Professional Documents
Culture Documents
INTRODUCTION TO GLOBAL
HRM
Contents of Autonomous College
UNIT 1
• HRM at Global Perspective
Significance in
Movement to
implementing and
network
control of
organisation
strategies
Growing interest in IHRM
• Globalisation of business leading to mobilisation of
resources
• Effective management of human resources
• To minimise the risk of underperformance or failure
in overseas assignments
• Implementation of international strategies by
competent managerial personal to man overseas
assignments.
How it is Different from Domestic HRM
• Domestic HRM is done at national level and IHRM is
done at international level.
• Domestic HRM is concerned with managing
employees belonging to one nation and IHRM is
concerned with managing employees belonging to
many nations.
• Domestic HRM is less complicated due to less
influence from the external environment. IHRM is
very complicated as it is affected heavily by external
factors such as cultural distance and institutional
factors.
HRM and IHRM
• Complexity involved in operating in different
countries, varied nationalities of employees
• The different cultural environment
• The industry or industries with which the MNC is
involved
• Attitudes of senior management
• Extent of reliance of MNC on home country domestic
market
Differences Between IHRM and HRM
IHRM HRM
• Address a broad range of IHRM • Address a narrow range of HRM
activities activities
• HR issues related to employees
belonging to more than one • HR issues related to employees
nationality belonging to single nationality
• Greater involvement of HR • Limited involvement of HR
manager in the personal life of manager in the personal life of
employees
employees
• Greater exposure to risks in
international assignments • Limited risks in domestic
• Has to manage several external assignments
factors such as government • Limited external factors to deal
regulations of foreign country with.
Major difference between domestic
HRM and IHRM
• Business activities
• Increased complexities
• Increased involvement in employees’ personal life
• Complex employee mix
• Increased risks
HR CHALLENGES IN INTERNATIONAL
LEVEL
• Compliance with labour laws
• Talent acquisition
• Developing agile leaders
• Balancing local and home issues
• Building capability
• Efficient coordination and collaboration
• Operating efficiently
• Improving productivity
• Compliance with labour laws:
Every company finds a challenge in working
with laws, regulations, and rules in another country.
These vary dramatically from one country to another
, and companies often need the help of good advisers
to unravel and comply with the different rules and
policies.
• Talent acquisition :
It is critical to acquire the people at the right
time, but finding the right talent for a “foreign
company” is sometimes a difficult task. Even simply
identifying and recruiting individuals can be a
challenge in another country.
• Developing agile leaders:
An organisation needs flexible leaders who
can adapt to the changes and challenges of
operating in a global environment. they must be able
to bring the local context and culture into their
decisions and relationships within each country.
• Improving productivity:
In addition to lowering production costs, there
must be more output. The gross productivity of a firm,
revenue divided by employees, must be continuously
improved as technology is used, capability is enhanced,
and engagement and motivation kick in to deliver a very
powerful workforce.
Strategies of GHRM
• The strategy demands global HR leadership with standard
system but local adaptation. The key underlying ideas are
to satisfy your company’s global human resources needs via
feeder mechanism at regional, national and local levels,
and to leverage your current assets to the fullest extent by
actively engaging people in developing their own careers.
Implementing these ideas can be broken down
into 10 steps. By taking these steps, a company
should be able to put into place an effective global
human resources program within three to four
years.
Recruit regularly
• Polycentric approach
• Geocentric approach
ETHNOCENTRIC APPROACH
• All key management positions are filled by parent
country nationals.
• One’s own culture is superior
• Overlooks important cultural factors
• Maintain a unified corporate culture
• Create value by transferring core competencies.
• Limits advancement opportunities for host countries.
• Leads to resentment, lower productivity, and high
turnover in employees.
• E.g : Pocter & Gamble ,Toyota & Matushita
Polycentric approach
• Decentralized control
• Business units in different countries have autonomy from home
office, like a local Co.
• No standard forms or procedures
• Recruits host country nationals to manage subsidiaries, while
parent country nationals occupy key positions at corporate HQ.
• Firm is less likely suffer from cultural myopia.
• Less expensive to implement.
• Host country nationals have limited opportunities to
gain experience outside their own countries.
• Gap due to language barriers, cultural differences may
isolate corporate HQ from foreign subsidiaries.
Geocentric approach
• It seeks the best people for key jobs, throughout
the organization, regardless of nationality.
• Hybrid of Ethno and Poly.
• Based on informed knowledge of home and host
countries.
• Enables firms to make best use of its HR.
• Helps building a strong unifying corporate culture
and informal management network.
• Reduces cultural myopia.
• Enhance local representativeness.
BARRIERS OF GHRM
• Worldwide Variations
• Social, political and economic
circumstances
• Human Resource Functions
• HR functions varies according to
country
• Attitude and Actions
• Attitude and actions of
headquarters towards HR
• Cultural Differences
• In learning and teaching styles
Barriers of GHRM
• Resistance to change
• Different locations different way of doing
things
• HR practice that works in one country
may be unacceptable in another
• As transactional personnel department
• As business partner
• Difficult to gain acceptance
Thank you