In early 2006, PricewaterhouseCoopers ('PwC') published the latest edition of its Annual Global CEO Survey ('the PwC survey'). This year, more than 1,400 CEOs were interviewed to find out about what is at the top of their mind, focussing on the current topics globalization and complexity with a special emphasis on emerging markets like Brazil, Russia, India and China ('BRIC').
In addition to the data compiled by PwC, the PwC survey also presents in-depth interviews with five CEOs of multinational enterprises, offering insights into their personal way of dealing with globalization and managing complexity within their organizations.
The authors have structured this paper into the following three parts:
Part 1 critically examines the PwC survey in various aspects and presents three types of shortcomings that have been discovered (content-related, author-related, methodology-related).
Part 2 deals with the PwC survey's implications for the role of corporate human resource management ('HRM') in multinational enterprises, examining changing forces in the global economy and linking them to the HRM function.
Part 3 explores the impact of globalization and complexity on current international HRM literature and analyses its consistence with the findings presented in the PwC survey.
Table of Contents
1 INTRODUCTION
1.1 The 9th Annual Global CEO Survey
1.2 Key findings of the PwC survey
1.3 Structure of this paper
2 PART 1: CRITICAL EVALUATION OF THE 9TH PWC GLOBAL CEO SURVEY
2.1 Content-related shortcomings
2.2 Author-related shortcomings
2.3 Methodology-related shortcomings
3 PART 2: THE PWC REPORT’S IMPLICATIONS FOR THE ROLE OF CORPORATE HUMAN RESOURCE MANAGEMENT IN MULTINATIONAL ENTERPRISES
3.1 Changing forces in the global economy mentioned in the PwC survey
3.1.1 Globalization and its challenges
3.1.2 Emerging markets as new target markets
3.1.3 Changed business activities
3.1.4 Increased complexity
4 PART 3: THE THEORETICAL PERSPECTIVE
4.1 The effects of Globalization on Key trends identified in the IHRM literature and their future development
4.1.1 Standardization versus localization of the human resource management practices
4.1.2 Convergence versus divergence of (HR) management practices
4.1.3 knowledge transfer within MNCs
4.1.4 Industrial relations - the development of global unions and global bargaining
4.1.5 HR tasks in an increasing number of industrializing countries
4.1.6 managing cross border strategic alliances
4.1.7 forming and supporting transnational teams
4.2 Academic research on complexity in management
4.3 How does the PwC Report comply with current IHRM literature
5 SUMMARY AND CONCLUSION
Research Objectives and Themes
This paper aims to provide a critical evaluation of the PwC 9th Annual Global CEO Survey by assessing its content, authorship, and methodology. Furthermore, it examines the report’s implications for the role of corporate Human Resource Management (HRM) within multinational enterprises and compares the survey’s findings with current theoretical perspectives in international HRM literature, with a specific focus on globalization and complexity.
- Critical examination of the PwC survey’s findings and potential shortcomings.
- Analysis of changing economic forces and their impact on corporate HRM functions.
- Investigation of the BRIC economies as emerging target markets for global expansion.
- Application of systems theory and cybernetics to the management of complexity in organizations.
- Synthesis of academic literature with corporate strategic reporting.
Excerpt from the Book
Increased complexity
Increased complexity – an inevitable by-product of doing business today? This is the main question of the last section of the PwC survey. Almost 80 percent of the CEOs interviewed see their organization confronted with an increased level of complexity because of growing through globalization.
According to the PwC survey, complexity can either be a positive force or a negative one depending on how it is caused. Manageable business activities, for example extending operations to new territories, engaging in mergers and acquisitions, forming strategic alliances or launching new products or services are considered to add value to the company and therefore enhance good complexity. Hence, the advantages of engaging in these activities strongly outweigh the disadvantages associated with it.
Summary of Chapters
1 INTRODUCTION: Presents the scope of the 9th Annual Global CEO Survey, highlights key findings regarding globalization, and outlines the structure of the paper.
2 PART 1: CRITICAL EVALUATION OF THE 9TH PWC GLOBAL CEO SURVEY: Analyzes potential content, author, and methodology-related weaknesses in the PwC report to ensure a critical interpretation of the data.
3 PART 2: THE PWC REPORT’S IMPLICATIONS FOR THE ROLE OF CORPORATE HUMAN RESOURCE MANAGEMENT IN MULTINATIONAL ENTERPRISES: Links the identified global economic trends, such as emerging markets and increased complexity, to the strategic requirements of the corporate HRM function.
4 PART 3: THE THEORETICAL PERSPECTIVE: Explores key IHRM literature regarding globalization and complexity, and assesses the degree of consistency between these academic perspectives and the PwC survey findings.
5 SUMMARY AND CONCLUSION: Summarizes the evaluation, noting that while the survey offers significant insights, it often treats complex systems in a simplistic manner compared to academic research.
Keywords
Globalization, Complexity, Human Resource Management, HRM, Multinational Enterprises, MNCs, BRIC, Emerging Markets, Strategic Alliances, Cybernetics, Corporate Strategy, International Business, Management Challenges, Industrial Relations, Knowledge Transfer.
Frequently Asked Questions
What is the fundamental focus of this research paper?
The paper provides a critical assessment of the PwC 9th Annual Global CEO Survey and evaluates how the issues identified in this report—specifically globalization and complexity—impact the strategic role of corporate Human Resource Management.
What are the primary thematic areas covered?
The core themes include a critical review of corporate reporting, the challenges of managing multinational human capital in emerging markets (BRIC), and the theoretical application of systems theory to business management.
What is the central research objective?
The objective is to contrast the high-level findings of the PwC report with academic international HRM literature to determine if CEOs' practical perspectives align with established scientific management theories.
Which scientific methods are employed in this analysis?
The authors utilize a literature-based comparative analysis, synthesizing empirical findings from the PwC survey with established theories in international human resource management, organizational behavior, and systems theory/cybernetics.
What topics are discussed in the main body?
The main body covers content-related, author-related, and methodology-related shortcomings of the survey, followed by detailed sections on globalization challenges, emerging market strategies, and the theoretical management of complexity.
What are the key descriptive keywords for this work?
Key terms include Globalization, Complexity, Human Resource Management, Multinational Enterprises, BRIC, and Strategic Alliances.
How does the paper categorize complexity?
Applying research from Kerridge (2000), the paper categorizes complexity into mechanical complexity, complexity of knowledge, administrative complexity, and complexity of control.
What is the authors' view on the PwC survey's portrayal of emerging markets?
The authors suggest that the survey depicts the future of emerging economies in a slightly too positive light and note that CEOs often underestimate the significance of cultural and language differences.
- Citar trabajo
- MMag. Robert Steiner (Autor), 2007, Critical Examination of the PwC 9th Annual Global CEO Survey, Múnich, GRIN Verlag, https://www.grin.com/document/130539
