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

stakeholders

Protecting 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

Retention, Motivation, Reward,

Diversity

Promoting ethics at work

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

Honesty, truthfulness, impartiality and incorruptibility

Competence and EfficiencyDealing with internal and external

stakeholders

Allegiance, Loyalty Independence

Working whitout bias with all cultures

Promote 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(misco

nduct, 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

Environmental degradation,

migration movements

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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