The selected Theme for the report is: The organizational contest, more specifically how the standardization and localization affect HHRR - Using examples
HRMT 621 – Paper Guidelines Each student will write a report (about 15 double-spaced pages; 3500-4000 words) where they will review the current academic and managerial literature on their selected topic. More specifically, you will research the complexities in the theory and practice as regards your topic, and focus on analyzing how your topic contributes to MNEs’ effectiveness in supporting their competitive abilities in the international business environment. Different Sections of a Paper/Report and Suggested Weights in the Grade Topics Grade Introduction (10%) · The introduction part should clearly state the topic, including the essential issue(s) and its related implications that will be discussed in the rest of the report 10 Analysis (40%) · Brief literature review on the chosen topic area · May consist of several sections or subsections where academic discussion, practice examples, and any other relevant aspects of your topic are presented · Subheadings can be preferred to identify different areas of your discussion · Clear and logical sequence of arguments, supported by research 40 Implications and Conclusion (30%) · How can the topic be successfully managed by the MNE? · How can the topic contribute to MNE’s competitiveness? · Your opinions and recommendations · Conclusion 30 Style/Mechanics (20%) APA · Citations/reference page follow APA guidelines · Properly cites ideas/info from other sources Grammar/Punctuation/Spelling · Rules of grammar, usage, punctuation are followed · Spelling is correct Readability/Style · Sentences are complete, clear, and concise · Sentences are well-constructed with a strong, varied structure · Transitions between sentences/paragraphs/ sections help maintain the flow of thought · Words used are precise and unambiguous · The tone is appropriate to the audience, content, and assignment 20 Grade on 100 100 Slide 1 Chapter 3 THE ORGANIZATIONAL CONTEXT ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 THE ORGANIZATIONAL CONTEXT c Click on an item to go to its section. Click on the book cover below to return to this table of contents. START Chapter 3 Chapter 3 Vocabulary Objectives Introduction Standardization and localization of HRM practices Factors driving standardization Factors driving localization The path to global status Control mechanisms TABLE OF CONTENTS ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 host country, parent country, third country, PCNs, HCNs, TCNs local staff, corporate culture agents of socialization international boundary spanners intrinsic and extrinsic rewards institutionalism perspective centralized set-up country-of-origin, host country, and home country effects reverse diffusion local responsiveness global standardization and localization SOEs, WOSs Six Sigma quality control IJV = international joint venture global innovator, local innovator transnational model Vocabulary (1 of 2) ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 integrated player, implementer export oriented approach vs. integrative management orientation corporate immune system knowledge-sharing hostility, knowledge hoarding person and non-person oriented coordination born globals, product/service-based global vs. area-based structure MNE structures: export, sales subsidiary, international division, global product/area division, matrix, mixed, heterarchy, N-form, transnational, network firm, multinational, network meta-nationals (M-N) = global tournament: with sensing, magnet, and marketing/production units greenfield building approach, chaebols = Korean conglomerates bamboo network/family firm structural-formal vs. cultural-informal control clan = social control social capital, mother-daughter structure Vocabulary (2 of 2) ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 We learn about: Issues of standardization and localization Structural responses to international growth Control and coordination mechanisms, including cultural control The effect of responses on HRM approaches and activities Objectives ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 Introduction Chapter 3 ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 Management demands of international growth Figure 3.1 ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 7 Standardization and localization of HRM practices Chapter 3 ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 Consistency Transparency Alignment Why globally standardize HRM? of a geographically fragmented workforce around common principles objectives ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 cultural values traditions legislation government policies education systems Why locally responsive HRM? regarding HRM and work practices To respect local ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 Balancing the standardization and localization of HRM in MNEs Figure 3.2 ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 11 Factors driving standardization Chapter 3 ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 MNEs that standardize Pursue multinational or transnational corporate strategies Supported by corresponding organizational structures Reinforced by a shared worldwide corporate culture ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 Factors driving localization Chapter 3 ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 Localization factors include: Cultural environment more social contextmore complete balance of extrinsic & intrinsic rewards more individual more extrinsic rewards or fast changing personal & social contexts Institutional environment (country-of-origin & HC) Mode of operation abroad Subsidiary role: e.g., global innovator, integrated player, implementer ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 Institutional effects on MNEs Figure 3.3 ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 16 Examples of the impact of the cultural and institutional context on HRM practices Table 3.1 Chapter 3 ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 17 Gupta and Govindarajan’s four generic subsidiary roles Table 3.2 6466 ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 18 The path to global status Chapter 3 ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 Organizational structures typically change due to Strain imposed by growth and geographical spread Need for improved coordination and control across business units Constraints imposed by host-government regulations on ownership and equity ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 Stages of internationalization Figure 3.4 ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 21 Export department structure Figure 3.5 ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 22 Sales subsidiary structure Figure 3.6 ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 23 International division structure Figure 3.7 ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 24 Two major MNE issues of structure Extent to which key decisions are made at PC headquarters or at subsidiary units (centralization vs. decentralization) Type of control exerted by parent over the subsidiary unit ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 Global product division structure Figure 3.8A ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 26 Global area division structure Figure 3.8B ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 27 Global matrix structure Figure 3.9 ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 28 Internationally, matrix is difficult Dual reporting can cause conflict and confusion Many communication channels can create information logjams Overlapping responsibilities can produce - turf battles - loss of accountability Distance, language, time, and culture barriers make it difficult for managers to resolve conflicts and clarify confusion ‹#› of 38 For use with International Human Resource Management 7e By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning Chapter 3 Matrix requires managers who know