1. Human resource management and global business strategy

Challenges position, choices and action that should be seen as closely related. In practise none has priority over another, this sequence is not meant to suggest that the process of strategic management must follow a neat and tidy path. Indeed, the evidence on how strategic management happens in practice suggest that it usually does not occur in tidy ways.
Elements of strategic management in linear sequence is characterised first by understanding the strategic position, than strategic choices and finally putting strategy in action. Indeed, many texts on the subject to just this. However, in practise, the elements of strategic management do not follow this linear sequence, they are interlinked and feed back on each other.

The inter-connected circles of the above exhibit are designed to emphasise this non-linear nature of strategy.

Corporate social responsibility is among the top challenges. Companies face when expanding into new markets, especially in developing regions.

Business practices that are acceptable locally are frequently at odds with the values of the company and the laws of its regulatory agencies. This creates a tug-of-war between social responsibility and the need to be successful in those markets, which can turn into significant risk.
Guiding corporate strategic decision-making challenge incorporating the human capital opportunities and risks from operating abroad into corporate strategic decision-making workforce opportunities that are marked both by steady improvements through the political machinations that open trade across borders and enable cross-border migrations, and by sudden and often unexpected changes such as the relaxation in relations between the United States and Cuba; conflicts in Syria, Iraq and Ukraine; and dramatic swings in oil prices.
The challenge for companies is to remain nimble to take advantage of the opportunities while avoiding the risks. HR’s challenge is to gather, assess and understand all the cultural, labor and market complexities of operating in each market so that the company can predict opportunities and risks, know when to enter or exit a market, and integrate successfully into new local markets.
The success of a company’s global growth hinges on HR integrating the workforce. HR-led teams need to assess the complexities of bringing together workforces with often dissimilar societal and corporate cultures. HR can, for example, identify potential roadblocks early and plan interventions before problems arise. The food facilities management company Sodexo identified a need for diversity and inclusion across its 355,000 employees from North American to China. It developed training programs that resulted in significant numbers of women, youths, people with disabilities and indigenous workers productively joining its workforce across the globe.

2.Making the business case for CSR

The challenge for HR is to gain a detailed understanding of local environments and their accepted business practices. It then needs to establish protocols that are customized for each region and communicate these protocols throughout the organization and across its supply chain.
When local labor laws or practices conflict with the organization’s CSR policies, HR needs to be the voice of the individual and ensure that the company maintains its integrity, even when this goes against the potential economic value.

HR faces the additional challenge of demonstrating to the company how good CSR policies strengthen the brand, increase customer loyalty and boost shareholder value.

3.Balancing corporate and societal cultures while promoting diversity

Some cultural attributes, such as a command-and-control management style, can be modified to fit local cultures, while others, such as integrity and human rights policies, cannot be compromised. HR needs to understand and deal with the complexities, deciding which corporate culture elements can change and which are essential to protecting the organization’s values and ethics. The company cannot change anti-bribery policies, but it may choose to change its dress-down-Fridays rule.

Management may also choose to impose cultural elements, such as giving back to the community consistently across the global organization. The challenge becomes even more complex when dealing with new workers, those engaged through means such as crowdsourcing, as well as remote and temporary workers.

HR also needs to develop programs to assist executives to adapt when they move from the head office to regions with different societal and cultural norms.



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