Global Human

7/27/2019 Global Human

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GLOBAL HUMAN

RESOURCE MANAGEMENT


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DEFINITION:

Set of activities aimed managing organizational human

resources at global level to achieve organizational

objectives and achieve competitive advantage over

competitors at national and international level.

Global human resource management (GHRM) is the

process of balancing the integration and differentiation of

HR activities in foreign locations.


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OBJECTIVESOFGLOBALHRM:

Generating awareness of cross cultural sensitivities

Decision Making

Co-ordination

Integrating Mechanisms To reduce the risk of international human resource

To avoid regional disparities

To manage diversifies human capital


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HRFUNCTIONSINGHRM:

HR Staff Development

Global skills management

Change Management

language translation services Expatriate management

Co-ordinate with pay systems

International taxation

Administrative services for expatriates

Managing relations with host governments in a number

of countries around the world.


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MODELOFGHRM:


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EMPLOYEESCATEGORIES:

Home country employees- Employees belonging to

home country of the firm where the corporate head

quarter is situated.

Host country employees- Employees belonging to the

nation in which the subsidiary is situated.

Third country employees- These are the employees

who are not from home country/host country but are

employed at subsidiary or corporate head quarters.


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WHATISANEXPATRIATE??

An employee who is working and temporarily residing in

a foreign country

Some firms prefer to use the term international

assignees

Expatriates are PCNs from the parent country operations

, TCN s transferred to either HQ or another subsidiary,

and HCN s transferred into the parent country


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INTERNATIONAL ASSIGNMENTS CREATE

EXPATRIATES


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REASONSFOR EXPATRIATE FAILURE

Inability of spouse to adjust

Managers inability to adjust

Other family problems

Managers personal or emotional maturity Inability to cope with larger overseas responsibility

Lack of technical competence

Difficulties with new environment


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APPROACHESTOSTAFFING:

Ethnocentric

Polycentric

Regiocentric

Geocentric


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ETHNOCENTRIC:

Strategic decisions are made at headquarters

Limited subsidiary autonomy

Key positions in domestic and foreign operations are

held by headquarters personnel PCNs manage subsidiaries


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POLYCENTRIC:

Each subsidiary is a distinct national entity with some

decision-making autonomy

HCNs manage subsidiaries who are seldom promoted to

HQ positions

PCNs rarely transferred to subsidiary positions


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GEOCENTRIC:

A global approach - worldwide integration

View that each part of the organization makes a unique

contribution

Nationality is ignored in favor of ability


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REGIOCENTRIC:

Reflects a regional strategy and structure

Regional autonomy in decision making

Staff move within the designated region, rather than

globally


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DIFFERENCE BETWEEN DOMESTIC HRM

AND GLOBAL HRM (GHRM)

Level of nationality

Involvement of expatriate management

Complications related with environment

Involvement in employees personal lives Level of risk

Involves constantly changing perspectives

Influenced by more external sources

Heterogeneous and homogenous functions


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SUCCESSFACTORSFORGHRM:

Flexibility to work Manage across cultures

Best business practices

Identify internal and external candidates who already

have those success factors

Provide detailed developmental reports


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THANKS...

Global Human

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