Page 26 - DMGT548_GLOBAL_HRM

Unit 1: Introduction to Global HRM

Self Assessment Notes

State whether the following statements are True or False:
11. The attitude of Middle Management is a variable that moderates differences between
HRM and GHRM.

12. The different cultural environment is also a variable that moderates differences between
HRM and GHRM.
13. Knowledge of international taxation, rate of inflation and cost of living, including currency
fluctuation, are to be maintained in GHRM.
14. HRM considers the impact of foreign cultures and laws.
15. In GHRM, more contacts with government officials for obtaining visas, tax certificates,
fixing of meetings are maintained.

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Case Study Global Thrust of Aditya Birla Group

decade has passed since Kumar Mangalam Birla took over in 1996 the reigns of
the Aditya Birla group, when he was just 28 years old. Over the last ten years, not
Aonly has he emerged a leader in his own right, quietly but surely, he has reinvented
the group with a definitive global thrust. Recognition of this was evident recently even as
he narrowly missed the World Entrepreneur of the Year Award of Ernst & Young in a hot
contest at Monte Carlo in 2006. Consider the growing global contours of the group today.
It is:

1. The world’s largest Viscose Staple Fibre producer
2. The world’s largest single location palm oil producer
3. The world’s third largest producer of insulators
4. The largest producer of carbon black

5. The 11th largest cement producer
6. The world’s largest single location copper smelter
7. The world’s most cost-efficient aluminium and copper producers
The transition in the last ten years from a domestically-focused commodities giant to a
global conglomerate is also reflected in the numbers. The group turnovers grew from $1.8
billion to about $12 billion. It recorded a healthy growth rate of 15 per cent on an average
in the last ten years, even as it recorded a high 22 per cent each year, in the last four years.
This increasing growth momentum came from each of its business segments including
metals, cement, mining and the new economy like telecom, apparel and financial services.
The group has manufacturing facilities in 10 countries. Its early presence was largely in
South East Asian countries. Today, it has significant investments in Egypt, Canada, Australia,
China and Laos. In fact, about 30 per cent of its overall turnover comes from overseas
operations, and more than 12,000 of the group’s 72,000 employees come from 20
nationalities. While India will remain important, China is also on Kumar Mangalam’s
radar.
Contd...

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