The word "three" represents something "big, numerous and powerful".
Download How to manage a global workforce As companies stake their growth strategies on global expansion and pursuit of new markets, their ability to forge a human capital strategy and HR capability that is both globally consistent and locally relevant will be critical to success.
Executives were aware that growth on that scale would require waves of new hiring across those markets. To deliver high levels of performance cost effectively, Unilever is looking to manage these employees in ways that are aligned with a global approach to employee services, while also complying with different statutory requirements and respecting local differences in how people are motivated, developed and paid.
On the other side of the world, Huawei Technologies Co. Tracking the routes to corporate globalization these days is like watching the contrails of jet planes: They come from anywhere and go everywhere.
Yet whatever direction a global expansion takes, companies face common challenges, all related to how their people—who ultimately execute business strategy, innovate and serve customers—are sourced, developed and managed.
As executives now understand, cultural differences really do matter. As companies in almost every industry stake a large portion of their growth plans on global expansion, the precision and consistency with which they approach talent management capabilities, HR policies and leadership development must increase.
Attracting and retaining skilled workers, stabilizing the labor force in a new market, increasing productivity, structuring an organization so that credible and competent leadership is placed in the right locations, fashioning a culture that is consistent but also accommodates local differences—these are now the activities and competencies that are critical to success.
One of the most profound but also subtle issues companies face as they expand—from West to East and vice versa—is adopting a genuinely neutral global perspective, without presumptions about whose role is dominant. Julian Dalzell—recently retired after 43 years in HR leadership roles with Royal Dutch Shell, and now on the faculty of the Darla Moore School of Business in South Carolina—sees cause for concern about whether Western companies are sufficiently prepared to meet these challenges.
Executing a global business strategy requires having the right talent in the right places; it requires specialized leadership skills—managing the work of people with different backgrounds and customs. Different kinds of organizational and governance structures are required to operate as a global company rather than just a company that happens to have a lot of different locations around the world.
Putting all those pieces together into a coherent, global human capital strategy—covering talent, leadership, culture and organizational structures—can be a daunting task. Many Western companies that are focused on growth in emerging markets struggle, for example, with putting the right local management in the right places.
For reasons of comfort and confidence, companies may wish to staff overseas operations with executives from the head office. However, if a company expects its growth to be in emerging economies, having leadership from the West swoop in with a set of attitudes and presumptions that may not be appropriate for a growth market can create a real business risk.
Ironically, perhaps, exactly the same dynamic can come into play, though in reverse, when the home office is in China or India or Brazil and the acquisitions to be managed are in the United States or Europe. Talent acquisition and management are much more complex in an international environment.
Consider a UK-based company operating in Mozambique. Personnel to be managed will include nationals from the parent country, host-country nationals and third-country nationals who might come from anywhere. Trying to truly standardize grade scales and terms of employment in that environment is difficult; for example, expatriates may need to be paid partly in the local currency and partly in their home currency.
Unless job grading and pay formulas are clear, fair and well understood, difficulties may arise among staff doing similar work in different countries. Performance management can be an issue as well.
For example, in many developing nations, labor—even skilled knowledge workers—is plentiful and available at low cost, which then generates a number of assumptions about employee sourcing and development. Motivational philosophies in some Asian cultures may include demotions for perceived subpar performance.
Such a policy may not export very well to developed economies, where demotions are more often perceived as a step toward dismissal, not a motivational tactic. Some of the barriers a manager encounters when hiring someone in this global environment sound mundane.
One multinational, for example, has recently created an organizational structure in which its major brands will be managed by regional teams around the world.
This allows brand managers to be closer to local markets, develop deeper relationships with customers and create more agile brand management.
When this same challenge repeats itself across all the various parts of the employee lifecycle, from hiring to development to retention, the management challenges increase dramatically and the company ultimately can stumble in executing the entire global strategy.
Super global, super local From a governance perspective, globalization strategies usually follow a predictable course. As companies expand beyond their original markets, they first move from a structure with a dominant global headquarters to one that replicates essential functions—marketing, sales, distribution, manufacturing and so on—within each country of operations.
Yet such a regional or national focus often results in fragmentation and operational redundancy. By giving each region the ability to pay, reward and develop people differently, HR processes and functions themselves can end up compromising the global strategy rather than enabling it.
So in the current globalization phase, most multinational executives are turning to a management structure that combines the benefits of globally consistent policies on the one hand and local relevance on the other.Based on the PLC, what challenges does Samsung face in managing its high- tech products?
After 17 years remarkable success, Samsung is now in the decline stage of their high- tech products; therefore, Lee has announced Samsungʼs newest strategy “mabuljungje” which means “horse that does not stop” in Chinese axiom, and he think . What Challenges Does a Company Face When Developing New Products in the Global Economy?
by Jim Tischler Deciding when and where to market globally is a challenge. Check out the top 12 IT challenges facing information technology professionals this year (and how to deal with them). From the IT experts at Global Knowledge. Nov 03, · Opinions expressed by Forbes Contributors are their own.
Share to facebook Share to twitter Share to linkedin There’s a common misconception that fast-growing startups have it made: They’ve.
Will Samsung likely achieve its goals in markets where is does not dominate, such as smartphones? Why or Why not? Thank You Are There Any Questions? In , the CEO Mr. Lee released what he called "New Management", a top-to-bottom strategy for the company.
Samsung is now the worlds largest television manufacturer.-Samsung hired . Samsung BP Chemicals, based in Ulsan, is a joint venture between Samsung and the UK-based BP, which was established in to produce and supply high-value-added chemical products.
Its products are used in rechargeable batteries and liquid crystal displays.