Globalisation and international forces, shape impact on organisation and…
Globalisation and international forces, shape impact on organisation and HR strategies/practices
definition and debates
Orgs that operate on a transnational basis, e.g. HQ in parent (Ericsson left Sweden - high taxes, manufacturing China, sales distribution arms
adv - country specific and corporate governance approach, access market, labour shortage, tax, investment, economic development. [MNE / Host / parent]
trend - communications, transport, life cycle - business opportunities, free trade, developing entrepreneurial, capitalist, international travel - cultural homogeneity,
debate - local vs central
convergent and - ethnocentric - centralised,
divergent practices - geocentric - take on local culture, poly centric - subs act globally.
Aisbett 2003 - claims too power / akin to states. Protectionism us etc., iMF loss sovereignty, neo liberal privatisation policies, companies expand contract at will. However good for poor if trade opened up for developing. need regulation
Scholte 2000 - not a new phenomenon, referred to as internationalisation, liberalism, westernisation etc.
OECD 2016 paper - open trade, cross border investment - key achieving productivity gains, wellbeing. trade - taken many out of poverty. [what about inequalities]
Gray 1995- disadv market creep, impact on individual, predatory, corporate capitalism, market failure, labour and enviro. political/ economic influence. intellectual property, natural resources, money flows out, conflict country laws.
Case - Tesco - polycentric, successes in Thai, yet failures in us - local knowledge / habits.
def - integration economies, industries, markets, etc around work. integration through communications and transportation, migration. previously trade, now society and culture and enviro
deregulation, open to international competition. - business relationships, capital flows and labour.
HMRC - customer large business ethics- tax arrangements complex. Fisc collaboration, technology - where should it be taxed? tax competition, regulation, tax base - US practices e.g. self employment, migration - black economy, low wage. Brexit - will companies move eu? downsize public sector.
motivate / engage
management control - use of technology
aim for consistency with local variations take into account context
delegated or central control
offshoring - india/ china graduates, call centres, IT, finance etc. cost benefits, brand proliferation, time zone convenience. However language and service issues - Infosys setup centres in UK - Kew
financial crisis - Greece, imbalances
low economic growth
inclusion of Eastern european
nationalism / populaism
unfair practices, free trade, benefit large and rich.
unfair - poor, enviro, developing
cheaper products, new goods,
conditional on privatisation and tax cutting
international labour org