Professional Documents
Culture Documents
MANAGEMENT
Human resource is the only intangible asset which will
bring an unimaginable quantum of tangible output provided
the asset is identified, nurtured and groomed to shoulder
global business responsibilities.
Learning Values:
Outstanding
Outstanding
Service
Service
Unusual
Unusual
Innovation
Innovation Quality
Quality
GLOBAL
GLOBAL
HRM
HRM
Special
Special
Productivity
Productivity Skills
Skills
HR-Based Competencies
1. Organizational Culture
a. The shared values and beliefs of the workforce
2. Productivity
a. A measure of the quantity and quality of work done,
considering the cost of the resources used.
b. A ratio of the inputs and outputs that indicates the value
added by an organization.
3. Quality Products and Services
a. High quality products and services are the results of HR-
enhancements to organizational performance.
Service
Excellence
Confidence in Employees
Knowledge
Timely Assistance
Key Terms in Global Human Resource Management
Culture shock
The feelings of frustration and confusion that result from being
constantly subjected to strange and unfamiliar cues about what to do
and how to get it done when trying to live in a new culture. Many
MNCs struggle hard at operational level due to their inability to
overcome cultural shocks, especially in developing countries.
Expatriate manager
A manager who is on assignment in a country other than the parent
country of the organization. This person is also called a parent country
national (PCN). Such a manager has to be so quick in adopting the
culture of his working domain if he wants to be an effective manager.
Sullivan Principles
Reverend Sullivan was the first African-American to serve on the
Board of General Motors. The tenets of his principles were designed to
eventually eliminate oppressive racism in South African business.
1. Satisfied employees
2. Competitive products and services
3. Searching for new or broader markets
Organizations expand beyond domestic
4. Acquiring new, more efficient
boundaries to achieve
manufacturing technology
5. Large, inexpensive labor forces
Global human resource management 1. “people challenge” the most difficult for
(GHRM) includes the same functions as firms becoming international
domestic HRM, plus several aspects 2. Most critical to success, acquiring a
competent workforce (survey of top
unique to international management execs.)
1. Less expensive
2. Have distinct advantages in cultural
sensitivity, understanding local employee
needs/motivation strong reservations exist
in using HCNs:
3. Concern that locals will not adopt PC
culture & management system
4. Level of commitment to organization may
Host Country Nationals and the Global
not be high
Corporation
5. Don’t have the expertise or requisite skills
that PCNs/expatriates possess
6. Communication between HQ and host
offices will be less effective
7. Most problems can be eliminated by
careful recruitment, selection, and
training of HCNs
1. Environmental Scanning
a. The process of studying the environment of the
organization to pinpoint opportunities and threats.
2. Environment Changes Impacting HR
a. Governmental regulations
b. Economic conditions
c. Geographic and competitive concerns
d. Workforce composition
Assessing HR Effectiveness
1. Diagnostic Measures of HR Effectiveness
a. HR expense per employee
b. Compensation as a percent of expenses
c. HR department expense as a percent of total expenses
d. Cost of hires
e. Turnover rates
f. Absenteeism rates
g. Worker’s compensation per employee
1. HR Audit
a. A formal research effort that evaluates the current state of
HR management in an organization
b. Audit areas:
i. Legal compliance (e.g., EEO, OSHA, ERISA, and
FMLA)
ii. Current job specifications and descriptions
iii. Valid recruiting and selection process
iv. Formal wage and salary system • Benefits
v. Employee handbook
vi. Absenteeism and turnover control
vii. Grievance resolution process
viii. Orientation program
ix. Training and development
x. Performance management system