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7/31/2019 2. Global Leadership and Strategic HRM
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2. Global Leadership and
Strategic HRM
Leadership and Management in
Transnational Companies Strategic HRM
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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;
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2. Global Leadership and
Strategic HRM Learning Objectives:
After studying this chapter students
should be able to:
Recognize the issues involved in
transnational leadership;
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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;
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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
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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.
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Leadership and Management in
Transnational Companies
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Leadership and Management in
Transnational Companies
Leadership and management are two
distinct but related sets of behaviors and
activities.
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Leadership and Management in
Transnational Companies
Management is primarily concerned withPOSDCORD: Planning Organizing Staffing Directing
Coordinating Reporting and Budgeting
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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.
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Leadership and Management in
Transnational Companies
Leadership centers on the strategic
development and transformation of the
organization.
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Leadership and Management in
Transnational Companies
Leadership:
looks toward the future,
creates a vision, and
seeks to move people and the organization
toward it.
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Leadership and Management in
Transnational Companies
Leadership involves:
Developing a vision and strategic intentfor theorganization;
Creating shared values;
Developing people and the organization;
Creating change; and
Moving the organization toward the aspirations
encapsulated in the vision statement.
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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 towardachieving the goals of an organization.
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Leadership and Management in
Transnational Companies The nature of leadership:
1. Qualities or traits theories
2. Functional or group theories
3. Behavioral theories
4. Style theories
5. Situational approach and contingencymodels
6. Transitional or transformational theories.
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Leadership and Management in
Transnational Companies Leaders in a learning organization must
be:
Designers
Teachers
Stewards
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Leadership and Management in
Transnational Companies Leaders in a learning organization must
be:
Designers designing the vision,
strategies,
policies, and structures of the organization;
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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
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Leadership and Management in
Transnational Companies Leaders in a learning organization must
be:
Stewards developing people and the
organization.
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Strategic HRM implications of a
core competence approach
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Strategic HRM implications of a
core competence approach1. Job Design
2. Staffing Issues
3. Training & Development
4. Rewards System
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Strategic HRM implications of a
core competence approach Job Design:
1. Greater technical knowledge will be
required for individual jobs;
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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
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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 thinkingand doing.
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Strategic HRM implications of a
core competence approach Staffing Issues:
1. Most challenging positions will be filled by
internal transfers;
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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
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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.
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Strategic HRM implications of a
core competence approach T&D:
1. Investment in T&D programs will increase
to facilitate personal and organizationaldevelopment;
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Strategic HRM implications of a
core competence approach T&D:
1. Investment in T&D programs will increase to
facilitate personal and organizationaldevelopment;
1. T&D of personnel will increasingly be
decentralized to operating departments;
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Strategic HRM implications of a
core competence approach T&D:
1. Investment in T&D programs will increase to
facilitate personal and organizationaldevelopment;
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
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Strategic HRM implications of a
core competence approach T&D:
1. Investment in T&D programs will increase to facilitate personaland organizational development;
2. T&D of personnel will increasingly be decentralized tooperating departments;
3. T&D will move away from traditional skills building todevelopment; and
1. Performance review will be used to assess the
contribution of employees rather than to determinepay. This will be based on feedback from peers andcustomers rather than supervisors andsubordinates.
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Strategic HRM implications of a
core competence approach Rewards Systems:
1. A greater proportion of pay will be used on
group or organizational outcomes;
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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
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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. Jobevaluation will shift from a quantitative to a
qualitative focus.; and1. Compensation systems will become flexible.
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HR Implications of Business Strategy
Business Strategy Questions HR Implications
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HR Implications of Business Strategy
Business Strategy Questions HR Implications
What industry and markets are we in?What people do we need?
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HR Implications of Business Strategy
Business Strategy Questions HR Implications
What industry and markets are we in? What people do we need?
Are organizational culture, structure,
and value systems appropriate orinappropriate?
How do we change them?
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HR Implications of Business Strategy
Business Strategy Questions HR Implications
What industry and markets are we in? What people do we need?
Are organizational culture, structure and
value systems appropriate orinappropriate?
How do we change them?
Strategic direction Who will we need in thefuture?
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HR Implications of Business Strategy
Business Strategy Questions HR Implications
What industry and markets are we in? What people do we need?
Are organizational culture, structure and
value systems appropriate orinappropriate?
How do we change them?
Strategic direction Who will we need in thefuture?
New businesses and new markets What systems andprocedures might bedeveloped?
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HR Implications of Business Strategy
Business Strategy Questions HR Implications
SWOT To what extent are theyrelated to existing use of HR?
Demand and supply in the
labor market?
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HR Implications of Business Strategy
Business Strategy Questions HR Implications
SWOT To what extent are they relatedto existing use of HR?
Demand and supply in the
labor market?
Critical Success factors To what extent do thesedepend on employees rather
than other factors?
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Examples of Organizational Strategies
and Associated HR Strategies
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Examples of Organizational Strategies
and Associated HR StrategiesCorporate Strategy(strategic direction)
ExampleCompany
HR Strategies
Retrenchment(cost reduction)
Layoffs,
wage reduction,
productivity increases,
job redesign,re-negotiated laboragreements.
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Examples of Organizational Strategies
and Associated HR StrategiesCorporate Strategy(strategic direction)
ExampleCompany
HR Strategies
Growth Aggressive recruiting andhiring,
Rapidly rising wages,
Job creation,Expanding T&D
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Examples of Organizational Strategies
and Associated HR StrategiesCorporateStrategy (strategicdirection)
ExampleCompany
HR Strategies
Renewal Managed turnover,
Selective lay-offs,
Organizational development,
Transfer/replacementproductivity increases,
Employee involvement.
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Examples of Organizational Strategies
and Associated HR StrategiesCorporate Strategy(strategic direction)
ExampleCompany
HR Strategies
Niche focus Specialized job creation,
Elimination of otherjobs,
Specialized T&D.
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Examples of Organizational Strategies
and Associated HR StrategiesCorporate Strategy(strategic direction)
ExampleCompany
HR Strategies
Acquisition Selective lay-offs,
Transfers/placement,
Job combinations,
Orientation andtraining,
Managing culturaltransitions.
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Case: GE the new leadership
paradigm
Q.1. What was the dilemma for
leadership that GE faced as atransnational co?
Q.2. What changes did Jack Welch bring
about in GE as its leader?
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End of Unit-2
Global Leadership and Strategic HRM
Next Topic
Global and Transnational MarketingManagement
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