2 HP Dilemma? Can the sense that the HP Way was “dead” be reversed? Could the HP Way be applied in developing countries with different cultures and traditions?How much autonomy should major business areas have in strategy, policy, management practice?Can HP avoid failure, following success?
3 HP Dilemma? Getting too big to practice HP Way? How can we believe in HP Way when people are losing their jobs?Why don’t practices apply equally across company anymore?Can the HP Way survive in today’s intensely competitive environment?
4 HP Way Corporate objectives Business values Management practices = Competitive Advantage: PeopleTeamworkPerformance
5 Corporate CultureValues, customs, traditions & meanings that make a companyBeliefs about goals an organization should pursueIdeas about the appropriate behavior to achieve goals“How things get done around here”Values determine norms, guidelines or expectations“A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration”
6 Corporate Culture ”Organizational Culture and Leadership" (1992), Schein 1. Artifacts: surface aspects (such as dress) easily discerned, yet hard to understand2. Espoused Values: conscious strategies, goals and philosophies3. Underlying Assumptions and Values: the core, or essence, of culture, difficult to discern as they exist at a largely unconscious level. Key to understanding why things happen as they do.
8 Leading Change (Kotter, 1996) Establish a sense of urgencyForm a powerful guiding coalition/teamCreate a clear vision, expressed simplyCommunicate the visionEmpower others to act on the visionPlan for, and create, short-term winsConsolidate improvements and produce still more changeInstitutionalize the new approaches
9 Why Is Managing Human Resources So Important? Rapid ChangeUncertainty About Basic Business ConditionsRising CostsRapid Technological ChangeMore Limited Supplies of Highly Trained LaborRapidly Changing Government Legislation and RegulationsIncreased Globalization of Industries
10 Fitting HR Practices to Business Strategy and One Another Vertical Fit = the match between HR practices and overall business strategyHorizontal fit = the consistency and interrelationship among HR activitiesExternal fit = how well HR activities match the demands of the external environment
11 HR Fit Requires Right HR Choices StaffingAppraisingCompensatingTraining and DevelopmentEmployee InfluenceWork Systems
12 Approaches to IHRM Factors Affecting the Approach to IHRM Political Policies and Legal RegulationsManagerial, Educational, and Technological Development in the Host CountryHome and Host Country CulturesInternational Experience of the Firm
13 Approaches to IHRM Factors Affecting the Approach to IHRM (cont’d) Method of Subsidiary FoundingTechnology and the Nature of the ProductStrategic Importance of Particular Employee GroupsOrganizational CultureOrganizational Life Cycle
14 Managing Human Resources in a Foreign Subsidiary Culture and HR Functions within a Foreign SubsidiaryStaffing in the SubsidiaryTraining in the SubsidiaryAppraising Performance of Subsidiary StaffSubsidiary Compensation Systems
15 Approaches to IHRM Ethnocentric Approach Polycentric Approach Uniform strategy across unitsExporting HR practices from home countryExpatriates run HRM functions in subsidiariesPolycentric ApproachDiverse strategies across units, independent from HQPolicies adapted to meet circumstances, contextLocal managers direct HRMClosed Hybrid ApproachCompromise between Ethnocentric & PolycentricUses parent country template, adapted to local conditions
16 Approaches to IHRM Regiocentric Approach Geocentric Approach Regional grouping & integration of HR strategyDifferentiation across regionsStaffed by managers from countries within regionGeocentric ApproachPolicies developed to meet goals of global network of home-country & foreign subsidiariesGlobal overarching strategy on key issuesDifferentiated policies on local issuesOpen Hybrid ModelSubsidiary practices are a hybrid of activities meeting global and local demandsExtensive sharing of best practices among subsidiariesBest practices of home & host countries applied in integrative manner