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Global Human Resource

Management

By
Ameet
Shinde

04/12/08
04/12/08
Types of Global Organizations

Types
Importing and Selling and buying goods and services with
Exporting organizations in other countries

Multinational An organization with operating units located in


Enterprise (MNE) foreign countries.

Global An organization having corporate units in a


Organization number of countries integrated to operate
worldwide.

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Transition to Global
Organizations

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Transition to Global
Organizations

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Transition to Global
Organizations

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Global Human Resource
Management
Why organizations expand
internationally

To capture enhanced market


opportunities that foreign countries
may present.
To achieve economies of scale in
production and administration by
expanding scope and volume of
operations to international markets.
Keeping up with industry leaders
may require organization to enter
foreign markets
04/12/08 Acquiring ownership of foreign-
based organization or subsidiary
Factors Affecting Global HR
Management

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Selected Countries on Hofstede’s
Culture Dimensions

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Selected Countries on Hofstede’s
Culture Dimensions

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Functions of IHRM

 Management of human
resources in global corporations,
including issues of expatriation
and repatriation

 Implementing corporate global


strategy by adapting appropriate
human resources management
practices in different national,
economic, and cultural
environments
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 Adopting labor relation practices
Types of Global Employees

Types of Global
Employees

Expatriate/ Host- Third-


Country Country
PCN National National

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Domestic HRM and IHRM
Compared

More HR activities.
Need for a broader
perspective
-Pay Systems
-Health Insurance
-Family
More involvement in
employee personal lives
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-Internal Human Resource
HRM in the Asia-Pacific Region

Nepotism-
Especially in Hong Kong and
Singapore where non-relatives are
seen as being easier to manage.

As for Romance at work


,Koreans see it as a natural
social development ,while
Indonesians ,Malaysians ,and
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Filipinos feel it inappropriate
HRM in the Asia-Pacific Region

Gender-Based pay-This belief was


specially strong in Korea, Singapore
,Japan and Indonesia ex-glass ceiling
Over Time:-Australian and
Singaporean VS Korean and
Japanese firms.

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Domestic HRM and IHRM
Compared

Changes in emphasis
Emphasis placed on various HR
activities change.
Bring high-potential local staff to
corporate head quarters.

Risk exposure
Physical safety of employees
Emergency evacuation procedures
.
An avg expatriate manager ,with
family costs an MNC nearly
$2,50,000(US). E rate25-
04/12/08 40% in 1965-1985.
International HR Activities

HRP

Recruitment and Selection

Training and Development

Performance Management O-E

Remuneration

Repatriation

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Employee Relation
HR Planning

1 Identifying top-management
potential early.
2 Identifying critical success factors for
future international managers.
3 Providing developmental
opportunities.
4 Tracking and maintaining
commitment to individual in
international career paths.
5 Tying strategic business planning to
HRP an Vice-versa.
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6 Dealing with multiple business units
Recruitment and Selection

Ethnocentric
Key management positions
filled by parent-country
nationals
Ex-P&G ,Philips, Matsushita.

-Dutch Mafia.
-29 % Japanese Comp had
presidents who were not
Japanese
Polycentric
Host-country nationals
manage subsidiaries
Parent company nationals
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Best suited to multi-domestic
Recruitment and Selection

Regiocentric
Hiring and promoting
employees on the basis of
the specific regional
context of the subsidiary

Geocentric
Seek best people, regardless
of nationality
not always possible
Best suited to Global and
trans-national businesses
EX-Colgate-Palmolive
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Global Human Resource
Management

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Types of Global Assignments

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Global
Employee
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Selection
Factors
The Expatriate Problem

Crisis and Reassignment


Adjustment Abroad

Determining or
The Need
Post-arrival Repatriation
Departure Orientation and And Adjus
Training

or

The Selection Pre-assignment Crisis and


Process Training Failure
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Causes of Expatriate Assignment
Failure

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Expatriate Failure Rates

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Reasons for expatriate failure

• US multinationals
– Inability of spouse to
adjust
– Manager’s inability to
adjust
– Other family problems
– Manager’s personal or
emotional immaturity
– Inability to cope with
larger overseas
responsibilities

• European
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multinationals
• Inability of spouse to
Reasons for expatriate failure

• Japanese Firms
– Inability to cope with
larger overseas
responsibilities
– Difficulties with the
new environment
– Personal or emotional
problems
– Lack of technical
competence
– Inability of spouse to
adjust.
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Factors in Expatriate Selection

Cross-Cultural
Suitability
Technical Family
Ability Requirements

individual
Selection Decision

situational

MNC
Country-Cultural Requirement
Requirements
Language

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Global Assignment Management
Cycle

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Training and management
development

Training: Obtaining skills for a


particular foreign posting

Cultural training : Seeks to foster an


appreciation of the host-country’s
culture
Language training : Can improve
expatriate’s effectiveness, aids in
relating more easily to foreign culture
and fosters a better firm image
Practical training: Ease into day-to-day
life of the host country and adapt alien
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culture ex-feel Like “at Home”
Expatriate Adjustment Stages

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Management development &
strategy

Development programs designed to


increase the overall skill levels of
managers through:

On going management education


Rotation of managers through a
number of jobs within the firm to give
broad range of experiences

Used as a strategic tool to build a


strong unifying culture and informal
management network

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Above techniques support
Expatriate Pay

Typically use balance sheet


approach

Equalizes purchasing power to


maintain same standard of living
across countries

Provides financial incentives to


offset qualitative differences
between assignment locations.

Pay for Schools, health care, etc.


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Expatriate Pay

Base Salary
Same range as a similar
position in the home country
Foreign service premium
Extra pay for work outside
country of origin
Allowances
Hardship, housing, cost-of-
living and education
allowances
Taxation
Firm pays expatriate’s income
tax in the host country
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The balance sheet

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Repatriation
process

Preparation

Physical relocation

Repatriation
process

Transition

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Re-adjustment
International labor relations

Key Issue
Degree to which organized
labor can limit the choices of an
international business
Aims to foster harmony and
minimize conflicts between firms
and organized labor

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International labor relations

Multinational can counter union


bargaining power with threats to
move production to another country
Multinational will keep highly skilled
tasks in its home country and farm
out only low-skilled tasks to foreign
plants
Easy to switch locations if
economic conditions warrant
Bargaining power of organized
labor is reduced
Attempts to import employment
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from multinationals home country
Thanking You
any?

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