GLOBAL HUMAN RESOURCE MANAGEMENT

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GLOBAL HUMAN RESOURCE MANAGEMENT

• ORGANIZATIONAL STRUCTURE AND STRATEGY

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GLOBAL COMPETITIVE ADVANTAGE

• ADAPT TO LOCAL MARKET DIFFERENCES
• EXPLOIT GLOBAL ECONOMIES OF SCALE
• EXPLOIT GLOBAL ECONOMIES OF SCOPE
• TAP INTO THE BEST LOCATIONS FOR ACTIVITIES AND
  RESOURCES
• MAXIMIZE KNOWLEDGE AND EXPERIENCE TRANSFER
  BETWEEN LOCATIONS

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FACTORS DETERMINING MNE ORGANIZATIONAL STRUCTURE

• The firms forms and stages of international
  development
• The amount of cross-border coordination required
  by a firms strategy (integration versus
  decentralization
• The nature of host governments activity in the
  economic process
• The diversity and complexity of the MNEs
  business operations

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DEVELOPMENT FORM OF THE MULTINATIONAL

• THE SUBSIDIARY OR PATTERN COULD BE A START-UP
• ONCE ESTABLISHED, THE SUBSIDIARY OR ALLIANCE CAN
  OPERATIONALIZE THE FIRMS INTERNATIONAL STRATEGY
• WHEN THE FIRM REACHES A LEVEL OF HAVING A HIGH
  PROPORTION OF ASSETS/SALES EMPLOYEES OUTSIDE THE
  HOME COUNTRY

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The Pre-International Division Structure
Chief Executive Officer
etc.
Production
Finance
Marketing
Personnel
RD
Export Manager Or Export Department
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The International Division Structure
CORPORATE STAFF
Chief Executive Officer
etc.
Production
Finance
Marketing
Personnel
RD
LINE MANAGEMENT
etc.
Product A Domestic
Product B Domestic
Product C Domestic
International Division (All Products)
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The Global Product Division Structure
CORPORATE STAFF
Chief Executive Officer
etc.
Production
Finance
Marketing
Personnel
RD
LINE MANAGEMENT
etc.
Product A
Product B.
Product C
Product D
North Asia Europe
Latin America
America
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The Global Customer Division Structure
CORPORATE STAFF
Chief Executive Officer
etc.
Production
Finance
Marketing
Personnel
RD
LINE MANAGEMENT
etc.
Customer A
Customer B.
Customer C
Customer D
North Asia Europe
Latin America
America
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The Global Area Division Structure
CORPORATE STAFF
Chief Executive Officer
etc.
Production
Finance
Marketing
Personnel
RD
LINE MANAGEMENT
etc.
Europe
North Amer.
Asia
Latin Amer.
United Kingdom Italy France Etc.
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The International Matrix Structure
CORPORATE STAFF
Chief Executive Officer
etc.
Production
Finance
Marketing
Personnel
RD
LINE MANAGEMENT
Other Area and Product Divisions
Europe
Tractors
Asia
GM Tractors Europe
GM Tractors Asia
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STRATEGIC APPROACHES FOR INTERNATIONALIZATION
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RANGE OF STRATEGIC ALLIANCES
Joint Venture Equal Participation
Co-Production Buyback
R D Consortia
LEVEL OF INTERACTION
Crossing Licensing
Franchising
Patent Licensing
Cooperation Agreement
COMPETITION
COOPERATON
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Approaches to Foreign Market Entry
Indirect Export
Wholly Owned Subsidiary
Level of control over foreign activities
Joint venture With local partner
Franchising Licensing
Export
Amount of resources committed to foreign market
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GLOBAL INTEGRATION

• VALUE CHAIN IMPACT

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Upstream, Support, and Downstream Activities and
Competitive Advantage
Firm Infrastructure
Human Resource Management
Support Activities
Technology Development
Value What buyers are willing to pay?
Procurement
M a r
g i n
Marketing and Sales
After-Sales Service
Inbound Logistics
Outbound Logistics
Operations
Primary Activities
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