My PPT(Global Human Resource)
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Transcript of My PPT(Global Human Resource)
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Presented By
Jyoti
Strategic Role In Global
Environment
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We are living in a vastly altered world where societal expectations of
businesses have changed dramatically. At the cornerstone of the discourses
dealing with human resources (HR), corporate social responsibility, corporategovernance, and sustainability, are humanstheir rights, their aspirations, and
advancement. Humans are pivotal to both global corporations survival and
the wealth of nations. Never before has the pressure on organizations, to
ensure that the basic rights of humans are protected and respected both within
them and the communities they operate in, been greater. The purpose of this
paper will be to review current worldwide trends and practices of leading
corporations (profit and non-profit) in their management of human resources
and social responsibility. An examination of the responsibilities of these
global corporations will be made, and recommendations for reconciling these
dual responsibilities and reshaping global HR practices will be presented.
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International trade is growing at a more rapid
rate than world output
Foreign direct investment (FDI) flows have set
record levels in recent years
Cross-border inter-firm agreements have risen
dramatically during the last 20 years
Social, economic, and political developmentsthroughout the world have changed the way
global business is conducted.
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Global strategic HRM augments the
Importance of resource flexibility, Strategic leadership,
Human capital,
Technological and manufacturing advances
Cooperative synergies between organizationalculture and structure
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The report examines the changing roles the human
resource (HR) function plays in a globallycompetitive marketplace and identifies thechallenges of:
Investigate how domestic and international
companies conduct HR practices around the
world.
Determine the top HR priorities for each
organization type.
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Determine the challenges that organizationsface when trying to globalize their HR
function, practices and policies to service
staffing need abroad.
Determine what organizations are doing toinstitute a consistent corporate culture
across all locations/offices.
Creating organization structures capable of
balancing centralized home office control witadequate autonomy.
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International
Human ResourceManagement
Cultural
Factors
Legal and Industrial
Relations Factors
Economic
Systems
Major Factors Affect IHRM
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International
Human ResourceManagement
Training and
Development
Practices
Use of Pay
Incentives
Purpose of
PerformanceAppraisal
Personnel
Selection
Procedure
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International companies facemany challenges when try to
make HR Practices consistentacross all the locations/offices.
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Top Three challenges included:
Variations in social, political and economic
circumstances.
Different locations/offices have their own
way of doing things are resistant to change.
The perceived value of the HR function
varies across locations/offices.
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Relational competence to navigate the global
network knowledge base through consensus
building, accountability charting, conflict
management, performance contracting and
innovation management.
Managerial competence to design creativehuman resource allocations, negotiate
concerted strategies, and structure
multiparty relationships.
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Motivational leadership in incentivizing units
to demonstrate and share skills at joint human
resource management problem solving.
Cross-functional competence in auditing
managerial loss of control and difficulties in
assessing network accountability in terms of
human resource management adaptations.
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Developed a long
term HR plan to ensure
alignment of HR
strategies/objectiveswith corporate
objectives.
Created centralizedreporting relationships
around the globe.
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Created
centralized
reportingrelationships around
the globe.
Standardized
assessment,
development, and
compensation
practices.
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Standardized
assessment,
development, andcompensation
practices.
Introduced practices
to regions around the
globe and allowed the
HR function in eachregion the autonomy to
do job.
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Introduced practices
to regions around the
globe and allowed the
HR function in eachregion the autonomy to
do job.
Created globalpolicies/processes for
data management,
performance
management,compensation,
education, and
development.
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Tied regional
accountability to
performance
management.
Shared HR best
practices used incertain
locations with all
other locations.
Developed an HR
mission statement.
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Finding, developing, and retaining global
leaders tops the priority list of internationalcompanies. International, or expatriate,
assignments are often used as a way to
develop the talent of global leaders.
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Host Country Nationals (HCNs)
employees from the local population.
referred to as local nationals.
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employees sent from the country inwhich the organization is headquartered
referred to as expatriates.
Host Country Nationals (HCNs)
Third Country Nationals (TCNs) employees from a country other than
where the parent organizationsheadquarters or operations are located
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InternationalStaffing Policy
Ethnocentric
Polycentric
Geocentric
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Individual Self
efficacy Relation skill
Logistical Help
Inability to Cope
with Overseas
Responsibilities
Lack of
Cultural Skills
Why Expatriate
Assignments Fail
Personality
Personal
Intentions
Family
Pressures
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Realistic Previews
Careful Screening
Cultural and Language Training
Improved Benefits Packages
Improved OrientationHelping Expatriate
Assignments Succeed
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Interviews
For face-to-face interviews found that
interviewers had to be trained in cross-cultural
differences.
Adaptability Screening
Assessing the assignees (and spouses) probable success
in handling the foreign transfer. Overseas Assignment Inventory
A test that identifies the characteristics and
attitudes international assignment candidates
should have.
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Realistic Previews
The problems to expect in the new job, as well as the
cultural benefits, problems, and idiosyncrasies of the
country.
Psychological Testing
Psychological tests may be seen as a way of
avoiding the subjective bias of other options. I
The greater international mobility of candidates
has increased the demand for tests to be used
on job applicants from different countries.
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High Probability for SuccessStrong analytical skills
Good language skills
Strong desire to work overseas
Specific knowledge of overseasculture
Well-adjusted family situation
Complete support of spouse
Behavioral flexibility
Adaptability and open-
mindedness
Good relational ability
Good stress management skills
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Low Probability for SuccessUncertain technical competency
Weak language skills
Unsure about going overseas
Family problemsLow spouse support
Behavioral rigidity
Inadaptability closed to new
ideas
Poor relational ability
Weak stress management skills
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Culture Shock the frustration and confusion that
result from being constantly subjected to strange
and unfamiliar cues about what to do and how to
get it done
Does not typically occur during the earliest days of an
overseas assignment
Communicated to all locations about a commoncorporate culture.
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Managerial issues like the leadership of the
organization is dispersed throughout the global
system top management must recognize theimpact on the organizational hierarchy.
The top management of the organization must
recognize that strategic initiatives may be
generated by subsidiaries and shared with other
subsidiaries rather than having to come from
headquarters.
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The governance and control mechanism of the
global network organization will need to be
modified to allow localized decision-making. The selection process for subsidiary
management must be modified to align it with
the role of the key subsidiary managers and the
modified independence of the subsidiaries
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Managers who are host country nationals have
distinct advantages over expatriates cultural sensitivity
understanding of local employees motivations and
needs
Careful recruitment, selection, and training ofHCNs can reduce or eliminate the potential
problems with using HCNs
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Culturalawareness
PreliminaryVisit
HCNTraining
PracticalAssistance
LanguageTraining
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DevelopmentthroughInternationalassignment
ManagementDevelopment
OrganizationalDevelopment
IndividualDevelopment
Internationalstaff and
multinationalTeams
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While developing international compensation
policies, a firms seeks to satisfy several
objectives:
Policy should be consistent
with the overall strategy,
structure and business need of
the multinational
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Policy must work to attract
and retain staff in areas of
greatest need and opportunities
Policy should facilitate the
transfer of international
employees in cost effective
manner
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The policy must give due
consideration to equity and
ease of administrations.
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The Balance Sheet Approach
Home-country groups of expensesincome taxes,
housing, goods and services, and discretionary
expensesare the focus of attention.
The employer estimates what each of these four
expenses is in the expatriates home country, and
what each will be in the host country.
The employer then pays any differences such as
additional income taxes or housing expenses.
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Local Going Rate Approach
This can be desirable in high-paying
countries such as the US of Switzerland
The market rate is also preferred when the
assignment is likely to be long term or
permanent.
The main advantage of this method that itis administratively simpler than the balance
sheet.
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Hybrid Approach
This approach refer variation ofthe greater of home or host
system where a balance sheet is
compared to local market rateequivalent.
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Industry-Wide
Centralization
Content and
Scope ofBargaining
Employer
Organization
Multiple Union
Recognition
Characteristics of
European Labor Relations
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MNCs faced with the demands ofintegration and control, have to always
decide which is most important the
company as a whole or eachsubsidiarys short term profitability.
Unpredictable Global Environment.
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Time and distance separation.
Variability in level of maturity.
Communication Gap.
Lack of technical knowledge.
Lack of domestic management'sinternational experience.
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Operational language used in the firm
Cultural distance based often on theregion of the world.
Stability of the factors affecting the
expatriate's performance.
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Be objective in evaluation.
Criteria for evaluation of performance.
Flexibility in structure strategy to
implement change.
Some vital criteria for successfulperformance for manager abroad are:
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Inter-personal understanding andrespect.
Empowerment to share information
and delegate resposibility.
Team support to help employees
cooperate.
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Versatility to adjust in newenvironment.
Strategic thinking to grasp changing
environment and market possibilities.
Relationship management to influence
and seek the cooperation of customer,
trade union, government institutionsand lobby activities.
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Business practices that are considered
unethical or illegal in the U.S. might beconsidered part of the national conduct of
business in other countries
Foreign CorruptP
ractices Act of 1977(FCPA)
Employment discrimination
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Global human resource management
is an important component of an
organizations success in a globalmarketplace
Organizations must be sure that theirHRMpolicies can accommodate a
culturally diverse workforce
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