Globalization and HRD
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Globalization and HRD
People advantage strategies, current and future HRD challenges.
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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
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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).
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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
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Changes/Impact
EqualityWagesEconomic conditions Access to goodsPrices of goods and services Supply of good and services
Labor ConditionsJob opportunities Labor productivityWorking standards and health conditions PensionsUnions 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 CommunityCross border ties & ethnic identityMobility and rural lifeCultural homogenization Disintegration of local communities
Globalization
(Osland, 2003)
(Ruona & Gibson,2004) 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
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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)
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Impact on HRD
HRD roles in a globalized context
People are central to
organization success
changes & transforma
tions
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)
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Global Mobility Scarcity
of skilled labor
Innovative international resourcing
Manage expatriates
assignments
(Ulrich, 2007) (Brokbank, 1997)(Wilson, 2008) ( Odell & Spielmann, 2009)
Global Mobility
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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
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Analysis
1. External labor market 2. Internal demographic 3. Innovative processes4. Outreach5. Career development, promotion 6. Retention measures
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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
culturalbehaviors.
Ineffective handling of repatriation
(Cooper-Thomas, & Anderson,2006) (Pate, & Scullion, 2010) (Paik, Segaud, & Malinowski,2002)
(Osman-Gani, & Hyder, 2008)
(Davis, & Kleiner, 2001) 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)
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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)
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• And now……….. the other side of going global
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Video: The Hidden Face of Globalization
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Corporate Social Responsibility
(Chartered Instituted of Personnel Development ,2009)
Corporate Social
Responsibility
Meeting global standards (social,
environmental and human rights)
Conducting business in ethical way internally and
externally
Relationships external
shareholders and stakeholdersProtecting
company’s brand; scanning the environment
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HRD role in CSR
(Garavan, & McGuire, 2010) (Fenwick, & Bierema,2008) (CIPD, 2009)
HR adds values and becomes strategic
Changing culture, values and aligning
HR policies Building partnerships
Learning and development.
Organizational justice, and promoting an
enabling environment
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What do we mean for ethics?
1. Conflict of interest2. Lying to employees/ stakeholders3. Abusive behavior4. Misuse of assets5. Discrimination & Harassment
6. Safety violations7.
Improper hiring9. Misuse of confidential information
Dimensions of Integrity
Competence and EfficiencyDealing with internal and external stakeholders
Allegiance, Loyalty Independence
Working whitout bias with all culturesPromote equality Respect the dignity of others
Integrity
(UN International Civil Service Commission[ICSC]) 26
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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)
(SHRM, 2009) 28
(Transparency International, 2010) 29
Corruption Perception Index 2010
(KPMG, 2010) 30
KPMG Fraud Survey 2009
1. 32% believe that fraud was going to remain steady or increase in their organization.
2. 27% lack effective policies on how to conduct investigations and 33 % how to remedy control breakdowns.
3. 67% believe improvements are needed in employee communication and training.
Business Ethics: Strategic HRD approach
(Ledwidge, 2007; Wood 2007; Peppas, 2006; Rossouw, 2009; Cartwright & Craig, 2006; Garavan & McGuire, 2010; Zairi & Shahin,2007 ) 31
Step 1HR 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 Strategi
c Partner
(UNDP Transparency) 32
HRD & Ethics
Values embedded
strategy
Competency framework aligned with
Perf.Mgt and L&D
Orientation and
workshops
Adherence to
Policies(misconduct,
discrimination)
Measure behaviors
with metrics,
surveys and scorecard
HR plays a strategic role in
business ethics
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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).
Workforce Performances
& Organization Success
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• Now the “global” downside of globalization
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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
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The globalization’s downsides
Globalization
Climate changes
Scarcity of resources
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)
(Marquardt, 2005) 40
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
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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 )
(Marquardt, & Berger, 2003 )
Development and HRDChallenges
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
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HRD Trends and Challenges HRD Trends
Learning and human development
Knowledge management
Change and organizational systems
(Ruona, Lynham, & Chermack, 2003)
HRD Challenges HRD's influence, impact and credibility
Evaluation and return on investment
HRD identity and identify stakeholders
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Summary of what we have discussed !
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Thank you for your attention!
Q.& A.
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References
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