Professional Documents
Culture Documents
Increasing globalization, firms and employees in them moving all over the world. Major problems in international operations because of human resource management blunders Hence need to understand human resource management in a global perspective
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The role of HR in International Operations Managing a Multicultural Workforce Developing Managerial Talent in a Global Business Environment
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Globalization, Uncertainty, Complexity and IHRM Globalization and New Technologies New Environment Increased Environmental Uncertainty More Complexity More Dynamism Less Richness
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human behavior within organizations from an international perspective to describe, compare and analyze HRM systems and IR in different countries how HRM is practiced in multinationals
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Source: Marilyn Loden and Judy B. Rosener, Workforce America: Managing Employee Diversity as a Vital Resource, p. 20. 18
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Performance appraisal Training and development Compensation and benefits Industrial relations
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Strategic Decisions and Their Implications for Human Resource Management (contd)
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A Model of IHRM
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What is an expatriate?
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, TCNs transferred to either HQ or another subsidiary, and HCNs transferred into the parent country
Global flow of HR: more complexity in activities and more involvement in employees' lives
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More HR activities: taxation, culture activities: orientation, administrative services The need for a broader perspective: cater to perspective: multiple needs More involvement in employees personal lives: lives: adjustment, spouses, children Changes in emphasis as the workforce mix of expatriates and locals varies: fairness varies: Risk exposure: expatriate failure, terrorism exposure: Broader external influences: government influences: regulations, ways of conduct
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Impacts on Multinational Management Need for flexibility: flexibility: Local responsiveness: responsiveness: Knowledge sharing: sharing: Transfer of competence: competence:
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Managerial Responses Developing a global mindset: mindset: More weighting on informal control mechanisms: mechanisms: Fostering horizontal communication: communication: Using cross-border and virtual teams: crossteams: Using international assignments: assignments:
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Approaches To International Human Resource Management Ethnocentric: Highly centralized. HQ controls Ethnocentric: PCNs dominate. Polycentric: Decentralized. Each subsidiary Polycentric: has some degree of decision making autonomy. HCNs manage subsidiaries. Geocentric: Ignores nationality in favor of Geocentric: ability and competence needs in a worldwide integrated business strategy.
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Convergence or Divergence?
Large corporations preference for consistent worldwide systems Smaller companies desire for more professional systems Need to follow local HRM laws Development of unique techniques and practices to suit local cultural and legal requirements
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Thank You
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