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Beginning of Global HRM

The dramatic and discontinuous changes taking place in the global environment have contributed to the evolution of traditional multinational corporations (MNCs) into Global Organizations. - Gimeno & Woo 1996, Wolf 1997, Galunic & Rodan 1998, Westney 1999.

What is Global Human Resource?

Global Human Resource is a process concerned broadly with recruiting

people, training them and putting them to the most productive usage. It is also concerned with maintaining of congenial international industrial relations. It is the essential prerequisite for the success of the international

firm owning to its complexities.

Global human resource does the planning, selection, training, employment,

and evaluation of employees for global operations.

Much of the force of globalisation comes through mergers and

acquisitions.
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Globalizing The Hr - Function

As companies Globalize, their HR departments need to understand the challenges of working internationally and serving a global organization like: Supporting personnel to serve the needs of their global organizations. Acquiring competent personnel to work in a Global Environment. Train or explain alliance about and be a better global business partner. Administration and use supplement the capabilities for existing professionals. Frame and Practice HR polices that adopt multinational Cultural, Political, Legal and Industrial framework.
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Strategy - HRD
HR professionals should have a thorough knowledge of global business or it may outsource this function to strongly established companies in new geographies and the needs of the local workers in country with competence. Since a company's strategy will impact its employees, HR should understand the Global Landscape and everything from the recruitment and hiring techniques used in other countries, to the establishment of contracts, and compensation and benefits packages.
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Staffing the Global Organization

Top Management Values
Ethnocentric

International Staffing Policy

Polycentric Geocentric

Ethnocentric Key management positions filled by parent-country nationals -Ex-P&G ,Philips, Matsushita. Dutch Mafia. Polycentric Host-country nationals manage subsidiaries Parent company nationals hold key headquarter positions. Best suited to multi-domestic businesses.

Geocentric Seek best people, regardless of nationality not always possible Best suited to Global and trans-national businesses EX-Colgate-Palmolive

Factors that Influence the Global Work Environment

Obstacles for Global HR

Cultural Integration Communication Work organization Political & Social Environment

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Hr and the Internationalization of Business

The Global Challenges :
Coordinating market, product, and production plans on a

worldwide basis.

Creating organization structures capable of balancing

centralized home-office control with adequate local autonomy. abroad.

Extending HR policies and systems to service staffing needs

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 Intercultural management may be defined as

What is Intercultural management?

effective functioning of diverse groups of people.

Diversity can arise because of variation in ethnicity

and nationality.

Most of the existing literature deals with getting

managers from different countries to work together.

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Critical Cultural Variables

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Features of Intercultural management

Organizational cultures
Humor Communication methods & systems.

Oral, literal, and visual skills for benefit of all players

Leadership Business or personal

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Culture
Culture is a system that enables individuals and groups to

deal with each other and the outside world.

Culture means: shared values, beliefs, assumptions of who

and what we are.

They manifest themselves in our behavior and language, the

groups we belong to, the nature of our society.

They are externalized in our artefacts, our art and

technology.
Our physical environment conditions our technology and

art, our behavior and language, and our identity

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1)Cultural divergence Possess of different orientation systems that makes the own social understandable, controllable, influenceable and masterable 2) Generalization Belief that the own system of orientation is valid for everybody and has to be respected by all people in the same manner 3) Creation of a routine The own orientation system has become self-evident and does not require any critical control or reflection
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Culture as an orientation system Example: Three leading factors reinforcing misunderstandings

Language
The most important competence in international business Ability to understand and make yourself understood The most obvious characteristic of another culture Know at least some of the essential politeness words it is a

courtesy.
An acquaintance with someone elses home language helps

to understand them then they are speaking yours.

Language is not only a vehicle for communication but gives

an insight into a peoples way of thinking, attitudes and

behaviour.
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Humor

Britain and Ireland: humor is used to create a relaxed

atmosphere, ligthen tedium and diffuse tension, disguises aggression

North America: a speech or presentation starts with a joke Other cultures: humor has no place at work Outside the business environment a sense of humor is well

developed in Germany, Japan or Turkey

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Oral, literal, and visual

Northern cultures are more literal, southern Europeans are

more oral

People from literal cultures will not take the spoken word

seriously unless it is confirmed in writing (letter, fax)

For oral cultures written communication is primarily for the

record confirm letters and faxes with a covering phone call.

In America communication is primarily literal but at the same

time more visual than in Europe incorporating graphics, diagrams and highlightened bullet points

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Multi-Cultural Teams
Guidelines 1. Begin as one would with mono-cultural teams until there is a problem that appears to have a cultural basis.

2. Differences in national culture, while important, are usually secondary

3. The mistake made by many managers is not that they leap to cultural solutions from personal differences, but that they do not know enough about cultural differences to determine whether or not they are a factor.

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Dealing with Intercultural Management

Respect and Courtesy
Tolerance Identify Problems Cultural taboos Know the Law

Encourage Interaction Simplify Language Be Flexible Written Instructions

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The need for a Broader Prespective

External influences of Nation and culture

Complexity of Global Human Resource

Managing the mix of Expatriates & locals

New HR Responsibility

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 By integrating the two aspects i.e. inter-culture &

human resource, one can develop a dynamic capability approach to staff global assignments. Within this integrative theoretical perspective, cross-dimensional managers (i.e., host or third country managers who are transferred into the home country organization on a semi-permanent to permanent basis) can be explored as a potential pool of uniquely qualified global managers to be utilized in global organizations.

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Conclusions
The need for highly qualified multicultural managers will

increase as more organizations globalize their operations. These global managers may be perceived as organizational resources and, therefore, a resource-based view of human resource management is utilized. cultural norms employees can train themselves to suit the global environment. Instead of viewing culture as a drawback, it can be used as an advantage while dealing with colleagues and handling business situations effectively.
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It is envisioned that through proper understanding of inter-