Globalization and HRD People advantage strategies current and

Globalization and HRD People advantage strategies, current and future HRD challenges. 1

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 2

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). 3

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 4

Changes/Impact Equality Labor Conditions Wages Job opportunities Economic conditions Access to goods Prices of goods and services Supply of good and services Labor productivity Working standards and health conditions Pensions Unions and employee relations Globalization Government Culture and Community Economic development Cross border ties & ethnic identity Interdependence on trade and investment Proliferation of NGOs Increase role of MNEs and pressure on local communities and government Mobility and rural life Cultural homogenization Disintegration of local communities (Osland, 2003) 5

The marketplace & organizations 1. Competitiveness 2. New technologies 7. Flow of information and knowledge 3. Rapid Changes 8. New skills 4. Privatizations and 9. Workforce mobility outsourcing 10. Mergers , takeovers 5. Financial opportunities 11. Refocus on customers & constraints 6. Cultural diversity (Ruona & Gibson, 2004) 6

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) 7

Impact on HRD People are central to organization success Recruitment and retaining high quality employees Building strong values and organizational culture HRD roles in a globalized context Performance management (Wellins, 2000) (Broackbank, 1997) (Ruona & Gibson, 2004) changes & transformat ions Strategic alignment and impact Leadership development 8

Global Mobility Scarcity of skilled labor Innovative international resourcing Global Mobility (Ulrich, 2007) (Brokbank, 1997)(Wilson, 2008) ( Odell & Spielmann, 2009) Manage expatriates assignments 9

HRD Strategic Interventions in Resourcing Evaluate and measure impact with scorecard Review policies and practices Recruitment strategy aligned with business strategy Strategic Sourcing Manage change process and involve stakeholders Align with competency framework Align with Learning and Development & Perf. Mgt Line managers devolution and development Enhance skills in the HR Unit 10

Analysis 1. 2. 3. 4. 5. 6. External labor market Internal demographic Innovative processes Outreach Career development, promotion Retention measures 11

Strategic Issues in Expatriates' Assignments Ineffective induction , socializations and adaptation initiatives Ineffective handling of repatriation (Cooper-Thomas, & Anderson, 2006) (Pate, & Scullion, 2010) (Paik, Segaud, & Malinowski, 2002) (Osman-Gani, & Hyder, 2008) Dissatisfaction, poor job performance, turnover Misalignment with learning and development Lack of attention to cultural behaviors. 12

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) (Davis, & Kleiner, 2001) 13

Benefits for Organizations Strategic Socialization initiatives HR as strategic business partner Develop knowledge, motivation, commitment Integration with the Team and the organization Enhance job performances Foster cultural integration (Sanders & Kleiner, 2002) ( Marx, 2006) (Schein, 1988) 14

• And now………. . the other side of going global 15

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Video: The Hidden Face of Globalization 21

Corporate Social Responsibility Conducting business in ethical way internally and externally Meeting global standards (social, environmental and human rights) (Chartered Instituted of Personnel Development , 2009) Relationships external shareholders and stakeholders Protecting company’s brand; scanning the environment Corporate Social Responsibility 22

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HRD role in CSR Changing culture, values and aligning HR policies Promoting ethics at work Retention, Motivation, Reward, Diversity Building partnerships HR adds values and becomes strategic (Garavan, & Mc. Guire, 2010) (Fenwick, & Bierema, 2008) (CIPD, 2009) Learning and development. Organizational justice, and promoting an enabling environment 24

What do we mean for ethics? 1. Conflict of interest
 2. Improper hiring
 9. Misuse of confidential Lying to employees/ stakeholders
 3. Abusive information behavior
 4. Misuse of assets
 5. Discrimination & Harassment 6. Safety violations
 7. 25

Dimensions of Integrity Honesty, truthfulness, impartiality and incorruptibility Competence and Efficiency Dealing with internal and external stakeholders Integrity Allegiance, Loyalty Independence Working whitout bias with all cultures Promote equality Respect the dignity of others (UN International Civil Service Commission[ICSC]) 26

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) 27

(SHRM, 2009) 28

Corruption Perception Index 2010 (Transparency International, 2010) 29

KPMG Fraud Survey 2009 1. 32% believe that fraud was going to remain steady or increase in their organization. 1. 27% lack effective policies on how to conduct investigations and 33 % how to remedy control breakdowns. 1. 67% believe improvements are needed in employee communication and training. (KPMG, 2010) 30

Business Ethics: Strategic HRD approach Step 5: Step 1 HR achieving performance and employee efficiency Step 4: Leadership development and shaping cultures HR engaging partners, build consensus HR Strategic Partner Step 2: HR aligning ethics and CRS into the strategy Step 3: HR focusing on core values and corporate ethics (Ledwidge, 2007; Wood 2007; Peppas, 2006; Rossouw, 2009; Cartwright & Craig, 2006; Garavan & Mc. Guire, 2010; Zairi & Shahin, 2007 ) 31

HRD & Ethics Values embedded strategy Competency framework aligned with Perf. Mgt and L&D Orientation and workshops Adherence to Policies(miscon duct, discrimination) (UNDP Transparency) Measure behaviors with metrics, surveys and scorecard HR plays a strategic role in business ethics 32

HRD Impact Integrity : Commitment to ethical standards, values and principles Staff morale and motivation Workforce Performances & Organization Success Organization's reputation (Ledwidge, 2007 ) ( Wood, 2007 ) (Cartwright & Craig , 2006). Enabling & learning organization Harmonious working environment 33

• Now the “global” downside of globalization 34

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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 36

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The globalization’s downsides Climate changes Scarcity of resources Divide between rich and poor, extreme poverty Social injustices, human rights, democratic governance, transparency Globalization Technological Changes Environmental degradation, migration movements Deterioration of labor standards, gender equality (Lee, 2006) (Osland, 2003) (Mc. Lean, 2004) 39

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 (Marquardt, 2005) 40

New Role for HRD and NHRD shapes organizations valuing and meeting employees needs Look beyond organizations. Engage holistically in national policies National HRD as strategy at all levels to improve human development HRD and NHRD impact on global challenges and human development Establishing, promoting developing and assessing skills & talented staff Developing values, motivation& involvement, culture & diversity (Garavan & Macguire, 2010; Lockwood, 2004; Marquardt & Berger, 2003; Russ-Eft & Hatcher, 2003; Lee, 2007; Lynham & Cunningham, 2006; Mc 41 Lean 2004; Cho & Mc Lean, 2006 )

Development and HRD 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 1. Build democracies and transparent governements 2. Balance economic growth 3. Global Leadership 4. Technology 5. Environmental challenges (Marquardt, & Berger, 2003 )

HRD Trends and Challenges HRD Trends HRD Challenges Learning and human development HRD's influence, impact and credibility Knowledge management Evaluation and return on investment Change and organizational systems HRD identity and identify stakeholders (Ruona, Lynham, & Chermack, 2003) 43

Summary of what we have discussed ! 44

Thank you for your attention! Q. & A. 45

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