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
