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1、1,executivesummaryThe Globalization of Human Resource PracticesBy Sheila M.Rioux,Ph.D.,Paul R.Bernthal,Ph.D.,and Richard S.Wellins,Ph.D.The key to creating a consistent corporate culture across multiplelocations is maintaining the critical balance between a strongcorporate culture and local cultural
2、 differences.,PurposeThe report examines the changing roles the humanresource(HR)function plays in a globallycompetitive marketplace and identifies thechallenges of adapting to these roles.The objectives of this study were to:Investigate how domestic and internationalcompanies conduct HR practices a
3、round theworld.Determine the top HR priorities for eachorganization type.Determine the challenges that organizations facewhen trying to globalize their HR function andpractices.Determine what organizations are doing toinstitute a consistent corporate culture across alllocations/offices.,Responses we
4、re gathered from 206 members ofDDIs HR Benchmark Group.Two-thirds of therespondent organizations had operations in multiplecountries(international);the remaining thirdoperated solely in one country(domestic).General ProfileFindings OverviewThe globalization of HR is characterized byincreasing levels
5、 of decentralization.Half of all international organizations reportedhaving one primary HR department withindependent regional HR staff.Many international(37 percent)and domestic(42 percent)companies reported using a morecentralized approachone primary HRdepartment with dependent regional HR staff.M
6、ore than a third of domestic organizationsreported having only a primary HR departmentwith no regional HR staff.,2,HR PrioritiesInternational and domestic organizations identifiedsimilar HR priorities for the next two years.The top priority,identified by 52 percent ofinternational companies,was lead
7、ershipdevelopment.Domestic organizations alsoranked leadership development as a top priority,Recruiting high-quality employees rankedsecond as a priority for both international(40percent)and domestic companies(46 percent).,both international(33 percent)and domesticcompanies(46 percent).In fact,reten
8、tion wasthe top priority for domestic organizations.Consistency of HR PracticesFindings OverviewA majority of international(79 percent)anddomestic(87 percent)organizations reported thattheir parent organizations are taking action to makeHR practices more consistent across all locations/offices.Inter
9、national organizations use consistent HRpractices to help develop a common corporateculture(75 percent)and to improve theeffectiveness of the HR function(73 percent).Domestic organizations are creating consistentHR practices to improve both the effectiveness(81 percent)and the efficiency(71 percent)
10、ofthe HR function.Selection practices vary greatly across locationsin international organizations.Selection,Assessments(role plays and simulations).Testing for selection purposes.Internet advertising(recruiting).,Challenges to ConsistencyFindings OverviewInternational companies face many challenges
11、whentrying to make HR practices consistent across alllocations/offices.The top three challenges include:Variations in social,political,and economiccircumstances.,(35 percent).Different locations/offices have their own way,of doing things and are resistant to change.The perceived value of the HR func
12、tion varies,across locations/offices.Employee retention was also a top concern for,Best PracticesOrganizations were asked to respond to thefollowing:What is the most effective action yourparent organization has taken to make HR practicesmore consistent across all locations/offices?The following is a
13、 sample of responses:Developed a long-term HR plan to ensurealignment of HR strategies/objectives withcorporate objectives.Created centralized reporting relationshipsaround the globe.Standardized assessment,development,andcompensation practices.Introduced practices to regions around the globeand all
14、owed the HR function in each region theautonomy to do its job.Created global policies/processes for datamanagement,performance management,compensation,education,and development.Tied regional accountability to performancemanagement.,practices that vary the most include:Shared HR best practices used i
15、n certain,locations with all other locations.Developed an HR mission statement.,3,Creating a Corporate CultureFindings OverviewMany international companies(84 percent)indicatedthat their parent organization was trying to establisha corporate culture at all locations/offices that wasconsistent with i
16、ts goals and vision.Mostorganizations(88 percent)reported that creating acorporate culture is difficult because,in certainlocations,local cultures and customs have amoderate to great influence on the way business isconducted.Organizations have taken the followingactions when trying to create a consi
17、stent corporateculture:Communicated to all locations about a commoncorporate culture.Allowed local cultures to maintain their identityin the context of the corporate culture.Established common systems(e.g.,accounting,marketing,MIS).Provided management with education outlininghow the company does bus
18、iness.Created an organizational mission with inputfrom all locations.Created a written strategy outlining thecorporate culture.General Challenges forGlobal HR FunctionFindings OverviewFunctions such as operations,sales,and marketinghave generally made great progress in adapting tothe global reality.
19、However,the HR function hastypically lagged behind in developing policies andstructures that support globalization.The topchallenges HR faces in the globalization processinclude:Coordination of activities in many differentlocations.,Understanding the continual change of theglobally competitive envir
20、onment.Building a global awareness in all HRdepartments/divisions.Creating a multicultural HR team.International AssignmentsFindings OverviewFinding,developing,and retaining global leaderstops the priority list of international companies.International,or expatriate,assignments are oftenused as a way
21、 to develop the talent of global leaders.Many international companies(83 percent)useexpatriate assignments,which last an average of2.65 years.International assignments are quite expensive.Most international companies(88 percent)reportspending more than two times an expatriatessalary during the span
22、of the assignment.The most important characteristic to look forwhen recruiting an expatriate is a willingness totravel.The ability to speak other languages wasthird,behind having international businessexperience.Most organizations provide pre-departuretraining for expatriates,but relatively fewprovi
23、de a process for managing the expatriatesre-entry to his or her home country.Only 68 percent of respondent organizationsagreed that international assignments help anexpatriates career.,The Global PictureWhen it comes to business,the world is indeedbecoming a smaller place.More and morecompanies are
24、operating across geographic andcultural boundaries.While most have adapted to theglobal reality in their operations,many are laggingbehind in developing the human resource policies,structures,and services that support globalization.The human resource function faces many challengesduring the globaliz
25、ation process,including creating aglobal mind-set within the HR group,creatingpractices that will be consistently applied in differentlocations/offices while also maintaining the variouslocal cultures and practices,and communicating aconsistent corporate culture across the entireorganization.To meet
26、 these challenges,organizations need toconsider the HR function not as just anadministrative service but as a strategic business,Companies should involve the human resourcesdepartment in developing and implementing bothbusiness and people strategies.This type ofpartnership is necessary if an organiz
27、ation wants tochange potentially inaccurate perceptions of HR andreiterate the HR functions purpose and importancethroughout its global environment.Organizationswill also discover that HR can be invaluable infacilitating the development of a unifying corporateculture and finding and cultivating much
28、 neededleadership talent around the world.The process of globalizing resources,both humanand otherwise,is challenging for any company.Organizations should realize that their global HRfunction can help them utilize their existing humantalent from across multiple geographic and culturalboundaries.Inte
29、rnational organizations need toassist and incorporate their HR function to meet thechallenges they face if they want to create a trulyglobal workforce.,partner.Center for Applied Behavioral ResearchSheila M.Rioux,Ph.D.,Research ConsultantPaul R.Bernthal,Ph.D.,Manager,For more information,contact:HR
30、Benchmark GroupPaul Bernthal,To order a complete report,call:800-DDI-1514(800-334-1514),Development Dimensions International1225 Washington PikeBridgeville,PA 15017Phone:1-800-9-DDI-MAIL,extension 7533Fax:412-220-5204E-mail:Printed on recycled paper.,Development DimensionsInternational,Inc.,MM.All rights reserved.,MKTCPGN56-0500.0MA,
