Professional Documents
Culture Documents
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
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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
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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
Types of Global
Employees
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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.
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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
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
04/12/08 hold key headquarter positions
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
Determining or
The Need
Post-arrival Repatriation
Departure Orientation and And Adjus
Training
or
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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
04/12/08
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
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Management development &
strategy
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Above techniques support
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
04/12/08 Benefits
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
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