Discussions

Topic A – IBM

Student’s post 1

1. Explain: Why in this era of globalization, renewal and reintegration of HR practices are necessary for global companies to remain competitive?
   
   

2. From your research, give examples of global companies where the HR departments have shifted their focus from administration to supporting organizational changes. Describe those changes.

In the era of globalization, companies must constantly reevaluate their hiring and retention processes to remain relevant in the highly competitive marketplace. There are numerous ways companies have embraced to meet these demands, which is mainly centered around incentives and compensation packages. Each company takes different approaches with their initiatives, and they are usually tailored to the specific needs of both the employee and company at the given time.

There are initiatives that are designed for women, as well as men when it comes to compensation packages, where some companies are making their benefits gender neutral. Shalini Natraj, Senior Director, Human Resources, Target India discussed some policy changes with Entrepreneur magazine this year. In her interview, she mentioned that more companies need to develop compensation packages that include work from home/flexibility, sabbaticals, paternity leave, and safety and security (Banerjee, 2017).

Additionally, Vodafone is altering their HR practices to focus on diversity, particularly women, to become not only competitive, but a desirable company to work for.  In this initiative, Vodafone is placing an intense focus on women returning to the workforce from an extended break. The program, called ReConnect, will launch in 26 countries, with the overall goal of increasing the number of women in management roles, narrowing the gender gap in all markets, specifically emerging markets, with an aspiration of have 10% of all external management hires recruited through the program (Vodafone, 2017). This shift in their practice, directly addresses the issue for many women that question whether to place their careers on hold to start family. Vodafone commissioned a survey and found that out of 500 women that are, or currently on a break, 80% of the respondents said that more support is needed for women who want to return to the workplace following a career break and for working women with family and care responsibilities (Vodafone, 2017).

As part of globalization, a company may want to relocate employees, or place them in on assignment in other countries. In this case, the company must create a compensation package to entice individuals to pursue such an opportunity. Employees may face increased living costs and taxes depending on where they will be located. Wherever an organization is posting people overseas, the reward package must be fair. If it is not, the employer will not be able to persuade anyone to work overseas for them (Barrett, 2010).

When focusing on best practices, many companies lose sight of the constantly changing demands in the global market (Mini Case Study: Global Strategic HR Management at IBM). To mitigate complacency, periodic reviews and analysis of the marketplace and being aware of all the trends need to be closely watched. With the shifting dynamic of the workforce, and more and more individuals shifting what their priorities are, HR departments need to stay tuned in to what attracts employees to certain employers.

In today’s market, many companies are targeting millennials and are finding great potential for them in the global marketplace, specifically because of their desire of flexibility and prowess in IT. With globalization, there is more and more use of IT and social media. To help managers to put themselves in younger employees’ shoes and coach senior executives on the latest workplace trends, where many organizations having programs of reverse mentoring… because of the reverse mentoring, companies have seen a reduced turnover among younger employees (PriceWaterhouseCoopers, 2011). In PriceWaterhouseCoopers report, they also stated that a growing trend with some companies is to offer overseas assignments earlier to millennials prior to them developing family ties allowing them to form their own flexible career paths.

Works Cited

Banerjee, S. (2017, March 3). #5 HR Policies that Must Be Tweaked to Retain Diligent Women Workforce. Retrieved March 3, 2017, from Entreprenuer India: https://www.entrepreneur.com/article/290045

Mini Case Study: Global Strategic HR Management at IBM. (n.d.). Retrieved March 3, 2017, from https://learn.umuc.edu/d2l/le/content/195152/Home

PriceWaterhouseCoopers. (2011). Retrieved from Millennials at work Reshaping the workplace: https://www.pwc.com/m1/en/services/consulting/documents/millennials-at-work.pdf

Vodafone. (2017, March 3). Vodafone launches world’s largest recruitment programme for women on career breaks. Retrieved March 3, 2017, from Vodafone - Media: https://www.vodafone.com/content/index/media/vodafone-group-releases/2017/reconnect.html

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Topic B - IBM

Student’s post 2

1. IBM spent $ 100 million on its restructuring effort.  Was this a good investment? Why or why not?
   
   

2. What should IBM’s HR do to ensure that it recruits the best talent worldwide? How would the selection of the right global managers impact IBM’s revenue and market share?

In order for IBM to continue its global performance, produce quality goods and keep costs low, restructuring of the organization and even introduction of new strategies is required to stay at their competitive pace.  Restructuring and new strategies help an organization to keep with the demands and build company value (Friedman, 2007).  HR is an area many MNC’s are focusing on to help counteract differing country practices, build employee relationships and improve employee and organizational performance (Friedman, 2007).

IBM currently has more than 170 global partnerships.  Nearly 60% of their revenue is generated outside of the U.S (Grossman, 2007). MacDonald a VP of HR within IBM convinced executives to invest $100M into restructuring their Human Resources initiatives (Grossman, 2007). MacDonald believed restructuring could be completed by measuring skill, measuring training needs and talent management strategy to increase IBM’s return on investment-ROI, competitive edge, sustainable values and corporate culture (Grossman, 2007).   Some thought this would be a big risk to IBM (Grossman, 2007).   

Yes, globalization does pose some challenges to the HR initiatives of MNC’s such as working within cross-cultural groups and insuring adaptability of employees (Dixit, 2013).  IBM’s investment into restructuring efforts turned out to be a good call.  This restructuring built a basis of cultural awareness and best practices that helped align HR with corporate business strategy.  The dashboard tools and skills assessments provided to employees helped to improve their efficiency by 80%, more jobs were filled based on talent/skill (Grossman, 2007).  The tools provided translated to a savings of $276M (Grossman, 2007). 

The attainment of talent is equal to the success of the organization and has a direct effect on the service provided to consumers (Ekwoaba, Ikeije, & Ufoma, 2015).  To ensure continued organizational success, IBM should fully utilize its talent management system, to recruit, secure the best talent and match employees to the correct job and develop them within the job to lessen the turnover rate. IBM should continue to integrate their talent management process with their business process/strategies. Set goals that are attainable and that encompass HR trends (such as offshoring) and embody cultural awareness (Stahl, 2012). 

The global manager selected should be able to function anywhere in the world.  And embody managerial, leadership, planning, technical and functional abilities as well as. These attributes can help IBM continue its forward movement, maintain stakeholder shares, and improve market brand/share. If IBM were to not correctly match their managerial staff based on competencies and organizational strategies a disconnect could occur.  That could stagger growth, innovation and overall market share.  The competitive edge encompasses the capabilities of the whole organization with HR being the catalyst to shape employee behavior, skill and talent to match organizational goals (financial, managerial and opportunities). 

References

Dixit, A. (2013). Globalization & HR challenges. Human Capital, 36-40.

Ekwoaba, J., Ikeije, U., & Ufoma, N. (2015). THE IMPACT OF RECRUITMENT AND SELECTION CRITERIA ON ORGANIZATIONAL PERFORMANCE. Global Journal of Resource Management, 3(2), 22-33.

Ezz, M. (2016). Global Strategic HR Management at IBM. Retrieved from www.umuc.edu

Friedman, B. A. (2007). Globalization implications for human resource management roles. Employee Responsibilities and Rights Journal, 19(3), 157-171. doi:10.1007/s10672-007-9043-1

Grossman, R. (2007). IBM's HR takes a risk. Human Resource Management International Digest, 15(6). doi:10.1108/hrmid.2007.04415fad.006

Stahl, G. (2011, December). Six Principles of Effective Global Talent Management. Retrieved from http://sloanreview.mit.edu/article/six-principles-of-effective-global-talent-management/

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Topic C - Reflection

Student’s post 3

There are several qualities that HR should look for when selecting global expatriate managers. Of these qualities, having a “global mindset” is the most critical trait that an expatriate manager can have in order to succeed in a foreign assignment (Ananthram & Nankervis, 2013, p. 300). In addition to possessing global mindsets, other essential skills include understanding cross-cultural sensitivities, demonstrating adaptability, effectively communicating, and being knowledgeable of the markets (Ananthram & Nankervis, 2013, p. 307). Having a global mindset allows managers to make day to day decisions in a way for the benefit of all locations that a company operates in (Ananthram & Nankervis, 2013, p. 308). Cross-cultural sensitivity allows a manager to understand and leverage the unique abilities of a local team member for the greater good of the MNC (Ananthram & Nankervis, 2013, p. 308). Adaptability allows a manager to flex with changes within the corporation as well as the country they are currently working in and make the necessary changes to insure operational success (Ananthram & Nankervis, 2013, p. 309). Effective communication allows ideas, corporate cultural, and operational decisions to be effectively be translated across national boundaries (Ananthram & Nankervis, 2013, p. 310). Knowledge of markets allows managers to make effective situations given the current “various political, economic, socio-cultural environments”; this is the ability to make an informed data-driven decision no matter the country a manager finds himself/herself in (Ananthram & Nankervis, 2013, p. 311).

While flexibility is important for the expatriate managers, it is also a necessary skill for the family of an expatriate manager (“Managing global human resources”, 2015). In one study of over 300 MNC managers, it was found to be one of the top 5 factors of success in foreign assignments (“Managing global human resources”, 2015). In fact, it was found to be the most important factor in success (“Managing global human resources”, 2015). Spouses with young children at home while on foreign assignment have also shown to be some of the most successful because it has allowed spouses and families to retain some of their previous identity while living in a foreign environment (“Managing global human resources”, 2015). Overall, “family adjustment is the most crucial aspect that determines the success of international assignment” (Dixit, 2013, p.40). Especially in high-risk environments, employees on assignment will often worry about their family and want them moved to a safer location (Friedman, 2007, p. 168).

Compensation of expatriate employees is a complex calculation that must be performed by a corporation (“Managing global human resources”, 2015). Pay of these employees should be adapted to the cost of living of the country they will be living in (“Managing global human resources”, 2015). In general, this “balance sheet” approach attempts to “equalize purchasing power across countries” to ensure a similar standard of living that an employee is used to (“Managing global human resources”, 2015). Foreign service premiums are also used to compensate an employee for the cost of adjustment to a foreign environment (“Managing global human resources”, 2015). Other allowances like hardship, mobility premiums, and housing incentives help make the job more attractive to employees (“Managing global human resources”, 2015). In sections of the world where safety is of a greater concern compensation might also include kidnap and ransom insurance and evacuation assistance (Hill, 2016, pp. 30 - 31)

References 

Ananthram, S., & Nankervis, A. (2013). Global managerial skill sets, management development, and the role of HR: An exploratory qualitative study of North American and Indian managers. Contemporary Management Research, 9(3), 299-322. doi:10.7903/cmr.9731 Retrieved from http://ezproxy.umuc.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=97747727&site=eds-live&scope=site

Dixit, A. (2013). Globalization & HR challenges. Human Capital, 36-40. Retrieved from  http://ezproxy.umuc.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=109266641&site=eds-live&scope=site

“Managing Global Human Resources”. (2015, August 3). Edupedia World. Retrieved from https://www.youtube.com/watch?v=RRdKQhS2CLc

Friedman, B. A. (2007). Globalization implications for human resource management roles. Employee Responsibilities and Rights Journal, 19(3), 157-171. doi:10.1007/s10672-007-9043-1 Retrieved from  http://ezproxy.umuc.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=26618680&site=eds-live&scope=site

Hill, J. A. (2016). Protecting a global workforce in a changing world. Benefits Magazine, 53(5), 26.Retrieved from  http://ezproxy.umuc.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=f5h&AN=114649123&site=eds-live&scope=site

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News discussion

Student’s post 4

New UK clearing bank, Deutsche Bank pay and US banks' expatriate workers

https://www.ft.com/content/1d24a798-11b8-4fb4-98a3-9ce7b85ec354

This article interviews financial experts to garner their view of the new banking system.  Financial experts also asked to weigh in on current U.S. policies as it pertains to trade and government regulations. A new pay disclosures coupled with a new Deutsche Bank has been established to help pay expatriate workers, specifically Asian workers. The new banking system is thought to provide new entry points for global companies to access/process payments for their workers.

New UK clearing bank, Deutsche Bank pay and US banks' expatriate workers. (2017, February 28). Retrieved from https://www.ft.com/content/1d24a798-11b8-4fb4-98a3-9ce7b85ec354