Mondy hrm13 inppt14.ppt

Copyright © 2014 Pearson Education, Inc.

Human Resource Management 13th Edition

Chapter 14Global Human Resource

Management

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Learning Objectives

• Describe the impact of global bribery in the international arena.

• Describe the evolution of global business and global strategic human resource management.

• Explain some global issues confronting women.• Explain global staffing.• Describe global human resource development.

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Learning Objectives (Cont.)

• Explain global compensation.• Describe global safety and health.• Explain global employee and labor relations.• Describe legal and political factors affecting

global human resource management. • Describe possible advantages and

disadvantages related to globalization for small and medium sized businesses.

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HRM in Action: Global Bribery, The Conviction List Grows

• Foreign Corrupt Practices Act prohibits U.S. firms from bribing foreign officials

• Not using bribery has been costly for American companies

• Attacks of 9/11/2001 caused authorities to take closer look at financial data while searching for terrorists' funds– Found bribery corruption in the process

• List of convictions under FCPA continues to grow

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Evolution of Global Business

• Not long ago, Mercedes-Benz was still a German company, General Electric was American, and Sony was Japanese

• Many United States firms do most of their business and employ most of their workers outside U.S.

• Many non-U.S. companies make products here

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Evolution of Global Business

• Exporting: Selling abroad retaining foreign agents and distributors

• Licensing: Organization grants foreign firm right to use intellectual property

• Franchising: Parent company grants another firm right to do business in prescribed manner

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Evolution of Global Business (Cont.)

• Multinational corporation: Firm based in one country that produces goods or provides services in one or more foreign countries

• Global corporation: Corporate units in countries are integrated to operate as one organization worldwide

• Transnational corporation: Moves work to places with talent to handle the job and time to do it at right cost

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Global Professional in Human Resources

• New certification for HRCI• Focuses on:

– Strategic HR management– Global talent acquisition and mobility– Global compensation and benefits– Organizational effectiveness– Talent development– Workforce relations– Risk management

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Global Human Resource Management

• Functional areas similar to domestic HR

• Manner in which they are implemented may differ

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Environment of Global Human Resource Management

1

Human Resource

Management Other

Functional Areas

OperationsMarketing

Finance

Lega

l Con

side

ratio

ns E

cono

my

Technolo gy

Society

Shareho lders

Unions

Customers Competition Labor Market

Human Resource

Development

Com

pens

atio

n

Staffing

Em

ployee and

Labor Relations

Safety and Health

INTERNAL ENVIRONMENT

EXTERNAL ENVIRONMENT UNITED STATES

GLOBAL ENVIRONMENTU

nantici pated E

ventsP

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Trends & Innovations: Global Issues Confronting Women

• Some countries do not provide women equal access to jobs

• Female talent is underutilized in emerging countries

• Positive trends that have emerged regarding women working the global environment

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Global Staffing

• Types of global staff members

• Approaches to global staffing

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Types of Global Staff Members

• Expatriate: Employee working in firm who is not a citizen of country in which firm is located, but a citizen of country where organization is headquartered

• Host-country national: Employee’s nationality same as location of subsidiary

• Third-country national: Citizen of one country, working in second country, and employed by organization headquartered in third country

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Approaches to Global Staffing

• Ethnocentric staffing: Primarily hiring expatriates for higher-level foreign positions

• Polycentric staffing: More host-country nationals are used throughout the organization, from top to bottom

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Approaches to Global Staffing (Cont.)

• Regiocentric staffing: Regional groups of subsidiaries reflect organization’s strategy and structure work as a unit

• Geocentric staffing: Using worldwide integrated business strategy to hire the best person for the job

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Recruiting Host-country Nationals

• Should not assume that recruiting approaches that worked in parent company will be effective in recruiting host-country nationals

• Example: Error that many recruiters make is believing that all countries in Europe are similar or the same

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Selecting Expatriates

Four distinct stages: 1. Self-selection2. Creating a candidate pool3. Technical skills assessment4. Making a mutual decision

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Background Investigation

• Conducting background investigations in other countries is equally, or more, important than in U.S.

• Differences across cultures and countries often create barriers

• Each country has own laws, customs, and procedures for background screenings

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Global Human Resource Development

• Pre-move orientation and training • Continual development: Online

assistance and training • Repatriation orientation and training

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Expatriate Preparation and Development Program

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Expatriate Preparation and Development

Prior to Departure: Orientation and Training

During Assignment: Continual Development

Near Completion: Repatriation Orientation Training

Language Culture History Local Customs Living Conditions

Expanding Skills Career Planning Home-Country Development

U.S. Lifestyle U.S. Workplace U.S. Employees

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Pre-move Orientation and Training

• Essential before global assignment begins

• Expatriate need to understand cultural do’s and don’ts and be immersed in language

• Employee’s global skills are fitted into career planning and corporate development programs

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Continual Development: Online Assistance and Training

• Companies now offer online assistance and training in areas such as career services, cross-cultural training, and employee assistance programs

• Technology can be used to provide ongoing contact and support

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Repatriation Orientation and Training

• Repatriation: Process of bringing expatriates home

• Too many returning managers report dissatisfaction with process

• Some expatriates are not even guaranteed a job upon their return

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Global E-Learning

• Globalization has created special need for e-learning

• Challenges for global e-learning implementation include language and localization issues

• Companies that want to offer courses in several languages usually turn to translators

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Virtual Teams in Global Environment

• Necessity of everyday working life

• Enable companies to accomplish things more quickly and efficiently

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Difficulties that Virtual Teams Confront

• Do not feel as connected or committed to team

• Communication problems directly proportional to number of time zones separating them

• Language and culture problems

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Compensation for Host-Country Nationals

• Organizations should think globally but act locally

• Normally slightly above prevailing wage rates in area

• Variations in laws, living costs, tax policies, and other factors must be considered

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Compensation for Host-Country Nationals (Cont.)

Factors to consider: – Minimum wage requirements

– Working time information such as annual holidays and vacation time and pay

– Hiring and termination rules

– Regulations covering severance practices

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Compensation for Host-Country Nationals (Cont.)

• Culture often plays a part

• North American practices encourage individualism and high performance

• Continental European programs typically emphasize social responsibility

• Traditional Japanese approach considers age and company service as primary determinants of compensation

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Expatriate Compensation

• Largest expatriate costs include overall remuneration, housing, cost-of-living allowances, and physical relocation

• U.S. citizens living overseas can exclude up to $92,900 of income earned abroad

• Additional challenges: Devaluation of U.S. dollar

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Global Safety and Health

• Employees who work in safe environment and enjoy good health more likely to be productive

• U.S.-based global operations are often safer and healthier than host-country operations

• Not as safe as similar operations in U.S.

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Global Safety Programs

• Global companies continue to face global safety risks

• Bhopal Disaster of 1984 was worst industrial disaster in history

• Companies have discovered way they treat their workers anywhere on planet can pose risk to their corporate reputation

• Employers should also be concerned with health issues for host-country nationals

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Global Employees and Labor Relations

Strength and nature of unions differ from country to country

Ranges from nonexistent to relatively strong

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Global Employees and Labor Relations in European Countries

• Codetermination: Requires firms to have union or worker representatives on their boards of directors

• Laws make it hard to fire workers, so companies are reluctant to hire

• Generous and lengthy unemployment benefits can discourage jobless from seeking new work

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Global Employees and Labor Relations in South American Countries

• In countries such as Chile, collective bargaining for textile workers, miners, and carpenters is prohibited

• Unions are generally allowed only in companies of 25 workers or more

• Practice has encouraged businesses to split into small companies to avoid collective bargaining

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Global Legal and Political Factors

• Nature and stability of legal and political systems vary throughout the world

• Legal and political forces are unique to each country, and sometimes laws of one country contradict those of another

• HR regulations and laws vary greatly among countries

• Does operating under local laws and customs free a company of all ethical considerations?

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Tariffs and Quotas

• Tariffs: Taxes collected on goods shipped across national boundaries

• Quotas: Limits on the number or value of goods imported across national boundaries

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North American Free Trade Agreement (NAFTA)

• Between Canada, Mexico, and United States

• Facilitated movement of goods across boundaries within North America

• Free-trade zone of over 400 million people

• Combined gross domestic profit of about $12 trillion

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Central American Free Trade Agreement

• Ratified after long political battle, and signed into law in 2005

• Could provide huge economic boost for region

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Globalization for Small to Medium-Sized Businesses

• International sales have become vital and growing part of market for small to medium businesses

• United States has goal of doubling exports in 5 years, from $1.57 trillion in 2009 to $3.14 trillion in 2014

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Mondy hrm13 inppt14.ppt

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