Download - 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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