2. HP Dilemma? Can the sense that the HP Way was “dead” be reversed?
Could the HP Way be applied in developing countries with different cultures and traditions?
How much autonomy should major business areas have in strategy, policy, management practice?
Can HP avoid failure, following success?

3. HP Dilemma? Getting too big to practice HP Way?
How can we believe in HP Way when people are losing their jobs?
Why don’t practices apply equally across company anymore?
Can the HP Way survive in today’s intensely competitive environment?

4. HP Way Corporate objectives Business values Management practices
= Competitive Advantage: People
Teamwork
Performance

5. Corporate Culture
Values, customs, traditions & meanings that make a company
Beliefs about goals an organization should pursue
Ideas about the appropriate behavior to achieve goals
“How things get done around here”
Values determine norms, guidelines or expectations
“A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration”

6. Corporate Culture ”Organizational Culture and Leadership" (1992), Schein
1. Artifacts: surface aspects (such as dress) easily discerned, yet hard to understand
2. Espoused Values: conscious strategies, goals and philosophies
3. Underlying Assumptions and Values: the core, or essence, of culture, difficult to discern as they exist at a largely unconscious level. Key to understanding why things happen as they do.

7. Organizational Culture - Elements

8. Leading Change (Kotter, 1996)
Establish a sense of urgency
Form a powerful guiding coalition/team
Create a clear vision, expressed simply
Communicate the vision
Empower others to act on the vision
Plan for, and create, short-term wins
Consolidate improvements and produce still more change
Institutionalize the new approaches

9. Why Is Managing Human Resources So Important?
Rapid Change
Uncertainty About Basic Business Conditions
Rising Costs
Rapid Technological Change
More Limited Supplies of Highly Trained Labor
Rapidly Changing Government Legislation and Regulations
Increased Globalization of Industries

10. Fitting HR Practices to Business Strategy and One Another
Vertical Fit = the match between HR practices and overall business strategy
Horizontal fit = the consistency and interrelationship among HR activities
External fit = how well HR activities match the demands of the external environment

11. HR Fit Requires Right HR Choices
Staffing
Appraising
Compensating
Training and Development
Employee Influence
Work Systems

12. Approaches to IHRM Factors Affecting the Approach to IHRM
Political Policies and Legal Regulations
Managerial, Educational, and Technological Development in the Host Country
Home and Host Country Cultures
International Experience of the Firm

13. Approaches to IHRM Factors Affecting the Approach to IHRM (cont’d)
Method of Subsidiary Founding
Technology and the Nature of the Product
Strategic Importance of Particular Employee Groups
Organizational Culture
Organizational Life Cycle

14. Managing Human Resources in a Foreign Subsidiary
Culture and HR Functions within a Foreign Subsidiary
Staffing in the Subsidiary
Training in the Subsidiary
Appraising Performance of Subsidiary Staff
Subsidiary Compensation Systems

15. Approaches to IHRM Ethnocentric Approach Polycentric Approach
Uniform strategy across units
Exporting HR practices from home country
Expatriates run HRM functions in subsidiaries
Polycentric Approach
Diverse strategies across units, independent from HQ
Policies adapted to meet circumstances, context
Local managers direct HRM
Closed Hybrid Approach
Compromise between Ethnocentric & Polycentric
Uses parent country template, adapted to local conditions

16. Approaches to IHRM Regiocentric Approach Geocentric Approach
Regional grouping & integration of HR strategy
Differentiation across regions
Staffed by managers from countries within region
Geocentric Approach
Policies developed to meet goals of global network of home-country & foreign subsidiaries
Global overarching strategy on key issues
Differentiated policies on local issues
Open Hybrid Model
Subsidiary practices are a hybrid of activities meeting global and local demands
Extensive sharing of best practices among subsidiaries
Best practices of home & host countries applied in integrative manner