Global HRM

Globalization
Trends in global trade and investment: http://
data.worldbank.org/indicator/NE.TRD.GNFS.ZS
http://data.worldbank.org/indicator/BX.KLT.DINV.W
D.GD.ZS

Firmsare increasingly becoming globalized

post 1990 because:
Breakup of Soviet Union and liberalization of
Chinese and Indian economies
Commercialization of IT technology underpinning
the internet
The stagnant growth in advanced economies and
hence the need to search for greener pastures
Internationalization Strategies

Bartlett and Ghoshals Typology of Multinational Companies

Source: International Business Strategy

Globalization
International HRM (IHRM) refers to the
concepts and techniques employers use
to manage the human resource challenges
of their international operations
IHRM focuses on:
Managing HR in global companies
Managing expatriate employees
Comparing HR practices across countries
International
HR strategy needs to be
congruent with firms global strategy
Globalization and HR
Cultural

Labor
Political
Country- Relations
specific
differences
influencing
HR

Legal Economic
Staffing the Global
Organization
Key-terms:
Expatriates
Home-country nationals
Locals
Third-country nationals
Offshoring
Hofstedes Cultural
Dimensions
The cultural dimensions are:
Power-distance
Masculinity-feminism
Individualism-collectivism
Uncertainty orientation
Time Orientation
Indulgence-restraint
Staffing the Global
Organization
Management Values:
Ethnocentirsm
Polycentrism
Geocentrism
Linkinternational strategy, globalization
strategy and staffing policy
Choosing Suitable Executives
Realistic previews
Adaptability screening
Personality characteristics
List of Assessment Tools: http://
intercultural.org/training-and-assessmen
t-tools.html
Developing Training Programs
Training programs focus on:
Basics of host countrys history and
culture
Effect of cultural values on perceptions
and communications
Realistic examples of challenges in host
countries and ways to overcome them
Appraising Performance
Performance management needs to be
sensitive to host country context
Involve host country managers and give
increased weightage to their feedback
Compensating Expatriates
Balance sheet approach
Types of initiatives
Foreign service premium
Hardship allowance
Mobility premium
Compensation must encourage desired
behaviors
Repatriation: Issues and
Solutions
Post repatriation the risks of employee
turnover increases
To protect their investment in
expatriating, AT&T:
Matches the expat and his/her family with
a psychologist
Makes sure the employee always feels in
the loop
Provides formal repatriation services
Designing Successful Global
HR Program
Development
Form global HR networks
Standardize ends and competencies rather than
specific processes
Increase acceptability
Create global/transnational organizations
Investigate legitimacy of pressures to
differentiate
Develop strong corporate culture
Implementation
Communicate constantly
Dedicate adequate resources