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Global3e_ch14_ppt_slides.pptxChapter 14
Transforming the Global Human Resource Role
© Evans, Pucik, Björkman 2010
The Global Challenge
1
HR at KONE
Originally composed of autonomous units
Increased focus on global HR integration – new values, one strategy
Designing and implementing core HR processes
Two strategic challenges in the future:
Digitalization
Collaborate with external partners
Move towards emerging markets
Find, develop, retain talent
How should HR help the company address these & other challenges?
14-2
© Evans, Pucik, Björkman 2010
The Global Challenge
Challenges Facing the Global HR Function
Key Issues for transnational HR:
Adaptation of policies and practices to local markets, culture, and institutional features, but also pursuit of global integration
Coordination to meet global and local needs
Social architecture: shared values, social capital, global mindset
The core HR processes in international HRM:
Recruitment and selection
Performance management
Leadership development
Cross-border mobility
Access, share, and recombine knowledge for innovation
Management of large, complex processes of change
Change and learning in international M&As and alliances
14-3
© Evans, Pucik, Björkman 2010
The Global Challenge
The HRM Wheel
14-4
© Evans, Pucik, Björkman 2010
The Global Challenge
Providing HR Functional Expertise
Tensions between local responsiveness and global integration:
Balance between standardization and sensitivity to local needs
Find and exploit HR practices successful in one part of the company
Ensure HR practices support business objectives
Solutions:
Functional experts at headquarters
Deep specialization – too home-country centered?
Centers of expertise
Challenge of consistency
Functional committees or communities of practice
Cross-boundary project groups
Those in the centralized hub need expertise from subsidiaries
Network leadership
14-5
© Evans, Pucik, Björkman 2010
The Global Challenge
Network Leadership
The center needs expertise from subsidiaries
HR function and the line – both key stakeholders
This requires Network Leadership skills:
1. An awareness of leading-edge trends and developments
Internal and external networking
2. The ability to mobilize the appropriate resources
Forming project groups requires credibility and stakeholder analysis
3. A sense of timing and context
Long-term corporate initiatives can distract when priority is short-term goals
14-6
© Evans, Pucik, Björkman 2010
The Global Challenge
HR Service Delivery
e-HR tools allow self-help
Employees can find answers to routine questions and issues
Dealing with system issues takes time; employees must adopt self-help attitude
HR service centers have regional and global scope
Decreases personalization (user dissatisfaction), increases specialization
Some HR tasks can be outsourced with global support
Software platforms for HR outsourcing may reduce costs
Outsourcing may free up time for strategic HRM
But be careful what you outsource; some of it is better kept inside
These mechanisms are complementary, often used in parallel
14-7
© Evans, Pucik, Björkman 2010
The Global Challenge
Contribution to Business Decisions
Contribute to discussions about people aspects of strategy and organization
Pay attention to change management implications – what will it require?
Evaluate candidates for key positions and do ground work for talent reviews
Complete mundane, “how to tasks” such as resolving employee concerns
Important for HR to “have a seat at the table”
14-8
© Evans, Pucik, Björkman 2010
The Global Challenge
Integration
Differentiation
Broker of services
(outsourced)
14-9
Organization of HR in the Transnational Firm
Global staff
Local/business
unit staff
Service center
(local)
Regional staff
Communities of
practice
Committees/
project groups
Centers of expertise
Service center
(global)
© Evans, Pucik, Björkman 2010
The Global Challenge
What are the Boundaries of HR?
How does HR provide value to external customers?
Training and development or advice concerning HRM
How does HR work with suppliers?
Improve their effectiveness
Ensure their compliance with labor
regulations and ethical standards
Influence their environmental conduct
14-10
© Evans, Pucik, Björkman 2010
The Global Challenge
HR versus Top and Line Management
Visible management commitment is crucial for HRM to be successful.
The line at all levels must be involved and feel at least joint responsibility for:
Development of HRM processes and content aligned with business strategy
Implementation of most HR practices - selection, development, performance mgmt.
Devolvement of people management to line managers often challenging:
Line managers are not necessarily committed to people management issues
Managers don’t take the necessary time to handle HRM
Managers don’t have the ability and necessary functional knowledge
Managers have unit’s short-term interests in mind, not broad global goals
Acceptability of the people management role differs across countries
14-11
© Evans, Pucik, Björkman 2010
The Global Challenge
Line and HR Manager Views about the HR Function
14-12
| HR managers (%) | Line managers (%) | |
| HR is an administrative, not a strategic department | 51 | 60 |
| HR doesn’t provide enough support to line managers | 43 | 58 |
| HR relies too much on best practices—some of which are inappropriate—when designing systems | 30 | 38 |
| HR is not held accountable for success or failure of talent-management initiatives | 36 | 64 |
| Talent management is viewed as the responsibility of HR | 58 | 36 |
| HR lacks authority/respect to influence the way people are managed | 38 | 47 |
| HR lacks capabilities to develop talent strategies aligned with business objectives | 25 | 58 |
Source: Guthridge, Komm, and Lawson, 2008
Same function, different perceptions
© Evans, Pucik, Björkman 2010
The Global Challenge
Developing the Capabilities of the HR Function
HR Competencies
Credible activist (personal trust through business acumen)
Strategic positioner (thinking and acting by mastering the business)
Capacity builder (mixing individual competencies & organizational ones)
Change champion (making sure things happen)
HR innovator and integrator
Tech proponent (using tech to deliver HR and build relationships)
Ability to use business analytics
14-13
© Evans, Pucik, Björkman 2010
The Global Challenge
HR Competencies for the Transnational
All HR managers and professionals need:
General functional knowledge
Business understanding
Global mindset
Partly role-specific competencies:
Expertise role
Service delivery
Contributor to business
decisions
HR director
14-14
© Evans, Pucik, Björkman 2010
The Global Challenge
Developing HR Managers for Transnational
Competence Development
Mobility - Zigzag talent development helps build skills outside the HR function
Mentors from other functions
Cross-Functional Transfers
Hi-Po’s should see HR as a part of career development
Care must be taken of people’s development in the HR function AND their exit
14-15
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The Global Challenge
Challenges Worth Standing Up For
Speaking out for organizational sustainability
Climate of openness is important – people need to be comfortable speaking up
HR will get blamed when things go wrong, even if people knew about it.
Fighting for the long-term perspective
Pressures for short-term goals are common
Fight to retain necessary competency during layoffs - anticipate the future
Taking into account the social implications of globalization
Remember those that fall behind - doing nothing undermines achievements
Be a catalyst in building a responsible culture
14-16
© Evans, Pucik, Björkman 2010
The Global Challenge
HRM as Tension Management
The transnational organization is defined by contradictions
Leaders must recognize and understand dualities – work in split egg ways
The task of HR and line is to navigate contradictions, not resolve tensions
Global seesaw doesn’t stand in balance – it moves back and forth
HRM is both line responsibility and functional role
“People are not resources, they are people”
14-17
© Evans, Pucik, Björkman 2010
The Global Challenge
14-18
© Evans, Pucik, Björkman 2010
The Global Challenge
