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Globalization and HRD People advantage strategies, current and future HRD challenges. 1.

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Presentation on theme: "Globalization and HRD People advantage strategies, current and future HRD challenges. 1."— Presentation transcript:

1 Globalization and HRD People advantage strategies, current and future HRD challenges. 1

2 Summary 1.The marketplace & new role for HRD in the globalized context. 2. Global Mobility: HRD strategies for resourcing & expatriates assignments. 3.Corporate Social Responsibility, Business Ethics and impact on HRD. 4.Global issues. A new role for HRD at corporate and national level 2

3 Definition According to the IMF, globalization is “the growing of economic interdependence of countries worldwide through…. increasing volume of transactions of good and services, capital flows and increased technology” (Osland, 2003). 3

4 The reflection exercise It is difficult to narrow it down to three elements; it is a complex and evolving phenomenon The scope of the exercise was for us to realize that it does exists and affect us one way or another, no matter where we come from It is multidimensional, for some aspects disputable. In our mind it may be emotive and subjective Some view it as beneficial, others regard it with hostility 4

5 Changes/Impact Equality Wages Economic conditions Access to goods Prices of goods and services Supply of good and services Labor Conditions Job opportunities Labor productivity Working standards and health conditions Pensions Unions and employee relations Government Economic development Interdependence on trade and investment Proliferation of NGOs Increase role of MNEs and pressure on local communities and government Culture and Community Cross border ties & ethnic identity Mobility and rural life Cultural homogenization Disintegration of local communities Globalization (Osland, 2003) 5

6 The marketplace & organizations 1.Competitiveness 2.New technologies 3.Rapid Changes 4.Privatizations and outsourcing 5.Financial opportunities & constraints 6.Cultural diversity 7.Flow of information and knowledge 8.New skills 9.Workforce mobility 10. Mergers, takeovers 11.Refocus on customers (Ruona & Gibson,2004)6

7 Change in the HR Function BeforeNow TransactionalUnderstanding business, internal and external and the global context ReactiveStrategically proactive and innovative. Acquiescence & working in isolationHR Leaders: architects, strategic partners AdministrativeShape partnerships Apply policiesIntegrate changes and transformations Policy police, bureaucrats, administrators, regulators Clear & measurable deliverables. HR accountable for them. (Wellins, 2000) (Ulrich, 1998) (Ulrich,,. 2007) (Brockbank, 1999) (Ulrich, Brockbank, & Johnson, 2009)7

8 Impact on HRD HRD roles in a globalized context People are central to organization success changes & transformat ions Strategic alignment and impact Leadership development Performance management Building strong values and organizational culture Recruitment and retaining high quality employees (Wellins,2000) (Broackbank,1997) (Ruona & Gibson,2004) 8

9 Global Mobility Scarcity of skilled labor Innovative international resourcing Manage expatriates assignments (Ulrich, 2007) (Brokbank, 1997)(Wilson, 2008) ( Odell & Spielmann, 2009) 9 Global Mobility

10 HRD Strategic Interventions in Resourcing Strategic Sourcing Recruitment strategy aligned with business strategy Manage change process and involve stakeholders Align with competency framework Align with Learning and Development & Perf.Mgt Enhance skills in the HR Unit Line managers devolution and development Review policies and practices Evaluate and measure impact with scorecard 10

11 Analysis 1.External labor market 2.Internal demographic 3.Innovative processes 4.Outreach 5.Career development, promotion 6.Retention measures 11

12 Strategic Issues in Expatriates' Assignments Dissatisfaction, poor job performance, turnover Ineffective induction, socializations and adaptation initiatives Misalignment with learning and development Lack of attention to cultural behaviors. Ineffective handling of repatriation (Cooper-Thomas, & Anderson,2006) (Pate, & Scullion, 2010) (Paik, Segaud, & Malinowski,2002) (Osman-Gani, & Hyder, 2008) 12

13 Strategic HRD approach Pre-departure training Socialization programs upon arrival Line managers development Coaching and mentoring programs Alignment with well-being, diversity and other HR policies(L&D, perf.mgt, succession planning) (Davis, & Kleiner, 2001)13

14 Benefits for Organizations Strategic Socialization initiatives Develop knowledge, motivation, commitment Integration with the Team and the organization Foster cultural integration Enhance job performances HR as strategic business partner (Sanders & Kleiner, 2002) ( Marx,2006) (Schein,1988) 14

15 And now……….. the other side of going global 15

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21 Video: The Hidden Face of Globalization 21

22 Corporate Social Responsibility (Chartered Instituted of Personnel Development,2009) 22 Corporate Social Responsibility Meeting global standards (social, environmental and human rights) Conducting business in ethical way internally and externally Relationships external shareholders and stakeholders Protecting company’s brand; scanning the environment

23 23

24 HRD role in CSR (Garavan, & McGuire, 2010) (Fenwick, & Bierema,2008) (CIPD, 2009)24 HR adds values and becomes strategic Retention, Motivation, Reward, Diversity Promoting ethics at work Changing culture, values and aligning HR policies Building partnerships Learning and development. Organizational justice, and promoting an enabling environment

25 What do we mean for ethics? 1. Conflict of interest 2. Lying to employees/ stakeholders 3. Abusive behavior 4. Misuse of assets 5. Discrimination & Harassment 6. Safety violations 7. Improper hiring 9. Misuse of confidential information 25

26 Dimensions of Integrity Honesty, truthfulness, impartiality and incorruptibility Competence and Efficiency Dealing with internal and external stakeholders Allegiance, Loyalty Independence Working whitout bias with all cultures Promote equality Respect the dignity of others Integrity (UN International Civil Service Commission[ICSC]) 26

27 US 2009 snapshot (private sector) Observed misconduct declined by 7 percentage points. From 56% in 2007 to 49% in 2009. Reporting of misconduct improved by 5 points. From 63% to 58% in 2007 Pressure to commit an ethics violation declined from 10% in 2007 to 8% in 2009 Perceived retaliation as a result of a report of misconduct rose, from 12% to 15% (organizations that underwent lay-offs) (Ethics Resource Center[ERC], 2009 National Business Ethics Survey) 27

28 28(SHRM, 2009)

29 29(Transparency International, 2010) Corruption Perception Index 2010

30 KPMG Fraud Survey 2009 1.32% believe that fraud was going to remain steady or increase in their organization. 1.27% lack effective policies on how to conduct investigations and 33 % how to remedy control breakdowns. 1.67% believe improvements are needed in employee communication and training. 30(KPMG, 2010)

31 Business Ethics: Strategic HRD approach (Ledwidge, 2007; Wood 2007; Peppas, 2006; Rossouw, 2009; Cartwright & Craig, 2006; Garavan & McGuire, 2010; Zairi & Shahin,2007) 31 Step 1 HR engaging partners, build consensus Step 3: HR focusing on core values and corporate ethics Step 4: Leadership development and shaping cultures Step 2: HR aligning ethics and CRS into the strategy Step 5: HR achieving performance and employee efficiency HR Strategic Partner

32 HRD & Ethics Values embedded strategy Competency framework aligned with Perf.Mgt and L&D Orientation and workshops Adherence to Policies(miscon duct, discrimination) Measure behaviors with metrics, surveys and scorecard HR plays a strategic role in business ethics 32(UNDP Transparency)

33 HRD Impact Integrity : Commitment to ethical standards, values and principles Enabling & learning organization Harmonious working environment Organization's reputation Staff morale and motivation (Ledwidge,2007 ) ( Wood, 2007 ) (Cartwright & Craig, 2006).33 Workforce Performances & Organization Success

34 Now the “global” downside of globalization 34

35 35

36 Anti-global Global trading dominated by few economic powers Economic, financial and ecological justice are violated by MNCs…. and by IMF, WB, WTO, UN, EU and western governments 36

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39 The globalization’s downsides Globalization Climate changes Scarcity of resources Environmental degradation, migration movements Deterioration of labor standards, gender equality Technological Changes Social injustices, human rights, democratic governance, transparency Divide between rich and poor, extreme poverty (Lee,2006) (Osland, 2003) (McLean, 2004)39

40 By contrast ………… (Marquardt, 2005)40 better goods and services at better prices, it breaks down barriers, and economic growth turns people away from conflicts opportunities for democracies and good governance – Mexico, Ghana, and Bangladesh are just a few examples The poorest and the least democratic countries – North Korea, Burma, Cuba, and Sudan – are also the least globalized countries. Harvard Study: developing countries with open global economies grew by 4.5 per cent a year during the past twenty years while those with closed economies grew by 0.7 per cent a year

41 New Role for HRD and NHRD HRD and NHRD impact on global challenges and human development HRD shapes organizations valuing and meeting employees needs Establishing, promoting developing and assessing skills & talented staff Developing values, motivation& involvement, culture & diversity National HRD as strategy at all levels to improve human development Look beyond organizations. Engage holistically in national policies (Garavan & Macguire,2010; Lockwood,2004; Marquardt & Berger, 2003; Russ-Eft & Hatcher, 2003; Lee, 2007; Lynham & Cunningham, 2006; Mc Lean 2004; Cho & Mc Lean, 2006 ) 41

42 Development and HRD Challenges 1.Build democracies and transparent governements 2.Balance economic growth 3.Global Leadership 4.Technology 5.Environmental challenges Solutions 1.HRD as tool for education & training, institution building 2.Measures that assist those adversely affected by the changes 3.HRD as educational tool 4.HRD as knowledge management framework 5.Env. as strategy trough change developing individuals and shaping cultures (Marquardt, & Berger, 2003 )

43 HRD Trends and Challenges HRD Trends Learning and human development Knowledge management Change and organizational systems (Ruona, Lynham, & Chermack, 2003)43 HRD Challenges HRD's influence, impact and credibility Evaluation and return on investment HRD identity and identify stakeholders

44 Summary of what we have discussed ! 44

45 Thank you for your attention! Q.& A. 45

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