Globalization
The integration of markets, nation states, and technology, changing how organizations compete and manage people across borders.
Why globalization matters to HR
Back:
It impacts talent strategy, compliance, workforce planning, business continuity, and operating models across regions.
Global forces HR should monitor
Political, economic, social, technological, legal, environmental.
Examples of global crises that affect workforce planning
Economic disruption, climate change, pandemics, government instability
What defines a global organization
Back:
Teams across geographies,
diverse workforce,
shared identity,
global purpose.
Global HR, core objective
Align HR practices to global strategy while adapting to local legal and cultural realities.
Push factors, globalization
Forces that push companies outward, such as new markets, competition, cost pressures, talent access, trade agreements.
Pull factors, globalization
Forces that pull control inward, such as strategic control, coordination, governance
Is “strategic control” a push or pull factor
Pull factor.
Ethnocentric orientation
HQ is the center, standardization is high, subsidiaries follow HQ practices.
Polycentric orientation
Subsidiaries operate locally with autonomy, local practices dominate.
Regiocentric orientation
Regional coordination drives strategy, HQ influence is less direct than ethnocentric.
Geocentric orientation
Global network mindset, best practices move across locations, shared leadership.
Global integration, GI
Standardize practices and systems worldwide for consistency and efficiency.
Local responsiveness, LR
Adapt practices to local culture, regulations, and customer needs.
GI advantage
Efficiency,
consistency,
scale,
cost control.
LR advantage
Better market fit,
stronger compliance alignment,
local effectiveness
International strategy
Low GI, low LR, home country approach extends outward, often through exporting.
Multidomestic strategy
Low GI, high LR, decentralized subsidiaries, local strategies.
Global strategy
High GI, low LR, one global approach, minimal customization.
Transnational strategy
High GI, high LR, standardized core with local adaptation, knowledge shared globally
Multidomestic strategy.
Local autonomy with local strategy
Global strategy.
One global model everywhere
Transnational strategy
Standardized core plus local customization and best practice sharing