1、第六單元：跨國公司Business Functions within the MNCswithin the MNCs1.不是重點(diǎn)；講跨國公司的功能，其內(nèi)部結(jié)構(gòu)2.看下：與globalization相關(guān)部分Key Learning Objective This session will help you to understand the concepts of:1) Internationalisation of business organisations2) Key international business functions3) Complexities of choices and

2、 approaches in internationalisationAims of the Session:To understand aspects of various functions in the international business organisations.To consider the benefits and problems of the internationalisation in human resource and knowledge management in IB organisations.Key Questions What are the ke

3、y functions in the process of internationalisation of firm? How does international business organisation manage its internal operations? How does international business organisation manage its external operations (e.g. relationship with the host country/communities)? RecapWe looked at the concept of

4、 internationalisation of firms and rationale behind their decision-making process.Advantages and Risks of internationalisationCorporate Governance within the MNCCorporate governance refers to the way in which company boards oversee the running of the corporation by its managers and how board members

5、 are accountable to shareholders and the company in general (Johnson and Turner, 2010)The corporate Governance for IB organisation: Issues to be aware ofCompany Transparency;Relationship with stakeholders in the host countries;Shareholder rights;Labour relations;Fair competition;Tax and pension poli

6、cy;Disclosure requirement.Function: International Human Resource Management (IHRM) IHRM is distinct from generic HRM on two grounds:1) The complexity of operating across multiple national environment.2) Employing different national categories of workers.This function requires careful attention from

7、MNC.Tapping the Worlds Innovation Hot Spots(Source: Gao, 2009) Changing dynamics of global innovation: “What are the implications of this new “Innovation World?” System Integration Approach: companies can take advantage of the differences in national environments through innovation arbitrage 4 Innov

8、ation Models: some exist in pure form while others are a component of a nations overall innovation strategyModel 1: The Focused Factory What is a focused factory?- Clear strategic intent- Infrastructure- TalentExamples: Denmark, Singapore (Biopolis, Fusionopolis)Key players: GSK, Novartis.Model 2:Br

9、ute Force What is “Brute Force”- Large source of low-cost labour- Innovation opportunities- Law of averages- Examples: India, China- Players: Microsoft, Berkshire HathawayModel 3: HollyworldWhat is “Hollyworld- Forming a global creative class (Silicon Valley Effect)-Developing an enticing innovation

10、 destination-Examples: India/ SingaporeModel 4: Large Scale EcosystemsLarge-Scale Ecosystems : end to end innovation systems-Self-contained environments-Alliance-management skills neededExamples: Finland Focus on education, science and technology (Aalto university) Driving Forces of Global Innovatio

11、n1)Innovation as a currency of global competition- pursuing the “global dream”; countries in-source American culture2)Global war for talent- talented young innovators can be attracted anywhere through incentives and opportunities3)Innovation as a national agenda- nations increasing embrace innovatio

12、n as a national priority4)Power of networks global networks are becoming increasingly intertwinedIHRM: Approaches to StaffingFactors affecting approaches to staffingGeneral staffing policy on key positions at headquarters and subsidiariesConstraints placed by host governmentStaff availabilityEthnoce

13、ntricPolycentricGeocentricRegiocentricEthnocentric Strategic decisions are made at headquarters;Limited subsidiary autonomy;Key positions in domestic and foreign operations are held by headquarters personnel; PCNs manage subsidiaries.PolycentricEach subsidiary is a distinct national entity with some

14、 decision-making autonomy;HCNs manage subsidiaries who are seldom promoted to HQ positions;PCNs rarely transferred to subsidiary positions.GeocentricA global approach - worldwide integration;View that each part of the organization makes a unique contribution;Nationality is ignored in favor of abilit

15、y:Best person for the job;Color of passport does not matter when it comes to rewards, promotion and development.Geocentric Staffing Requirements(Source: Brooks et al, 2008)RegiocentricReflects a regional strategy and structure; Regional autonomy in decision making; Staff move within the designated r

16、egion, rather than globally;Staff transfers between regions are rare.Ethnocentric ApproachAdvantages:vTo ensure new subsidiary complies with overall corporate objectives and policiesvHas the required level of competencevAssignments as controlDisadvantages: Limits the promotion opportunities of HCNs,

17、 leading to reduced productivity and increased turnover among the HCNs Longer time for PCNs to adapt to host countries, leading to errors and poor decisions being made High cost Considerable income gap, high authority, and increased standard of living may relate to lack of sensitivityPolycentric App

18、roachAdvantages: Employment of HCNs eliminates language barriers, avoids adaptation of PCNs, reduces the need for cultural awareness training programs Employment of HCNs allows a multinational company to take a lower profile in sensitive political situations Employment of HCNs is less expensive Empl

19、oyment of HCNs gives continuity to the management of foreign subsidiaries (lower turnover of key managers)Polycentric ApproachDisadvantages: Difficult to bridge the gap between HCN subsidiary managers and PCN managers at headquarters ( language barriers, conflicting national loyalties, cultural diff

20、erences) HCN managers have limited opportunities to gain experience outside their own country PCN managers have limited opportunities to gain international experience Resource allocation and strategic decision making will be constrained when headquarter is filled only by PCNs who have limited exposu

21、re to international assignmentGeocentric ApproachAdvantages:vAbility of the firm to develop an international executive teamvOvercomes the federation drawback of the polycentric approachvSupport cooperation and resource sharing across unitsDisadvantage:Host government may use immigration controls in

22、order to increase HCNs employmentExpensive to implement due to increased training and relocation costsLarge numbers of PCNs, HCNs, and TCNs need to be sent across bordersReduced independence of subsidiary managementRegiocentric Approach Advantages:Allow interaction between executives transferred to

23、regional headquarters from subsidiaries in the region and PCNs posted to the regional headquartersProvide some sensitivity to local conditionsHelp the firm to move from a purely ethnocentric or polycentric approach to a geocentric approach Disadvantages:Produce federalism at a regional rather than a

24、 country basis and constrain the firm from taking a global stanceStaffs career advancement still limited to regional headquarters, not the parent country headquartersParent-Country NationalsAdvantages Organizational control and coordination is maintained. Rising stars are given international experie

25、nce. PCNs may be the best people for the specific job due to special skills and experience. An assurance that the subsidiary will comply with company objectives & policies.Disadvantages Promotional opportunities of HCNs are limited. Time and performance costs associated with adaptation to the host c

26、ountry. PCNs may impose an inappropriate HQ style. Compensation for PCNs and HCNs may differ.Host-Country NationalsAdvantages Language and other barrier eliminated Reduced hiring costs Continuity of management Government policy may require hiring HCNs Possible increased morale because of increased c

27、areer potentialDisadvantages Hiring of HCNs may encourage a federation of national rather than global units HCNs have limited career opportunity outside the subsidiary Control and coordination of HQ may be impeded Hiring HCNs limits opportunities for PCNs to gain foreign experienceThird-Country Nati

28、onalsAdvantagesSalary and benefit requirements may be lower than for PCNs.TCNs may be better informed than PCNs about host-country environment.DisadvantagesTransfers must consider national animosities.Host government may resent hiring TCNs.TCNs may not want to return to their own countries after ass

29、ignment.Determinants of IHRM Approaches and ActivitiesActivity 2: Management of IHR policiesAn Australian mining company (operating in Laos, Cambodia and Chile) is facing HR crisis. They cant retain their staff and need some ideas to improve their policies. In your team please discuss the best IHR p

30、olicy for the industry, company and explain why your team consider that policy. Reasons for International AssignmentsPosition filling, e.g. Skills gap, launch of new endeavor, technology transferManagement developmentTraining and development purposes, assisting in developing common corporate valuesO

31、rganizational developmentNeed for control, transfer of knowledge, competence, procedures and practicesTypes of International Assignments Short term: up to 3 monthsTroubleshootingProject supervisionA stopgap until a permanent arrangement is found Extended: up to 1 yearMay involve similar activities a

32、s short-term assignments Long termVaries from 1 to 5 yearsThe traditional expatriate assignmentRoles of an ExpatriateAgent of direct controlAgent of socializationNetwork builderBoundary spannerLanguage nodeTransfer of competence and knowledgeA Glamorous LifeInternational business travelers cite the

33、positives as:Excitement and thrills of conducting business deals in foreign locationsLife style (top hotels, duty-free shopping, business class travel)General exotic natureBut a High Level of Stress!Home and family issuesFrequent absences Work arrangementsDomestic side of position still has to be at

34、tended toTravel logisticswaiting in airports, etc.Health concernsPoor diet, lack of sleep, etc.Host culture issuesLimited cultural trainingCentralized HR CompaniesDecentralized HR CompaniesTransition HR Companies Large well-resourced HR departments Small HR departments Medium-sized HR departments Ke

35、y role: Managing all high-grade management positions worldwide Key role: Managing elite corporate managers Key role: Management and development of senior managers and expatriates Key activities: Planning international assignments and performance management globally, identifying high-potential staff

36、Key activities: Influencing operating units to support international assignments, supporting decentralized HR Key activities: Persuading divisional managers to release key staff using informal and subtle methods, strategic staffing.Source: Based on H. Scullion and K. Starkey, in Search of the Changi

37、ng Role of the Corporate Human Resource Function in the International Firms, International Journal of Human Resource Management, V 11, N 6 (2000) pp. 1061-1081.Various Roles of Corporate HRRMIT UniversitySlide 37Reasons for Expatriate FailureUS multinationalsInability of spouse to adjustManagers ina

38、bility to adjustOther family problemsManagers personal or emotional immaturityInability to cope with larger overseas responsibilitiesEuropean multinationalsInability of spouse to adjustJapanese FirmsInability to cope with larger overseas responsibilitiesDifficulties with the new environmentPersonal

39、or emotional problemsLack of technical competenceInability of spouse to adjustRMIT UniversitySlide 38Expatriate SelectionReduce expatriate failure rates by improving selection proceduresAn executives domestic performance does not (necessarily) equate to his/her overseas performance potential Employe

40、es need to be selected not solely on technical expertise, but also on cross-cultural fluency RMIT UniversitySlide 394 Attributes that Predict SuccessSelf-OrientationPossessing high self-esteem, self-confidence and mental well-beingOthers-OrientationAbility to develop relationships with host country

41、nationals Willingness to communicateRMIT UniversitySlide 404 Attributes that Predict SuccessPerceptual AbilityThe ability to understand why people of other countries behave the way they doBeing nonjudgmental and flexible in management styleCultural ToughnessRelationship between country of assignment

42、 and the expatriates adjustment to itRMIT UniversitySlide 41Training and Management DevelopmentTraining: Obtaining skills for a particular foreign postingCultural training: Seeks to foster an appreciation of the host countrys cultureLanguage training: Can improve expatriates effectiveness, aids in relati