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1、1executivesummaryThe Globalization of Human Resource PracticesBy Sheila M. Rioux, Ph.D., Paul R. Bernthal, Ph.D., and Richard S. Wellins, Ph.D.The key to creating a consistent corporate culture across multiplelocations is maintaining the critical balance between a strongcorporate culture and local c
2、ultural differences.PurposeThe report examines the changing roles the humanresource (HR) function plays in a globallycompetitive marketplace and identifies thechallenges of adapting to these roles.The objectives of this study were to:Investigate how domestic and internationalcompanies conduct HR pra
3、ctices around theworld.Determine the top HR priorities for eachorganization type.Determine the challenges that organizations facewhen trying to globalize their HR function andpractices.Determine what organizations are doing toinstitute a consistent corporate culture across alllocations/offices.Respo
4、nses were gathered from 206 members ofDDIs HR Benchmark Group. Two-thirds of therespondent organizations had operations in multiplecountries (international); the remaining thirdoperated solely in one country (domestic).General ProfileFindings OverviewThe globalization of HR is characterized byincrea
5、sing levels of decentralization.Half of all international organizations reportedhaving one primary HR department withindependent regional HR staff.Many international (37 percent) and domestic(42 percent) companies reported using a morecentralized approachone primary HRdepartment with dependent regio
6、nal HR staff.More than a third of domestic organizationsreported having only a primary HR departmentwith no regional HR staff.2HR PrioritiesInternational and domestic organizations identifiedsimilar HR priorities for the next two years.The top priority, identified by 52 percent ofinternational compa
7、nies, was leadershipdevelopment. Domestic organizations alsoranked leadership development as a top priorityRecruiting high-quality employees rankedsecond as a priority for both international (40percent) and domestic companies (46 percent).both international (33 percent) and domesticcompanies (46 per
8、cent). In fact, retention wasthe top priority for domestic organizations.Consistency of HR PracticesFindings OverviewA majority of international (79 percent) anddomestic (87 percent) organizations reported thattheir parent organizations are taking action to makeHR practices more consistent across al
9、l locations/offices.International organizations use consistent HRpractices to help develop a common corporateculture (75 percent) and to improve theeffectiveness of the HR function (73 percent).Domestic organizations are creating consistentHR practices to improve both the effectiveness(81 percent) a
10、nd the efficiency (71 percent) ofthe HR function.Selection practices vary greatly across locationsin international organizations. SelectionAssessments (role plays and simulations).Testing for selection purposes.Internet advertising (recruiting).Challenges to ConsistencyFindings OverviewInternational
11、 companies face many challenges whentrying to make HR practices consistent across alllocations/offices. The top three challenges include:Variations in social, political, and economiccircumstances.(35 percent).Different locations/offices have their own wayof doing things and are resistant to change.T
12、he perceived value of the HR function variesacross locations/offices.Employee retention was also a top concern forBest PracticesOrganizations were asked to respond to thefollowing: What is the most effective action yourparent organization has taken to make HR practicesmore consistent across all loca
13、tions/offices?The following is a sample of responses:Developed a long-term HR plan to ensurealignment of HR strategies/objectives withcorporate objectives.Created centralized reporting relationshipsaround the globe.Standardized assessment, development, andcompensation practices.Introduced practices
14、to regions around the globeand allowed the HR function in each region theautonomy to do its job.Created global policies/processes for datamanagement, performance management,compensation, education, and development.Tied regional accountability to performancemanagement.practices that vary the most inc
15、lude:Shared HR best practices used in certainlocations with all other locations.Developed an HR mission statement.3Creating a Corporate CultureFindings OverviewMany international companies (84 percent) indicatedthat their parent organization was trying to establisha corporate culture at all location
16、s/offices that wasconsistent with its goals and vision. Mostorganizations (88 percent) reported that creating acorporate culture is difficult because, in certainlocations, local cultures and customs have amoderate to great influence on the way business isconducted. Organizations have taken the follo
17、wingactions when trying to create a consistent corporateculture:Communicated to all locations about a commoncorporate culture.Allowed local cultures to maintain their identityin the context of the corporate culture.Established common systems (e.g., accounting,marketing, MIS).Provided management with
18、 education outlininghow the company does business.Created an organizational mission with inputfrom all locations.Created a written strategy outlining thecorporate culture.General Challenges forGlobal HR FunctionFindings OverviewFunctions such as operations, sales, and marketinghave generally made gr
19、eat progress in adapting tothe global reality. However, the HR function hastypically lagged behind in developing policies andstructures that support globalization. The topchallenges HR faces in the globalization processinclude:Coordination of activities in many differentlocations.Understanding the c
20、ontinual change of theglobally competitive environment.Building a global awareness in all HRdepartments/divisions.Creating a multicultural HR team.International AssignmentsFindings OverviewFinding, developing, and retaining global leaderstops the priority list of international companies.Internationa
21、l, or expatriate, assignments are oftenused as a way to develop the talent of global leaders.Many international companies (83 percent) useexpatriate assignments, which last an average of2.65 years.International assignments are quite expensive.Most international companies (88 percent) reportspending
22、more than two times an expatriatessalary during the span of the assignment.The most important characteristic to look forwhen recruiting an expatriate is a willingness totravel. The ability to speak other languages wasthird, behind having international businessexperience.Most organizations provide pr
23、e-departuretraining for expatriates, but relatively fewprovide a process for managing the expatriatesre-entry to his or her home country.Only 68 percent of respondent organizationsagreed that international assignments help anexpatriates career.The Global PictureWhen it comes to business, the world i
24、s indeedbecoming a smaller place. More and morecompanies are operating across geographic andcultural boundaries. While most have adapted to theglobal reality in their operations, many are laggingbehind in developing the human resource policies,structures, and services that support globalization.The
25、human resource function faces many challengesduring the globalization process, including creating aglobal mind-set within the HR group, creatingpractices that will be consistently applied in differentlocations/offices while also maintaining the variouslocal cultures and practices, and communicating
26、aconsistent corporate culture across the entireorganization.To meet these challenges, organizations need toconsider the HR function not as just anadministrative service but as a strategic businessCompanies should involve the human resourcesdepartment in developing and implementing bothbusiness and p
27、eople strategies. This type ofpartnership is necessary if an organization wants tochange potentially inaccurate perceptions of HR andreiterate the HR functions purpose and importancethroughout its global environment. Organizationswill also discover that HR can be invaluable infacilitating the develo
28、pment of a unifying corporateculture and finding and cultivating much neededleadership talent around the world.The process of globalizing resources, both humanand otherwise, is challenging for any company.Organizations should realize that their global HRfunction can help them utilize their existing
29、humantalent from across multiple geographic and culturalboundaries. International organizations need toassist and incorporate their HR function to meet thechallenges they face if they want to create a trulyglobal workforce.partner.Center for Applied Behavioral ResearchSheila M. Rioux, Ph.D., Researc
30、h ConsultantPaul R. Bernthal, Ph.D., ManagerFor more information, contact:HR Benchmark GroupPaul BernthalTo order a complete report, call:800-DDI-1514(800-334-1514)Development Dimensions International1225 Washington PikeBridgeville, PA 15017Phone: 1-800-9-DDI-MAIL, extension 7533Fax: 412-220-5204E-mail: Printed on recycled paper. Development DimensionsInternational, Inc., MM.All rights reserved.MKTCPGN56-0500.0MA
