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1、,Global Human Resource Management,chapter4,Integration of the worlds economies and the globalization of business continue unabated at the beginning of the 21st century.,Indicators of Globalization,International trade is growing at a more rapid rate than world outputForeign direct investment(FDI)flow
2、s have set record levels in recent yearsCross-border inter-firm agreements have risen dramatically during the last 20 yearsSocial,economic,and political developments throughout the world have changed the way global business is conducted,The People Factor,Firms need to strengthen their presence,invol
3、vement,and relative positions in the domestic and global marketplaceThis can be done by utilizing their global human resources in a manner that helps them establish and sustain competitive advantage,Global Human Resource Management(GHRM),Refers to the policies and practices related to managing peopl
4、e in an internationally oriented organizationIncludes the same functions as domestic HRMThere are many unique aspects to human resource management in the international organization,Major HRM Problems for the International Corporation(1 of 2),Selecting and training local managersCompanywide loyalty a
5、nd motivationSpeaking local language and understanding local cultureAppraising managers overseas performancePlanning systematic management successionHiring local sales personnel,Major HRM Problems for the International Corporation(2 of 2),Compensating local foreign managersHiring and training foreig
6、n technical employeesSelecting and training American managers for overseasDealing with foreign unions and labor lawsPromoting or transferring foreign managersCompensating American managers for an overseas assignment,Comparison of Hourly Compensation Costs of Manufacturing(in U.S.dollars),The Cultura
7、l Nature of Global HRM,The cultural differences between nations influence the effectiveness of HRM policies and practicesOf critical importance:understanding these differencesensuring that HRM and the cultural orientation of workers are congruent with one another,Hofstedes Dimensions of Culture,The
8、Concept of“Fit”in Global HRM,Internal FitConcerned with making sure that HRM policies facilitate the work values and motivations of employeesPolicies must be structured in ways that allow headquarters and foreign subsidiaries to interact efficiently,External FitThe degree to which HRM matches the co
9、ntext in which the organization is operatingThe organization must understand the cultural and socioeconomic environment of the foreign subsidiary,HRM Focus for Multinational and Global Corporations,HRM Philosophy,Corporate Structure,Critical HRM Focus,Ethnocentric,Multinational,Expatriate Adjustment
10、,Geocentric,Global,Utilizing Global Managerial Talent,Selection&Training Appraisal&Compensation Repatriation,The International Decision,Local Recruiting Methods Managing Cultural Diversity,Sources of Employees for International Assignment:(1 of 2),Host Country Nationals(HCNs)employees from the local
11、 populationreferred to as local nationalsParent Country Nationals(PCNs)employees sent from the country in which the organization is headquarteredreferred to as expatriates,Sources of Employees for International Assignment:(2 of 2),Third Country Nationals(TCNs)employees from a country other than wher
12、e the parent organizations headquarters or operations are located,Major reasons for the high failure rates of American expatriates:,Selection processes that focus too much on technical skills and too little on cultural factorsLack of systematic training for the overseas assignmentToo little involvem
13、ent of family members in the selection processLack of clear expectations about the role of the overseas assignment in the managers career plans,Selecting the Expatriate Manager,Technical competency is necessary but not sufficient for the managers successExpatriate manager selection should focus on t
14、hree other major categories of skills:1.Managers self-image2.Managers normal way of interacting with others3.Managers perceptual orientation,Characteristics of the Expatriate Manager:,High Probability for SuccessStrong analytical skillsGood language skillsStrong desire to work overseasSpecific knowl
15、edge of overseas cultureWell-adjusted family situationComplete support of spouseBehavioral flexibilityAdaptability and open-mindednessGood relational abilityGood stress management skills,Low Probability for SuccessUncertain technical competencyWeak language skillsUnsure about going overseasFamily pr
16、oblemsLow spouse supportBehavioral rigidityUnadaptability closed to new ideasPoor relational abilityWeak stress management skills,Culture Shock and the Expatriate Manager,Culture Shock the frustration and confusion that result from being constantly subjected to strange and unfamiliar cues about what
17、 to do and how to get it doneDoes not typically occur during the earliest days of an overseas assignment,Predeparture,Overseas Assignment,Repatriation,Training the Expatriate Manager,Language skillsNation&culture orientationPersonal&family orientationCareer planning,Language skillsLocal mentoringStr
18、ess trainingBusiness issues,Financial managementReentry shockCareer management,Compensating the Expatriate Manager,Maintaining an expatriate manager on an overseas assignment is very expensiveBase salaryForeign service premiumsCost-of-living premiumHome maintenance allowanceTransportation differenti
19、al allowancesEducational allowancesHardship premiums for hazardous assignments,Sample Costs of a Short-Term Expatriate in London,Host Country Nationals and the Global Corporation,Managers who are host country nationals have distinct advantages over expatriatescultural sensitivityunderstanding of loc
20、al employees motivations and needsCareful recruitment,selection,and training of HCNs can reduce or eliminate the potential problems with using HCNs,The Legal and Ethical Climate of Global HRM,Business practices that are considered unethical or illegal in the U.S.might be considered part of the natio
21、nal conduct of business in other countriesForeign Corrupt Practices Act of 1977(FCPA)Employment discrimination,The Sullivan Principles to Promote Racial Equality in International Employment(1 of 2),Nonsegregation of the races in all work facilitiesEqual and fair employment practices for all employee
22、sEqual pay for all employees performing equal work,The Sullivan Principles to Promote Racial Equality in International Employment(2 of 2),Training programs to prepare(in substantial numbers)Blacks and other nonwhites for supervisory and technical jobsIncreasing the number of Blacks and other nonwhit
23、e minorities in managementImproving the quality of employees lives outside the work environment,Labor Relations and the International Corporation,Labor laws and relations are unique and vary across every nation in which an organization wishes to do businessDifferences in how much participation emplo
24、yees are entitled toGovernment regulation of businessEstablishment of global organizations to represent labor,Summary,Global human resource management is an important component of an organizations success in a global marketplaceOrganizations must be sure that their HRM policies can accommodate a culturally diverse workforce,
