The Global Challenge: International Human Resource Management

722 Pages·2009·5.043 MB·English

by  Paul Evans, Vladimir Pucik, Ingmar Bjorkman

The Global Challenge

The Global
Challenge
International Human
Resource Management
Second Edition
By Paul Evans
INSEAD
Vladimir Pucik
IMD
Ingmar Björkman
Hanken School of Economics
THE GLOBALCHALLENGE, SECOND EDITION
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ISBN 978-0-07-353037-6
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Library of Congress Cataloging-in-Publication Data
Evans, Paul, 1946-
The global challenge : international human resource management / by Paul Evans, Vladimir Pucik, Ingmar
Björkman.—2nd ed.
p. cm.
Includes bibliographical references.
ISBN 978-0-07-353037-6 (alk. paper)
1. International business enterprises—Personnel management. I. Pucik, Vladimir. II. Björkman, Ingmar III. Title.
HF5549.5.E45E93 2010
658.3—dc22 2009040820
www.mhhe.com
Contents
PREFACE
xv
ACKNOWLEDGMENTS
xvii
ABOUT THE AUTHORS
xix
1 The Challenges of International Human
Resource Management 1
Overview 3
Defying Borders: What’s New? 4
International Operations in the Pre-industrial Era 4
The Impact of Industrialization 5
Prelude to the Modern Era 7
The Modern Multinational 11
Staffing for International Growth 12
Organizing for International Growth 12
HRM Goes International 17
Enter Globalization 21
The Roadmap for Managing Globalization 24
The Transnational Solution 26
Capabilities and Knowledge as Sources of Competitiveness 28
Toward a Flat World? 29
v
vi Contents
The Evolution Of International HRM 31
Outline Of This Book 34
2 Human Resource Management in the
International Firm: The Framework 42
Overview 43
Business Strategy And Organizational Capabilities 44
Organizational Capabilities 45
Organizational Capabilities in Multinational Firms 48
The HR Wheel 49
Setting the Guiding Principles 50
Designing Core HR Practices 56
Defining the HR Function Roles 59
Focusing on Organizational Outcomes 62
Three Stages Of HRM In Multinational Firms 64
Building HRM: Focus on Foundations 66
Realigning HRM: Focus on Strategic Change 67
Steering with HRM: Focus on Dualities 71
3 Becoming Locally Responsive 81
Overview 83
Roots Of Responsiveness 83
Business Advantages of Local Responsiveness 85
People Challenges of Local Responsiveness 87
Implementing Localization 88
Overcoming Barriers to Management Localization 90
Localization Starts at the Head Office 93
Understanding Diversity 96
Know Yourself and Others: The Cultural Perspective 96
Know Where You Are: The Institutional Perspective 104
Know Whom You Talk To: The Network Perspective 112
What Shapes Local Responsiveness? 115
The Limits Of Responsiveness 117
Local Responsiveness Does Not Necessarily Mean Playing by Local Rules 117
Contents vii
4 Achieving Global Integration 123
Overview 124
The Logic Of Global Integration 125
The Business Advantages of Global Integration 126
The Tools for Global Integration 128
Global Integration and the Use of Expatriates 130
Global Standardization 131
Mastering Expatriation 137
The Evolution of Expatriate Management 137
Understanding the Expatriate Phenomenon 138
Managing International Transfers 142
Beyond The Traditional Expatriate Model 152
The Tensions in the Expatriate Cycle 152
Changing Demographics of the Expatriate Population 154
The Changing Nature of International Assignments 157
Alternatives to Expatriation 158
The Limits Of Global Integration 161
5 Structuring Global Coordination 170
Overview 171
From Vertical Control To Horizontal Coordination 172
Emergence of Coordination 173
Horizontal Coordination Mechanisms 176
Multidimensional Structures 179
Emerging Forms of Global Multidimensional Structures 180
Lateral Steering Tools 187
The Benefits of Lateral Steering 187
Lateral Leadership Roles 188
Lateral Steering Groups 192
People Strategies Supporting Lateral Steering 196
Building Cross-Border Teams 197
Mapping Cross-border Teams 198
Foundations for Global Teamwork 199
viii Contents
Working in Cross-Border Teams 204
Implementing Global Teamwork 208
Matrix Everything . . . Except the structure 211
6 Building Social Architecture 217
Overview 218
Leveraging Social Capital 219
What Is Social Capital and Why Do We Care About It? 220
How to Build and Manage Social Capital 224
Managing the Darker Side of Social Capital 228
Sharing Values Globally 230
Shared Values, Beliefs, and Norms 231
Building Shared Values 233
Challenges in Managing Organizational Culture 239
Leveraging Global Mindsets 240
What Is Global Mindset? 242
How to Develop Global Mindset 245
Rethinking the Global Mindset Paradigm 249
7 Managing Global Talent: Recruitment, Selection,
and Retention 255
Overview 256
What Is Talent Management And Why Is It So Important? 257
What Do We Mean by Talent? 258
Why Is Talent Management so Important? 259
Key Challenges In Talent Management 263
The Talent Management Mindset 264
The Balancing Acts in Talent Management 265
Managing Recruitment 269
Forecasting the Need for Recruitment 269
Reaching out to Attract Talent 269
Global Employer Branding 272
Building a Differentiated Employee Value Proposition 273