EXAM 3 Full review Module 9, 10, 11, 14

Responsibilities of The International Human Resource Manager

Estimation o workforce, Recruitment and selection, Training and development, motivation, compensation, Employment Termination

Challenges faced by International Companies

Attracting and Retaining Talent, Developing Talent in the firm, Managing Performance, Creating Leadership teams, making decisions

Factors Impacting The global Supply and Demand of Talent

Size of the workforce, Aging Population, urbanization of the workforce, immigration Labor, Guest workers, and labor unions

Brain Drain

Loss by a country of its most intelligent and best-educated People

Reverse Brain Drain

Occurs with the return home of highly skilled immigrants who have contributed in their adopted country

How do international HRM Departments help ICs achieve its competitive strategies

Aligning HR practices with global business objectives, ensuring compliance with diverse labor laws, and fostering a cohesive corporate culture across international locations

Global Mindset

Having Intellectual Intelligence and Global Emotional Intelligence

Leader

Innovates, Develops, Challenge Status Quo, Long range Perspective, originates, and inspires

Manager

Administrates, maintains, accepts it, short term perspectives, imitates, and controls

Global Leadership vs Domestic Leadership

Multiplicity, Interdependence, Ambiguity, and Dynamism, are over lapping dimensions of complexity

Six Leadership Style

Performance-oriented, Team-Oriented, Participative, Humane, Autonomous, and Self-Protective

Competencies required for effective global Leadership

See differences, Make connections, adjust, Integrate and Lead Change, and Localize

Mintzberg’s Global Leadership Role

Monitor, Spokesperson, liaison, leader, negotiator, Innovator, Decision Maker, Change Agent

Level 1

Global Knowledge

Level 2

Threshold Traits

Level 3

Attitude and OrientationsL

Level 4

Interpersonal Skills

Level 5

System Skills

Organizational Design

A process that determines how a company should be organized to ensure its worldwide business activities

Organizational Structure

The Formalization of roles, responsibilities, relationships, and hierarchies

Key Points abt Organization Structure

It Changes over time as the company changes size, adapts, and redesigns. Is Closely aligned with the IC’s Strategic panning process. Main Issues to consider (1) What departments do we need, and (2) How to best coordinate efforts among departments

International Division Structure

Is at the same level as the domestic division, one single division responsible for all international operations, difficult to manage and coordinate as volume of sale and product increase

An international company that has limited foreign sales as percentage of total sales, and low foreign product diversity, is likely to adopt which organizational structure?

International Division Structure

Strengths and weakness of having an International Division

Strengths: Focused Expertise by having a dedicated team, Easier to adapt to international Markets

Weakness: Potential for Conflict by separating domestic and international operations, Lack of Communication and coordination

Worldwide Product Division

Domestic Division is given responsibility for the global product line and staff operations, Product Divisions are responsible for global product operations, Management and Coordination is done at a product level

When do companies move from an international division to a global product division?

Develop Competitive Strategy, Reduce production costs, Efficient allocation of resources

Geographic Region Structure

Geographic area managers responsible for all regional activities and report directly to CEO, Simplifies task of directing worldwide operations - every country under control with someone close to HQ, Popular with companies that manufacture diverse products

Global Functional Structure

Few international Companies are organized by function at the top level, May be used by companies with narrow and highly integrated product mix such as oil refining companies or aircraft manufacturers

Hybrid Organizational Structure

Mixture of organizational forms at the top level, Often the results of a regionally organized company introducing a new product line that management believes is best handled by a worldwide product division

Regional - Product Matrix Organization

Organizational Structure composed of one or more superimposed organizational structures to mesh expertise, there are disadvantages and has kept most worldwide companies from adopting it

Holacracy

System for managing a company where there are no assigned roles and employees have the flexibility to take on various tasks and move freely between teams

Subsidiaries

Companies controlled by other companies through ownership of enough voting stock to elect a majority of the voting members

Affiliates

Companies controlled by other companies, but less-than-majority owners may exercise control by a variety of means

Challenges associated with Foreign Subsidiaries, JV’s, and Affiliates

The competence of Subsidiary management, HQ’s commitment to the subsidiary, the relationship and demand for power, loss of freedom and flexibility

Reason Companies do business abroad

Access Larger markets

Diversification of clients and markets

lower dependence from the domestic markets

increase possibilities to benefits form transfer and allocation of resources

access to foreign local markets

easier access to international capital and labor markets

better access to sources of raw materials

What is International Strategy

A plan that guides the way firms make choices to achieve their international objectives

To be effective, a company’s international Strategy must be consistent across all functions in and outside the company

Example of International Strategy

A company manufactures phones and wants to expand into the Indian Market

1. Manufacture phone in India for sale in India and export to US

2. Alt, Export phones to India and invest in international Marketing Strategies to increase consumers

International Management (Prof. Dr. Schmid)

Finding the right answer to the precious of globalization, in terms of Strategy, organizational structure an corporate culture

Five Fundamental Questions for International Strategy

1. How do i go abroad

2. what are the target markets and appropriate segments in each country

3. what is the right approach to timing, before or after competitors

4. what is the appropriate way of organizing my value chain across borders

5. how should i coordinate activities across the globe

Why is International Strategy Necessary

Competitive Advantage: Achieve and maintain a unique and valuable competitive position

To Achieve Sustainable Competitive Advantage

(VRIO)

1. Create Value for Cxs to pay

2. are Rare

3. Difficult to Imitate or substitute

4. Allow the firm to be Organized to fully exploit the competitive potential

Plan

A logical or orderly sequence of steps, procedures, or actions for accomplishing an objective

Strategic Planning

the process by which an organization determines where it is going in the future, how it will get there, and how it will assess whether and to what extent it has achieved its goals

Time Horizon

Short: Operational goals

Medium: Setup Strategic partnerhsips

Long term: Develop a new Business line

the Definition various across industries

Top-Down (Planning Method)

Begins at highest level and continues downward. Corporate HQs provide guidelines to the rest of the organization

Bottom-Up (Planning Method)

Begins at the lowest levels and continues upward. Operational lvls informs top management about what they expect to do, and these become the firm’s goals

Iterative (Planning Method)

Repetition of Bottom-up or top-down process until all differences have been reconciled

7 Steps of Global Strategic Planning Process

1. Analyze Domestic, International, and foreign environment

2. Analyze corporate controllable variables

3. define the corporate mission, vison, and values statement

4. set Corporate Objectives

5. Quantify the Objectives

6. Formulate competitive strategies

7. Prepare Tactical Plans

High Pressure to Reduce Cost, and Low Pressure for local Adaptation

Global Strategy

Low Pressure to Reduce Cost, and Low Pressure for local Adaptation

Home Replication Strategy

High Pressure to Reduce Cost, and High Pressure for local Adaptation

Transnational Strategy

Low Pressure to Reduce Cost, and High Pressure for local Adaptation

Multidomestic Strategy

Equals Part of Pressure to Reduce Cost and Pressure for local Adaptation

Regional Strategy