of capability
20 Slide 30.19EvangelisationEvangelisation – process of winning acceptance of a common mission & shared purpose throughout the organisationWorks through shared beliefWorks through parablesCan use apostles
21 Slide 30.20Summary (1 of 2)International HRM still lacks an accepted definition and contentMuch international management activity is via multinational companies & policies of globalisationUnderstanding cultural diversity is crucialHofstede concluded cultures had 4 dominant value systemsHodgetts and Luthans suggested that Hofstede’s findings influenced aspects of management
22 Slide 30.21Summary (2 of 2)Communication is exacerbated by differences in frames of references, stereotyping, cognitive dissonance & languageThere are three broad types of traditional forms of co-ordinationMore particular forms of co-ordination include evangelisation, standards & norms, systems, and locating capability