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    IHRM M2 The Logic of Global Integration

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    Vincy Paul F
    Global integration means centralized control over strategic resources and operations across a company's value chain. There are several business advantages to global integration, including economies of scale, serving global customers, and leveraging capabilities. Companies implement global integration through aligning decision-making globally, standardizing processes, and socializing corporate culture. However, as internationalization increases, traditional expatriate models cause tensions between home and host countries, global and local needs, and short-term decision-making.

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    IHRM M2 The Logic of Global Integration

    Uploaded by

    Vincy Paul F
    329 views12 pages
    Global integration means centralized control over strategic resources and operations across a company's value chain. There are several business advantages to global integration, including economies of scale, serving global customers, and leveraging capabilities. Companies implement global integration through aligning decision-making globally, standardizing processes, and socializing corporate culture. However, as internationalization increases, traditional expatriate models cause tensions between home and host countries, global and local needs, and short-term decision-making.

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    211588032 IHRM M2 the Logic of Global Integration (2)

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    Global integration means centralized control over strategic resources and operations across a company's value chain. There are several business advantages to global integration, including economies of scale, serving global customers, and leveraging capabilities. Companies implement global integration through aligning decision-making globally, standardizing processes, and socializing corporate culture. However, as internationalization increases, traditional expatriate models cause tensions between home and host countries, global and local needs, and short-term decision-making.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    329 views12 pages

    IHRM M2 The Logic of Global Integration

    Uploaded by

    Vincy Paul F
    Global integration means centralized control over strategic resources and operations across a company's value chain. There are several business advantages to global integration, including economies of scale, serving global customers, and leveraging capabilities. Companies implement global integration through aligning decision-making globally, standardizing processes, and socializing corporate culture. However, as internationalization increases, traditional expatriate models cause tensions between home and host countries, global and local needs, and short-term decision-making.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    of 12

    Exploiting Global

    Integration
    Module 2
    The logic of global
    integration
    Drivers of GI
     Global integration means centralized control over key
    resources and operations that are strategic in the value
    chain.

    Business advantages/ strategic drivers of Global Integration


    1. Economies of scale
    2. Value chain linkages
    3. Serving global customer
    4. Global branding
    5. Leveraging capabilities
    6. World class standardization
    7. Competitive platforms
    8. Information advantages
    Tools for global integration
     Five ways of exercising control
    1. Centralization or personal control
    2. Formalized control through standardization
    of work rules, procedures and processes
    3. Output control through performance
    contracting
    4. Normative control through socialization
    Implementing global integration
     Three ways:
    1. Alignment of decision-making to ensure
    that local decisions reflect a global
    perspective, particularly through personal
    control exercised by expatriates
    2. The standardization of processes to achieve
    desired efficiencies and uniform behavior,
    using formalized control.
    3. Socialization
    Expatriation
     Mastering Expatriation
     Motives for expatriation

    1. Fill technical/ managerial position


    2. Management development- acquiring
    international experience
    3. Organisation development- control and
    coordination
    Purpose
    Managing International Transfers
     Set of phases
    1. Selecting expatriates
    2. Preparing and orienting them
    3. Adjusting to the expatriate role
    4. Managing the performance
    5. Compensation
    6. Repatriation
    Beyond traditional expatriate model
     However, as companies pursue internationalization
    the inevitable tensions of expatriation become
    apparent. These tensions, together with the
    changing demographics of the expatriate
    population—the growing number of women, third
    country nationals (TCNs), and younger expatriates,
    and the added need to adjust to dual careers—are
    changing the way in which companies approach
    international assignments.
    The tensions in the expatriate cycle -5 types

    1. Home/ host tension: The presence of expatriates


    may generate tensions with the local workforce
    for a number of reasons -insensitive to local
    cultural norms, high std of living, costly..
    2. Global/ local tensions: When top positions in a
    subsidiary are continuously occupied by rotating
    expatriates, many of the capable local managers
    become discouraged. as foreign operations
    increase in size, an intimate knowledge of local
    operations becomes as or more important than
    communication and coordination with the parent
    head office
    3) Short term/ long term tensions: Expatriates are often
    criticized for taking short-term decisions from a perspective
    limited by the duration of their assignment. . Expatriates
    may shrink from taking necessary actions if the benefits are
    long term but the cost or risks are immediate.
    4) Cost and investment tensions: the need to reduce the costs
    of expatriation is often one of the major drivers of
    localization. Yet while companies can benefit from smarter
    management of expatriate costs, the expense of
    expatriation can be seen as an essential investment in
    building the linkages necessary for managing a
    transnational firm and in learning across organizational
    boundaries.
    5) Demand/ supply tensions

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