| The Globalization of Human Resource Practices | | | | locations in international organizations. Selection |
| | | | | practices that vary the most include: |
| *Dr.Padala Shanmukha Rao **Dr. N.V.S.Suryanarayana | | | | |
| | | | | - § Assessments (role plays and simulations). |
| The key to creating a consistent corporate culture | | | | - § Testing for selection purposes. |
| across multiple locations is maintaining the critical | | | | - § Internet advertising (recruiting). |
| balance between a strong corporate culture and local | | | | |
| cultural differences. Purpose The report examines the | | | | Best Practices: |
| changing roles the human resource (HR) function | | | | Organizations were asked to respond to the |
| plays in a globally competitive marketplace and | | | | following: What is the most effective action your |
| identifies the challenges of adapting to these roles. | | | | parent organization has taken to make HR practices |
| The objectives of this study were to: | | | | more consistent across all locations/offices? |
| - Ø Investigate how domestic and international | | | | |
| companies conduct HR practices around the world. | | | | The following is a sample of responses: |
| - Ø Determine the top HR priorities for each | | | | - Ø Developed a long-term HR plan to ensure |
| organization type. | | | | alignment of HR strategies/objectives with corporate |
| - Ø Determine the challenges that organizations | | | | objectives. |
| face when trying to globalize their HR function and | | | | - Ø Created centralized reporting relationships |
| practices. | | | | around the globe. |
| - Ø Determine what organizations are doing to | | | | - Ø Standardized assessment, development, and |
| institute a consistent corporate culture across all | | | | compensation practices. |
| locations/offices. | | | | - Ø Introduced practices to regions around the |
| | | | | globe and allowed the HR function in each region the |
| Responses were gathered from 206 members of | | | | autonomy to do [its] job. |
| DDI's HR Benchmark Group. Two-thirds of the | | | | - Ø Created global policies/processes for data |
| respondent organizations had operations in multiple | | | | management, performance management, |
| countries (international); the remaining third operated | | | | compensation, education, and development. |
| solely in one country (domestic). The globalization of | | | | - Ø Tied regional accountability to performance |
| HR is characterized by increasing levels of | | | | management. |
| decentralization. | | | | - Ø Shared HR best practices used in certain |
| - Ø Half of all international organizations reported | | | | locations with all other locations. |
| having one primary HR department with independent | | | | - Ø Developed an HR mission statement. |
| regional HR staff. | | | | |
| - Ø Many international (37 percent) and domestic | | | | Creating a corporate culture: |
| (42 percent) companies reported using a more | | | | Many international companies (84 percent) indicated |
| centralized approach—one primary HR department | | | | that their parent organization was trying to establish |
| with dependent regional HR staff. | | | | a corporate culture at all locations/offices that was |
| - Ø More than a third of domestic organizations | | | | consistent with its goals and vision. Most organizations |
| reported having only a primary HR department with | | | | (88 percent) reported that creating a corporate |
| no regional HR staff. | | | | culture is difficult because, in certain locations, local |
| | | | | cultures and customs have a moderate to great |
| Consistency of Human Resource Practices: | | | | influence on the way business is conducted. |
| A majority of international (79 percent) and domestic | | | | Organizations have taken the following actions when |
| (87 percent) organizations reported that their parent | | | | trying to create a consistent corporate culture: |
| organizations are taking action to make HR practices | | | | - Ø Communicated to all locations about a |
| more consistent across all locations/offices. | | | | common corporate culture. |
| | | | | - Ø Allowed local cultures to maintain their identity |
| - Ø International organizations use consistent HR | | | | in the context of the corporate culture. |
| practices to help develop a common corporate | | | | - Ø Established common systems (e.g., |
| culture (75 percent) and to improve the | | | | accounting, marketing, MIS). |
| effectiveness of the HR function (73 percent). | | | | - Ø Provided management with education outlining |
| - Ø Domestic organizations are creating consistent | | | | how the company does business. |
| HR practices to improve both the effectiveness (81 | | | | - Ø Created an organizational mission with input |
| percent) and the efficiency (71 percent) of the HR | | | | from all locations. |
| function. | | | | - Ø Created a written strategy outlining the |
| - Ø Selection practices vary greatly across | | | | corporate culture. |