MODULE 2 Fall 1 - MODULE 2 Chapter 2 - Bernardin Textbook...

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MODULE 2 Chapter 2 - Bernardin Textbook The Role of Globalization in HR Policy and Practice Objectives *Describe the different ways companies may engage in international commerce. *Explain the different international business strategies. *Describe the differences between IHRM and HRM. *Understand the different IHRM strategies. *Learn the trends relating to international job assignments. *Understand the issues and trends relating to the development of globally competent business leaders. Overview: One of the major challenges facing businesses today is the increasing globalization of the world economy and competition. I like what the author of our textbook said in an earlier edition: "There is nothing that any American organization does that is not directly affected by developments throughout the world. The emerging technologies, the competition, and the opportunities are global . . . all organizations, regardless of locales, soon must evaluate workforce skills, costs, and availability on a global basis." This works in the opposite direction as well. The tragic events of September 11, 2001, translated in a slowdown of the entire world economy. Driven by technology, the world is getting smaller. Look at the facts: ·In 1948, world exports totaled $59 billion ·In 2006, they were estimated to be over $11.8 trillion ·The World Bank now estimates that global trade will account for half of the world's gross national product (GNP) ·McDonald's opened its first non-U.S. restaurant in Canada in 1967. By 2005, their total sales outside of the U.S. represented 66 percent of their operating income. ·Coca-Cola derives over 70 percent of its operating income from overseas operations.
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·In 1991, Wal-Mart first ventured offshore in a joint venture in Mexico. They are now the largest retailer in Canada and Mexico and have over 7,350 stores in 14 countries. ·The majority of Fortune 500 companies are now multinational in nature in that some portion of their business (and profits) is derived from overseas operations. Another recent trend is the creation of offshore professional and operations centers, regardless of where the final work product is ultimately marketed. Many U.S. and European software manufacturers now have facilities in India to take advantage of the high concentration of computer skills in that country and the low cost of labor. My son was working for EarthLink in Pasadena as a Technical Representative for six years. The call centers are now in India and the layoff involved 1300 workers. Why expand globally?
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MODULE 2 Fall 1 - MODULE 2 Chapter 2 - Bernardin Textbook...

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