GLOBAL HR

CHALLENGES-CROSS
CULTURAL INTEGRATION
A Report


Need for a Global HR
International Imperative

Why organizations expand internationally
To capture enhanced market opportunities that
foreign countries may present

To achieve economies of scale in production and
administration by expanding scope and volume of
operations to international markets

Keeping up with industry leaders may require
organization to enter foreign markets

Acquiring ownership of foreign-based organization or
subsidiary
According to Dun and Bradstreet
more than 250 M&A deals were
concluded last year worth $46.8
Billion.
.Most of these were acquisition
overseas by Indian companies.
Factors that Influence the Global Work Environment
HR Challenges
Organizational
Global workforce
Cultural issues
Economies
Technological advancement
Work-life balance
External to Organization
Global operations
HR setting in Mergers acquisitions
Cost effectiveness
Strategic HR
Challenges % of Companies
Benefits costs: Health & welfare 4
Benefits costs: Retirement 8
Change management 52
Compensation 16
Employee rewards 20
HR effectiveness measurement 20
HR technology selection & implementation 12
Industrial relations 12
Leadership development 36
Learning and development 20
Legal/Regulatory compliance 16
M&A integration/restructuring 12
Organizational effectiveness 8
Outsourcing 12
Staffing: International mobility of employees 4
Staffing: Recruitment and availability of skilled local labor 16
Staffing: Retention 16
Succession planning 32
Other 12
Survey of Global HR Challenges: Yesterday, today and tomorrow 15
Areas of significant challenges for Global HR
Strategic Issues
Culture
Culture is a way of life of a group of people
- Foster 1962

Culture is that complete whole which includes knowledge,
beliefs, art morals, customs and any capabilities and habits
acquired as a member of a society
-Taylor- 1977

The collective programming of the mind which distinguishes
the members of one group from anotherthe interactive
aggregate of common characteristics that influences a
group of responses to its environment
-Hofstede 1980
A case of euro disney
Japan Vs. US
France Vs. US
The company it seems failed to do its
cultural homework on everything
from french business negotiation
styles to employee flexibility and
dress habits to consumer spending
patterns and eating preferrences.
Mistakes of the company
Sense and sensibility
Land of farmers or land of Mickey?
Negotiate with whom?
French way or American way?

The devil is in the details
Sit down breakfast or continental
Graze or set lunchtime?
Family friendly or wine?
Hospitality headaches
Souvenirs?
Month long vacation or one nights stay?

Culture caution:
It should be noted that for all of Disneys faults the French govt. was more
than happy to have them set up shop. The govt also bears some
responsibility for not making Disneys transition smoother. The French
have claimed for centuries that Americans have no culture but nowadays it
seems they believe Americans have too much and need to export some.



Hofstedes five dimensions of
culture
Individualism IDV
Power Distance Index PDI
Musculinity MAS
Uncertainty Avoidance Index UAI
Long term orientation LTO

Trompenaars research
Trompennars dimension of culture:
Universalism Vs. Particularism
Individualism vs Collectivism
Neutral Vs Emotional/ Affective
Specific Vs Diffuse
Achievement vs Ascription
Attitudes to time
Attitudes to the environment
Trompenaars organization types
Egalitarian
Fulfillment oriented culture Project oriented culture
GUIDED MISSILE
Task
Hierarchical
Person
INCUBATOR
FAMILY
EIFFEL TOWER
Person oriented culture
Role oriented culture
Implications of culture on
management
What people want from work
Work centrality- Importance of work in
life
Work goals differ
Positive environment Autonomy
Interesting work
Good pay
Match between self
Job security and job

Contd
Views about leadership
Who becomes leaders
Class vs Merit
Role of leader
Facilitate and motivate vs direct & provide
expertise
Some convergence of views
Particularly in MNCs
Communicating across cultures
The most immutable barrier in
nature is between one mans thought
and anothers


..William James
Conclusion
For the long time in India HRM only
meant the Industrial relationship
Management, today they have to deal
with this challenge of cultural integration.
What they need to do is
1. Identify the problem areas proactively,
2. They have to develop common rather
culturally sensitive policies and
procedures.
3. Build a cultural integration roadmap.