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  • GPHR MODULE 1

    STRATEGIC HR MAMAGEMENT

    2016 Edition

    2016 International Human Resource Certification Institute

  • 1

    Global Professional in Human Resources (GPHR) Workbook

    Module One: Strategic HR Management

    2016 Edition

    Copyright 2016 by International Human Resource Certification Institute

    All rights reserved. No part of this book shall be reproduced, stored in a retrieval

    system, or transmitted by any means electronic, mechanical, photocopying,

    recording, or otherwise without written permission from the International Human

    Resource Certification Institute (IHRCI). No patent liability is assumed with respect

    to the use of the information contained herein. Although every precaution has been

    taken in the preparation of this book, the publisher and author assume no

    responsibility for errors or omissions. Neither is any liability assumed for damages

    resulting from the use of the information contained herein.

    International Human Resource Certification Institute (IHRCI)

    Unit 4, 7F, Bright Way Tower, No. 33 Mong Kok Road.

    Kowloon, Hong Kong

    www.ihrci.org

    http://www.ihrci.org/

  • ii

    Introduction

    As a purchaser of the GPHR certification workbook serials, you have access to the www.ihrci.org learning system. The system contains Glossary that provides a search box and a description of the key terms in HR. Also, the system consists of over 1,000 practice exam questions and answers with explanations in our database including pre-test, review-test, and post-test:

    Pre-test: It contains the same percentage of questions from each content area. Participants can take a pre-test of that module to access their conceptual understanding of that specific area of the GPHR Body of Knowledge. When the pre-test is completed, an overall correct percentage is provided along with the number and percentage of questions answered correctly. The answers with explanations to individual questions are also provided. Our system allows users to save the results of the pre-test so that they can improve upon that later.

    Review-test: Every review test contains questions with explanations which help to understand the concepts of that particular knowledge area for each section of the study workbook. Once you successfully finish reviewing for one section text in the workbook; you naturally get access to the next section. Every new section helps construct on the earlier concepts learnt in the previous knowledge areas. Please do step-wise study for all the knowledge areas.

    Post-test: Once you complete with all the knowledge areas, have a post-test through the full length simulated practice tests under the same testing conditions as the actual exams. With 165 questions covered during the 3 hours test. These tests are designed to help you get the feel of the final GPHR Exam, with similar format and question types. Practice till you are near to 80% correct answers in the post-test. This helped you in understanding areas where you have improved since the last test as well as list down topics for which you needed more revision.

    Access to the learning system is valid for twelve (12) months from the date of purchase to cover two test windows. Each practice for the pre-test, review-test, and post-test may be taken as many times as you would like within the 12 months. Access to these practice exams is for your individual use; your account is not to be shared with others. Your use of the online practice exams signifies your acknowledgment of an agreement to these terms.

    This workbook is not a textbook. These materials include workbooks and practice exams are intended for use as an aid to preparation for the GPHR Certification Exam conducted by the HR Certification Institute. By using all of the preparation materials, you will be well-versed in the five key functional areas that make up the HR Certification Institute GPHR body of knowledge. Studying these materials does not guarantee, however, that you will pass the exam. These workbooks are not to be considered legal or professional advice.

  • iii

    Table of Content

    Introduction ................................................................................................................................ ii

    Table of Content ........................................................................................................................ iii

    Part One: Organization and Globalization ................................................................................. 9

    1. Globalization ................................................................................................................... 9

    1.1. Definition ............................................................................................................. 9

    1.2. The Causes of Globalization ................................................................................ 9

    1.3. The Breath of Globalization ................................................................................. 9

    1.4. Pros and Cons .................................................................................................... 10

    1.5. International business ....................................................................................... 10

    1.6. Why Do Firms Expand Internationally ............................................................... 10

    2. Stages of Globalization ................................................................................................. 11

    2.1. Stage 1: Domestic .............................................................................................. 11

    2.2. Stage 2: International ........................................................................................ 12

    2.3. Stage 3: Multinational ....................................................................................... 12

    2.4. Stage 4: Global ................................................................................................... 13

    2.5. Transnational ..................................................................................................... 13

    3. Global Orientations ...................................................................................................... 14

    3.1. Global Integration and Local Responsiveness ................................................... 14

    3.2. Global Integration Strategy ............................................................................... 15

    3.3. Pressures for Global Integration ........................................................................ 15

    3.4. Local Responsiveness Strategy .......................................................................... 16

    3.5. Pressures for Local Responsiveness .................................................................. 17

    3.6. Global Integration vs. Local Responsiveness ..................................................... 18

    4. Global Organizational Structure ................................................................................... 18

    4.1. Decision Making Authority ................................................................................ 19

    4.2. Functional Structure .......................................................................................... 20

    4.3. Product Structure .............................................................................................. 20

    4.4. Geographic Structure ........................................................................................ 20

    4.5. Hybrid Structure ................................................................................................ 21

    4.6. Front-Back Structure ......................................................................................... 21

    4.7. Matrix Structure ................................................................................................ 21

    5. Global HR Organization ................................................................................................ 22

    5.1. Single/Functional Business ................................................................................ 23

    5.2. Holding Company .............................................................................................. 24

    5.3. Allied/Diversified Businesses ............................................................................. 25

    5.4. Types of HR Organization .................................................................................. 26

  • iv

    5.5. Shared Service Center ....................................................................................... 27

    5.6. Corporate HR ..................................................................................................... 32

    5.7. Embedded HR .................................................................................................... 34

    5.8. Centers of Expertise (CoE) ................................................................................. 36

    5.9. Operational Executors ....................................................................................... 39

    5.10. HR Roles in Global Organization ...................................................................... 42

    Part Two: Global Strategic Management ................................................................................. 46

    1. Strategic Planning ......................................................................................................... 46

    1.1. Definition ....................................................

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