International Human Resources Strategy Internationale Unternehmensführung Ao. Univ.-Prof. Dr. Josef...

International Human International Human Resources StrategyResources Strategy

Internationale UnternehmensführungAo. Univ.-Prof. Dr. Josef Windsperger

BIART SébastienFLAMAND AstridKAL Ali

OverviewOverview

• Introduction

• Emerging markets

• Knowledge-based view of the firm

• International staffing strategies

• Global mindset

• Model of management staffing strategy for emerging markets

• Conclusion

• Case study: Gillette

Introduction - 1Introduction - 1

• Globalization

4 drivers :

• Market Drivers

• Cost Drivers

• Competitive Drivers

• Government Drivers

Introduction - 2Introduction - 2

Need for completely new competitive differentiation

Importance of development and retention of globally

efficient managers

SIHRM

= Strategic International Human Resources

Management

Emerging marketsEmerging markets

• Emerging markets

• Characteristics :

• Low level of economic development

• Rapidly expanding population

• Acceptable opportunity / risk ratio

• Example : Mexico, Poland, China, etc.

Knowledge-based viewKnowledge-based view

• Main barrier to knowledge transfer

• Firm = institution for integrating knowledge

• Development by selecting and retaining

global managers with :

• Local social knowledge of emerging markets

• Understanding of the global objectives of the

organization

International staffing International staffing strategiesstrategies

• 3 kinds of approach :

• Ethnocentric

• Polycentric

• Geocentric

Ethnocentric approachEthnocentric approach

• Tight control of HQ

• Key positions filled by PCNs

• Drawbacks :

• Slow adaptation of PCNs

• Limited promotion opportunities for HCNs

• PCNs not always cultural sensitive

Polycentric approachPolycentric approach

• Scattered control through different HQs

• HCNs are recruited to manage foreign

subsidiaries

• Drawbacks :

• Loss of control

• Limited opportunities for HCNs to gain

experience outside of their own country

Geocentric approachGeocentric approach

• Best people for key jobs, regardless of nationality

• Development of a pool of senior international managers

• Reduces identification of managers with subsidiary units

Global mindsetGlobal mindset

• It a way of being rather than a set of skills

• It means the ability to scan the world from a broad perspective

• Need for knowledge and skills to sustain and develop it !

Managerial mindsetsManagerial mindsets

• The defender

• The explorer

• The controller

• The integrator

Model of management Model of management staffing strategystaffing strategy

• Analyse of the contextual factors influencing the staffing choices

• Based on knowledge-based view of the firm

• Consists of 4 propositions

The modelThe model

Firm global HRM orientation

(i.e. Geocentric Global Mind-Set)

Percieved Value of Taciteness of

Local Country Knowledge

RELEVANCE OF THE CONTEXT OF HOST COUNTRY IN EMERGING MARKETS

Economic level difference

Cultural distance

Variability

CONTROL VARIABLES

Industry structure,MNC structure,

Etc.

Equivocality of subsidiarityPerformance goals

Value-AddingStaffing Choices

For Emerging Markets

Teachability

Codifiability

Complexity

ExpatriateHCN

TCN

Inpatriate

The degree of the firm’s geocentric

strategic HRM orientation will be

positively related to the

perceived value of tacit local

knowledge for the firm’s strategy

in emerging markets

Proposition 1Proposition 1

The modelThe model







Cultural distance

Variability

CONTROL VARIABLES


Etc.




Teachability

Codifiability

Complexity

ExpatriateHCN

TCN

Inpatriate

Proposition 2Proposition 2• Low difference in economic development and

low cultural distance between home and host countries will increase the association between the firm’s TMT’s global mindset and the perceived value of the tacit local knowledge.

• High difference in economic development and high cultural distance between home and host countries will reduce the association between the firm’s TMT’s global mindset and the perceived value of the tacit local knowledge.

The modelThe model







Cultural distance

Variability

CONTROL VARIABLES


Etc.




Teachability

Codifiability

Complexity

ExpatriateHCN

TCN

Inpatriate


In emerging markets, equivocality of subsidiary goals to corporate management is positively related to the perceived value of tacit local knowledge for the firm.

The modelThe model







Cultural distance

Variability

CONTROL VARIABLES


Etc.




Teachability

Codifiability

Complexity

ExpatriateHCN

TCN

Inpatriate


• If the value of the local tacit knowledge is perceived as high by the firm management, then the preferred management staffing strategy in emerging markets will be impatriation

• If the value of the local tacit knowledge is perceived as low by the firm management, then the preferred management staffing strategy in emerging markets will be expatriation

The modelThe model







Cultural distance

Variability

CONTROL VARIABLES


Etc.




Teachability

Codifiability

Complexity

ExpatriateHCN

TCN

Inpatriate

Value-adding staffing Value-adding staffing choices (1)choices (1)

•Expatriates:

•cost/failure/performance records

are questionable

•Reintegration problems

•Dual-career couple (women…)

Value-adding staffing Value-adding staffing choices (2)choices (2)

• Inpatriates:• linking-pin role between headquarters and the

foreign subsidiary .• provide valuable specialized knowledge input

about HR function in emerging markets• provide mentoring to high potential managers

from emerging host country nations to insure a succession plan

• BUT must not be viewed as peripheral but as a part of the core global management team

Value-adding staffing Value-adding staffing choiceschoices

•Globalization strategy = insure an adequate number of qualified global managers

•Inpatriation fulfils the need for social knowledge in global decision making

•Concept should be adapted to particular situation

ConclusionConclusion

Case studyCase study

Gillette’s Prescription for International Business Success :

In-House Training and Expat Experience

Background on GilletteBackground on Gillette

• Multinational company (57 manufactures in 28 countries)

• 90 years of international experience• Divisions / Geographic groups• Regiocentric approach to

international management regiocentric approach to international management

International HR strategyInternational HR strategy

“ One of my key objectives is to identify, recruit and develop competent managers. I am confident that these good people will generate a flow of business growth and profits for the future. ”

- Dieu Eng Seng, Vice-President Asia Pacific

Key StrategiesKey Strategies

1. International Trainee Program

2. Development through expatriate experience

International Trainee International Trainee ProgramProgram

• Program launched in 1983

• “Inpatriation” of students from subsidiary countries

• 18 months of training at regional headquarter (Boston, London or Singapore)

ITP : 3 main objectivesITP : 3 main objectives

• Personal development

• Better communication between headquarters and subsidiaries

• Emergence of a new breed of multilingual, open-minded global managers

Development trough Development trough expatriate experienceexpatriate experience

• Hiring and assigning foreign nationals to staff operations not only in their home countries but around the world

• They teach and develop other potential managers within the organization (next generation…)

ConclusionConclusion

• Inpatriate concept adapted in the future

• Increasing transferability of management

International Human Resources Strategy Internationale Unternehmensführung Ao. Univ.-Prof. Dr. Josef...

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