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Increasingly important strategic role of HR

Given the growth of international alliances, think of the increasingly important strategic role of HR. Specifically, by all accounts, the central issue in successfully implementing international alliances is choosing the right partner to begin with. With the right partner, implementation flows relatively smoothly and there is a high probability of success. With the wrong partner, the likelihood of success is remote.

If any department in a company should consider vetting of international partners a core competency, it is the HR department. Since HR professionals by training should be better attuned to issues involving cross-cultural dynamics, HR is well positioned to make a key contribution to the decision-making process of the CEO.

A proactive partnering role with HR is key to helping the CEO and other top executives make informed decisions about the risks, rewards, and costs of building versus buying. The article by Gupta and Wang, "Partnering Up the Right Way," (2011), notes four drivers of alliances between Chinese and non-Chinese companies: (1) complements, (2) government regulation, (3) risk pooling, and (4) industry-wide standards. They note that more than 50% of these alliances end in failure within 24 months. If you are in the HR department of a U.S. company about to enter into a partnership with a Chinese entity, consider your role in providing sound advice to the C-suite.

To complete this Assignment, respond to the following in a 3- to 4-page paper:

Analyze factors that may drive cross-cultural business alliances.
What role if any should the 5Cs play in considering a cross-cultural business partnership?
Do any of them weigh more heavily on the decision to form the partnership? Why or why not? Explain your reasoning.
In cross-cultural partnerships, how can HR advise the C-suite prior to an agreement?
Bearing in mind the Gupta and Wang article and your own research, what specific advice would you, as an HR executive, give to the C-suite of a U.S. company considering a partnership with a Chinese firm?
Evaluate the role of HR in partnering decisions.
Should HR specifically recommend partnerships, or simply perform due diligence prior to an agreement?
What specific types of information relative to potential partners should HR assess and share with the C-suite?

Article:

http://www.scmp.com/article/977294/partnering-smart-way

Solution Preview

The response addresses the query posted in 1236 words with APA references

//A cross-culture business alliance refers to the open-ended agreement that help in governing the cooperation established between the companies operating in different cultures and backgrounds. In this essence, the following section has discussed the various drives of cross-cultural business alliance with specificity to the companies operating in the US and China, along with enlisting the 5Cs that are critical for establishing a successful association. //

There are various factors that facilitate the business alliances undertaken at a cross-cultural platform. Complement is one of the critical drivers associated with cross-cultural business alliances, which gives due consideration to capitalising on the weaknesses of one company by the benefits of the other (Gupta & Wang, 2011). The government regulation is also a significant factor that drives such alliances with the establishment of competition laws and economic regulator for ensuring consumer protection and righteous business activities by both China and the US. Risk pooling lead to the sharing and merging of the resources and risks possessed by the partnering companies, thereby spreading the overall capital across various units (Gupta & Wang, 2011).

The industrial standards also help in deciding that the industrial standards of the Chinese companies are in line with those operating in the US environment with respect to the product licensing due to the different industrial and political environment. 5Cs, which include competition, customers, culture, change and capital, are considered to be critical factors while giving consideration to the establishment of cross-cultural business alliance (Glaister, Husan & Buckley, 2004). While culture and customers are important for ensuring the acceptability of the alliance in the internal and external environment respectively, the capital, competition and change determine the profit degree associated with the association. Out of the mentioned factors, capital and culture have a higher priority while establishing a business alliance on a cross-cultural domain (Glaister, Husan & Buckley, 2004). The compatibility and capital of cultures form the core business alliances' parts, thereby determining the ...

Solution Summary

The expert examines increasingly important strategic roles for HR. The response addresses the query posted in 1236 words with APA references.

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