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Exhibit 8.7: HRM Issues in Strategic Alliances

Exhibit 8.7: HRM Issues in Strategic Alliances

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Exhibit 8.7: HRM Issues in

Strategic Alliances



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Commitment and Trust

•• Commitment:

Commitment:putting

putting forth

forth extra

extra effort

effort toto make

make the

the

venture

venture work

work

•• Attitudinal

Attitudinal commitment:

commitment: willingness

willingness toto dedicate

dedicate

resources

resources and

and efforts

efforts and

and face

face risks

risks toto make

make the

the

alliance

alliance work

work

•• IfIf partners

partners demonstrate

demonstrate these

these aspects

aspects ofof commitment,

commitment,

alliance

alliance will

will develop

develop based

based on

on fair

fair exchange.

exchange.

•• Occurs

Occurs when

when partners

partners believe

believe that

that they

they receive

receive

benefits

benefits from

from the

the relationship

relationship equal

equal toto their

their

contributions

contributions

Copyrightâ 2005 South-Western/Thomson Learning All rights reserved



Calculative Commitment

Commitment

Commitment also

also has

has aa practical

practical side:

side: calculative

calculative

commitment

commitment

•• Alliance

Alliance partner

partner evaluations,

evaluations, expectations,

expectations, and

and

concerns

concerns regarding

regarding potential

potential rewards

rewards from

from the

the

relationship

relationship

•• Businesses

Businesses require

require tangible

tangible outcomes

outcomes for

for aa

relationship

relationship toto continue

continue



Copyrightâ 2005 South-Western/Thomson Learning All rights reserved



Trust







Commitment

Commitment and

and trust

trust go

go hand

hand inin hand

hand

Credibility

Credibility trust:

trust: confidence

confidence that

that the

the partner

partner has

has the

the

intent

intent and

and ability

ability toto meet

meet promised

promised obligations

obligations and

and

commitments

commitments

•• Benevolent

Benevolent trust:

trust: confidence

confidence that

that the

the partner

partner will

will

behave

behave with

with goodwill

goodwill and

and with

with fair

fair exchange

exchange



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Exhibit 8.8: The

Trust/Commitment Cycle



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Why Is Trust Important?

•• When

When there

there isis no

no trust,

trust, partners

partners hold

hold back

back or

or take

take

advantage

advantage ofof each

each other.

other.

•• Formal

Formal contracts

contracts can

can never

never identify

identify all

all issues

issues that

that will

will

arise

arise

•• Technology

Technology and

and knowledge

knowledge also

also include

include tacit

tacit elements

elements

that

that can

can only

only be

be learned

learned through

through trust.

trust.



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Building and Sustaining Trust

and Commitment

••

••

••

••

••

••

••



Pick

Pick your

your partner

partner carefully

carefully

Know

Know each

each side’s

side’s strategic

strategic goals

goals

Seek

Seek win-win

win-win situations

situations

Go

Go slowly

slowly

Invest

Invest inin cross-cultural

cross-cultural training

training

Invest

Invest inin direct

direct communication

communication

Find

Find the

the right

right levels

levels ofof trust

trust and

and commitment

commitment

Copyright© 2005 South-Western/Thomson Learning All rights reserved



Exhibit 8.9: The “Right” Levels

of Trust and Commitment



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Assessing the Performance of

an International Strategic

Alliance

•• IfIf strategic

strategic intent

intent isis toto produce

produce immediate

immediate results,

results,

standard

standard financial

financial and

and efficiency

efficiency measures

measures can

can be

be

used.

used.

•• Other

Other strategic

strategic alliance

alliance provide

provide indirect

indirect strategic

strategic

benefits.

benefits.

•• IJV

IJV and

and ICA

ICAperformance

performance criteria:

criteria: often

often must

must include

include

criteria

criteria other

other than

than financial,

financial, such

such as

as organizational

organizational

learning.

learning.

Copyright© 2005 South-Western/Thomson Learning All rights reserved



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