2.

Global Leadership and Strategic HRM

Leadership and Management in Transnational Companies Strategic HRM

2. Global Leadership and Strategic HRM

Learning Objectives: After studying this chapter students should be able to:
Understand the nature of, and relationships between, leadership and management;

2. Global Leadership and Strategic HRM

Learning Objectives: After studying this chapter students should be able to:
Recognize the issues involved in transnational leadership;

2. Global Leadership and Strategic HRM

Learning Objectives: After studying this chapter students should be able to:
Understand the need for, and basis of, a strategic approach to HRM;

2. Global Leadership and Strategic HRM

Learning Objectives: After studying this chapter students should be able to:
Identify and evaluate strategies for managing in culturally diverse transnational organizations; and

2. Global Leadership and Strategic HRM

Learning Objectives: After studying this chapter students should be able to:
Identify the link between the transnational companys value system and global strategy, and its human resource strategy.

Leadership and Management in Transnational Companies

Leadership and Management in Transnational Companies

Leadership and management are two distinct but related sets of behaviors and activities.

Leadership and Management in Transnational Companies

Management is primarily concerned with POSDCORD:
Planning Organizing Staffing Directing Coordinating Reporting and Budgeting

Leadership and Management in Transnational Companies

Management activities are:
closely integrated into the structure and systems of the organization and centered on its effective and efficient operation.

Leadership and Management in Transnational Companies

Leadership centers on the strategic development and transformation of the organization.

Leadership and Management in Transnational Companies

Leadership:
looks toward the future, creates a vision, and seeks to move people and the organization toward it.

Leadership and Management in Transnational Companies

Leadership involves:
Developing a vision and strategic intent for the organization; Creating shared values; Developing people and the organization; Creating change; and Moving the organization toward the aspirations encapsulated in the vision statement.

Leadership and Management in Transnational Companies

Definition of leadership
it is the ability of one person to influence the behavior and actions of other people toward achieving the goals of an organization.

Leadership and Management in Transnational Companies

The nature of leadership:
1. 2. 3. 4. 5. Qualities or traits theories Functional or group theories Behavioral theories Style theories Situational approach and contingency models 6. Transitional or transformational theories.

Leadership and Management in Transnational Companies

Leaders in a learning organization must be: Designers Teachers Stewards

Leadership and Management in Transnational Companies

Leaders in a learning organization must be: Designers designing the
vision, strategies, policies, and structures of the organization;

Leadership and Management in Transnational Companies

Leaders in a learning organization must be: Teachers facilitating learning so people take a new view of reality; and

Leadership and Management in Transnational Companies

Leaders in a learning organization must be: Stewards developing people and the organization.

Strategic HRM implications of a core competence approach

Strategic HRM implications of a core competence approach

1. 2. 3. 4. Job Design Staffing Issues Training & Development Rewards System

Strategic HRM implications of a core competence approach

Job Design:
1. Greater technical knowledge will be required for individual jobs;

Strategic HRM implications of a core competence approach

Job Design:
1. Greater technical knowledge will be required for individual jobs. 1. Project teams and rotation of jobs will be used to foster the sharing of knowledge; and

Strategic HRM implications of a core competence approach

Job Design:
1. Greater technical knowledge will be required for individual jobs. 2. Project teams and rotation of jobs will be used to foster the sharing of knowledge. 1. Jobs will increasingly combine thinking and doing.

Strategic HRM implications of a core competence approach

Staffing Issues:
1. Most challenging positions will be filled by internal transfers;

Strategic HRM implications of a core competence approach

Staffing Issues:
1. Most challenging positions will be filled by internal transfers; 1. Businesses will enter relationships with educational institutions to obtain suitable qualified employees; and

Strategic HRM implications of a core competence approach

Staffing Issues:
1. Most challenging positions will be filled by internal transfers; 2. Businesses will enter relationships with educational institutions to obtain suitable qualified employees; and 1. Personality and attitudinal tests will be used to assess the potential of individuals.

Strategic HRM implications of a core competence approach

T&D:
1. Investment in T&D programs will increase to facilitate personal and organizational development;

Strategic HRM implications of a core competence approach

T&D:
1. Investment in T&D programs will increase to facilitate personal and organizational development; 1. T&D of personnel will increasingly be decentralized to operating departments;

Strategic HRM implications of a core competence approach

T&D:
1. Investment in T&D programs will increase to facilitate personal and organizational development; 2. T&D of personnel will increasingly be decentralized to operating departments; 1. T&D will move away from traditional skills building to development; and

Strategic HRM implications of a core competence approach

T&D:
1. 2. 3. Investment in T&D programs will increase to facilitate personal and organizational development; T&D of personnel will increasingly be decentralized to operating departments; T&D will move away from traditional skills building to development; and

1.

Performance review will be used to assess the contribution of employees rather than to determine pay. This will be based on feedback from peers and customers rather than supervisors and subordinates.

Strategic HRM implications of a core competence approach

Rewards Systems:
1. A greater proportion of pay will be used on group or organizational outcomes;

Strategic HRM implications of a core competence approach

Rewards Systems:
1. A greater proportion of pay will be used on group or organizational outcomes; 1. Traditional hierarchical pay plans will be replaced by broader banding of jobs. Job evaluation will shift from a quantitative to a qualitative focus.; and

Strategic HRM implications of a core competence approach

Rewards Systems:
1. A greater proportion of pay will be used on group or organizational outcomes; 2. Traditional hierarchical pay plans will be replaced by broader banding of jobs. Job evaluation will shift from a quantitative to a qualitative focus.; and 1. Compensation systems will become flexible.

HR Implications of Business Strategy

Business Strategy Questions HR Implications

HR Implications of Business Strategy

Business Strategy Questions HR Implications
What industry and markets are we in?What people do we need?

HR Implications of Business Strategy

Business Strategy Questions
What industry and markets are we in?

HR Implications
What people do we need?

Are organizational culture, structure, How do we change them? and value systems appropriate or inappropriate?

HR Implications of Business Strategy

Business Strategy Questions
What industry and markets are we in?

HR Implications
What people do we need?

Are organizational culture, structure and How do we change them? value systems appropriate or inappropriate? Strategic direction Who will we need in the future?

HR Implications of Business Strategy

Business Strategy Questions
What industry and markets are we in?

HR Implications
What people do we need?

Are organizational culture, structure and How do we change them? value systems appropriate or inappropriate? Strategic direction New businesses and new markets Who will we need in the future? What systems and procedures might be developed?

HR Implications of Business Strategy

Business Strategy Questions
SWOT

HR Implications
To what extent are they related to existing use of HR? Demand and supply in the labor market?

HR Implications of Business Strategy

Business Strategy Questions
SWOT

HR Implications
To what extent are they related to existing use of HR? Demand and supply in the labor market? To what extent do these depend on employees rather than other factors?

Critical Success factors

Examples of Organizational Strategies and Associated HR Strategies

Examples of Organizational Strategies and Associated HR Strategies

Corporate Strategy Example HR Strategies (strategic direction) Company

Retrenchment (cost reduction)

Layoffs, wage reduction, productivity increases, job redesign, re-negotiated labor agreements.

Examples of Organizational Strategies and Associated HR Strategies

Corporate Strategy Example HR Strategies (strategic direction) Company

Growth

Aggressive recruiting and hiring, Rapidly rising wages, Job creation, Expanding T&D

Examples of Organizational Strategies and Associated HR Strategies

Corporate Example Strategy (strategic Company direction) HR Strategies

Renewal

Managed turnover, Selective lay-offs, Organizational development, Transfer/replacement productivity increases, Employee involvement.

Examples of Organizational Strategies and Associated HR Strategies

Corporate Strategy Example HR Strategies (strategic direction) Company

Niche focus

Specialized job creation, Elimination of other jobs, Specialized T&D.

Examples of Organizational Strategies and Associated HR Strategies

Corporate Strategy Example HR Strategies (strategic direction) Company

Acquisition

Selective lay-offs, Transfers/placement, Job combinations, Orientation and training, Managing cultural transitions.

Case: GE the new leadership paradigm

Q.1. What was the dilemma for leadership that GE faced as a transnational co? Q.2. What changes did Jack Welch bring about in GE as its leader?

End of Unit-2 Global Leadership and Strategic HRM

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