Global hr forum2008-yasho_verma-hrd and utilization strategy of global enterprises in korea and middle east

HUMAN RESOURCE DEVELOPMENTHUMAN RESOURCE DEVELOPMENTAND UTILIZATION STRATEGY OFAND UTILIZATION STRATEGY OF

GLOBAL ENTERPRISES IN GLOBAL ENTERPRISES IN KOREA AND MIDDLE EASTKOREA AND MIDDLE EAST

Dr. Yasho Verdhan Verma

Global HR Forum – 2008 : April 21-22, DubaiLG Electronics India Ltd.

AGENDA FOR DISCUSSION AGENDA FOR DISCUSSION ……

• The phenomena of ‘Globalisation’

• Knowledge Management strategies of global enterprises

• Knowledge accumulation through Industry-Academiccooperation

• Global trends in Human Resource Development

• HRD trends in South Korea and the Middle East

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GLOBALISATION GLOBALISATION –– INTEGRATING ECONOMIESINTEGRATING ECONOMIES

• Omnipresence of information

• Knowledge – A factor ofpolarization

• Managing Diversity andCulture

Key ChallengesKey Challenges

• Exodus of Talent

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The growth rates in the US and Europe are being eclipsed by The growth rates in the US and Europe are being eclipsed by competitors further East competitors further East

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THE KNOWLEDGE MANAGEMENT PREPOSITIONTHE KNOWLEDGE MANAGEMENT PREPOSITION

GLOBALINTEGRATION

KNOWLEDGEBASED

ECONOMY

TECHNOLOGYCHANGE

KNOWLEDGEKNOWLEDGEMANAGEMENTMANAGEMENT

• Trade• Investment• Capital flows• Skilled labour

• Growth of the Internet

• Increased investment in R&D

• Strategic acquisitions

• Telecommunicationboom

• Increased ITinvestments

LG Electronics India Ltd.

ACADEMICACADEMIC--INDUSTRY COLLABORATIONINDUSTRY COLLABORATION

Industry-specific R&D

Government-Industry technology transfer

University-Industry research centres

Industry oriented academic courses

• Access to complimentary capabilities• Access to specialised skills• Access to state-of-the-art facilities

Industry-Academic partnership : LG Case

LG partnered with Helsinki School of Economics Executive Education (HSEEE), leaders in international mgmt. education in Finland, for a company-specific Executive MBA programme for its top management

International MBAPractical approachEnglish language Work-Study balance

CORE MODULES• Economics for Executives• Management Accounting• Human Resource Mgmt• Intl Operations Mgmt• Intl Mktg Mgmt• Strategic Mgmt & Corp Strategy• Mgmt Communication

LEARNING PROCESS• Group interaction• Examinations

• Reading material• Case analysis• Simulations• Presentations

• Inter-cultural orientation• Strong inter-personal relationship• Global opportunities• Expansion of global business

perspective• Adapt to changing global env.

Outsourcing Talent Management

Productivity

InnovationWork-Lifebalance

HR impact onbottom line

GLOBAL HRGLOBAL HRCHALLENGESCHALLENGES

Demographictrends

Workforceengagement

LG Electronics India Ltd.

SOUTH KOREA SOUTH KOREA –– AN EMERGING ECONOMYAN EMERGING ECONOMY

SOURCE : MoonHee Kim, Min. of Edu & HRD, Republic of Korea

LG Electronics India Ltd.

South Korea – Economy at a Glance

• South Korean economy has grown 5.9% p.a. for the last40 years

- GNP per capita : $87 (1962) > $14,105 (2004)

• South Korean economy has been stagnant for the last 10 yrs

- GDP growth rate : ’80s (8.3%) > ’90s (6.0%) > ’00s (4~5%)

• Source of growth during the industrial era : Physical capitaland Labour

• Engines of growth in a knowledge-based economy :

Knowledge, Human Capital and Social CapitalKnowledge, Human Capital and Social Capital

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SOURCE : MoonHee Kim, Min. of Edu & HRD, Republic of Korea

Leapfrog is needed !!

LG Electronics India Ltd.

LG Electronics India Ltd.

CHANGING HRD TRENDS IN SOUTH KOREACHANGING HRD TRENDS IN SOUTH KOREA

Global bestpractices

HR practicesIn Korea

• Internal labour mkt-based • External labour mkt-based

• Seniority-based perf. evaluation • Performance-based perf. evaluation

• People based • Work based

• Domestic based • International based

• Vertical structure • Horizontal structure

• Generalist • Specialist

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MIDDLE EAST ECONOMY AT A GLANCE MIDDLE EAST ECONOMY AT A GLANCE

• Accelerating GDP (3.6% in ’90s > 6.3% in 2006)

• High oil prices

• Boom in real estate prices

• Increase in government spending

• Growth in employment rates (4.5% growth in last 5 years)

• Abundance of natural and oil resources

• Potential for agricultural development

LG Electronics India Ltd.

CHANGING ROLE OF HRD IN MIDDLE EASTCHANGING ROLE OF HRD IN MIDDLE EAST

Avg. spending on HR function (as a % of operating cost)

• 62% of ME orgn significantly involved in creating HR strategy(E&Y survey)

• Manpower planning an integralpart of business plan

• 62% orgn adopted change instructure in last 2 yrs

• 75% cos. had a well definedgrading structure

• 85% cos. had a well definedvision statement

• 67% cos. regularly conducted an organisational culture assessment

LG Electronics India Ltd.

THE ROAD AHEAD THE ROAD AHEAD ……

Reduce South Korea’s dependency on tri-polar economies

Overcoming protectionism and economic regionalism

Achieving higher levels of manpower productivity

Maintaining peace in the region for economic stability

Ability to cope with warring segments

Talent Management amongst employees

SOUTH KOREA

MIDDLE EAST

LG Electronics India Ltd.

CHANGING ECONOMIC

SCENARIOKnowledgeKnowledge

MgmtMgmt

Role ofRole ofHRD HRD

SUCCESSFULSUCCESSFULGLOBALGLOBAL

ENTERPRISESENTERPRISES

HRD and Knowledge Management play a pivotalHRD and Knowledge Management play a pivotalrole in achieving global success in a constantly role in achieving global success in a constantly dynamic economic scenariodynamic economic scenario

TOWARDS A GLOBAL ENTERPRISE TOWARDS A GLOBAL ENTERPRISE ……

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