International Human Resource Management
Ann Rennie and Rita McGee
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Published by the Chartered Institute of Personnel and Development, 151 The Broadway, London SW19 1JQ
First published 2012
CIPD 2012
The right of the CIPD to be identified as author of this Work has been asserted by them in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988
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ContentsIntroduction viThe authors xivReferences xvFurther reading xix
Section 1: Setting the strategic context: structure, roles and culture 1
Section 1.1: Making the link between global strategy and an international HR framework 3Tool 1 Some contextual theory for adding support to strategic
business cases around internationalisation 3Tool 2 PESTLE analysis worldwide 12Tool 3 PESTLE analysis examples of country-specific analyses 19Tool 4 Linking global variables to roles for international HR
professionals 34Tool 5 Linking roles to the required competencies for HR
professionals 40Section 1.2: International HR structures and capabilities 47
Tool 6 How international is your HR function? 47Tool 7 International HR policies and practices: to centralise or
decentralise? 56Tool 8 Structure and locations for HR teams 64
Section 1.3: International employee relations 69Tool 9 Gathering the necessary information for managing
international employee relations 71Section 1.4: Global HR data provision and international e-HR systems 78
Tool 10 What data is required for managing HR on a more international basis? 79
Tool 11 How can transactional e-HR be best enabled on an international basis? 85
Section 1.5: Dealing with cultural differences internationally 91Tool 12 Framing the cultural dimensions of IHRM 92Tool 13 Culture quiz 102Tool 14 Taking account of different business norms and protocols 111
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Section 2: International talent management 115Section 2.1: Planning for global talent management 115
Tool 15 Moving towards a global planning model for talent management 115
Tool 16 Different models for staffing an MNC 123Tool 17 A comprehensive guide to managing employees on a
global basis 129Section 2.2: International employees 140
Tool 18 Select for success; prevent failure 141Section 2.3: Recruiting locally employed staff 149
Tool 19 Gathering the data 149Tool 20 Attracting local talent 165
Section 3: International compensation and benefits 173Section 3.1: The psychological contract 175
Tool 21 Making the link between the psychological contract and total reward 175
Section 3.2: Expatriates 183Tool 22 Rewarding expatriate staff what strategy to
adopt? 183Tool 23 Putting together an expatriate total reward package 189
Section 3.3: Locally employed staff and other categories 196Tool 24 Total reward structures for locally recruited staff 196Tool 25 A checklist of factors to be aware of for compensating
local recruits 202Tool 26 Dealing with non-typical groups of employees 208
Section 4: International talent development 225Section 4.1: Defining and planning for talent 226
Tool 27 Defining talent for development purposes 226 27.1 Defining talent 228 27.2 Different types of career ladders 231Tool 28 Competencies friend or foe? 241Tool 29 The development plan 247Tool 30 Roles in development 257
Section 4.2: Induction/on-boarding 261Tool 31 Inducting expatriates 262Tool 32 Inducting local recruits 274
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Section 4.3: Learning for locally recruited employees 278Tool 33 Key elements 278
Section 4.4: Succession planning in an international context 285Tool 34 International succession planning 286
Section 4.5: International performance management 303Tool 35 Adapting a performance management system to translate
internationally 303Tool 36 The performance management case study 310
Section 4.6: Repatriation 313Tool 37 Supporting successful repatriation 313
Section 5: Managing for special situations 319Section 5.1: HR policies and practices for managing mergers and acquisitions 320
Tool 38 Harmonising HR and reward systems values and fairness 321
Section 5.2: Risks and crises: how to pre-empt and manage 331Tool 39 Preparing for risks: terrorism, kidnapping and other
security issues 334Tool 40 Designing an evacuation plan 343Tool 41 Relocation of an organisation in a crisis 348Tool 42 Managing corruption: designing policies and practices to
address it at an individual level 355
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IntroductionThis is the first international HRM (IHRM) toolkit published by the CIPD. This toolkit focuses on the core aspects of HRM we consider essential for all international practitioners.
We start by exploring the strategic context in Section 1. We look at structure roles and culture. In Section 2 we consider international talent management and provide an array of tools to both drive strategy and overcome the challenges of talent management on a global basis. Section 3 covers tools and techniques for rewarding an international workforce. Section 4 continues with the theme of talent management but here we focus on international talent development. Finally, in Section 5, we cover the management of special situations including tackling crises and managing a variety of risky situations.
Picture this scenario:
You are a senior HR business partner in an organisation based in the UK. It has just completed acquiring companies in Asia and the USA. You have been informed you are to be promoted to the newly established position of Group HR Director. Your initial reaction is one of excitement, but also concern that, although you are studying for the CIPDs IHRM qualifications, you have had no practical experience in dealing with IHRM issues. Furthermore, you have travelled abroad extensively but have never visited the countries where the new subsidiaries are based. You need to learn fast, but do not know where to start. You know you do not have time to read much and need to get going quickly in a more practical way so as to establish your priorities and plans for moving forward. You need some ideas and a few quick wins to get things moving.
This Toolkit is targeted at people who, like the HR manager above, are currently in HR roles in their own country and moving or contemplating a move into more of an international role. It is also useful for those already in an IHRM role, as it will help them increase their capability and range of tools and techniques to use in an international setting. Finally, it will be useful for HR consultants working in this area. It doesnt seek to replace existing textbooks or the CIPDs course on Introduction to International HRM, but rather, it complements these through providing a whole range of practical, down-to-earth tools and techniques. Not only will it assist international HR professionals to
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do their jobs well, it will ultimately help them to provide greater impact on the business than they might otherwise.
Since IHRM is so complex and vast a subject, this Toolkit could easily run to thousands of pages. Also, since this is a Toolkit, rather than a textbook, we have tried to use a variety of different tools, to appeal to different types of audiences and participants. We could have used many more examples and cases studies, but are conscious that these can date quickly. So we have restricted ourselves to those examples which illus-trate best practice and help you to construct the most relevant, practical and useful policies and practices. In many cases, we refer you to other sources of information for greater in-depth reading if you need to gather more data and examples of what best practice organisations are doing.
Finally, in order for you to understand the background to our conclusions or recom-mended tools we have included some of the IHRM theory. Not all readers will warm to the theoretical data but it is there to help explain the rationale for some tools. The tools do, however, stand alone and can be used without a need to refer to the theory. In some cases there are multiple theories but we have selected one or two examples which we feel best help to support particular ways of doing things.
A rapidly globalising world
In these days of increasing globalisation and easier mobility and communications between countries, workers are as likely to be located in Beijing, or Chennai, as they are in the UK. Think about making a phone call to enquire about a banking product, going online to chat to an expert about a problem you have with your computer, or trading on eBay, to name a few common scenarios.
International HR management1 refers to an extension of HR that relates to having people working overseas. These can be either expatriate staff, those who are recruited from or work within their own home countries (locally recruited staff), or even third-country nationals (individuals from neither the parent nor home country, but rather a third country. The kinds of organisations in which this is the case can range from those with a small office or subsidiary based abroad, to major multinational corpo-rations, international public-sector organisations, or international NGOs (charities) with sites all over the world. It can also encompass an organisation working in a joint partnership with another organisation overseas. Alternatively it could be a home-based organisation with overseas offices or a company with selected departments which are offshore.
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Any of these models makes it more likely that an HR professional is going to have to consider how he or she can best provide policies, practices and services to a diverse set of employees located in potentially very different locations and operating environ-ments. What works well in the home country may be a disaster in another for all kinds of reasons, as will be outlined later on. Without a deep knowledge of what is appropriate in one environment versus another, it is easy to make some fundamental errors of judgement and poor decisions around people management.
The differences between IHRM and HRM involve:
being unpredictable and influenced more by external factors
requiring more functions
having continuously changing perspectives
requiring more intervention in employees personal lives
being more risky.
What do we mean by international?
Throughout the Toolkit we have used the term international HRM to refer to any HR professional who is working in an organisation which operates in more than one country. However, when we refer to different types of organisations this definition does not work so well, and we debated which definitions to use to explain the different international structures within which an IHRM professional may be working. We have included below our own definitions and these are used throughout the Toolkit. We recognise that some organisations will be a hybrid of the types listed here.
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Type Explanation Examples
National with overseas subsidiaries
Some of you will be working for companies which have ambitions to open overseas subsidiaries.
Topshop is a good example of an organisation which is UK-based but which has successfully opened an operation in the USA. It has plans to expand its international agenda, which will change its status to that of a multinational corporation.
International organisations This Toolkit is called International HRM and that is the term we use when referring to HR professionals working across borders. However, in our opinion, technically an international organisation is one which is either owned by several governments (intergovernmental organisations) or include global non-profit organisations (international non-governmental organisations). The term international organisation has now fallen into everyday management use and is applied to all kinds of organisations. However, we are keeping to its original definition to distinguish such organisations from multinational corporations and enterprises.
NATO, the International Olympic Committee and the World Bank are examples of truly international organisations.
The World Bank is made up of 123 countries, which are represented on its board. (Some board members represent more than one country.)
NATO is an organisation whose membership consists of 28 countries.
The UN organisations are also included in this category.
Charities such as Medicins Sans Frontiers and Oxfam are examples of the subcategory international non-governmental organisations.
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Type Explanation Examples
Multinational corporations (MNCs) or enterprises (MNEs)
An organisation which operates in multiple countries and which derives at least 25% of its income from countries overseas. Normally the company or organisation has a home nation and has developed business overseas as it has grown, becoming more dependent on income from overseas companies.
Most MNCs are either American, European or Japanese. Leading MNCs include Nike, AOL, Toyota, Coca-Cola, Honda, Toshiba and WalMart.
MNCs and MNEs do not all look the same and they are often very different in terms of their underpinning strategy. They have a choice about whether they will operate as a global entity, which normally means that business strategy and policies are deter-mined globally and are integrated across the worldwide organisation. Alternatively they could adopt a multi-domestic strategy which allows greater autonomy to respond to local needs or culture. These are based on Porters original definitions of different types of organisations (see Tool 6 for more detail about these). Finally, a third kind of organisation is that of a transnational organisation. This is really a hybrid of Porters two types, comprising a set of independent organisations, operating independently but bound together by a common ideology and/or cross-promotion and subsidisation.
In this Toolkit we will look at both international organisations and MNCs as defined above. Case studies have been taken from the World Bank and international organisa-tions as defined by the OECD. There are also examples of MNCs and MNEs which work to a global or multi-domestic strategy.
Identify which type is dominant in your organisation and use this definition as you work through the tools, so that you can choose those tools which lend themselves more directly to your own kind of organisation.
Regardless of the type of organisation, policies, practices and HR systems must be compatible and effective across the world, and need to balance the needs, wants and desires of all the various groups of employees, whilst remaining cost-effective. Achieving the correct balance between having an integrated set of HR policies and practices while remaining sufficiently flexible to allow for differences
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in diverse business and cultural settings, is a major challenge for the global HR practitioner.
Initial scenario
To get started, lets paint a scenario that allows for an initial introduction to the topic of IHRM. This can be used as a case study if you want to develop some initial thinking in a team about what IHRM might entail. It will be used later (Tool 18) in more depth as a case study in how to handle expatriate recruitment and again (Tool 39) as an example of planning around security issues.
Case study to introduce the concepts of IHRM
An employee is being groomed for a future position at an executive level within a multinational organisation in the petrochemical industry. She has performed a variety of roles within the company, all of which were located in her home country, and in non-technical areas. The organisations policy is for each individual on its fast track to occupy at least one position overseas, running a subsidiary or overseas office.
The individual was offered a position in a predominantly Arabic-speaking and Muslim North African country. It was a relatively new location for the organisation. It had opened an office there because oil had recently been discovered offshore and there was a great opportunity to drill for oil and share in the proceeds with the government.
The employee had not been briefed in any way about the country, its security concerns or politics, only about the exciting oil partnership deal. She had decided that as it was located close to Europe, she could fly back to her home country fairly easily if required. With a husband willing to take a leave of absence, and her young children prepared, she was all set.
A few weeks before starting her new assignment, she travelled to the country in question. Her first meeting was with the US ambassador (there was no UK embassy in the country), who warned her that her forthcoming appointment was already widely known about, and not just in a positive way. She was already apparently on the radar of Al-Qaeda, which was known to be operating within
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the country. Whats more, her place of residence was right next to the TV station, which had been taken over recently during a coup dtat.
To make matters worse, on meeting with the newly appointed oil minister, he announced that the formula for the royalties split was being amended, so that her organisation would receive less than what had been agreed upon initially, so it seemed she would face a tough challenge in dealing with the government.
The employee met with a couple of locally recruited staff to get acquainted with them in advance of her assignment. The employees turned out to be contractors, and all appeared to be relatives of government ministers, their appointments ratified by the government. None spoke English and no one had any expertise in the oil industry.
Finally, the employee discovered that there were no schools which provided schooling in English or even French. Arabic was the national language. With small children, she had assumed there would be plenty of English-speaking nannies and teachers. As for her husband, who had planned to take leave of absence from his job, it transpired that the government was not granting entry visas for anyone other than direct employees working for organisations that had contracted with the government.
What was the employee to do?
What should the employee have done differently? What should HR have done? What policies, steps, and practices should it have had in place to inform, educate and assist the employee before accepting the position? In your view, was this right kind of appointment for her? If not, why not? If yes, what kind of ongoing support and practices could the parent organisation have put in place to assist the employee and make the assignment a success?
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Suggestions for a deeper discussion
1 Consider your organisations career development policies. What are the gaps when it comes to incorporating international assignments? (Section 3)
2 What kinds of data, information and briefing systems are available for such assignments? How best could they be delivered and by whom? (Sections 1 and 5)
3 Think about your organisations family and diversity policies. How relevant are they for those employees located abroad? Do they need to be adapted? (Section 2)
4 Do you have a mentoring programme in place that could be used to good effect in this situation? (Section 2)
5 How is knowledge management handled? How can the lessons learned from this (extremely difficult) assignment be used to inform others in similar situations? (Section 1)
6 How can you best reward individuals for accepting international assignments? (Section 3)
7 Does your organisation have a talent management policy? If so, does it extend to recruitment of local staff? How is such recruitment carried out? What development would have helped? (Sections 2 and 4)
8 How are your organisations ethics policies set up? How does it deal with issues of corruption, nepotism with regard to employees, contractors and partners or clients? (Section 5)
9 Does your organisation have any policies around security and crisis management? What are the gaps? (Section 5)
10 Does your organisation have any policies on repatriation? (Section 4)11 Does your organisation have any policies around dealing with different
stakeholders, including governments and local contacts? (Section 5)
Each of these different areas will be covered in detail in the tools contained within the five sections that follow.
Note
1 Technically speaking, one can differentiate global HRM from international HRM in the following ways, as defined by Brewster et al (2004):
Global HRM: managing HR activities through the application of global rule sets. International HRM: managing an international mobile workforce. For this Toolkit, we are including both concepts to provide a more comprehensive
set of tools and ideas.
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The authorsAnn Rennie FCIPD, FRSA, MCIB, BSc (Hons)Anns background lies in IHRM in senior line positions within the international organi-sation, banking and NGO sectors. She has extensive experience in implementing and advising on international HR and change programmes, as well as in global capacity-building and talent management in both developed and developing countries, most notably for international organisations, UN agencies and public sector organisations in Asia.
She was most recently the Director for Human Resources Operations for the World Bank, covering 160 countries, and based in Washington, DC. She also held a number of non-executive director positions worldwide, including for the Department for International Development, the Association for Human Resource Management in International Organizations, The Princes Trust, Thamesmead Town, Reed Executive and a large US-based credit union. Additionally, Ann held senior HR roles for NatWest Bank and the International Monetary Fund.
Ann is a qualified leadership coach.
Rita McGee FCIPDRita McGee specialises in the strategic development of HR functions. Previously HR Director of the Pepe Group, she has also worked for Kingfisher and BTR (currently known as Invensys). She works as a consultant, trainer, facilitator and executive coach. She has designed and delivered training in talent management to major international organisations. She has consulted in the UK and internationally on the development of business and HR strategy including talent management and succession planning.
She runs public courses for the CIPD as well as other organisations. She has worked in Europe, Asia, the USA and Africa.
Rita is a Chartered Fellow of the CIPD.
www.rmgconsulting.com
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Further readingBEGLEY, T. and BOYD, D. (2000) Articulating Corporate Values through Human Resource Policies, Business Horizons, JulyAugust, 812.
BRAITHWAITE, J. and DRAHOS, P. (2000) Global Business Regulation. Cambridge: Cambridge University Press.
BREWSTER, C., HARRIS, H. and SPARROW, P. (2004) Globalising HR. Executive briefing. London: Chartered Institute of Personnel and Development.
FARNDALE, E. and PAAUWE, J. (2005) The Role of Corporate HR Functions in MNCs: The Interplay Between Corporate, Regional/National and Plant Level. Ithaca, NY: Cornell University ILR School.
KELLEY, C. and MEYERS, J. (1992) Cross-Cultural Adaptability Inventory (CCAI). Minneapolis, MN: National Computer Systems.
RALSTON, D.A., HOLT, D.A., TERPSTRA, R.H. and YU, K.C. (2008) The Impact of National Culture and Economic Ideology on Managerial Work Values: A study of the United States, Russia, Japan and China, Journal of International Business Studies, Vol. 39, No. 1, pp 826.
RIDLEY, T. (2011) Evacuations: Evacuation Planning for International and Transnational Crisis [Kindle edition].
UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT. (2007) World Investment Report. New York and Geneva: United Nations.
WARD, C. and KENNEDY, A. (1999) The Measurement of Sociocultural Adaptation, International Journal of Intercultural Relations, Vol. 23, No. 4, pp 659677.
WISMAR, M., PALM, W., FIGUERAS, J., ERNST, K. and VAN GINNEKEN, E. (eds) (2011) Cross-border Health Care in the European Union, European Observatory on Health Systems and Policies: http://www.euro.who.int/__data/assets/pdf_file/0004/135994/e94875.pdf
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reSection 1
Setting the strategic context: structure, roles and culture
Introduction
Consider the following scenario:
You are an HR director of a small niche hotel chain, catering to wealthy tourists, which is wholly British-owned and located in the UK and Ireland. Despite the recent economic downturn, the business is still moderately successful. Your boss, the CEO, is keen to expand on this success, but the UK market is already saturated. He spots an opportunity to buy a small niche hotel chain in Mexico. It is currently a great oppor-tunity, he says, as it is virtually being given away because of all the criminal activities and violence there! He has been advised by the Mexican owner that the hotels are located in sites away from all the troubles, and that tourists, especially from the USA, are still visiting in quite large numbers.
You immediately have a number of questions and concerns. You are tempted to respond based on your gut feel. You start saying, Yes, but... and think of all the immediate issues your organisation is likely to face, such as how to manage and recruit from within Mexico, language concerns, security, local health and safety issues and so on. Your boss frowns, explaining what a good move this is and how the timing is just right. You realise you need to take a more positive approach, and decide you need to arm yourself with appropriate facts and have some thought-out strategic options to present to your CEO. You recognise that it is the job of HR to develop an understanding of relevant factors pertaining to expansion abroad, since a lack of knowledge can result in inappropriate policies and practices, with consequences for the organisation ranging from embarrassing to potentially outright disastrous!
Certainly, gut feel is important, but for an international HR manager or director, or indeed anyone who has been tasked with people management support responsibilities, there needs to be more than this. You need to be informed and well prepared to a) help the organisation to make its business strategy and goals a success, and b) have the necessary people-related tools, procedures and practices to help it happen smoothly, cost-effectively and efficiently. In addition, and as this case clearly illustrates, you will want to arm yourself quickly with enough knowledge and data about all aspects of
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the country to be able to add value to the original business decision, rather than just reacting, ideally before it is actually signed and sealed!
This section comprises tools to help you do just that. Firstly, we start with a basic exercise which is aimed at the more academically inclined, giving you some frame-works to use when making arguments and proposals that support (or show why they dont support) the business strategy.
We then go on to techniques that help make the links between a global business strategy and an international HR strategy, covering ways to collect and sort data, and then developing the necessary HR policies and procedures required. This includes whether they are more likely to be effective as global policies or whether, in certain cases, it would be better to work on a targeted and more local basis, country by country.
We then suggest ways of making links between HR policies and practices to required roles and competencies for HR professionals working in an IHRM environment, before addressing potential ways of organising and locating such HR teams.
International employee relations form a key component of IHRM and pose all kinds of issues for a globalising organisation, and we suggest sources of information and likely issues you need to be on top of. We then consider how data and e-HR systems can support international operations.
Lastly, we look at the all-important subject of culture. Economists and experienced HR practitioners working in international domains generally agree that culture and the management of cultural differences are the most important factors in managing international operations. Many an organisation has failed on the basis of miscalcula-tions about cultural norms and ways of working and living. We offer some tips and techniques for exploring and capitalising on these differences in a global setting.
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Section 1.1Making the link between global
strategy and an international HR framework
Tool 1Some contextual theory for adding support to strategic business cases around internationalisationFacilitators notes
Overview
This Toolkit is a practical aid, not a textbook. However, we recognise that we are catering for all kinds of organisations, big and small, who are moving into, or already operating in, an international business environment. This Tool is aimed primarily at some larger organisations. However, even if this is your first venture into international territory, and you work for a small organisation without a dedicated HR function, you may still find this useful background reading. It helps to explain the rationale for making particular strategic choices, and provides a backdrop for a deeper and more informed IHRM and policy framework. We will refer back to the content in this Tool from time to time, where it helps to illustrate or back up a point in later Tools.
Aim of the Tool
This Tool will help you to think about your global business strategy. As busy interna-tional HR practitioners, it is easy to become almost totally reactive to events as they
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4MakIng the lInk betw
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unfold. And it is true that tactical decisions are generally going to be more prevalent than with domestic HRM. However, it helps to step back and think about what you are doing from a more strategic perspective from time to time especially when your organisation is starting up or acquiring a new business abroad for the first time.
We offer a few concepts that can be used to initiate some strategic thinking about what kind of organisation you work for and why its operating (or considering operating) more on an international basis. This will help form a platform for developing your IHRM strategy and plans.
Materials needed
The PowerPoint presentation below.
Procedure
Either on your own, or with groups of HR staff and, preferably, employees from other parts of the organisation, go through the PowerPoint slides, one by one. Each concept is followed by a second slide which asks the audience to define where they see your organisation or where it fits.
Evaluating its use
This exercise was used at a board meeting by one of the authors when her own organisation was considering expanding abroad. The meeting was attended by the chairman, CEO, and the finance, operations and legal directors. It led to very lively debate about the whys and raison dtre of the organisation which showed that these really needed clarification before any potentially false starts in foreign expansion happened! In particular, it resulted in a sounder strategic decision around the development of operations abroad, based on logic and strategy, and not simply feel.
So, if this Tool helps to elicit greater debate and greater clarity about the following then it will have served its purpose!
1 What kind of organisation you are.2 What your organisations motivations are for becoming more international.
This will then allow you, as an international HR director, manager or consultant, to start to pull together the HR plan which will best help support the business plan.
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adapt this document in line with our terms of use: http://www.cipd.co.uk/Bookstore/onlineresources/termsofuse.
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The Tool
Strategic business constructs for suppor1ng interna1onalisa1on
Adding value to your business strategy
Construct 1 What are your drivers for becoming more
interna1onal?
Maximising shareholder value Forging strategic partnerships Crea1ng core business processes Building global presence (from the CIPDs publica7on Globalising HR: Execu7ve
brieng (2004))
Achieving a global humanitarian mission
(added by author)
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adapt this document in line with our terms of use: http://www.cipd.co.uk/Bookstore/onlineresources/termsofuse.
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Construct 1 What are your drivers for becoming more
interna1onal?
Which one(s) dene your own organisa1on?
Construct 2 Divergence versus convergence
CONVERGENCE the coming together of a set of HR management policies and prac1ces around a Western (capitalis1c) model.
DIVERGENCE the separa1on of HR policies and prac1ces according to country or dierences in culture.
(These come from early economic theory, which describes how, in a globalising world, country economies gain advantage by becoming either more similar to, or more dierent from, each other. )
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adapt this document in line with our terms of use: http://www.cipd.co.uk/Bookstore/onlineresources/termsofuse.
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Construct 2 Divergence versus convergence
How do you decide whether your organisa1on is more convergent or divergent in its strategy?
CONVERGENT more likely if it: has strong organisa1onal culture which gives it
compe11ve advantage worldwide (eg Apple, Starbucks, BP), and
wants to build a global presence, and is bound by regional regula1ons and restric1ons (eg those
organisa1ons opera1ng in the EU) more likely to need a common set of policies (including HR).
More likely to have a set of standard opera1ng and employment policies.
Construct 2 Divergence versus convergence
How do you decide whether your organisa1on is more convergent or divergent in its strategy?
DIVERGENT more likely if there are strong dierences in: labour markets, cultures, economic and legal variables.
Examples include car manufacturing and appliance businesses which build for dierent tastes, and dierent prac1cali1es eg sizes of houses, price of petrol versus diesel, environmental legisla1on.
Even global organisa1ons such as Walmart and McDonalds have had to adapt somewhat to local markets and bend their own policies to suit.
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adapt this document in line with our terms of use: http://www.cipd.co.uk/Bookstore/onlineresources/termsofuse.
MakIng the lInk betw
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Construct 2 Divergence versus convergence
Is your organisa1on more likely to follow a convergent or divergent route?
This will determine how localised your HR policies and prac1ces are likely to have to be.
Construct 3 Hofstedes power ra1o
Hofstede was a Dutch researcher who gathered data from 100,000 IBM employees worldwide.
He wanted to see if there were cultural dierences worldwide.
He found ve.
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adapt this document in line with our terms of use: http://www.cipd.co.uk/Bookstore/onlineresources/termsofuse.
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Construct 3 Hofstedes power ra1o
Individualist/collec1vist the extent to which people are expected to look a]er themselves as opposed to being part of a larger group (USA and Australia have a more individualis1c culture, South Africa less so).
High/low uncertainty the extent to which people are comfortable with ambiguity and instability. Eg Greece has strong bureaucracies; various Caribbean countries have a more laid-back approach.
Masculine/feminine this refers to being tough versus caring. Eg Japan is in the rst category, where material rewards are important, whereas Sweden, where policies around childcare, family leave and other caring factors are seen as important, is in the second.
Construct 3 Hofstedes power ra1o
Low versus high power distance this refers to how hierarchical structures are, and more autocra1c leadership. India has high power distance rela1onships amongst business and society; Israel has ader structures and more democra1c management.
Short-term versus long-term approach a focus on the past and present, including the preserva1on of face and tradi1on, versus a focus on the future through persistence, thri] and investment (added at a later date).
(Hofstede 2001)
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10
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MakIng the lInk betw
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Construct 3 Hofstedes power ra1o
How does your own culture t in?
Construct 4 Culture and ideology
(Based on Ralston et al (2008))
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11
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Construct 4 Culture and ideology
Where are you on this grid? (Hint: USA lies in top le]-hand box, China in bodom right-hand box; Russia in the bodom le]-hand box, and Japan in the top right-hand box.)
What might this mean when doing business in other countries?
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Tool 2PESTLE analysis worldwideFacilitators notes
Overview
PESTLE stands for political, economic, social or socio-cultural, technological, legal and environmental. Other variations are STEEP, PEST or STEEPLE, all of which are acronyms for methods by which to analyse a current and future state of an organisation.
This is a useful exercise to carry out with a group of individuals who may be new to an international setting, and it works best with a mixture of employees from both the home country and other countries in which your organisation operates. In this way, the locally recruited staff can start immediately to add value with regards to knowledge management transfer. It is most useful in the situation of a recent acquisition or takeover of a foreign player.
Aim of the Tool
To provide a model and a checklist to help you explore trends and changes that could occur in your industry on a global basis and to start to think about the implications for your overall international HR strategy and framework. The framework is what will provide initial guidance for defining the appropriate policies and procedures for your particular organisation.
Materials needed
Have the team members prepare for this exercise by gathering as much background information and data about changes that may be occurring in your sector or industry worldwide. This could be gained from industry reports, the CIPDs change agenda, government or industry forecasts, websites and news articles and from your organisations global business plans, objectives and strategy.
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Procedure
World events and changes happen all the time. It is also wise to consider worst-case scenarios, however unlikely they may seem many organisations have suffered setbacks, or even foundered, because they didnt consider such events (eg the BP oil disaster in the Gulf of Mexico, the effect of the volcanic ash from the Icelandic volcano on the airline industry, or the earthquake followed by a tsunami in Japan and its effect on TEPCOs nuclear power stations and the countrys nuclear power strategy).
Evaluating its use
After going through this exercise, were you able to foresee changes that could occur and establish the relevant international HR framework for appropriate policies and practices for your organisation?
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MakIng the lInk betw
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The ToolPESTLE factor Implications for your organisations
international HR strategy and policy framework
Political (trends, possible changes and events at global, regional, national, local and community level):
Government stability
Turmoil in Arab nations, and demands for more democratic rights
Rise of kidnapping and piracy
Fluctuating level of availability of grants and funding changes
Governments policies and attitudes
Stability and terms of governments
Wars, civil wars and other types of strife
Terrorism
Lobbying groups
Relationships and geopolitical tensions between countries
Has implications for establishing organisations or offices or doing business with organisations in risky countries (especially for attracting employees, compensation, security policies)
Grants and funding initiatives can assist in establishment of businesses in some locations, including incentives for hiring of nationals. Sometimes these are used to stimulate an economy during a recession
Governments come and go and can have a direct effect on organisations based abroad in terms of changing policies, attitudes towards foreign organisations, etc
Economic (trends and economic factors in global, regional, national and local economies):
Interest rates (high or low?)
Currency exchange rates, and uses of different currencies (which ones are and might be affected in the future? Eg the euro is an example of a currency under pressure)
Inflation (home and abroad)
Cost of raw materials (eg crude oil and its impact on transportation costs)
Rapid growth and stronger demand in emerging markets than developed ones
Recessions and slow recoveries in developed nations
Consumer confidence
Trade tariffs and restrictions
Unemployment (home and abroad)
Turbulence in economies with associated negative effects on exchange rates or inflation can be an issue for compensation for either expatriate employees and/or locally recruited employees
Recessions have implications for lay-offs and downsizing, plus drive for more cost-efficient HR solutions
Reduced value of company may have implications for resourcing levels
Fiscal implications such as tax, exchange rates and price of goods on cost of living
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adapt this document in line with our terms of use: http://www.cipd.co.uk/Bookstore/onlineresources/termsofuse.
PESTLE factor Implications for your organisations international HR strategy and policy framework
Global stock market issues
US fiscal deficit and its impact on other countries
Failing countries within the EU and sovereign default in weak economies
Correlations between geographical distance and sizes of economies with level of trade (gravity theories of economists, eg Leamer and Levinsohn, demonstrating that the closer the country and larger the economy, the greater the trade opportunity). An example might be the USA and Canada
Available funding or grants for particular initiatives (eg greener energy)
Companies headquartered in developing markets like India, China, Brazil and South Africa, to name a few, are expanding, along with multinationals from more established markets
Taxation issues (home and abroad)
Immigration/emigration and population shifts
Rising cost of public services in situations of growing populations or aging communities
Social/socio-cultural (trends, changes or developments in demographics, culture and expectations):
Aging populations and living longer
Retirement ages rising in OECD countries in UK this will rise to 68 by 2044; France is 67 (men) and 62 (women); USA is 66
Changing balance in demographics make-up
Generational differences in attitudes and behaviour, such as Generations X, Y and Z
Demographic shifts will result in an increasing number of workers being sought from developing countries to replace the aging workforce in North America and Europe (McKinsey predicts that by the year 2040, the largest working-age population in the world will reside in Africa.)
Implications for pension administration of changing retirement ages
Religious differences needs to be factored in to some policies
Security policies
Family policies
Recruitment and remuneration of employees and contractors in economies that are becoming wealthier
Healthcare plans
Increased expectations of employees on the types of benefits they wish to have
Attitudes towards work influence employment decisions
Corruption issues policies for handling
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MakIng the lInk betw
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PESTLE factor Implications for your organisations international HR strategy and policy framework
In the West, because of the withdrawal of retirement age and diminution of pensions, several generations are likely to be at the same workplace at the same time
Spread of Islam
Killing of Osama Bin Laden and other terrorist leaders repercussions for religious extremism
Interest in working remotely is increasing
Women having children later in developed economies
One-parent families and marital breakdown
Employees working longer viz increased or abandoned compulsory age for retirement
Increased wealth and disposable incomes of populations in developing or previously developing economies eg India, China, Brazil not just developed countries. Emerging markets will grow more than developed ones
Gaps between rich and poor accelerating (eg in India, there are over 150,000 millionaires, and yet many millions of poor)
Healthcare costs and expectations
Increase in viruses and illnesses that are no longer resistant to drugs; pandemics
Consumer attitudes, fashions and demands for types of goods
Media influences and ethics concerns
Attitudes towards work, including desire to work
Qualifications eg more university education in some countries
Values around corruption, nepotism, etc
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This document can be downloaded as a Word document from http://www.cipd.co.uk/tsm, copyright CIPD. Please use or
adapt this document in line with our terms of use: http://www.cipd.co.uk/Bookstore/onlineresources/termsofuse.
PESTLE factor Implications for your organisations international HR strategy and policy framework
Technological (developments in computer-related hardware, software and social networking):
Technological or scientific breakthroughs
Rise of social networking
More extensive spread of Wi-Fi
Increase in data-sharing capabilities and central files management (the paperless office)
Increase in hacking incidents, identification theft and theft of online information implications for IT security
Spread of mobile phones (even faster in developing countries than in developed countries)
Expansion and improvement of software for meetings management such as Skype and video conferencing
Acceleration in applications which use micro-technology
Innovations
Research grants
Data leaks (eg Wikileaks)
Ability to work remotely is increasing
Implications for hiring workers remotely
Implications for managing communications, data and meetings across international boundaries
Management of stress as technology can mean being available at all times, and also working across time zones can be an issue
Data security and levels of access; back-up centres
Software and hardware compatibility issues across boundaries
Data access restrictions and regulations in some countries
Change management due to adoption of new technology
Legal (potential changes to legislation with impacts on resources, taxation, immigration, etc):
Increased employee protection
Immigration laws tightening
Discrimination legislation
International legal frameworks (eg WTO, ILO, EU) and regulatory bodies
Industry-specific regulations
Different laws around work permits and visas
Legal aspects around mobility within countries
Tightening of immigration legislation may have an impact on a companys ability to hire workers, or fines from audits of illegals
Increasing regulation in the West tempting more companies to locate work in developing countries
Employer and consumer brand implications
Local discrimination legislation may require more care in hiring and termination of particular types of workers
Increasingly stringent health and safety legislation may have an impact on costs and therefore location of employees, and training
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MakIng the lInk betw
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PESTLE factor Implications for your organisations international HR strategy and policy framework
Regulations around foreign-owned organisations abroad
Regulations around hiring local workers
Local legal systems may have impact on employees that are sudden, unwelcome or unexpected eg visa restrictions, vetoes on driving, drinking, anti-gay legislation, etc
International legislative areas and agreements may place additional restrictions on HR-related areas such as employment restrictions
Environmental (natural disasters and climatic trends, social and legal movements):
Climate change
Natural disasters such as hurricanes, earthquakes, tornadoes, tsunamis
Fair trade
Carbon offsetting
Disposal of waste
Ethical concerns
Greater emphasis on resource productivity and conservation
More clean technology industries
More environmental regulation
Disaster planning policies to include both data and business continuity and employee safety and contingency planning
Travel policies
Repatriation and evacuation policies
Corporate social responsibility policies and practices
Note
1 For a more detailed description of PESTLE, see the CIPDs Factsheet.
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Tool 3 PESTLE analysis examples of country-specific analysesFacilitators notes
Overview
The international HR professional needs not only to understand the implications for their work of worldwide trends and changes, but to also have a deep knowledge and understanding of the particular contexts in which their organisation operates. Those at senior levels of HR must have a good grasp of the country-level factors that have or may have an impact on business. Equally, its important that your local staff understand the issues that shape the parent organisation, headquarters and the other countries in which your organisation operates.
Like the previous Tool, this is a useful exercise to carry out with a group of individuals who may be new to an international setting, though it definitely works best with groups that specifically include employees from the countries around which this exercise is based. Its even better still if the exercise is run in country and not at headquarters, since the non-locals will get to experience at least some of the factors for themselves first-hand!
Note that this Tool also works well when used across a product line which may be dispersed across several different countries.
Aim of the Tool
To provide a model and a checklist to help you explore trends and changes that could occur in a country or countries in which your organisation operates, so that the impli-cations for your organisations international HR strategy can be developed in more detail. In this way, it can help with the next step in developing a plan around which to divide up HR policies and practices into ones that are global versus ones that are more local or specific to individual countries. (See convergence versus divergence in Tool 1.)
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This version of the PESTLE analysis goes into more depth in terms of:
1 the likelihood of occurrence2 the likely impact of the change, trend or factor3 the timing of each factor4 compatibility with existing HR policies and practices5 priority for or emphasis on HR policy or practice amendments and adaptations.
Materials needed
Have the team members prepare for this exercise by gathering background infor-mation and data about changes that may be occurring in the country in question. If this exercise includes employees from the particular countries concerned, brief them beforehand to think about and gather as much information as they can around the six components of PESTLE.
Procedure
Decide on a country to analyse. Complete the appropriate factors under each of the PESTLE headings. Score each of them according to the five criteria. Those factors that score the highest are those which are likely to have the maximum implications for your HR policies and practices.
Examples from India and from the USA are given below. If analysing either of these countries, you can use the templates below and add to them. For the sake of illustration a worked example is given for the Social section, for a make-believe organisation.
Evaluating its use
The usefulness of the Tool lies in the outputs from the last four columns and the resulting ability to help set the framework for establishing an international HR strategy or framework. To be really useful, it needs to be revisited often to check that your organisations HR framework is based on solid foundations it is easy to overlook changes and to continue to operate as is, with some likely surprises further down the line because of mismatches between the realities of today and of the possible future scenarios (what ifs).
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21
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adapt this document in line with our terms of use: http://www.cipd.co.uk/Bookstore/onlineresources/termsofuse.
The
Too
lP
ES
TL
E f
acto
r fo
r In
dia
Lik
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of
(re)
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), m
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low
(1)
)
Impa
ct
(+ (
3),
(1
) or
ne
utra
l (2
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Tim
ing
(now
(2)
, fu
ture
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))
Com
pati
bilit
y w
ith
exis
ting
int
erna
tion
al H
R
polic
ies
and
prac
tice
s
(hig
h (1
), m
ediu
m (
2),
low
(3)
)
Impl
icat
ions
fo
r yo
ur
orga
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s
glob
al H
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stra
tegy
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:
go
vern
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and
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and
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28
stat
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im
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201
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CD30006.indb 21 21/12/2011 13:32
22
This document can be downloaded as a Word document from http://www.cipd.co.uk/tsm, copyright CIPD. Please use or
adapt this document in line with our terms of use: http://www.cipd.co.uk/Bookstore/onlineresources/termsofuse.
MakIng the lInk betw
een global strategy and an InternatIonal hr fraMew
ork PE
ST
LE
fac
tor
for
Indi
aL
ikel
ihoo
d of
(r
e)oc
cure
nce
or
incr
ease
(hig
h (3
), m
ediu
m
(2),
low
(1)
)
Impa
ct
(+ (
3),
(1
) or
ne
utra
l (2
))
Tim
ing
(now
(2)
, fu
ture
(1
))
Com
pati
bilit
y w
ith
exis
ting
int
erna
tion
al H
R
polic
ies
and
prac
tice
s
(hig
h (1
), m
ediu
m (
2),
low
(3)
)
Impl
icat
ions
fo
r yo
ur
orga
nisa
tion
s
glob
al H
R
stra
tegy
Eco
nom
ic:
ha
s ha
d, u
ntil
rece
ntly,
a h
ighl
y re
gula
ted
mar
ket
this
has
star
ted
to b
e lib
eral
ised
and
is m
ovin
g to
war
ds a
cap
italis
t and
m
arke
t-ba
sed
syst
em (
enco
urag
ed b
y th
e IM
F an
d W
orld
Ban
k)
di
stan
ce to
mar
ket a
n iss
ue fo
r U
S or
gani
satio
ns
lac
k of
inve
stm
ent i
n in
fras
truc
ture
n
ot
keep
ing
up w
ith g
row
th o
f eco
nom
y
lac
k of
tran
spar
ency
in b
usin
ess
deal
ings
fo
rmer
col
onia
l tie
s to
UK
mea
n so
me
simila
ritie
s in
civ
il se
rvic
e ad
min
istra
tion
and
regu
latio
n w
hich
aid
s un
ders
tand
ing
and
com
mun
icat
ions
, esp
ecia
lly w
ith th
e U
K
gr
owth
of t
he In
dian
sto
ck m
arke
t
in
crea
se in
con
sum
er fi
nanc
e re
sulti
ng in
ex
plos
ion
of c
onsu
mer
buy
ing
in
crea
sed
use
of c
redi
t car
ds
Indi
a w
ill jo
in
top
leag
ue fo
r co
nsum
er p
rodu
cts
by 2
035
(McK
inse
y G
loba
l Ins
titut
e re
port
200
7)
CD30006.indb 22 21/12/2011 13:32
pestle an
aly
sIs exa
Mples o
f Co
un
try-speC
IfIC a
na
lyses
23
This document can be downloaded as a Word document from http://www.cipd.co.uk/tsm, copyright CIPD. Please use or
adapt this document in line with our terms of use: http://www.cipd.co.uk/Bookstore/onlineresources/termsofuse.
PE
ST
LE
fac
tor
for
Indi
aL
ikel
ihoo
d of
(r
e)oc
cure
nce
or
incr
ease
(hig
h (3
), m
ediu
m
(2),
low
(1)
)
Impa
ct
(+ (
3),
(1
) or
ne
utra
l (2
))
Tim
ing
(now
(2)
, fu
ture
(1
))
Com
pati
bilit
y w
ith
exis
ting
int
erna
tion
al H
R
polic
ies
and
prac
tice
s
(hig
h (1
), m
ediu
m (
2),
low
(3)
)
Impl
icat
ions
fo
r yo
ur
orga
nisa
tion
s
glob
al H
R
stra
tegy
Soc
ial:
a
vast
and
gro
win
g po
pula
tion
(2nd
larg
est
in th
e w
orld
)
the
larg
est p
erce
ntag
e of
you
ng p
eopl
e in
the
wor
ld (o
ver 5
0 pe
r cen
t bel
ow 2
5 as
at 2
011)
En
glish
spo
ken
wid
ely
ac
cele
ratio
n in
the
num
bers
of e
duca
ted
wom
en
incr
ease
in n
umbe
rs o
f uns
kille
d ex
patr
iate
In
dian
wor
kers
in th
e M
iddl
e Ea
st r
esul
ting
in fa
milie
s w
hich
are
bet
ter
off
lifes
tyle
s ar
e be
com
ing
mor
e W
este
rnise
d
70 p
er c
ent o
f fam
ilies
live
and
will
cont
inue
to
live
in u
rban
are
as, l
eadi
ng to
gre
ater
co
smop
olita
nism
ex
plos
ion
in th
e us
e of
cel
l pho
nes
H
ofst
edes
Pow
er D
istan
ce r
atio
is a
roun
d 77
per
cen
t, w
hich
is h
ighe
r th
an th
e w
orld
wid
e av
erag
e
mea
ning
a h
igh
leve
l of
ineq
ualit
y of
pow
er a
nd w
ealth
in s
ocie
ty
disc
rimin
atio
n ba
sed
on th
e ca
ste
sys
tem
is
now
ille
gal,
but c
ontin
ues
to e
xist
in r
ealit
y
non-
beef
-eat
ers
(Hin
dus)
and
non
-por
k-ea
ters
(M
uslim
s)
has
a la
rge
mov
ie in
dust
ry
CD30006.indb 23 21/12/2011 13:32
24
This document can be downloaded as a Word document from http://www.cipd.co.uk/tsm, copyright CIPD. Please use or
adapt this document in line with our terms of use: http://www.cipd.co.uk/Bookstore/onlineresources/termsofuse.
MakIng the lInk betw
een global strategy and an InternatIonal hr fraMew
ork PE
ST
LE
fac
tor
for
Indi
aL
ikel
ihoo
d of
(r
e)oc
cure
nce
or
incr
ease
(hig
h (3
), m
ediu
m
(2),
low
(1)
)
Impa
ct
(+ (
3),
(1
) or
ne
utra
l (2
))
Tim
ing
(now
(2)
, fu
ture
(1
))
Com
pati
bilit
y w
ith
exis
ting
int
erna
tion
al H
R
polic
ies
and
prac
tice
s
(hig
h (1
), m
ediu
m (
2),
low
(3)
)
Impl
icat
ions
fo
r yo
ur
orga
nisa
tion
s
glob
al H
R
stra
tegy
Tech
nolo
gica
l:
m
any
wel
l-tra
ined
Indi
an IT
eng
inee
rs a
nd IT
ex
pert
s, es
peci
ally
in s
oftw
are
deve
lopm
ent
and
BPO
sa
larie
s fo
r IT
exp
erts
risi
ng d
ue to
sho
rtag
e of
tal
ent
off
er o
f IT
cons
ultin
g se
rvic
es a
broa
d (e
g Ta
ta C
onsu
lting
)
ba
ndw
idth
is n
ow in
crea
sing
sig
nific
ant r
ecei
ver
of o
utso
urce
d U
K an
d U
S IT
jobs
Leg
al:
m
uch
red
tape
for
new
and
exi
stin
g fo
reig
n or
gani
satio
ns
ol
d-fa
shio
ned
lega
l em
ploy
men
t fra
mew
ork
te
nds
to le
ad to
ove
rsta
ffing
in la
rge
publ
ic-s
ecto
r In
dian
bur
eauc
raci
es a
s jo
bs
are
prot
ecte
d
CD30006.indb 24 21/12/2011 13:32
pestle an
aly
sIs exa
Mples o
f Co
un
try-speC
IfIC a
na
lyses
25
This document can be downloaded as a Word document from http://www.cipd.co.uk/tsm, copyright CIPD. Please use or
adapt this document in line with our terms of use: http://www.cipd.co.uk/Bookstore/onlineresources/termsofuse.
PE
ST
LE
fac
tor
for
Indi
aL
ikel
ihoo
d of
(r
e)oc
cure
nce
or
incr
ease
(hig
h (3
), m
ediu
m
(2),
low
(1)
)
Impa
ct
(+ (
3),
(1
) or
ne
utra
l (2
))
Tim
ing
(now
(2)
, fu
ture
(1
))
Com
pati
bilit
y w
ith
exis
ting
int
erna
tion
al H
R
polic
ies
and
prac
tice
s
(hig
h (1
), m
ediu
m (
2),
low
(3)
)
Impl
icat
ions
fo
r yo
ur
orga
nisa
tion
s
glob
al H
R
stra
tegy
Env
iron
men
tal:
gr
owth
in p
opul
atio
n w
ill br
ing
even
gre
ater
en
viro
nmen
tal d
egra
datio
n an
d pr
essu
re fo
r re
sour
ces
ai
r qu
ality
poo
r; s
low
impr
ovem
ents
to
wat
er q
ualit
y
CD30006.indb 25 21/12/2011 13:32
26
This document can be downloaded as a Word document from http://www.cipd.co.uk/tsm, copyright CIPD. Please use or
adapt this document in line with our terms of use: http://www.cipd.co.uk/Bookstore/onlineresources/termsofuse.
MakIng the lInk betw
een global strategy and an InternatIonal hr fraMew
ork Belo
w is
a w
orke
d ex
ampl
e fo
r so
cio-
cultu
ral f
acto
rs fo
r a
fast
-food
org
anisa
tion
whi
ch is
pot
entia
lly lo
okin
g to
exp
and
into
Indi
a.
Man
y of
thes
e fa
ctor
s w
ould
hav
e be
en o
nes
that
McD
onal
ds
had
to c
onte
nd w
ith, f
or in
stan
ce, w
hen
it so
ught
to e
nter
the
Indi
an
mar
ket
its
first
res
taur
ant w
as o
pene
d th
ere
in 1
996.
PE
ST
LE
fac
tor
for
Indi
a
ficti
tiou
s fa
st-f
ood
rest
aura
ntL
ikel
ihoo
d of
(r
e)oc
cure
nce
or
incr
ease
(hig
h (3
),
med
ium
(2)
, lo
w (
1))
Impa
ct (
+ (3
),
(1)
or
neut
ral (
2))
Tim
ing
(now
(2)
, fu
ture
(1
))
Com
pati
bilit
y w
ith
exis
ting
inte
rnat
iona
l HR
po
licie
s an
d pr
acti
ces
(hig
h (1
), m
ediu
m (
2),
low
(3)
)
Impl
icat
ions
fo
r yo
ur
orga
nisa
tion
s
glob
al H
R
stra
tegy
Soc
ial:
A v
ast a
nd g
row
ing
popu
latio
n (2
nd la
rges
t in
the
wor
ld)
33
21
Larg
e po
pula
tion
from
whi
ch to
re
crui
t
The
larg
est p
erce
ntag
e of
you
ng p
eopl
e in
th
e w
orld
(ov
er 5
0 pe
r ce
nt b
elow
25
as a
t 20
11)
32
21
Engl
ish s
poke
n w
idel
y3
22
1La
ngua
ge
trai
ning
for
som
e an
d id
iom
s tr
aini
ng
for
othe
rs
Incr
ease
in n
umbe
rs o
f uns
kille
d ex
patr
iate
In
dian
wor
kers
in th
e M
iddl
e Ea
st
32
(mig
ht n
ot
wish
to w
ork
for
the
wag
es
of a
low
-pai
d fa
st-fo
od
chai
n)
22
May
not
be
an a
ttra
ctiv
e pr
opos
ition
sa
lary
-wise
for
som
e
CD30006.indb 26 21/12/2011 13:32
pestle an
aly
sIs exa
Mples o
f Co
un
try-speC
IfIC a
na
lyses
27
This document can be downloaded as a Word document from http://www.cipd.co.uk/tsm, copyright CIPD. Please use or
adapt this document in line with our terms of use: http://www.cipd.co.uk/Bookstore/onlineresources/termsofuse.
PE
ST
LE
fac
tor
for
Indi
a
ficti
tiou
s fa
st-f
ood
rest
aura
ntL
ikel
ihoo
d of
(r
e)oc
cure
nce
or
incr
ease
(hig
h (3
),
med
ium
(2)
, lo
w (
1))
Impa
ct (
+ (3
),
(1)
or
neut
ral (
2))
Tim
ing
(now
(2)
, fu
ture
(1
))
Com
pati
bilit
y w
ith
exis
ting
inte
rnat
iona
l HR
po
licie
s an
d pr
acti
ces
(hig
h (1
), m
ediu
m (
2),
low
(3)
)
Impl
icat
ions
fo
r yo
ur
orga
nisa
tion
s
glob
al H
R
stra
tegy
Acc
eler
atio
n in
the
num
bers
of e
duca
ted
wom
en3
2 (m
ight
ha
ve b
ette
r op
port
uniti
es
else
whe
re)
13
Impl
icat
ions
ar
ound
wor
king
ha
rder
to
attr
act w
omen
(p
erha
ps
targ
et fe
mal
e st
uden
ts?)
Life
styl
es a
re b
ecom
ing
mor
e W
este
rnise
d3
22
1C
ache
and
br
and
imag
e m
ay b
e a
plus
if w
e ca
n w
in
them
aw
ay fr
om
McD
onal
ds!
Will
likel
y ha
ve
to W
este
rnise
H
R p
olic
ies
70 p
er c
ent o
f fam
ilies
live
and
will
cont
inue
to
live
in u
rban
are
as, l
eadi
ng to
gre
ater
co
smop
olita
nism
23
21
Goo
d ca
tchm
ent a
reas
fo
r po
tent
ial
recr
uits
Expl
osio