{"id":150,"date":"2015-07-29T23:38:59","date_gmt":"2015-07-29T23:38:59","guid":{"rendered":"https:\/\/courses.candelalearning.com\/intlbusx1xmaster\/?post_type=chapter&#038;p=150"},"modified":"2017-01-09T19:15:51","modified_gmt":"2017-01-09T19:15:51","slug":"12-1-the-changing-role-of-strategic-human-resources-management-in-international-business","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/cerritos-internationalbusiness\/chapter\/12-1-the-changing-role-of-strategic-human-resources-management-in-international-business\/","title":{"raw":"Reading: The Changing Role of Strategic Human Resources Management in International Business","rendered":"Reading: The Changing Role of Strategic Human Resources Management in International Business"},"content":{"raw":"<div class=\"im_section\">\r\n<div class=\"bcc-box bcc-highlight\">\r\n<h3 class=\"im_title\">Learning Objectives<\/h3>\r\n<ol id=\"fwk-168388-ch12_s01_l01\" class=\"im_orderedlist\">\r\n\t<li>Understand how human resources management is becoming a strategic partner.<\/li>\r\n\t<li>Recognize the importance of an organization\u2019s human capital.<\/li>\r\n\t<li>Learn the key elements of SHRM.<\/li>\r\n<\/ol>\r\n<\/div>\r\n<div id=\"fwk-168388-ch12_s01_s01\" class=\"im_section\">\r\n<h2 class=\"im_title im_editable im_block\">HR as a Strategic Partner<\/h2>\r\nThe role of human resources management (HRM) is changing in business, particularly in international business. Previously considered a support function, HRM is now becoming a strategic partner in helping a global company achieve its goals. The strategic approach to HRM\u2014<span class=\"im_margin_term\"><span class=\"im_glossterm\">strategic human resources management (SHRM)<\/span><\/span>\u2014means going beyond administrative tasks such as payroll processing. Instead, as shown in the opening case on Enterprise, managers need to think more broadly and deeply about how employees will contribute to the company\u2019s success.\r\n\r\nSHRM is not just a function of the human resources (HR) department\u2014all managers and executives need to be involved because the role of people is so vital to a company\u2019s competitive advantage.<span id=\"fwk-carpibus-fn12_016\" class=\"im_footnote\">[footnote]Brian E. Becker and Mark A. Huselid, \u201cStrategic Human Resources Management: Where Do We Go from Here?,\u201d <em class=\"im_emphasis\">Journal of Management<\/em> 32, no. 6 (2006): 898\u2013925.[\/footnote]<\/span> In addition, organizations that value their employees are more profitable than those that don\u2019t.<span id=\"fwk-carpibus-fn12_017\" class=\"im_footnote\">[footnote]Mark A. Huselid, \u201cThe Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial Performance,\u201d <em class=\"im_emphasis\">Academy of Management Journal<\/em> 38, no. 3 (1995): 635\u201372; Jeffrey Pfeffer, <em class=\"im_emphasis\">The Human Equation: Building Profits by Putting People First<\/em> (Boston: Harvard Business School Press, 1998); Jeffrey Pfeffer and John F. Veiga, \u201cPutting People First for Organizational Success,\u201d <em class=\"im_emphasis\">Academy of Management Executive<\/em> 13, no. 2 (1999): 37\u201348; Theresa M. Welbourne and Alice O. Andrews, \u201cPredicting Performance of Initial Public Offering Firms: Should HRM be in the Equation?,\u201d <em class=\"im_emphasis\">Academy of Management Journal<\/em> 39, no. 4 (1996): 910\u201311.[\/footnote]<\/span> Research shows that successful organizations have several things in common: providing employment security, engaging in selective hiring, using self-managed teams, being decentralized, paying well, training employees, reducing status differences, and sharing information.<span id=\"fwk-carpibus-fn12_018\" class=\"im_footnote\">[footnote]Jeffrey Pfeffer and John F. Veiga, \u201cPutting People First for Organizational Success,\u201d <em class=\"im_emphasis\">Academy of Management Executive<\/em> 13, no. 2 (1999): 37\u201348.[\/footnote]<\/span> When organizations enable, develop, and motivate human capital, they improve accounting profits as well as shareholder value in the process.<span id=\"fwk-carpibus-fn12_019\" class=\"im_footnote\">[footnote]Brian E. Becker, Mark A. Huselid, and David Ulrich, \u201cSix Key Principles for Measuring Human Capital Performance in Your Organization\u201d (working paper, School of Management and Labor Relations, Department of Human Resources Management, Rutgers, State University of New Jersey, 2002).[\/footnote]<\/span> The most successful organizations manage HR as a strategic asset and measure HR performance in terms of its strategic impact. When each piece is in the right place, it creates a <span class=\"im_margin_term\"><span class=\"im_glossterm\">high-performance work system (HPWS)<\/span><\/span>\u2014a set of management practices that attempt to create an environment within an organization in which the employee has greater involvement and responsibility.\r\n\r\nThe following are some questions that HRM should be prepared to answer in this new world:<span id=\"fwk-carpibus-fn12_020\" class=\"im_footnote\">[footnote]David Ulrich, <em class=\"im_emphasis\">Delivering Results<\/em> (Boston: Harvard Business School Press, 1998).[\/footnote]<\/span>\r\n<ul id=\"fwk-168388-ch12_s01_s01_l01\" class=\"im_itemizedlist im_editable im_block\">\r\n\t<li><strong class=\"im_emphasis im_bold\">Competence.<\/strong> To what extent does our company have the required knowledge, skills, and abilities to implement its strategy?<\/li>\r\n\t<li><strong class=\"im_emphasis im_bold\">Consequence.<\/strong> To what extent does our company have the right measures, rewards, and incentives in place to align people\u2019s efforts with the company strategy?<\/li>\r\n\t<li><strong class=\"im_emphasis im_bold\">Governance.<\/strong> To what extent does our company have the right structures, communications systems, and policies to create a high-performing organization?<\/li>\r\n\t<li><strong class=\"im_emphasis im_bold\">Learning and Leadership.<\/strong> To what extent can our company respond to uncertainty and learn and adapt to change quickly?<\/li>\r\n<\/ul>\r\n<\/div>\r\n<div id=\"fwk-168388-ch12_s01_s02\" class=\"im_section\">\r\n<h2 class=\"im_title im_editable im_block\">Crucial Role of SHRM in Global Firms<\/h2>\r\nDeveloping an effective international workforce is much more difficult for a competitor to emulate than buying technology or securing capital.<span id=\"fwk-carpibus-fn12_021\" class=\"im_footnote\">[footnote]Dennis R. Briscoe, Randall S. Schuler, and Lisbeth Claus, <em class=\"im_emphasis\">International Human Resource Management<\/em>, 3rd ed. (New York: Routledge, 2009).[\/footnote]<\/span> Besides, how well companies manage their HR around the world can mean the difference between success and failure. In a nutshell, firms that effectively manage their international HR typically outperform competitors in terms of identifying new international business opportunities, adapting to changing conditions worldwide, sharing innovation knowledge throughout the firm, effectively coordinating subsidiary operations, conducting successful cross-border acquisitions, and maintaining a high-performing, committed overseas workforce.<span id=\"fwk-carpibus-fn12_022\" class=\"im_footnote\">[footnote]Mary Yoko Brannen and Mark F. Peterson, \u201cMerging without Alienating: Interventions Promoting Cross-cultural Organizational Integration and Their Limitations,\u201d <em class=\"im_emphasis\">Journal of International Business Studies<\/em> 40 (2009): 468\u201389; Yaping Gong, \u201cToward a Dynamic Process Model of Staffing Composition and Subsidiary Outcomes in Multinational Enterprises,\u201d <em class=\"im_emphasis\">Journal of Management<\/em> 29, no. 2 (2003): 259\u201380; Dana Minbaeva, Torben Pedersen, Ingmar Bj\u00f6rkman, Carl F. Fey, and Hyeon Jeong Park, \u201cMNC Knowledge Transfer, Subsidiary Absorptive Capacity, and HRM,\u201d <em class=\"im_emphasis\">Journal of International Business Studies<\/em> 34, no. 6 (2003): 586\u201399; Gary Oddou, Joyce S. Osland, and Roger N. Blakeney, \u201cRepatriating Knowledge: Variables Influencing the \u2018Transfer\u2019 Process,\u201d <em class=\"im_emphasis\">Journal of International Business Studies<\/em> 40, no. 2 (2009): 181\u201399.[\/footnote]<\/span>\r\n<div id=\"fwk-168388-ch12_s01_s02_n01\" class=\"im_callout im_editable im_block\">\r\n<h3 class=\"im_title\">Did You Know?<\/h3>\r\nRobert Half International (RHI), a professional consulting firm, has staffing operations in more than 400 locations worldwide.<span id=\"fwk-carpibus-fn12_023\" class=\"im_footnote\">[footnote]\u201cAbout Us,\u201d Robert Half International, accessed January 28, 2011, <a class=\"im_link\" href=\"http:\/\/www.rhi.com\/AboutUs\" target=\"_blank\">http:\/\/www.rhi.com\/AboutUs<\/a>.[\/footnote]<\/span> During the recession of 2009, RHI began hiring older, more experienced workers to add to its roster of temporary workers. Typically, temporary workers are low-level employees, but during the recession, many workers with fifteen or twenty years of experience lost their jobs or retired from full-time jobs. RHI hired older highly skilled workers, such as accounting and finance experts, to work on temporary projects\u2014helping a company restructure or emerge from bankruptcy, for instance. The situation is a win-win: companies get access to experts they may not otherwise be able to afford, while retired workers earn extra money or income after a layoff. Zurich-based Adecco, a competitor to RHI, likewise hired older workers. \u201cMore companies are looking for flexible, highly skilled temporary employees because it\u2019s much easier to end an assignment than terminate employment,\u201d said Doug Arms, chief talent officer at Ajilon Professional Staffing, a unit of Adecco.<span id=\"fwk-carpibus-fn12_024\" class=\"im_footnote\">[footnote]Aili McConnon, \u201cTemp Giant Robert Half Welcomes Boomers,\u201d <em class=\"im_emphasis\">BusinessWeek<\/em>, May 21, 2009, accessed January 28, 2011, <a class=\"im_link\" href=\"http:\/\/www.businessweek.com\/magazine\/content\/09_22\/b4133054601320.htm\" target=\"_blank\">http:\/\/www.businessweek.com\/magazine\/content\/09_22\/b4133054601320.htm<\/a>.[\/footnote]<\/span>\r\n\r\n<\/div>\r\nIn many multinationals, an important challenge is balancing the need to coordinate units scattered around the world with the need for individual units to have the control necessary to deal effectively with local issues.<span id=\"fwk-carpibus-fn12_025\" class=\"im_footnote\">[footnote]Randall S. Schuler, Pawan S. Budhwar, and Gary W. Florkowski, \u201cInternational Human Resource Management,\u201d in <em class=\"im_emphasis\">Handbook for International Management Research<\/em>, ed. Betty-Jane Punnett and Oded Shenkar (Ann Arbor: University of Michigan Press, 2004), 356\u2013414.[\/footnote]<\/span> Achieving this balance becomes more difficult as the level of diversity that firms are exposed to increases. For example, consider a situation where the parent firm\u2019s national culture differs dramatically from the cultures in its overseas subsidiaries. In this case, it may be harder for the parent firm to share information, technology, and innovations between the home office and foreign outposts. It may also be more difficult to promote needed organizational changes and manage any conflicts that arise between employees in different countries.\r\n\r\nFortunately, international human resources management (IHRM) strategies can overcome such problems. For instance, IHRM professionals can help ensure that top executives understand the different cultures within the company workforce and around the world. They can also offer advice on how to coordinate functions across boundaries and develop outstanding cross-cultural skills in employees (e.g., through various training programs and career paths that involve significant overseas exposure).<span id=\"fwk-carpibus-fn12_026\" class=\"im_footnote\">[footnote]Dennis R. Briscoe, Randall S. Schuler, and Lisbeth Claus, <em class=\"im_emphasis\">International Human Resource Management<\/em>, 3rd ed. (New York: Routledge, 2009); Carl F. Fey and Ingmar Bj\u00f6rkman, \u201cThe Effect of Human Resource Management Practices on MNC Subsidiary Performance in Russia,\u201d <em class=\"im_emphasis\">Journal of International Business Studies<\/em> 32, no. 1 (2001): 59\u201375; Patrick M. Wright, Gary C. McMahan, and Abagail McWilliams, \u201cHuman Resources and Sustained Competitive Advantage: A Resource-Based Perspective,\u201d <em class=\"im_emphasis\">International Journal of Human Resource Management<\/em> 5, no. 2 (1994): 301\u201326.[\/footnote]<\/span>\r\n\r\nOf course, these are general suggestions and a range of HR practices might be used to implement them. Companies should develop an international HR philosophy that describes corporate values about HR\u2014this in turn, will shape the broad outline of what constitutes acceptable IHRM practices for employees all over the world. From there, individual units can fine-tune and select specific practices that best fit their local conditions. But this is easier said than done, especially for firms operating in dozens of countries. Multinationals typically find it extremely difficult, for example, to design a compensation system that is sensitive to cultural differences yet still meets general guidelines of being seen as fair by employees everywhere. Indeed, culture may impact local HRM practices in a variety of ways\u2014from how benefit packages are constructed to the hiring, termination, and promotion practices used, just to name a few.<span id=\"fwk-carpibus-fn12_027\" class=\"im_footnote\">[footnote]Dennis R. Briscoe, Randall S. Schuler, and Lisbeth Claus, <em class=\"im_emphasis\">International Human Resource Management<\/em>, 3rd ed. (New York: Routledge, 2009).[\/footnote]<\/span>\r\n\r\nNevertheless, selecting the right IHRM strategy can pay off, particularly in difficult foreign markets. Consider multinationals wanting to quickly enter countries with transitional economies\u2014those that are moving from being state-dominated to being market-based (e.g., China and Russia). Choosing to enter those markets by buying local firms, building new plants, or establishing joint ventures may create significant HR challenges that will undercut performance if not handled well. Consequently, global firms need to adopt an appropriate IHRM strategy to meet transition economy challenges.\r\n\r\n<\/div>\r\n<div id=\"fwk-168388-ch12_s01_s03\" class=\"im_section\">\r\n<h2 class=\"im_title im_editable im_block\">The Importance of Human Capital<\/h2>\r\nEmployees provide an organization\u2019s <span class=\"im_margin_term\"><span class=\"im_glossterm\">human capital<\/span><\/span>. Your human capital is the set of skills that you have acquired on the job\u2014through training and experience\u2014which increase your value in the marketplace. The Society of Human Resource Management\u2019s <em class=\"im_emphasis\">Research Quarterly<\/em> defined an organization\u2019s human capital as \u201cthe collective sum of the attributes, life experience, knowledge, inventiveness, energy, and enthusiasm that its people choose to invest in their work.\u201d<span id=\"fwk-carpibus-fn12_028\" class=\"im_footnote\">[footnote]Leslie A. Weatherly, \u201cHuman Capital\u2014the Elusive Asset; Measuring and Managing Human Capital: A Strategic Imperative for HR,\u201d <em class=\"im_emphasis\">2003 SHRM Research Quarterly<\/em>, March 2003, accessed November 2, 2010, <a class=\"im_link\" href=\"http:\/\/www.ispi.org\/pdf\/suggestedReading\/6_Weatherly_HumanCapital.pdf\" target=\"_blank\">http:\/\/www.ispi.org\/pdf\/suggestedReading\/6_Weatherly_HumanCapital.pdf<\/a>.[\/footnote]<\/span>\r\n\r\n<\/div>\r\n<div id=\"fwk-168388-ch12_s01_s04\" class=\"im_section\">\r\n<h2 class=\"im_title im_editable im_block\">Focus on Outcomes<\/h2>\r\nUnfortunately, many HR managers are more effective in the technical or operational aspects of HR than they are in the strategic, even though the strategic facet has a much larger effect on the company\u2019s success.<span id=\"fwk-carpibus-fn12_029\" class=\"im_footnote\">[footnote]Mark A. Huselid, Susan E. Jackson, and Randall S. Schuler, \u201cTechnical and Strategic Human Resource Management Effectiveness as Determinants of Firm Performance,\u201d <em class=\"im_emphasis\">Academy of Management Journal<\/em> 40, no. 1 (1997): 171\u201388.[\/footnote]<\/span> In the past, HR professionals focused on compliance to rules, such as those set by the federal government, and tracked simple metrics\u2014for instance, the number of employees hired or the number of hours of training delivered. The new principles of management, however, require a focus on outcomes and results, not just numbers and compliance. Just as lawyers count how many cases they\u2019ve won\u2014not just how many words they used\u2014so too must HR professionals track how employees are using the skills they\u2019ve learned to attain goals, not just how many hours they\u2019ve spent in training.<span id=\"fwk-carpibus-fn12_030\" class=\"im_footnote\">[footnote]David Ulrich, <em class=\"im_emphasis\">Delivering Results<\/em> (Boston: Harvard Business School Press, 1998).[\/footnote]<\/span>\r\n\r\nJohn Murabito, executive vice president and head of Human Resources and Services at CIGNA, says that HR executives need to understand the company\u2019s goals and strategy and then provide employees with the skills needed. Too often, HRM executives get wrapped up in their own initiatives without understanding how their role contributes to the business. That\u2019s dangerous, because when it comes to the HR department, \u201canything that is administrative or transactional is going to get outsourced,\u201d Murabito says.<span id=\"fwk-carpibus-fn12_031\" class=\"im_footnote\">[footnote]Jessica Marquez, \u201cOn the Front Line: A Quintet of 2006\u2019s Highest-Paid HR Leaders Discuss How They Are Confronting Myriad Talent Management Challenges as Well as Obstacles to Being Viewed by Their Organizations as Strategic Business Partners,\u201d <em class=\"im_emphasis\">Workforce Management<\/em> 86, no. 5 (1997): 22.[\/footnote]<\/span> Indeed, the number of HRM outsourcing contracts over $25 million has been increasing, with nearly 3,000 active company contracts recently under way.<span id=\"fwk-carpibus-fn12_032\" class=\"im_footnote\">[footnote]\u201cTPI Counts 2700+ Outsourcing Contracts,\u201d SharedXpertise Forums, December 2007, accessed January 30, 2009, <a class=\"im_link\" href=\"http:\/\/www.sharedxpertise.com\/content\/4301\/tpi-counts-2700-outsourcing-contracts\" target=\"_blank\">http:\/\/www.sharedxpertise.com\/content\/4301\/tpi-counts-2700-outsourcing-contracts<\/a>.[\/footnote]<\/span> For example, Bank of America outsourced its HRM administration to NorthgateArinso. NorthgateArinso now provides timekeeping, payroll processing, and payroll services for 10,000 Bank of America employees outside the United States.<span id=\"fwk-carpibus-fn12_033\" class=\"im_footnote\">[footnote]\u201cAnnual Report 2006,\u201d Arinso International, accessed March 10, 2011, <a class=\"im_link\" href=\"http:\/\/bib.kuleuven.be\/ebib\/data\/jaarverslagen\/Arinso_2006eng.pdf\" target=\"_blank\">http:\/\/bib.kuleuven.be\/ebib\/data\/jaarverslagen\/Arinso_2006eng.pdf<\/a>.[\/footnote]<\/span>\u00a0To avoid being outsourced, HRM needs to stay relevant and accept accountability for its business results. In short, the people strategy needs to fully align with the company\u2019s business strategy, keeping the focus on outcomes.\r\n\r\n<\/div>\r\n<div id=\"fwk-168388-ch12_s01_s05\" class=\"im_section\">\r\n<h2 class=\"im_title im_editable im_block\">Key Elements of HRM<\/h2>\r\nBeyond the basic need for compliance with HRM rules and regulations, the four key elements of HR are summarized in Figure 12.1 \"Key HRM Elements.\" In high-performing companies such as Enterprise Holdings, each element of the HRM system is designed to reflect best practices and to maximize employee performance. The different parts of the HRM system are strongly aligned with company goals.\r\n<div id=\"fwk-168388-ch12_s01_s05_f01\" class=\"im_figure im_large im_medium-height im_editable im_block\">\r\n\r\n[caption id=\"\" align=\"aligncenter\" width=\"500\"]<a href=\"https:\/\/textimgs.s3.amazonaws.com\/intlbus\/section_16\/534443245ea7e0de7277b3b39919ac4d.jpg\" target=\"_blank\"><img src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images-archive-read-only\/wp-content\/uploads\/sites\/789\/2015\/07\/23113811\/sm_534443245ea7e0de7277b3b39919ac4d.jpg\" alt=\"key hr elements\" width=\"500\" height=\"500\" \/><\/a> Figure 12.1 Key HRM Elements[\/caption]\r\n\r\n<\/div>\r\n<div id=\"fwk-168388-ch12_s01_s05_s01\" class=\"im_section\">\r\n<h3 class=\"im_title im_editable im_block\">Selection and Placement<\/h3>\r\nIt\u2019s good for firms to acquaint prospective new hires with the nature of the jobs they\u2019ll be expected to fulfill early in the hiring process. This includes explaining the technical competencies needed (e.g., collecting statistical data) and defining behavioral competencies. Behavioral competencies may have a customer focus, such as the ability to show empathy and support of customers\u2019 feelings and points of view, or a work-management focus, such as the ability to complete tasks efficiently or to know when to seek guidance.\r\n\r\nIn addition, an SHRM best practice is to make the organization\u2019s culture clear by discussing the values that underpin the organization. For example, firms can describe the \u201cheroes\u201d of the organization\u2014those employees who embody the values of the organization. For example, a service company\u2019s heroes may be the people who go the extra mile to get customers to smile. In a software company, the heroes may be the people who toil through the night to develop new code. By sharing such stories of company heroes with potential hires, the firm helps reinforce the values and behaviors that make the company unique. This, in turn, will help the job candidates determine whether they\u2019ll fit well into that organization\u2019s culture.\r\n\r\n<\/div>\r\n<div id=\"fwk-168388-ch12_s01_s05_s02\" class=\"im_section\">\r\n<h3 class=\"im_title im_editable im_block\">Job Design<\/h3>\r\n<span class=\"im_margin_term\"><span class=\"im_glossterm\">Job design<\/span><\/span> refers to the process of combining tasks to form a whole job. The goal is to design jobs that involve doing a whole piece of work and that are challenging but ultimately doable for the employee. Job design also takes into account issues of health and safety of the worker. When planning jobs or assigning people to jobs, HR managers also consider training (ensuring that employees to have the knowledge and skills to perform all parts of their job) and giving them the authority and accountability to do so.<span id=\"fwk-carpibus-fn12_034\" class=\"im_footnote\">[footnote]Edward E. Lawler III, <em class=\"im_emphasis\">The Ultimate Advantage<\/em> (San Francisco: Jossey-Bass, 1992).[\/footnote]<\/span>\r\n\r\nOne company that does training right is Motorola. As a global company, Motorola operates in many countries, including China. Operating in China presents particular challenges in terms of finding and hiring skilled employees. In a recent survey conducted by the American Chamber of Commerce in Shanghai, 37 percent of US-owned enterprises operating in China said that recruiting skilled employees was their biggest operational problem.<span id=\"fwk-carpibus-fn12_035\" class=\"im_footnote\">[footnote]Kevin Lane and Florian Pollner, \u201cHow to Address China\u2019s Growing Talent Shortage,\u201d <em class=\"im_emphasis\">McKinsey Quarterly<\/em>, no. 3 (2008), accessed March 10, 2011, <a class=\"im_link\" href=\"http:\/\/www.mckinseyquarterly.com\/How_to_address_Chinas_growing_talent_shortage_2156\" target=\"_blank\">http:\/\/www.mckinseyquarterly.com\/How_to_address_Chinas_growing_talent_shortage_2156<\/a>.[\/footnote]<\/span> Indeed, polled companies cited HRM as a problem more often than they cited regulatory concerns, bureaucracy, or infringement on intellectual property rights. This is because Chinese universities don\u2019t turn out candidates with the skills that multinational companies need. As a result, Motorola has created its own training and development programs to bridge the gap. For example, Motorola\u2019s China Accelerated Management Program is designed for local managers. Motorola\u2019s Management Foundation program helps train managers in areas such as communication and problem solving. Finally, Motorola offers a high-tech MBA program in partnership with Arizona State University and Tsinghua University, so that top employees can earn an MBA in-house.<span id=\"fwk-carpibus-fn12_036\" class=\"im_footnote\">[footnote]Kevin Lane and Florian Pollner, \u201cHow to Address China\u2019s Growing Talent Shortage,\u201d <em class=\"im_emphasis\">McKinsey Quarterly<\/em>, no. 3 (2008), accessed March 10, 2011, <a class=\"im_link\" href=\"http:\/\/www.mckinseyquarterly.com\/How_to_address_Chinas_growing_talent_shortage_2156\" target=\"_blank\">http:\/\/www.mckinseyquarterly.com\/How_to_address_Chinas_growing_talent_shortage_2156<\/a>.[\/footnote]<\/span> Such programs are tailor-made to the minimally skilled\u2014but highly motivated\u2014Chinese employees.\r\n<div id=\"fwk-168388-ch12_s01_s05_s02_f01\" class=\"im_figure im_large im_medium-height im_editable im_block\">\r\n\r\n[caption id=\"\" align=\"aligncenter\" width=\"500\"]<a href=\"https:\/\/textimgs.s3.amazonaws.com\/intlbus\/section_16\/42dab5148257d9f3fa90fb09ddd97c14.jpg\" target=\"_blank\"><img src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images-archive-read-only\/wp-content\/uploads\/sites\/789\/2015\/07\/23113812\/sm_42dab5148257d9f3fa90fb09ddd97c14.jpg\" alt=\"two people shaking hands\" width=\"500\" height=\"345\" \/><\/a> <b>Figure 12.2<\/b> W. P. Carey and Motorola China High Technology MBA Program Graduation Ceremony. Source: W. P. Carey School of Business MBA China Programs.[\/caption]\r\n\r\n<\/div>\r\n<\/div>\r\n<div id=\"fwk-168388-ch12_s01_s05_s03\" class=\"im_section\">\r\n<h3 class=\"im_title im_editable im_block\">Compensation and Rewards<\/h3>\r\nThe SHRM function also includes evaluating and paying people on the basis of their performance\u2014not simply for showing up to the job. Firms must offer rewards for skill development and organizational performance, emphasizing teamwork, collaboration, and responsibility for performance. Good compensation systems include incentives, gainsharing, profit sharing, and skill-based pay that rewards employees who learn new skills and put those skills to work for the organization. Employees who are trained in problem solving and a broad range of skills are more likely to grow on the job and feel more satisfaction. Their training enables them to make more valuable contributions to the company, which, in turn, gains them higher rewards and greater commitment to the company.<span id=\"fwk-carpibus-fn12_037\" class=\"im_footnote\">[footnote]William F. Barnes, \u201cThe Challenge of Implementing and Sustaining High Performance Work Systems in the United States: An Evolutionary Analysis of I\/N Tek and Kote\u201d (PhD diss., University of Notre Dame, 2001).[\/footnote]<\/span> Likewise, the company benefits from employees\u2019 increased flexibility, productivity, and commitment.\r\n\r\nWhen employees have access to information and the authority to act on that information, they\u2019re more involved in their jobs, more likely to make the right decision, and more inclined to take the necessary actions to further the organization\u2019s goals. Similarly, rewards need to be linked to performance so that employees are naturally inclined to pursue outcomes that will earn rewards and further the organization\u2019s success at the same time.<span id=\"fwk-carpibus-fn12_038\" class=\"im_footnote\">[footnote]Mason Carpenter, Talya Bauer, and Berrin Erdogan, <em class=\"im_emphasis\">Principles of Management<\/em> (Nyack, NY: <a href=\"http:\/\/2012books.lardbucket.org\/attribution.html?utm_source=inline\">Unnamed Publisher<\/a>, 2009), accessed January 5, 2011, <a class=\"im_link\" href=\"http:\/\/www.gone.2012books.lardbucket.org\/printed-book\/127834\" target=\"_blank\">http:\/\/www.gone.2012books.lardbucket.org\/printed-book\/127834<\/a>.[\/footnote]<\/span>\r\n\r\n<\/div>\r\n<div id=\"fwk-168388-ch12_s01_s05_s04\" class=\"im_section\">\r\n<h3 class=\"im_title im_editable im_block\">Diversity Management<\/h3>\r\nAnother key to successful SHRM in today\u2019s business environment is embracing diversity. In past decades, \u201cdiversity\u201d meant avoiding discrimination against women and minorities in hiring. Today, diversity goes far beyond this limited definition; diversity management involves actively appreciating and using the differing perspectives and ideas that individuals bring to the workplace. Diversity is an invaluable contributor to innovation and problem-solving success. As James Surowiecki shows in <em class=\"im_emphasis\">The Wisdom of Crowds<\/em>, the more diverse the group in terms of expertise, gender, age, and background, the more ability the group has to avoid the problems of groupthink.<span id=\"fwk-carpibus-fn12_039\" class=\"im_footnote\">[footnote]James Surowiecki, <em class=\"im_emphasis\">The Wisdom of Crowds<\/em> (New York: Anchor Books, 2005).[\/footnote]<\/span> Diversity helps company teams to come up with more creative and effective solutions. Teams whose members have complementary skills are often more successful because members can see one another\u2019s blind spots. Diverse people will probably make different kinds of errors, which also means that they\u2019ll be more likely to catch and correct each other\u2019s mistakes.\r\n<div id=\"fwk-168388-ch12_s01_s05_s04_n01\" class=\"im_key_takeaways im_editable im_block\">\r\n<h3 class=\"im_title\">Key Takeaways<\/h3>\r\n<ul id=\"fwk-168388-ch12_s01_s05_s04_l01\" class=\"im_itemizedlist\">\r\n\t<li>HRM is becoming increasingly important in organizations because today\u2019s knowledge economy requires employees to contribute ideas and be engaged in executing the company\u2019s strategy.<\/li>\r\n\t<li>HRM is becoming a strategic partner by identifying the skills that employees need and then providing employees with the training and structures needed to develop and deploy those competencies.<\/li>\r\n\t<li>All the elements of HRM\u2014selection, placement, job design, and compensation\u2014need to be aligned with the company\u2019s strategy so that the right employees are hired for the right jobs and rewarded properly for their contributions to furthering the company\u2019s goals.<\/li>\r\n<\/ul>\r\n<\/div>\r\n<div class=\"bcc-box bcc-info\">\r\n<h3 class=\"im_title\">Exercises[footnote](AACSB: Reflective Thinking, Analytical Skills)[\/footnote]<\/h3>\r\n<ol id=\"fwk-168388-ch12_s01_s05_s04_l02\" class=\"im_orderedlist\">\r\n\t<li>What are the advantages of the new SHRM approach?<\/li>\r\n\t<li>Name three elements of HRM.<\/li>\r\n\t<li>What must HRM do to be a true strategic partner of the company?<\/li>\r\n\t<li>What benefits does a diverse workforce provide the company?<\/li>\r\n\t<li>If you were an HR manager, what steps would you take to minimize the outsourcing of jobs in your department?<\/li>\r\n<\/ol>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>","rendered":"<div class=\"im_section\">\n<div class=\"bcc-box bcc-highlight\">\n<h3 class=\"im_title\">Learning Objectives<\/h3>\n<ol id=\"fwk-168388-ch12_s01_l01\" class=\"im_orderedlist\">\n<li>Understand how human resources management is becoming a strategic partner.<\/li>\n<li>Recognize the importance of an organization\u2019s human capital.<\/li>\n<li>Learn the key elements of SHRM.<\/li>\n<\/ol>\n<\/div>\n<div id=\"fwk-168388-ch12_s01_s01\" class=\"im_section\">\n<h2 class=\"im_title im_editable im_block\">HR as a Strategic Partner<\/h2>\n<p>The role of human resources management (HRM) is changing in business, particularly in international business. Previously considered a support function, HRM is now becoming a strategic partner in helping a global company achieve its goals. The strategic approach to HRM\u2014<span class=\"im_margin_term\"><span class=\"im_glossterm\">strategic human resources management (SHRM)<\/span><\/span>\u2014means going beyond administrative tasks such as payroll processing. Instead, as shown in the opening case on Enterprise, managers need to think more broadly and deeply about how employees will contribute to the company\u2019s success.<\/p>\n<p>SHRM is not just a function of the human resources (HR) department\u2014all managers and executives need to be involved because the role of people is so vital to a company\u2019s competitive advantage.<span id=\"fwk-carpibus-fn12_016\" class=\"im_footnote\"><a class=\"footnote\" title=\"Brian E. Becker and Mark A. Huselid, \u201cStrategic Human Resources Management: Where Do We Go from Here?,\u201d Journal of Management 32, no. 6 (2006): 898\u2013925.\" id=\"return-footnote-150-1\" href=\"#footnote-150-1\" aria-label=\"Footnote 1\"><sup class=\"footnote\">[1]<\/sup><\/a><\/span> In addition, organizations that value their employees are more profitable than those that don\u2019t.<span id=\"fwk-carpibus-fn12_017\" class=\"im_footnote\"><a class=\"footnote\" title=\"Mark A. Huselid, \u201cThe Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial Performance,\u201d Academy of Management Journal 38, no. 3 (1995): 635\u201372; Jeffrey Pfeffer, The Human Equation: Building Profits by Putting People First (Boston: Harvard Business School Press, 1998); Jeffrey Pfeffer and John F. Veiga, \u201cPutting People First for Organizational Success,\u201d Academy of Management Executive 13, no. 2 (1999): 37\u201348; Theresa M. Welbourne and Alice O. Andrews, \u201cPredicting Performance of Initial Public Offering Firms: Should HRM be in the Equation?,\u201d Academy of Management Journal 39, no. 4 (1996): 910\u201311.\" id=\"return-footnote-150-2\" href=\"#footnote-150-2\" aria-label=\"Footnote 2\"><sup class=\"footnote\">[2]<\/sup><\/a><\/span> Research shows that successful organizations have several things in common: providing employment security, engaging in selective hiring, using self-managed teams, being decentralized, paying well, training employees, reducing status differences, and sharing information.<span id=\"fwk-carpibus-fn12_018\" class=\"im_footnote\"><a class=\"footnote\" title=\"Jeffrey Pfeffer and John F. Veiga, \u201cPutting People First for Organizational Success,\u201d Academy of Management Executive 13, no. 2 (1999): 37\u201348.\" id=\"return-footnote-150-3\" href=\"#footnote-150-3\" aria-label=\"Footnote 3\"><sup class=\"footnote\">[3]<\/sup><\/a><\/span> When organizations enable, develop, and motivate human capital, they improve accounting profits as well as shareholder value in the process.<span id=\"fwk-carpibus-fn12_019\" class=\"im_footnote\"><a class=\"footnote\" title=\"Brian E. Becker, Mark A. Huselid, and David Ulrich, \u201cSix Key Principles for Measuring Human Capital Performance in Your Organization\u201d (working paper, School of Management and Labor Relations, Department of Human Resources Management, Rutgers, State University of New Jersey, 2002).\" id=\"return-footnote-150-4\" href=\"#footnote-150-4\" aria-label=\"Footnote 4\"><sup class=\"footnote\">[4]<\/sup><\/a><\/span> The most successful organizations manage HR as a strategic asset and measure HR performance in terms of its strategic impact. When each piece is in the right place, it creates a <span class=\"im_margin_term\"><span class=\"im_glossterm\">high-performance work system (HPWS)<\/span><\/span>\u2014a set of management practices that attempt to create an environment within an organization in which the employee has greater involvement and responsibility.<\/p>\n<p>The following are some questions that HRM should be prepared to answer in this new world:<span id=\"fwk-carpibus-fn12_020\" class=\"im_footnote\"><a class=\"footnote\" title=\"David Ulrich, Delivering Results (Boston: Harvard Business School Press, 1998).\" id=\"return-footnote-150-5\" href=\"#footnote-150-5\" aria-label=\"Footnote 5\"><sup class=\"footnote\">[5]<\/sup><\/a><\/span><\/p>\n<ul id=\"fwk-168388-ch12_s01_s01_l01\" class=\"im_itemizedlist im_editable im_block\">\n<li><strong class=\"im_emphasis im_bold\">Competence.<\/strong> To what extent does our company have the required knowledge, skills, and abilities to implement its strategy?<\/li>\n<li><strong class=\"im_emphasis im_bold\">Consequence.<\/strong> To what extent does our company have the right measures, rewards, and incentives in place to align people\u2019s efforts with the company strategy?<\/li>\n<li><strong class=\"im_emphasis im_bold\">Governance.<\/strong> To what extent does our company have the right structures, communications systems, and policies to create a high-performing organization?<\/li>\n<li><strong class=\"im_emphasis im_bold\">Learning and Leadership.<\/strong> To what extent can our company respond to uncertainty and learn and adapt to change quickly?<\/li>\n<\/ul>\n<\/div>\n<div id=\"fwk-168388-ch12_s01_s02\" class=\"im_section\">\n<h2 class=\"im_title im_editable im_block\">Crucial Role of SHRM in Global Firms<\/h2>\n<p>Developing an effective international workforce is much more difficult for a competitor to emulate than buying technology or securing capital.<span id=\"fwk-carpibus-fn12_021\" class=\"im_footnote\"><a class=\"footnote\" title=\"Dennis R. Briscoe, Randall S. Schuler, and Lisbeth Claus, International Human Resource Management, 3rd ed. (New York: Routledge, 2009).\" id=\"return-footnote-150-6\" href=\"#footnote-150-6\" aria-label=\"Footnote 6\"><sup class=\"footnote\">[6]<\/sup><\/a><\/span> Besides, how well companies manage their HR around the world can mean the difference between success and failure. In a nutshell, firms that effectively manage their international HR typically outperform competitors in terms of identifying new international business opportunities, adapting to changing conditions worldwide, sharing innovation knowledge throughout the firm, effectively coordinating subsidiary operations, conducting successful cross-border acquisitions, and maintaining a high-performing, committed overseas workforce.<span id=\"fwk-carpibus-fn12_022\" class=\"im_footnote\"><a class=\"footnote\" title=\"Mary Yoko Brannen and Mark F. Peterson, \u201cMerging without Alienating: Interventions Promoting Cross-cultural Organizational Integration and Their Limitations,\u201d Journal of International Business Studies 40 (2009): 468\u201389; Yaping Gong, \u201cToward a Dynamic Process Model of Staffing Composition and Subsidiary Outcomes in Multinational Enterprises,\u201d Journal of Management 29, no. 2 (2003): 259\u201380; Dana Minbaeva, Torben Pedersen, Ingmar Bj\u00f6rkman, Carl F. Fey, and Hyeon Jeong Park, \u201cMNC Knowledge Transfer, Subsidiary Absorptive Capacity, and HRM,\u201d Journal of International Business Studies 34, no. 6 (2003): 586\u201399; Gary Oddou, Joyce S. Osland, and Roger N. Blakeney, \u201cRepatriating Knowledge: Variables Influencing the \u2018Transfer\u2019 Process,\u201d Journal of International Business Studies 40, no. 2 (2009): 181\u201399.\" id=\"return-footnote-150-7\" href=\"#footnote-150-7\" aria-label=\"Footnote 7\"><sup class=\"footnote\">[7]<\/sup><\/a><\/span><\/p>\n<div id=\"fwk-168388-ch12_s01_s02_n01\" class=\"im_callout im_editable im_block\">\n<h3 class=\"im_title\">Did You Know?<\/h3>\n<p>Robert Half International (RHI), a professional consulting firm, has staffing operations in more than 400 locations worldwide.<span id=\"fwk-carpibus-fn12_023\" class=\"im_footnote\"><a class=\"footnote\" title=\"\u201cAbout Us,\u201d Robert Half International, accessed January 28, 2011, http:\/\/www.rhi.com\/AboutUs.\" id=\"return-footnote-150-8\" href=\"#footnote-150-8\" aria-label=\"Footnote 8\"><sup class=\"footnote\">[8]<\/sup><\/a><\/span> During the recession of 2009, RHI began hiring older, more experienced workers to add to its roster of temporary workers. Typically, temporary workers are low-level employees, but during the recession, many workers with fifteen or twenty years of experience lost their jobs or retired from full-time jobs. RHI hired older highly skilled workers, such as accounting and finance experts, to work on temporary projects\u2014helping a company restructure or emerge from bankruptcy, for instance. The situation is a win-win: companies get access to experts they may not otherwise be able to afford, while retired workers earn extra money or income after a layoff. Zurich-based Adecco, a competitor to RHI, likewise hired older workers. \u201cMore companies are looking for flexible, highly skilled temporary employees because it\u2019s much easier to end an assignment than terminate employment,\u201d said Doug Arms, chief talent officer at Ajilon Professional Staffing, a unit of Adecco.<span id=\"fwk-carpibus-fn12_024\" class=\"im_footnote\"><a class=\"footnote\" title=\"Aili McConnon, \u201cTemp Giant Robert Half Welcomes Boomers,\u201d BusinessWeek, May 21, 2009, accessed January 28, 2011, http:\/\/www.businessweek.com\/magazine\/content\/09_22\/b4133054601320.htm.\" id=\"return-footnote-150-9\" href=\"#footnote-150-9\" aria-label=\"Footnote 9\"><sup class=\"footnote\">[9]<\/sup><\/a><\/span><\/p>\n<\/div>\n<p>In many multinationals, an important challenge is balancing the need to coordinate units scattered around the world with the need for individual units to have the control necessary to deal effectively with local issues.<span id=\"fwk-carpibus-fn12_025\" class=\"im_footnote\"><a class=\"footnote\" title=\"Randall S. Schuler, Pawan S. Budhwar, and Gary W. Florkowski, \u201cInternational Human Resource Management,\u201d in Handbook for International Management Research, ed. Betty-Jane Punnett and Oded Shenkar (Ann Arbor: University of Michigan Press, 2004), 356\u2013414.\" id=\"return-footnote-150-10\" href=\"#footnote-150-10\" aria-label=\"Footnote 10\"><sup class=\"footnote\">[10]<\/sup><\/a><\/span> Achieving this balance becomes more difficult as the level of diversity that firms are exposed to increases. For example, consider a situation where the parent firm\u2019s national culture differs dramatically from the cultures in its overseas subsidiaries. In this case, it may be harder for the parent firm to share information, technology, and innovations between the home office and foreign outposts. It may also be more difficult to promote needed organizational changes and manage any conflicts that arise between employees in different countries.<\/p>\n<p>Fortunately, international human resources management (IHRM) strategies can overcome such problems. For instance, IHRM professionals can help ensure that top executives understand the different cultures within the company workforce and around the world. They can also offer advice on how to coordinate functions across boundaries and develop outstanding cross-cultural skills in employees (e.g., through various training programs and career paths that involve significant overseas exposure).<span id=\"fwk-carpibus-fn12_026\" class=\"im_footnote\"><a class=\"footnote\" title=\"Dennis R. Briscoe, Randall S. Schuler, and Lisbeth Claus, International Human Resource Management, 3rd ed. (New York: Routledge, 2009); Carl F. Fey and Ingmar Bj\u00f6rkman, \u201cThe Effect of Human Resource Management Practices on MNC Subsidiary Performance in Russia,\u201d Journal of International Business Studies 32, no. 1 (2001): 59\u201375; Patrick M. Wright, Gary C. McMahan, and Abagail McWilliams, \u201cHuman Resources and Sustained Competitive Advantage: A Resource-Based Perspective,\u201d International Journal of Human Resource Management 5, no. 2 (1994): 301\u201326.\" id=\"return-footnote-150-11\" href=\"#footnote-150-11\" aria-label=\"Footnote 11\"><sup class=\"footnote\">[11]<\/sup><\/a><\/span><\/p>\n<p>Of course, these are general suggestions and a range of HR practices might be used to implement them. Companies should develop an international HR philosophy that describes corporate values about HR\u2014this in turn, will shape the broad outline of what constitutes acceptable IHRM practices for employees all over the world. From there, individual units can fine-tune and select specific practices that best fit their local conditions. But this is easier said than done, especially for firms operating in dozens of countries. Multinationals typically find it extremely difficult, for example, to design a compensation system that is sensitive to cultural differences yet still meets general guidelines of being seen as fair by employees everywhere. Indeed, culture may impact local HRM practices in a variety of ways\u2014from how benefit packages are constructed to the hiring, termination, and promotion practices used, just to name a few.<span id=\"fwk-carpibus-fn12_027\" class=\"im_footnote\"><a class=\"footnote\" title=\"Dennis R. Briscoe, Randall S. Schuler, and Lisbeth Claus, International Human Resource Management, 3rd ed. (New York: Routledge, 2009).\" id=\"return-footnote-150-12\" href=\"#footnote-150-12\" aria-label=\"Footnote 12\"><sup class=\"footnote\">[12]<\/sup><\/a><\/span><\/p>\n<p>Nevertheless, selecting the right IHRM strategy can pay off, particularly in difficult foreign markets. Consider multinationals wanting to quickly enter countries with transitional economies\u2014those that are moving from being state-dominated to being market-based (e.g., China and Russia). Choosing to enter those markets by buying local firms, building new plants, or establishing joint ventures may create significant HR challenges that will undercut performance if not handled well. Consequently, global firms need to adopt an appropriate IHRM strategy to meet transition economy challenges.<\/p>\n<\/div>\n<div id=\"fwk-168388-ch12_s01_s03\" class=\"im_section\">\n<h2 class=\"im_title im_editable im_block\">The Importance of Human Capital<\/h2>\n<p>Employees provide an organization\u2019s <span class=\"im_margin_term\"><span class=\"im_glossterm\">human capital<\/span><\/span>. Your human capital is the set of skills that you have acquired on the job\u2014through training and experience\u2014which increase your value in the marketplace. The Society of Human Resource Management\u2019s <em class=\"im_emphasis\">Research Quarterly<\/em> defined an organization\u2019s human capital as \u201cthe collective sum of the attributes, life experience, knowledge, inventiveness, energy, and enthusiasm that its people choose to invest in their work.\u201d<span id=\"fwk-carpibus-fn12_028\" class=\"im_footnote\"><a class=\"footnote\" title=\"Leslie A. Weatherly, \u201cHuman Capital\u2014the Elusive Asset; Measuring and Managing Human Capital: A Strategic Imperative for HR,\u201d 2003 SHRM Research Quarterly, March 2003, accessed November 2, 2010, http:\/\/www.ispi.org\/pdf\/suggestedReading\/6_Weatherly_HumanCapital.pdf.\" id=\"return-footnote-150-13\" href=\"#footnote-150-13\" aria-label=\"Footnote 13\"><sup class=\"footnote\">[13]<\/sup><\/a><\/span><\/p>\n<\/div>\n<div id=\"fwk-168388-ch12_s01_s04\" class=\"im_section\">\n<h2 class=\"im_title im_editable im_block\">Focus on Outcomes<\/h2>\n<p>Unfortunately, many HR managers are more effective in the technical or operational aspects of HR than they are in the strategic, even though the strategic facet has a much larger effect on the company\u2019s success.<span id=\"fwk-carpibus-fn12_029\" class=\"im_footnote\"><a class=\"footnote\" title=\"Mark A. Huselid, Susan E. Jackson, and Randall S. Schuler, \u201cTechnical and Strategic Human Resource Management Effectiveness as Determinants of Firm Performance,\u201d Academy of Management Journal 40, no. 1 (1997): 171\u201388.\" id=\"return-footnote-150-14\" href=\"#footnote-150-14\" aria-label=\"Footnote 14\"><sup class=\"footnote\">[14]<\/sup><\/a><\/span> In the past, HR professionals focused on compliance to rules, such as those set by the federal government, and tracked simple metrics\u2014for instance, the number of employees hired or the number of hours of training delivered. The new principles of management, however, require a focus on outcomes and results, not just numbers and compliance. Just as lawyers count how many cases they\u2019ve won\u2014not just how many words they used\u2014so too must HR professionals track how employees are using the skills they\u2019ve learned to attain goals, not just how many hours they\u2019ve spent in training.<span id=\"fwk-carpibus-fn12_030\" class=\"im_footnote\"><a class=\"footnote\" title=\"David Ulrich, Delivering Results (Boston: Harvard Business School Press, 1998).\" id=\"return-footnote-150-15\" href=\"#footnote-150-15\" aria-label=\"Footnote 15\"><sup class=\"footnote\">[15]<\/sup><\/a><\/span><\/p>\n<p>John Murabito, executive vice president and head of Human Resources and Services at CIGNA, says that HR executives need to understand the company\u2019s goals and strategy and then provide employees with the skills needed. Too often, HRM executives get wrapped up in their own initiatives without understanding how their role contributes to the business. That\u2019s dangerous, because when it comes to the HR department, \u201canything that is administrative or transactional is going to get outsourced,\u201d Murabito says.<span id=\"fwk-carpibus-fn12_031\" class=\"im_footnote\"><a class=\"footnote\" title=\"Jessica Marquez, \u201cOn the Front Line: A Quintet of 2006\u2019s Highest-Paid HR Leaders Discuss How They Are Confronting Myriad Talent Management Challenges as Well as Obstacles to Being Viewed by Their Organizations as Strategic Business Partners,\u201d Workforce Management 86, no. 5 (1997): 22.\" id=\"return-footnote-150-16\" href=\"#footnote-150-16\" aria-label=\"Footnote 16\"><sup class=\"footnote\">[16]<\/sup><\/a><\/span> Indeed, the number of HRM outsourcing contracts over $25 million has been increasing, with nearly 3,000 active company contracts recently under way.<span id=\"fwk-carpibus-fn12_032\" class=\"im_footnote\"><a class=\"footnote\" title=\"\u201cTPI Counts 2700+ Outsourcing Contracts,\u201d SharedXpertise Forums, December 2007, accessed January 30, 2009, http:\/\/www.sharedxpertise.com\/content\/4301\/tpi-counts-2700-outsourcing-contracts.\" id=\"return-footnote-150-17\" href=\"#footnote-150-17\" aria-label=\"Footnote 17\"><sup class=\"footnote\">[17]<\/sup><\/a><\/span> For example, Bank of America outsourced its HRM administration to NorthgateArinso. NorthgateArinso now provides timekeeping, payroll processing, and payroll services for 10,000 Bank of America employees outside the United States.<span id=\"fwk-carpibus-fn12_033\" class=\"im_footnote\"><a class=\"footnote\" title=\"\u201cAnnual Report 2006,\u201d Arinso International, accessed March 10, 2011, http:\/\/bib.kuleuven.be\/ebib\/data\/jaarverslagen\/Arinso_2006eng.pdf.\" id=\"return-footnote-150-18\" href=\"#footnote-150-18\" aria-label=\"Footnote 18\"><sup class=\"footnote\">[18]<\/sup><\/a><\/span>\u00a0To avoid being outsourced, HRM needs to stay relevant and accept accountability for its business results. In short, the people strategy needs to fully align with the company\u2019s business strategy, keeping the focus on outcomes.<\/p>\n<\/div>\n<div id=\"fwk-168388-ch12_s01_s05\" class=\"im_section\">\n<h2 class=\"im_title im_editable im_block\">Key Elements of HRM<\/h2>\n<p>Beyond the basic need for compliance with HRM rules and regulations, the four key elements of HR are summarized in Figure 12.1 &#8220;Key HRM Elements.&#8221; In high-performing companies such as Enterprise Holdings, each element of the HRM system is designed to reflect best practices and to maximize employee performance. The different parts of the HRM system are strongly aligned with company goals.<\/p>\n<div id=\"fwk-168388-ch12_s01_s05_f01\" class=\"im_figure im_large im_medium-height im_editable im_block\">\n<div style=\"width: 510px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/textimgs.s3.amazonaws.com\/intlbus\/section_16\/534443245ea7e0de7277b3b39919ac4d.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images-archive-read-only\/wp-content\/uploads\/sites\/789\/2015\/07\/23113811\/sm_534443245ea7e0de7277b3b39919ac4d.jpg\" alt=\"key hr elements\" width=\"500\" height=\"500\" \/><\/a><\/p>\n<p class=\"wp-caption-text\">Figure 12.1 Key HRM Elements<\/p>\n<\/div>\n<\/div>\n<div id=\"fwk-168388-ch12_s01_s05_s01\" class=\"im_section\">\n<h3 class=\"im_title im_editable im_block\">Selection and Placement<\/h3>\n<p>It\u2019s good for firms to acquaint prospective new hires with the nature of the jobs they\u2019ll be expected to fulfill early in the hiring process. This includes explaining the technical competencies needed (e.g., collecting statistical data) and defining behavioral competencies. Behavioral competencies may have a customer focus, such as the ability to show empathy and support of customers\u2019 feelings and points of view, or a work-management focus, such as the ability to complete tasks efficiently or to know when to seek guidance.<\/p>\n<p>In addition, an SHRM best practice is to make the organization\u2019s culture clear by discussing the values that underpin the organization. For example, firms can describe the \u201cheroes\u201d of the organization\u2014those employees who embody the values of the organization. For example, a service company\u2019s heroes may be the people who go the extra mile to get customers to smile. In a software company, the heroes may be the people who toil through the night to develop new code. By sharing such stories of company heroes with potential hires, the firm helps reinforce the values and behaviors that make the company unique. This, in turn, will help the job candidates determine whether they\u2019ll fit well into that organization\u2019s culture.<\/p>\n<\/div>\n<div id=\"fwk-168388-ch12_s01_s05_s02\" class=\"im_section\">\n<h3 class=\"im_title im_editable im_block\">Job Design<\/h3>\n<p><span class=\"im_margin_term\"><span class=\"im_glossterm\">Job design<\/span><\/span> refers to the process of combining tasks to form a whole job. The goal is to design jobs that involve doing a whole piece of work and that are challenging but ultimately doable for the employee. Job design also takes into account issues of health and safety of the worker. When planning jobs or assigning people to jobs, HR managers also consider training (ensuring that employees to have the knowledge and skills to perform all parts of their job) and giving them the authority and accountability to do so.<span id=\"fwk-carpibus-fn12_034\" class=\"im_footnote\"><a class=\"footnote\" title=\"Edward E. Lawler III, The Ultimate Advantage (San Francisco: Jossey-Bass, 1992).\" id=\"return-footnote-150-19\" href=\"#footnote-150-19\" aria-label=\"Footnote 19\"><sup class=\"footnote\">[19]<\/sup><\/a><\/span><\/p>\n<p>One company that does training right is Motorola. As a global company, Motorola operates in many countries, including China. Operating in China presents particular challenges in terms of finding and hiring skilled employees. In a recent survey conducted by the American Chamber of Commerce in Shanghai, 37 percent of US-owned enterprises operating in China said that recruiting skilled employees was their biggest operational problem.<span id=\"fwk-carpibus-fn12_035\" class=\"im_footnote\"><a class=\"footnote\" title=\"Kevin Lane and Florian Pollner, \u201cHow to Address China\u2019s Growing Talent Shortage,\u201d McKinsey Quarterly, no. 3 (2008), accessed March 10, 2011, http:\/\/www.mckinseyquarterly.com\/How_to_address_Chinas_growing_talent_shortage_2156.\" id=\"return-footnote-150-20\" href=\"#footnote-150-20\" aria-label=\"Footnote 20\"><sup class=\"footnote\">[20]<\/sup><\/a><\/span> Indeed, polled companies cited HRM as a problem more often than they cited regulatory concerns, bureaucracy, or infringement on intellectual property rights. This is because Chinese universities don\u2019t turn out candidates with the skills that multinational companies need. As a result, Motorola has created its own training and development programs to bridge the gap. For example, Motorola\u2019s China Accelerated Management Program is designed for local managers. Motorola\u2019s Management Foundation program helps train managers in areas such as communication and problem solving. Finally, Motorola offers a high-tech MBA program in partnership with Arizona State University and Tsinghua University, so that top employees can earn an MBA in-house.<span id=\"fwk-carpibus-fn12_036\" class=\"im_footnote\"><a class=\"footnote\" title=\"Kevin Lane and Florian Pollner, \u201cHow to Address China\u2019s Growing Talent Shortage,\u201d McKinsey Quarterly, no. 3 (2008), accessed March 10, 2011, http:\/\/www.mckinseyquarterly.com\/How_to_address_Chinas_growing_talent_shortage_2156.\" id=\"return-footnote-150-21\" href=\"#footnote-150-21\" aria-label=\"Footnote 21\"><sup class=\"footnote\">[21]<\/sup><\/a><\/span> Such programs are tailor-made to the minimally skilled\u2014but highly motivated\u2014Chinese employees.<\/p>\n<div id=\"fwk-168388-ch12_s01_s05_s02_f01\" class=\"im_figure im_large im_medium-height im_editable im_block\">\n<div style=\"width: 510px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/textimgs.s3.amazonaws.com\/intlbus\/section_16\/42dab5148257d9f3fa90fb09ddd97c14.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images-archive-read-only\/wp-content\/uploads\/sites\/789\/2015\/07\/23113812\/sm_42dab5148257d9f3fa90fb09ddd97c14.jpg\" alt=\"two people shaking hands\" width=\"500\" height=\"345\" \/><\/a><\/p>\n<p class=\"wp-caption-text\"><b>Figure 12.2<\/b> W. P. Carey and Motorola China High Technology MBA Program Graduation Ceremony. Source: W. P. Carey School of Business MBA China Programs.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div id=\"fwk-168388-ch12_s01_s05_s03\" class=\"im_section\">\n<h3 class=\"im_title im_editable im_block\">Compensation and Rewards<\/h3>\n<p>The SHRM function also includes evaluating and paying people on the basis of their performance\u2014not simply for showing up to the job. Firms must offer rewards for skill development and organizational performance, emphasizing teamwork, collaboration, and responsibility for performance. Good compensation systems include incentives, gainsharing, profit sharing, and skill-based pay that rewards employees who learn new skills and put those skills to work for the organization. Employees who are trained in problem solving and a broad range of skills are more likely to grow on the job and feel more satisfaction. Their training enables them to make more valuable contributions to the company, which, in turn, gains them higher rewards and greater commitment to the company.<span id=\"fwk-carpibus-fn12_037\" class=\"im_footnote\"><a class=\"footnote\" title=\"William F. Barnes, \u201cThe Challenge of Implementing and Sustaining High Performance Work Systems in the United States: An Evolutionary Analysis of I\/N Tek and Kote\u201d (PhD diss., University of Notre Dame, 2001).\" id=\"return-footnote-150-22\" href=\"#footnote-150-22\" aria-label=\"Footnote 22\"><sup class=\"footnote\">[22]<\/sup><\/a><\/span> Likewise, the company benefits from employees\u2019 increased flexibility, productivity, and commitment.<\/p>\n<p>When employees have access to information and the authority to act on that information, they\u2019re more involved in their jobs, more likely to make the right decision, and more inclined to take the necessary actions to further the organization\u2019s goals. Similarly, rewards need to be linked to performance so that employees are naturally inclined to pursue outcomes that will earn rewards and further the organization\u2019s success at the same time.<span id=\"fwk-carpibus-fn12_038\" class=\"im_footnote\"><a class=\"footnote\" title=\"Mason Carpenter, Talya Bauer, and Berrin Erdogan, Principles of Management (Nyack, NY: Unnamed Publisher, 2009), accessed January 5, 2011, http:\/\/www.gone.2012books.lardbucket.org\/printed-book\/127834.\" id=\"return-footnote-150-23\" href=\"#footnote-150-23\" aria-label=\"Footnote 23\"><sup class=\"footnote\">[23]<\/sup><\/a><\/span><\/p>\n<\/div>\n<div id=\"fwk-168388-ch12_s01_s05_s04\" class=\"im_section\">\n<h3 class=\"im_title im_editable im_block\">Diversity Management<\/h3>\n<p>Another key to successful SHRM in today\u2019s business environment is embracing diversity. In past decades, \u201cdiversity\u201d meant avoiding discrimination against women and minorities in hiring. Today, diversity goes far beyond this limited definition; diversity management involves actively appreciating and using the differing perspectives and ideas that individuals bring to the workplace. Diversity is an invaluable contributor to innovation and problem-solving success. As James Surowiecki shows in <em class=\"im_emphasis\">The Wisdom of Crowds<\/em>, the more diverse the group in terms of expertise, gender, age, and background, the more ability the group has to avoid the problems of groupthink.<span id=\"fwk-carpibus-fn12_039\" class=\"im_footnote\"><a class=\"footnote\" title=\"James Surowiecki, The Wisdom of Crowds (New York: Anchor Books, 2005).\" id=\"return-footnote-150-24\" href=\"#footnote-150-24\" aria-label=\"Footnote 24\"><sup class=\"footnote\">[24]<\/sup><\/a><\/span> Diversity helps company teams to come up with more creative and effective solutions. Teams whose members have complementary skills are often more successful because members can see one another\u2019s blind spots. Diverse people will probably make different kinds of errors, which also means that they\u2019ll be more likely to catch and correct each other\u2019s mistakes.<\/p>\n<div id=\"fwk-168388-ch12_s01_s05_s04_n01\" class=\"im_key_takeaways im_editable im_block\">\n<h3 class=\"im_title\">Key Takeaways<\/h3>\n<ul id=\"fwk-168388-ch12_s01_s05_s04_l01\" class=\"im_itemizedlist\">\n<li>HRM is becoming increasingly important in organizations because today\u2019s knowledge economy requires employees to contribute ideas and be engaged in executing the company\u2019s strategy.<\/li>\n<li>HRM is becoming a strategic partner by identifying the skills that employees need and then providing employees with the training and structures needed to develop and deploy those competencies.<\/li>\n<li>All the elements of HRM\u2014selection, placement, job design, and compensation\u2014need to be aligned with the company\u2019s strategy so that the right employees are hired for the right jobs and rewarded properly for their contributions to furthering the company\u2019s goals.<\/li>\n<\/ul>\n<\/div>\n<div class=\"bcc-box bcc-info\">\n<h3 class=\"im_title\">Exercises<a class=\"footnote\" title=\"(AACSB: Reflective Thinking, Analytical Skills)\" id=\"return-footnote-150-25\" href=\"#footnote-150-25\" aria-label=\"Footnote 25\"><sup class=\"footnote\">[25]<\/sup><\/a><\/h3>\n<ol id=\"fwk-168388-ch12_s01_s05_s04_l02\" class=\"im_orderedlist\">\n<li>What are the advantages of the new SHRM approach?<\/li>\n<li>Name three elements of HRM.<\/li>\n<li>What must HRM do to be a true strategic partner of the company?<\/li>\n<li>What benefits does a diverse workforce provide the company?<\/li>\n<li>If you were an HR manager, what steps would you take to minimize the outsourcing of jobs in your department?<\/li>\n<\/ol>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<hr class=\"before-footnotes clear\" \/><div class=\"footnotes\"><ol><li id=\"footnote-150-1\">Brian E. Becker and Mark A. Huselid, \u201cStrategic Human Resources Management: Where Do We Go from Here?,\u201d <em class=\"im_emphasis\">Journal of Management<\/em> 32, no. 6 (2006): 898\u2013925. <a href=\"#return-footnote-150-1\" class=\"return-footnote\" aria-label=\"Return to footnote 1\">&crarr;<\/a><\/li><li id=\"footnote-150-2\">Mark A. Huselid, \u201cThe Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial Performance,\u201d <em class=\"im_emphasis\">Academy of Management Journal<\/em> 38, no. 3 (1995): 635\u201372; Jeffrey Pfeffer, <em class=\"im_emphasis\">The Human Equation: Building Profits by Putting People First<\/em> (Boston: Harvard Business School Press, 1998); Jeffrey Pfeffer and John F. Veiga, \u201cPutting People First for Organizational Success,\u201d <em class=\"im_emphasis\">Academy of Management Executive<\/em> 13, no. 2 (1999): 37\u201348; Theresa M. Welbourne and Alice O. Andrews, \u201cPredicting Performance of Initial Public Offering Firms: Should HRM be in the Equation?,\u201d <em class=\"im_emphasis\">Academy of Management Journal<\/em> 39, no. 4 (1996): 910\u201311. <a href=\"#return-footnote-150-2\" class=\"return-footnote\" aria-label=\"Return to footnote 2\">&crarr;<\/a><\/li><li id=\"footnote-150-3\">Jeffrey Pfeffer and John F. Veiga, \u201cPutting People First for Organizational Success,\u201d <em class=\"im_emphasis\">Academy of Management Executive<\/em> 13, no. 2 (1999): 37\u201348. <a href=\"#return-footnote-150-3\" class=\"return-footnote\" aria-label=\"Return to footnote 3\">&crarr;<\/a><\/li><li id=\"footnote-150-4\">Brian E. Becker, Mark A. Huselid, and David Ulrich, \u201cSix Key Principles for Measuring Human Capital Performance in Your Organization\u201d (working paper, School of Management and Labor Relations, Department of Human Resources Management, Rutgers, State University of New Jersey, 2002). <a href=\"#return-footnote-150-4\" class=\"return-footnote\" aria-label=\"Return to footnote 4\">&crarr;<\/a><\/li><li id=\"footnote-150-5\">David Ulrich, <em class=\"im_emphasis\">Delivering Results<\/em> (Boston: Harvard Business School Press, 1998). <a href=\"#return-footnote-150-5\" class=\"return-footnote\" aria-label=\"Return to footnote 5\">&crarr;<\/a><\/li><li id=\"footnote-150-6\">Dennis R. Briscoe, Randall S. Schuler, and Lisbeth Claus, <em class=\"im_emphasis\">International Human Resource Management<\/em>, 3rd ed. (New York: Routledge, 2009). <a href=\"#return-footnote-150-6\" class=\"return-footnote\" aria-label=\"Return to footnote 6\">&crarr;<\/a><\/li><li id=\"footnote-150-7\">Mary Yoko Brannen and Mark F. Peterson, \u201cMerging without Alienating: Interventions Promoting Cross-cultural Organizational Integration and Their Limitations,\u201d <em class=\"im_emphasis\">Journal of International Business Studies<\/em> 40 (2009): 468\u201389; Yaping Gong, \u201cToward a Dynamic Process Model of Staffing Composition and Subsidiary Outcomes in Multinational Enterprises,\u201d <em class=\"im_emphasis\">Journal of Management<\/em> 29, no. 2 (2003): 259\u201380; Dana Minbaeva, Torben Pedersen, Ingmar Bj\u00f6rkman, Carl F. Fey, and Hyeon Jeong Park, \u201cMNC Knowledge Transfer, Subsidiary Absorptive Capacity, and HRM,\u201d <em class=\"im_emphasis\">Journal of International Business Studies<\/em> 34, no. 6 (2003): 586\u201399; Gary Oddou, Joyce S. Osland, and Roger N. Blakeney, \u201cRepatriating Knowledge: Variables Influencing the \u2018Transfer\u2019 Process,\u201d <em class=\"im_emphasis\">Journal of International Business Studies<\/em> 40, no. 2 (2009): 181\u201399. <a href=\"#return-footnote-150-7\" class=\"return-footnote\" aria-label=\"Return to footnote 7\">&crarr;<\/a><\/li><li id=\"footnote-150-8\">\u201cAbout Us,\u201d Robert Half International, accessed January 28, 2011, <a class=\"im_link\" href=\"http:\/\/www.rhi.com\/AboutUs\" target=\"_blank\">http:\/\/www.rhi.com\/AboutUs<\/a>. <a href=\"#return-footnote-150-8\" class=\"return-footnote\" aria-label=\"Return to footnote 8\">&crarr;<\/a><\/li><li id=\"footnote-150-9\">Aili McConnon, \u201cTemp Giant Robert Half Welcomes Boomers,\u201d <em class=\"im_emphasis\">BusinessWeek<\/em>, May 21, 2009, accessed January 28, 2011, <a class=\"im_link\" href=\"http:\/\/www.businessweek.com\/magazine\/content\/09_22\/b4133054601320.htm\" target=\"_blank\">http:\/\/www.businessweek.com\/magazine\/content\/09_22\/b4133054601320.htm<\/a>. <a href=\"#return-footnote-150-9\" class=\"return-footnote\" aria-label=\"Return to footnote 9\">&crarr;<\/a><\/li><li id=\"footnote-150-10\">Randall S. Schuler, Pawan S. Budhwar, and Gary W. Florkowski, \u201cInternational Human Resource Management,\u201d in <em class=\"im_emphasis\">Handbook for International Management Research<\/em>, ed. Betty-Jane Punnett and Oded Shenkar (Ann Arbor: University of Michigan Press, 2004), 356\u2013414. <a href=\"#return-footnote-150-10\" class=\"return-footnote\" aria-label=\"Return to footnote 10\">&crarr;<\/a><\/li><li id=\"footnote-150-11\">Dennis R. Briscoe, Randall S. Schuler, and Lisbeth Claus, <em class=\"im_emphasis\">International Human Resource Management<\/em>, 3rd ed. (New York: Routledge, 2009); Carl F. Fey and Ingmar Bj\u00f6rkman, \u201cThe Effect of Human Resource Management Practices on MNC Subsidiary Performance in Russia,\u201d <em class=\"im_emphasis\">Journal of International Business Studies<\/em> 32, no. 1 (2001): 59\u201375; Patrick M. Wright, Gary C. McMahan, and Abagail McWilliams, \u201cHuman Resources and Sustained Competitive Advantage: A Resource-Based Perspective,\u201d <em class=\"im_emphasis\">International Journal of Human Resource Management<\/em> 5, no. 2 (1994): 301\u201326. <a href=\"#return-footnote-150-11\" class=\"return-footnote\" aria-label=\"Return to footnote 11\">&crarr;<\/a><\/li><li id=\"footnote-150-12\">Dennis R. Briscoe, Randall S. Schuler, and Lisbeth Claus, <em class=\"im_emphasis\">International Human Resource Management<\/em>, 3rd ed. (New York: Routledge, 2009). <a href=\"#return-footnote-150-12\" class=\"return-footnote\" aria-label=\"Return to footnote 12\">&crarr;<\/a><\/li><li id=\"footnote-150-13\">Leslie A. Weatherly, \u201cHuman Capital\u2014the Elusive Asset; Measuring and Managing Human Capital: A Strategic Imperative for HR,\u201d <em class=\"im_emphasis\">2003 SHRM Research Quarterly<\/em>, March 2003, accessed November 2, 2010, <a class=\"im_link\" href=\"http:\/\/www.ispi.org\/pdf\/suggestedReading\/6_Weatherly_HumanCapital.pdf\" target=\"_blank\">http:\/\/www.ispi.org\/pdf\/suggestedReading\/6_Weatherly_HumanCapital.pdf<\/a>. <a href=\"#return-footnote-150-13\" class=\"return-footnote\" aria-label=\"Return to footnote 13\">&crarr;<\/a><\/li><li id=\"footnote-150-14\">Mark A. Huselid, Susan E. Jackson, and Randall S. Schuler, \u201cTechnical and Strategic Human Resource Management Effectiveness as Determinants of Firm Performance,\u201d <em class=\"im_emphasis\">Academy of Management Journal<\/em> 40, no. 1 (1997): 171\u201388. <a href=\"#return-footnote-150-14\" class=\"return-footnote\" aria-label=\"Return to footnote 14\">&crarr;<\/a><\/li><li id=\"footnote-150-15\">David Ulrich, <em class=\"im_emphasis\">Delivering Results<\/em> (Boston: Harvard Business School Press, 1998). <a href=\"#return-footnote-150-15\" class=\"return-footnote\" aria-label=\"Return to footnote 15\">&crarr;<\/a><\/li><li id=\"footnote-150-16\">Jessica Marquez, \u201cOn the Front Line: A Quintet of 2006\u2019s Highest-Paid HR Leaders Discuss How They Are Confronting Myriad Talent Management Challenges as Well as Obstacles to Being Viewed by Their Organizations as Strategic Business Partners,\u201d <em class=\"im_emphasis\">Workforce Management<\/em> 86, no. 5 (1997): 22. <a href=\"#return-footnote-150-16\" class=\"return-footnote\" aria-label=\"Return to footnote 16\">&crarr;<\/a><\/li><li id=\"footnote-150-17\">\u201cTPI Counts 2700+ Outsourcing Contracts,\u201d SharedXpertise Forums, December 2007, accessed January 30, 2009, <a class=\"im_link\" href=\"http:\/\/www.sharedxpertise.com\/content\/4301\/tpi-counts-2700-outsourcing-contracts\" target=\"_blank\">http:\/\/www.sharedxpertise.com\/content\/4301\/tpi-counts-2700-outsourcing-contracts<\/a>. <a href=\"#return-footnote-150-17\" class=\"return-footnote\" aria-label=\"Return to footnote 17\">&crarr;<\/a><\/li><li id=\"footnote-150-18\">\u201cAnnual Report 2006,\u201d Arinso International, accessed March 10, 2011, <a class=\"im_link\" href=\"http:\/\/bib.kuleuven.be\/ebib\/data\/jaarverslagen\/Arinso_2006eng.pdf\" target=\"_blank\">http:\/\/bib.kuleuven.be\/ebib\/data\/jaarverslagen\/Arinso_2006eng.pdf<\/a>. <a href=\"#return-footnote-150-18\" class=\"return-footnote\" aria-label=\"Return to footnote 18\">&crarr;<\/a><\/li><li id=\"footnote-150-19\">Edward E. Lawler III, <em class=\"im_emphasis\">The Ultimate Advantage<\/em> (San Francisco: Jossey-Bass, 1992). <a href=\"#return-footnote-150-19\" class=\"return-footnote\" aria-label=\"Return to footnote 19\">&crarr;<\/a><\/li><li id=\"footnote-150-20\">Kevin Lane and Florian Pollner, \u201cHow to Address China\u2019s Growing Talent Shortage,\u201d <em class=\"im_emphasis\">McKinsey Quarterly<\/em>, no. 3 (2008), accessed March 10, 2011, <a class=\"im_link\" href=\"http:\/\/www.mckinseyquarterly.com\/How_to_address_Chinas_growing_talent_shortage_2156\" target=\"_blank\">http:\/\/www.mckinseyquarterly.com\/How_to_address_Chinas_growing_talent_shortage_2156<\/a>. <a href=\"#return-footnote-150-20\" class=\"return-footnote\" aria-label=\"Return to footnote 20\">&crarr;<\/a><\/li><li id=\"footnote-150-21\">Kevin Lane and Florian Pollner, \u201cHow to Address China\u2019s Growing Talent Shortage,\u201d <em class=\"im_emphasis\">McKinsey Quarterly<\/em>, no. 3 (2008), accessed March 10, 2011, <a class=\"im_link\" href=\"http:\/\/www.mckinseyquarterly.com\/How_to_address_Chinas_growing_talent_shortage_2156\" target=\"_blank\">http:\/\/www.mckinseyquarterly.com\/How_to_address_Chinas_growing_talent_shortage_2156<\/a>. <a href=\"#return-footnote-150-21\" class=\"return-footnote\" aria-label=\"Return to footnote 21\">&crarr;<\/a><\/li><li id=\"footnote-150-22\">William F. Barnes, \u201cThe Challenge of Implementing and Sustaining High Performance Work Systems in the United States: An Evolutionary Analysis of I\/N Tek and Kote\u201d (PhD diss., University of Notre Dame, 2001). <a href=\"#return-footnote-150-22\" class=\"return-footnote\" aria-label=\"Return to footnote 22\">&crarr;<\/a><\/li><li id=\"footnote-150-23\">Mason Carpenter, Talya Bauer, and Berrin Erdogan, <em class=\"im_emphasis\">Principles of Management<\/em> (Nyack, NY: <a href=\"http:\/\/2012books.lardbucket.org\/attribution.html?utm_source=inline\">Unnamed Publisher<\/a>, 2009), accessed January 5, 2011, <a class=\"im_link\" href=\"http:\/\/www.gone.2012books.lardbucket.org\/printed-book\/127834\" target=\"_blank\">http:\/\/www.gone.2012books.lardbucket.org\/printed-book\/127834<\/a>. <a href=\"#return-footnote-150-23\" class=\"return-footnote\" aria-label=\"Return to footnote 23\">&crarr;<\/a><\/li><li id=\"footnote-150-24\">James Surowiecki, <em class=\"im_emphasis\">The Wisdom of Crowds<\/em> (New York: Anchor Books, 2005). <a href=\"#return-footnote-150-24\" class=\"return-footnote\" aria-label=\"Return to footnote 24\">&crarr;<\/a><\/li><li id=\"footnote-150-25\">(AACSB: Reflective Thinking, Analytical Skills) <a href=\"#return-footnote-150-25\" class=\"return-footnote\" aria-label=\"Return to footnote 25\">&crarr;<\/a><\/li><\/ol><\/div>","protected":false},"author":9,"menu_order":2,"template":"","meta":{"_candela_citation":"[]","CANDELA_OUTCOMES_GUID":"","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-150","chapter","type-chapter","status-publish","hentry"],"part":145,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/cerritos-internationalbusiness\/wp-json\/pressbooks\/v2\/chapters\/150","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/cerritos-internationalbusiness\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/cerritos-internationalbusiness\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/cerritos-internationalbusiness\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":5,"href":"https:\/\/courses.lumenlearning.com\/cerritos-internationalbusiness\/wp-json\/pressbooks\/v2\/chapters\/150\/revisions"}],"predecessor-version":[{"id":489,"href":"https:\/\/courses.lumenlearning.com\/cerritos-internationalbusiness\/wp-json\/pressbooks\/v2\/chapters\/150\/revisions\/489"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/cerritos-internationalbusiness\/wp-json\/pressbooks\/v2\/parts\/145"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/cerritos-internationalbusiness\/wp-json\/pressbooks\/v2\/chapters\/150\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/cerritos-internationalbusiness\/wp-json\/wp\/v2\/media?parent=150"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/cerritos-internationalbusiness\/wp-json\/pressbooks\/v2\/chapter-type?post=150"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/cerritos-internationalbusiness\/wp-json\/wp\/v2\/contributor?post=150"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/cerritos-internationalbusiness\/wp-json\/wp\/v2\/license?post=150"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}