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What is GHRM?

Global Human resource management (GHRM) refers to the activities an organization carries out to utilize
effectively its human resources in internationally

02
Staffing
05
Compensation,
03 Labor relations
Performance
evaluation
01
Determining the
firm's human
resource strategy

04
Management
development
2
0 2
 Operation of
parent-
country firms

Operation of
foreign firms
in the home
country

Operation of
Third party
nationals

Employment
of foreign
citizens

3
 Responsibility for greater number of activities
.
Greatly expanded and different mix of employees

Need for greater level of expertise e.g. employment laws

Having to deal with more external influences

.
Necessity for closer involvement with employees (e.g.
expatriate families)

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 Inter Country Differences
01
Influence HRM practices &
policies.
But globalization is blurring
national differences in
cultures , best depicted by
Mc Donald’s
Cultural Factors
02 03 04
France though a capitalist
society- imposed
Work councils have there Employees have legal right
restrictions on-
own norms to a voice in setting
Employers rights to
companies policies
discharge workers.
- Followed in Germany
Limited no. of hours an
employee can legally work
Legal and Industrial
Economic Systems Relation factors
Condermnation
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• Problem of integration.(HQ to Subsidiary)
• Problem of differentiation.(Flexibility in policies
and practices)
• Involves constantly changing perspectives
• Requires more involvement in employees
personal lives
• Is influenced by more external sources
• Involves a greater level of risk than typical
domestic HRM
• Strategy is implemented through
organizational architecture
• Right people at right postings
• Effective training to acquire right skill
• Behaviour, congruent with the desired
organizational culture
• Compensation must create incentives for
actions inline with the strategy
• Performance appraisal to measure the
behaviour, firm wants to encourage
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Approaches to GHRM
Geocentric

HR policies are developed to meet

Ethnocentric the goals of global network of
home country locations and
The MNC simply exports HR foreign subsidiaries
practices and policies from
home contrary to Subsidiaries
in foreign location

Regiocentric
Polycentric
HR policies are coordination
HR policies are adapted to meet within the region to as great
the circumstances in each foreign extent as possible
country. The subsidiaries are
basically independent from
headquarters
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Expatriate Managers
• Expatriates are citizens of one
country, who are working in
another country
• Inpatriates is a subset of
expatriates who are citizens of a
foreign country, working in the
home country of their
multinational employer. (e.g.,
citizen of India, who moves to U.S
to work for Microsoft)
Expatriate Pay
• Acc. To “Balance Sheet
Approach”, it equalizes
purchasing power across
countries so employees can
enjoy the same living standard
in their foreign posting, as the
enjoyed at home
• It also provides financial
incentives to offset qualitative
differences between assignment
locations
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After selection, the next step is training the manager to do the specific job

MDP is a broader concept, it is intended to develop a manager’s skills over their career in the firm, e.g.,
sending managers on various foreign postings over years to build their cross cultural sensitivity and experience

To enhance management and leadership skills of executives

MDP have a strategic purpose, and helps reinforce desired culture of the firm by creating an informal network

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 Cultural training
Understanding the culture of host country, enhance
effectiveness, familiarization trip before formal transfer

Language training
Manager’s ability to interact, help build rapport and
improve manager’s effectiveness

Practical training
Adjust to day to day life in host country, establish a
routine, successful adaptation, support network of
friends

Your Text Here

You can simply impress your audience and add a unique
zing and appeal to your Presentations.

10
 of

• ORIENTATION
a. Pre-arrival Orientation
• Cultural briefing
• Assignment briefing
• Shipping requirements

b. Post arrival Orientation

• Cross-cultural training
• Briefing about Career opportunities

• CAREER DEVELOPMENT
• Helping the expatriate to move up in the organization ladder, expand his knowledge, learn new things

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Documentary Programmes:- Foreign country’s history, culture, institutions etc.

Culture Assimilation:- With the help of exposure to a series of simulated inter-cultural incidents, typical
problem solutions.

Language Instruction:- Conversational language skills are taught through a variety of methods MDP
have a strategic purpose, and helps reinforce desired culture of the firm by creating an informal network

Sensitivity Training:- Experiential exercises teach awareness of the impact of one’s actions on
others

Field Experience:- Firsthand exposure to ethnic subcultures in one’s own country or to foreign
cultures
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 Compensation
Appraising
Selection
Recruitment
globally
Variations in HR practices

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 Identify the
vacancy

Conducting Prepare job

interview and description &
decision person
making specification

Recruitment
Compensation
Appraising
Selection

Arrange for an
online Advertising
assessment, the vacancy
GD, Interview

Managing the
Shortlisting
response

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 Self Others Perceptual Cultural
orientation orientation ability toughness
Compensation

Recruitment
Appraising

Selection
Self esteem, self Ability to interact with To understand the Relationship
confidence, mental host country’s particular between country
nationals, relationship
well being, adapt behaviour of of assignment and
development and
their interest in willingness to people in host how well an
food, sports, music communicate by countries, expatriate adjusts
and hobbies learning local empathise
language

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 Performance Appraisal

Compensation

Recruitment
Appraising
Selection
Due to
proximity,
Biasness by
onsite Consultation
To evaluate To evaluate cultural
manager of home
the the frame of Unfair
should country
performance performance reference evaluation
evaluate soft manager to
of Managers of Expatriates and
variables of balance out
expectations
expatriate’s
performance

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Compensation

National differences in

Compensation

Recruitment
Appraising
compensation

Selection
National differences in economic
circumstances and practices

How should the expatriate

managers be paid

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• The Hotel Paris’s competitive strategy is, “To use
superior quest service to differentiate the Hotel Paris
properties , and to thereby increase the length of stay
and return rate of guests, and thus increase revenues
and profitability”
• HR manger Lisa Cruz must now formulate functional
Policies and activities that support this competitive
strategy, by eliciting the required employee behaviors
and competencies
• With hotels in 11 cities in Europe and United States,
Lisa knew the company had to do a better job of
managing its global human resources

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• There was no formal means of identifying or training management
employees for duties abroad (either for both going to Europe or U.S.)
• Recently, after spending upwards of $600,000 sending a U.S. manager and
her family abroad, they had to return her abruptly when the family
complained bitterly of missing their friends back home
• High performing services and hotel firms had formal departure training
programs for at least 90% of the employees they send abroad; the Hotel
Paris had no such programs
• Each city’s hotel operating its own hotel local HR information system, there
was no easy way for Lisa, the CFO, or the company’s CEO to obtain reports
or metrics like turnover, absences or worker’s compensation cost across all
hotels
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“If we can’t measure how each hotel is doing in
terms of hotel metrics like these, there is really no
way to manage these activities, so there is no
telling how much lost profits and wasted efforts
are dragging down each hotel’s performance.” Lisa
received approval to institute new global human
resources programs and practices

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 Proficient in at Minimum 5
Only regular
Willingness least 3 location
employees
to work languages preference
can work
abroad (French, English from
abroad
and one more) employee

Employees The Hotel

The employees must The Hotel
should undergo
have the language Paris must
at least 3-6 Paris must
skills of the country provide a
month have an I.T.
that he/she will be “Contract
probationary system
period
transferred Agreement”
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