Globalization and HRD
People advantage strategies, current and future
HRD challenges.
1
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
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
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
Changes/Impact
Equality
Labor Conditions
Wages
Job opportunities
Economic conditions
Labor productivity
Access to goods
Working standards and health conditions
Prices of goods and services
Pensions
Supply of good and services
Unions and employee relations
Globalization
Government
Culture and Community
Economic development
Cross border ties & ethnic identity
Interdependence on trade and investment
Mobility and rural life
Proliferation of NGOs
Cultural homogenization
Increase role of MNEs and pressure on local
communities and government
Disintegration of local communities
(Osland, 2003)
5
The marketplace & organizations
1. Competitiveness
2. New technologies
7. Flow of information and
knowledge
3. Rapid Changes
8. New skills
4. Privatizations and
9. Workforce mobility
outsourcing
10. Mergers , takeovers
5. Financial opportunities 11. Refocus on customers
& constraints
6. Cultural diversity
(Ruona & Gibson,2004)
6
Change in the HR Function
Before
Now
Transactional
Understanding business, internal and
external and the global context
Reactive
Strategically proactive and innovative.
Acquiescence & working in isolation
HR Leaders: architects, strategic
partners
Administrative
Shape partnerships
Apply policies
Integrate changes and transformations
Policy police, bureaucrats, administrators,
regulators
Clear & measurable deliverables. HR
accountable for them.
(Wellins, 2000) (Ulrich, 1998) (Ulrich, et.al,. 2007) (Brockbank, 1999)
(Ulrich, Brockbank, & Johnson, 2009)
7
Impact on HRD
Recruitment and
retaining high
quality
employees
Building strong
values and
organizational
culture
People are
central to
organization
success
HRD roles in a
globalized
context
Performance
management
(Wellins,2000) (Broackbank,1997)
(Ruona & Gibson,2004)
changes &
transformat
ions
Strategic
alignment
and impact
Leadership
development
8
Global Mobility
Scarcity
of skilled
labor
Innovative
international
resourcing
Global Mobility
(Ulrich, 2007) (Brokbank, 1997)(Wilson, 2008) (
Odell & Spielmann, 2009)
Manage
expatriates
assignments
9
HRD Strategic Interventions in Resourcing
Evaluate and
measure
impact with
scorecard
Review policies
and practices
Recruitment
strategy aligned
with business
strategy
Strategic
Sourcing
Manage
change
process and
involve
stakeholders
Align with
competency
framework
Align with
Learning and
Development
& Perf.Mgt
Line managers
devolution and
development
Enhance skills
in the HR Unit
10
Analysis
1.
2.
3.
4.
5.
6.
External labor market
Internal demographic
Innovative processes
Outreach
Career development, promotion
Retention measures
11
Strategic Issues in Expatriates' Assignments
Ineffective
induction ,
socializations and
adaptation
initiatives
Ineffective
handling of
repatriation
(Cooper-Thomas, & Anderson,2006) (Pate, &
Scullion, 2010) (Paik, Segaud, & Malinowski,2002)
(Osman-Gani, & Hyder, 2008)
Dissatisfaction,
poor job
performance,
turnover
Misalignment with
learning and
development
Lack of
attention to
cultural
behaviors.
12
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
Benefits for Organizations
Strategic
Socialization
initiatives
HR as
strategic
business
partner
Develop
knowledge,
motivation,
commitment
Integration with
the Team and
the organization
Enhance job
performances
Foster cultural
integration
(Sanders & Kleiner, 2002) (
Marx,2006) (Schein,1988)
14
• And now……….. the other side of going global
15
16
17
18
19
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Video: The Hidden Face of Globalization
21
Corporate Social Responsibility
Conducting business in
ethical way internally
and externally
Meeting global
standards (social,
environmental and
human rights)
(Chartered Instituted of Personnel
Development ,2009)
Relationships external
shareholders and
stakeholders
Protecting company’s
brand; scanning the
environment
Corporate
Social
Responsibility
22
23
HRD role in CSR
Changing culture,
values and aligning
HR policies
Promoting ethics at
work
Retention,
Motivation, Reward,
Diversity
Building partnerships
HR adds
values and
becomes
strategic
(Garavan, & McGuire, 2010) (Fenwick, & Bierema,2008) (CIPD, 2009)
Learning and
development.
Organizational justice,
and promoting an
enabling environment
24
What do we mean for ethics?
1. Conflict of interest 2. Improper hiring 9.
Lying to employees/
Misuse of confidential
stakeholders 3. Abusive information
behavior 4. Misuse of
assets 5. Discrimination
& Harassment
6. Safety violations 7.
25
Dimensions of Integrity
Honesty, truthfulness, impartiality and
incorruptibility
Competence and Efficiency
Dealing with internal and external
stakeholders
Integrity
Allegiance, Loyalty
Working whitout bias with all
cultures
Independence
Promote equality
Respect the dignity of others
(UN International Civil Service Commission[ICSC])
26
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
(SHRM, 2009)
28
Corruption Perception Index 2010
(Transparency International, 2010)
29
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.
(KPMG, 2010)
30
Business Ethics: Strategic HRD approach
Step 5:
Step 1
HR achieving
performance
and
employee
efficiency
HR engaging
partners,
build
consensus
Step 4:
Leadership
development
and shaping
cultures
HR
Strategic
Partner
Step 2:
HR aligning
ethics and
CRS into the
strategy
Step 3:
HR focusing
on core
values and
corporate
ethics
(Ledwidge, 2007; Wood 2007; Peppas, 2006; Rossouw, 2009; Cartwright & Craig, 2006; Garavan & McGuire, 2010; Zairi & Shahin,2007)
31
HRD & Ethics
Values
embedded
strategy
Competency
framework
aligned with
Perf.Mgt and
L&D
Orientation
and workshops
Adherence to
Policies(miscon
duct,
discrimination)
(UNDP Transparency)
Measure
behaviors with
metrics,
surveys and
scorecard
HR plays a
strategic role
in business
ethics
32
HRD Impact
Integrity : Commitment
to ethical standards,
values and principles
Enabling &
learning
organization
Staff morale and
motivation
Workforce
Performances
& Organization
Success
Organization's
reputation
(Ledwidge,2007 ) ( Wood, 2007 ) (Cartwright & Craig , 2006).
Harmonious
working
environment
33
• Now the “global” downside of globalization
34
35
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
37
38
The globalization’s downsides
Climate
changes
Scarcity of
resources
Divide between
rich and poor,
extreme
poverty
Social injustices,
human rights,
democratic
governance,
transparency
Globalization
Technological
Changes
Environmental
degradation,
migration
movements
Deterioration
of labor
standards,
gender
equality
(Lee,2006) (Osland, 2003) (McLean, 2004)
39
By contrast …………
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
(Marquardt, 2005)
40
New Role for HRD and NHRD
HRD shapes
organizations
valuing and
meeting
employees needs
Look beyond
organizations.
Engage holistically
in national
policies
National HRD as
strategy at all
levels to improve
human
development
HRD and NHRD
impact on global
challenges and
human
development
Establishing,
promoting
developing and
assessing skills &
talented staff
Developing
values,
motivation&
involvement,
culture &
diversity
(Garavan & Macguire,2010; Lockwood,2004; Marquardt & Berger, 2003; Russ-Eft & Hatcher, 2003; Lee, 2007; Lynham & Cunningham, 2006;
41Mc
Lean 2004; Cho & Mc Lean, 2006 )
Development and HRD
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
1. Build democracies and
transparent governements
2. Balance economic growth
3. Global Leadership
4. Technology
5. Environmental challenges
(Marquardt, & Berger, 2003 )
HRD Trends and Challenges
HRD Trends
HRD Challenges
Learning and human development
HRD's influence, impact and
credibility
Knowledge management
Evaluation and return on investment
Change and organizational
systems
HRD identity and identify stakeholders
(Ruona, Lynham, & Chermack, 2003)
43
Summary of what we have discussed !
44
Thank you for your attention!
Q.& A.
45
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