HR Strategy: firms pattern of strategic choices in labor organizational effectiveness.

Staffing (HR planningeliminate gaps between supply and demand; Recruitmentget good quality job
candidates; Selectionhiring qualified candidates following legal and justice criteria).Performance Appraisal (Strategic, Development and Administrative objective). Training and development.
Compensation. Critical global team processes: Mapping (understand differences) ->Bridging (communicate effectively taking into account the differences) ->Integrating (bring together and
build on differences) ->Performing (Develop and implementing high quality solutions effectively).National Culture Models: Hofstedes cultural dimensions: uncertainty avoidance (differences
in uncertainty avoidance have negative impact on survival of IJV); Power distance (high- managers give detailed instructions; standardized procedures, less creativity and innovation,
mechanistic characteristics; low- lack of hierarchical authority, less centralization, less rules, organic characteristics); Individualism vs Colectivism (collective environment not fostering
innovation, less variety and diversity, people do not deviate from established norms; Individualistic: emphasis on individual merit, more innovation);Masculinity (performance driven society) vs
Femininity ( emphasize quality of total life); Confucian Dynamism (long term vs short term orientation). ->Critics: based on employees from one MNC, scores represent central tendency but
many countries have more than one culture, results may have lost explanatory power over the years. Trompenaars and Hampden- Turners CD: culture: way in which a group of people solves
problems and reconciles dilemmas. Universalism (one principle) vs Particularism (different ways of conducting business); Specific vs Diffuse; Achievement (performance based merit) vs
Ascription (respect for elders and titles); Individualism (personal responsibility) vs Communitarianism (group consensus); Em otional vs Neutral; Time orientation (keeping schedules vs
flexibility); Orientation to nature ( internal vs external control).Localization and cultural divergence (need to adapt management practices to the local environment). Globalization and cultural
crossvergence(trying to find the optimal trade-off between globalization and localization). Cross border alliances: non equity (profits and other responsibilities assigned to each party
according to contract subcontracting, franchising, licensing, management contracts) equity(foreign direct investors purchase of shares of an enterprise in another country subsidiaries,
joint venture, mergers and acquisitions). Types of strategic alliances:Complementary (partners with complementary strategic aims join to exploit their existing resources or competences,
creation of knowledge is not a prime objective) Learning (both parts share interest in enhancing their individual competencies, through exchange of existing knowledge or develop of new one)
Resource (competitors join forces because of resource constraints, political and business risks and economies of scale) Competitive (learning alliance between partners who r competitors in
global markets). Phases of cross-border M&As: Planning acquisitions (assure that due diligence covers all HR considerations- culture audit, human capital audit...) Due diligence (organization
and management, HR policies, compensation, labor relations, HR information systems, assessing culture) Post merger integration (managing stress, moving with speed, leadership
centralized, decentralized, distributed). Strategic drivers of M&As: market dominance (economies of scale and control over distribution channels); geographical expansion, leveraging
competence, resource acquisition, capability acquisition, adjusting to competition, executive egos. Key success factors: size and business focus (smaller companies in same business or closely
related one), effective post merger integration process (combating winner-looser syndrome, preparing for change, setting up transition organization, putting in place new structure, policies
and practices) Strategies for post-merger outcomes (absorption- cultural assimilation; transformation- cultural transformation; best of both- cultural integration; preservation- cultural
autonomy; reverse merger- cultural assimilation) Role of HRM in MNCs Knowledge transfer (transferring knowledge, expertise and critical capabilities, particularly important for tacit and
implicit knowledge), Global leadership training and development (managers need to effectively communicate with people who have different cultural values and norms, have a global mind-set
to understand that different cultural norms have value and meaning to those who practice them), Strategic control needs (MNCs ability to keep all operating units around the world to act in
accordance with overall policy formal control mechanisms: financial, quality and personnel performance, less formal: cultural control, through expatriate personnel). HR control of HQ over
subsidiaries: Inputs control (HQ defines and implements certain selection procedures, it approves locally recruitment managers and it defines specific training and socialization); Process (HQ
influences subsidiaries operations through clear rules and procedures, subsidiaries must provide frequent feedback to HQ); Output (subsidiaries are evaluated relative to results objectives).
Types of MNC strategy: International (HQ and subsidiaries work together primarly as a loose federation focusing on technology transfer, worldwide learning and innovation, subsidiaries adapt
central competencies to local specificities, HQ cultural norms) Multidomestic (local responsiveness emphasized, global efficiency through differentiating products and services, most learning
within country borders, regional and country managers with substantial autonomy to adapt strategies of home country product divisions, weak interpersonal communication between
representatives of different subsidiaries, host country cultural norms) Global (control is centralized and subsidiaries resemble the parent company, exploiting differences in factor costs,
concentration and centralization of production and R&D, limited learning from foreign markets, global cultural norms) Transnational (subsidiaries and HQ alike adhere to worldwide standards
as part of the organizational network, pursuing global efficiency, multinational flexibility and worldwide learning, mainly global cultural norms) Strong dependence of subsidiaries on HQ
(Starting the internationalization process, MNCs country of origin: more common in the US, when subsidiaries r greenfields as opposed to acquired companies, high degree of similarity
between HQ and subsidiaries environment and lack of need to differentiate, with large number of expatriates, subsidiary is a source of critical resources within the company. Strong
independence (large gap exists between parent and host country in terms of distance and national characteristics, because of difficulty of implementing practices across national borders,
subsidiaries get older and larger, subsidiaries r strongly dependent on local resources, with stronger unions). Global HR strategies in terms of corporate dependence: Adaptive strategy
(independent subsidiaries r responsible for practice design) Exportive (practices development at HQ r replicated across dependent subsidiaries) Integrative (independent HQ and subsidiaries
work together to develop an integrated HRM strategy across the organization). Methods of practice design Proactive (HR decides what policies r needed and formally disseminating to the
organization) Iterative (focus on learning) Reactive (corporate HR addresses issues only as they arise) Value-driven (less production of written IHRM policies, more development of strong
organizational culture and related HRM principles, to encourage appropriate behaviour in employees) Push and Pull forces Push (HQ-corporate culture and history, global strategy, HR
strategy; home country- social, economic, political and legal environment; strategic interaction between HQ and subsidiary) Pull (host country- culture and traditions, political and culture
environment, economic growth, labor market conditions, work ethics) Role of IRHM (nurturing global leadership talent, transferring best practices and recombining knowledge, stimulating
transfer of critical capabilities, create common sense of purpose to guide local strategic initiatives, create portfolio of coordination processes, develop core capabilities, promote operational
effectiveness) Performance Mng HR activities carried out by managers and supervisors relative to their subordinates to enhance and maintain employee performance toward the
achievement of desired performance objectives Performance appraisal, training and career planning, compensation. Priorities for GPM Upstream- linked with corporate strategy and global
competitiveness (strategic integration and coordination: expectations for individual and team performance, consistent with corporate strategy; workforce alignment: common direction of the
global workforce; organizational learning and knowledge management: changes in company know-how as part of company wide knowledge mng, through feedback on performance mng
processes at local level, leading to new policy to improve global performance mng) Downstream -implementation of local performance mng process with individuals and teams (responsiveness
to local conditions important tool for control in implementing company strategy, but must be responsive to local business conditions; sensitivity to cross-cultural differences: communication
and perceptions of performance standards or management practices, such as participative mng) Perf. appraisal for Expats: accuracy of expatriate assignment purposes, rater selection
(sensitivity to cross-cultural challenges in order to provide accurate interpretation), balance qualitative and quantitative criteria, external environmental variables, local conditions, timing and
distance. For Inpatriates&TCN: it has to be considered the displacement experienced, major inpatriate assignments r developmental, which should be reflected on appraisal criteria. Strategic
role of T&D: quality and customer satisfaction, decreasing costs, organizational learning and knowledge mng, global alignment, building global talent. Effective Cross-Cultural training
programs: Identify type of global assignment (technical, functional, developmental, strategic), Cross-Cultural training needs analysis (organizational, individual/expatriate and assignment
analysis) establish CCT goals and measures (short-what the expatriate should be able to accomplish after the CCT: cognitive, affective ad behavioural goals vs long term goals: improve the rate
of CC adjustment, to generalize across assignments and improved success on global assignment) develop and deliver the CCT (content: general and specific cultural orientation; instructional
methods: didactic- emphasizes knowledge acquisition and cognitive understanding, experiential- individuals learn best from experience; sequence of training sessions) evaluate CCT (to
determine the effectiveness of CCT, through questionnaires, interviews, surveys; short term goals on cognitive, affective and behavioural changes: long term goals through performance
appraisal). Expats training (pre departure training- cross cultural awareness, strategic training, job content, language, job cultural and communication toughness) Development global
competencies for international professionals (business acumen/knowledge; paradox management/managing ambiguity: dealing with uncertainties and complexities; selfmanagement/learning and adapting; cultural acumen/managing relationships: appreciation and sensitivity to CC differences) How to develop these competencies-Four Ts: Transfer (to new
assignment or job) Training (formal sharing of explicit knowledge) Travel (for training, exposure and experience in foreign country) Teams (cross functional task forces). Compensation- equity
is the key- perception based on relative comparisons and individual support Managing Global compensation Link with company strategy: alignment of individual and collective employee
commitment to MNCs purpose (hardship premium- dangerous locations; develop global leaders- annual goal on developing 5 expatriate candidates; company stock ownership- to motivate
retention of innovators) Strategic management of compensation function (attracting and retaining employees for foreign assignments, maintaining equity in compensation, being competitive,
cost effective) Forms of employee rewards Financial (Direct Fin- bonus, salary, commission; Indirect Fin- social security, medical leave, tax equalization, vacations, childcare, health benefits)
Non-Financial (Job related- challenge, feedback, recognition ; Work environment- social envir at work, physical working conditions, workplace flexibility) Choice set (individual selection
according to preferences)->Crafted set (legally mandated and socially preferred rewards to fit local conditions) -> Core set (common company identify/min-set) Expatriate compensation
Modified home-country model,International citizen model,Host country/Going rate approach, Better of home or host model,Lump sum model,Negotiation model Implementer(medium

emphasis on extrinsic and intrinsic rewards, performance evaluation criteria- output and behaviour) Local innovator (high emphasis on extrinsic; PEC- output) Integrated player (intrinsic; PECbehaviour) Global innovator (intrinsic; PEC- output and behaviour- higher on behaviour as subsidiary matures) Knowledge mng Socialization( t-t: learning codes of conduct and rules of
behaviour) Combination (E-E: knowledge sharing) Internationalization (E-T: things that you learned once, become a pattern) Articulation (T-E: new knowledge becomes accessible) Single-loop
learning: optimizing skills ->exploitation of knowledge: doing it more efficiently . Double-loop: rethink the task -> Knowledge exploration: involves change. Codification: typically through IT
Personalization: human interaction Mng IC Coordination and control roles of expatriates Bears (complement HQ centralization of decision-making and direct surveillance of subsidiaries by
headquarters managers) Bumble-Bees (control based on socialization and creation of informal communication networks) Spiders (Weaving an informal communication network) Internal
recruitment adv: time and cost saving, performance background and development progress available, enhancement of motivation and morale, reduce training and socialization costs. External
Recruitment fresh new ideas and viewpoints, reduced training costs, adequate growth stages, provides greater flexibility and selection objectivity. Adjustment pre-departure preparation
phase: training expatriate and family, personal details related to relocation, enough time between acceptance of assignment and departure, interaction with other expatriates foreign
experience phase initial international adjustment and ongoing support: mentoring in foreign country, home country, communication with parent company and counselling. Initial IA:
honeymoon, culture shock (disruption of routine and familiarity need: adjustment at work, general, interaction and psychological adjustment), adjustment, performance improvement and
international mastery. Work adjustment (+clear expectations, +job discretion) Interaction adjustment (+co-worker, logistical support, +previous assignments, +language, -culture novelty)
General adjustment (+spouse adjustment, -culture novelty) Advantages for expatriates: excellent opportunity to develop their managerial skills, acquisition of knowledge, better
understanding of the international regulations and of the organization and its needs for the future. Disadvantages: expatriation assignment is not framed in the company career plan, lack of
communication, family conflicts, administrative and logistic issues, no appropriate evaluation of the expatriates results, no recognition or rewards upon return. Repatriation: Benefits for
individual expat: knowledge, ability (sensitivity to challenges of working in another culture) Benf for company: market specific knowledge, general knowledge on global business and
organization learning What can companies do to improve repatriation: Planning (customized repatriation agreement, career counselling, expats club) Ongoing support (buddy system,
repatriates section within the companys intranet before repatriation, counselling) Guidance upon return (reorientation program, welcome-home event, personal and professional feedback,
evaluation) Self-initiated expatriates r hired as locals in the foreign country and r not repatriated to their home-country organization. Should Toivonen try to export its corporate culture to
subsidiaries in the United States? Explain.Yes: Not a large cultural distance between Finland and US; Toivonen works many of same suppliers and customers across the world, so important to
have same approaches and understanding of Toivonens values; Can help with sharing information across groups. Country Clusters: Clustering countries on attitudinal dimensions: Useful for
manager to decide on degree to which cultural adaptation is needed: Anglo Canada, Australia, New Zealand, UK, Ireland, USA; Nordic Denmark, Finland, Norway, Sweden. Some
implications of country clusters:Easy moving from one country to another in the same; in diferente clusters some cultural shock may be expected;Location for international subsidiaries;Joint
ventures and alliances in a familiar cluster may be easier;Management practices more likely to generalize.What potential problems do u see with implementing Toivonens corporate culture
in the Treelin facility? Include Hofstedes cultural dimensions in addressing this question. Where r they different on cultural dimensions?;Power distance: Finns prefer flatter organizations
and smaller wage differentials;Uncertainty avoidance: Finns higher, so have more formal written rules and procedures. Emphasize HR policies for stability and security;Masculinity: role of
leader in Finland is to safeguard employees well-being, social responsibility;Individualism: Finns favor teams, group level bonuses;But not a drastic difference! Analysis Hofstede utilizes five
different dimensions to discuss behaviors and decisions of culturally based work-values. These dimensions include: Individualism/collectivism, power distance, uncertainty avoidance, gender
role orientation, and long-term orientation. The main fault line between Treelin and Toivonen exists along the individualism and collectivism dimension. The individual-centric environment at
Treelin Paper is one of the most salient features of the company. Perhaps it is the high importance placed on meeting productivity and efficiency goals, but the focus on the individual is locked
into a reinforcing feedback loop with performance goals. This individualism is also imbued into Treelins HR policies where Hiring decisions are made by individuals, policies focus on individual
accomplishments, and pay and bonuses are tied to individual appraisals. While Treelin values individual performance, Toivonen favors collectivism; teamwork and group level outcomes are
more important than individual outcomes. Self-directed work teams are the basic production unit. Not only is work group oriented, but bonuses are also tied directly to group performance.
The individualism/collectivism dichotomy as it pertains to group oriented work products and salary might be a potential source of conflict during the transition. Another important difference is
that of management philosophies which can be observed in Hofstedes dimension of uncertainty avoidance. Treelins low uncertainty avoidance by management demonstrates a history of
independent decision making, such as the layoff of 12% of the workforce and only notifying corporate after the fact. This cowboy attitude that emphasizes autonomy is seemingly at odds
with the Finnish cultural model utilized at Toivonen where there are high levels of centralized control from corporate headquarters. High uncertainty avoidance dictates that there is consensus
through decision making by groups and ruling by the consensus of corporate in a top-down approach. This clear emphasis on rules, and well defined organizational structure makes Williams
skeptical about whether the higher level of oversight from new management at Toivonen will impact the current leadership in place at Treelin. The HR policies at the two companies are
somewhat opposite, in some ways as the result of the individualism-collectivism dichotomy. Hiring Managers at Treelin have the leeway to make employment decisions without conferring
with the group. Although the potential growth at the organization was a consideration in the hiring process, lack of training ensures that few employees are able to make the leap from entrylevel to management. By utilizing a working group hiring style that makes decisions via consensus, Toivonen ensures that potential employees will fit into the groups and the culture they will
be joining. Structurally, Treelin and Toivonen have similar philosophies regarding a sublimated management styles with a priority on few management levels, however, that is where the
similarities end. Training is an important focus at Toivonen where development programs are tailored to the needs of each individual employee. Utilization of cutting edge online training
programs sets Toivonen apart from Treelin where a dearth of employee training leads to a lack of promotion from within the company, regardless of the companys prioritization of promoting
from within the company.If you r the Group HR manager from Toivonen, Finland, how would you develop your HR action plan?(Objective -> Action plan):To introduce strong commitment to
maintain long-term employment relationship -> Substantial changes to HR policy;To focus on group level outcomes than individual outcomes -> Finnish culture strongly applied;To ensure good
communication on the teams and between levels in mills ->Work structure changed to self-directed teams;To implement a self-directed work team. Therefore, most performance problems
can be handled at the team level -> eliminated the performance appraisals;To implement training and development programs that would provide all of a quality training on topics of
importance to the firm ->More focused on employee needs;To centralized compensation systems to include global job evaluation system with salary ranges determined by continent ->
Narrower salary ranges were not entirely adopted by Treelin;To lower the absenteeism rate and sick time taken off by employees overall -> Unlimited sick time.What r potential problems and
pitfalls you foresee occur when implementing Toivonens corporate culture in Treelin? Develop your HR contingency plan? There r potential problems and pitfalls resulting from different HR
policies in both Toivonen and Treelin which can summarize them into: Long term employee benefits vs budget and production emphasis;Centralized compensation vs performance appraisal
compensation;Employee career advancement vs Stagnant employee positional movement;Complex organization vs. flat organization;Follow corporate structure vs need for independent
decision-making; Evaluate the changes in HR policies and pratices William should anticipate coming from Toivonens purchase of Treelin? If you r William, what proactive measures would
you take?The changes in HR policies and practices William should anticipate coming from Toivonens purchase of Treelin could be the following:Substantial changes to HR Policy will be applied
to befit with Toivonen working culture;Toivonens culture will be strongly applied as a corporate culture foreign company in Treelin as a local subsidiary;Work structure changed to selfdirected teams to accompany Toivonens work structure;Performance appraisals will be eliminated since employees will be working in self-directed teams;There will be more focus on
employee needs as employees career advancement;Flat organization structure will possibly remain;Toivonens salary policies (especially ratio between highest and lowest employees might be
a competitive disadvantage for Treelin;Unlimited sick time will be applied, to lowered the absenteeism rates and sick time taken off by employees overall.//Proactive measures that I would
take if I were Scott William r as followed:Offer preliminary analyses & (perhaps) recommendations to Toivonens HR;Offer review history to Treelin (special emphasis on HR policies and how
they fit with strategic plans of the previous owner & key success factors on the paper industry in the US);Offer a preliminary assessment of the potential challenges that could emerge as
Toivonen starts taking over the operations of Treelin (special emphasis on HR this should be the starting point for a cultural fit study/assessment to be developed in the short-term;Prepare a
potential preliminary HR action plan to be adjusted according to the new changing policies.