GLOBAL HUMAN RESOURCE MANAGEMENT

DEFINITION:

Set of activities aimed managing organizational human resources at global level to achieve organizational objectives and achieve competitive advantage over competitors at national and international level.

Global human resource management (GHRM) is the process of balancing the integration and differentiation of HR activities in foreign locations.

OBJECTIVES OF GLOBAL HRM:

Generating awareness of cross cultural sensitivities Decision Making Co-ordination Integrating Mechanisms To reduce the risk of international human resource To avoid regional disparities To manage diversifies human capital

HR FUNCTIONS IN GHRM:

HR Staff Development Global skills management Change Management language translation services Expatriate management Co-ordinate with pay systems International taxation Administrative services for expatriates Managing relations with host governments in a number of countries around the world.

MODEL OF GHRM:

EMPLOYEES CATEGORIES:

Home country employees- Employees belonging to home country of the firm where the corporate head quarter is situated. Host country employees- Employees belonging to the nation in which the subsidiary is situated. Third country employees- These are the employees who are not from home country/host country but are employed at subsidiary or corporate head quarters.

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 , TCN s transferred to either HQ or another subsidiary, and HCN s transferred into the parent country

INTERNATIONAL ASSIGNMENTS CREATE EXPATRIATES

REASONS FOR EXPATRIATE FAILURE

Inability of spouse to adjust Managers inability to adjust Other family problems Managers personal or emotional maturity Inability to cope with larger overseas responsibility Lack of technical competence Difficulties with new environment

APPROACHES TO STAFFING:

Ethnocentric Polycentric Regiocentric Geocentric

ETHNOCENTRIC:

Strategic decisions are made at headquarters Limited subsidiary autonomy Key positions in domestic and foreign operations are held by headquarters personnel PCNs manage subsidiaries

POLYCENTRIC:

Each subsidiary is a distinct national entity with some decision-making autonomy HCNs manage subsidiaries who are seldom promoted to HQ positions PCNs rarely transferred to subsidiary positions

GEOCENTRIC:

A global approach - worldwide integration View that each part of the organization makes a unique contribution Nationality is ignored in favor of ability

REGIOCENTRIC:

Reflects a regional strategy and structure Regional autonomy in decision making Staff move within the designated region, rather than globally

DIFFERENCE BETWEEN DOMESTIC HRM AND GLOBAL HRM (GHRM)

Level of nationality Involvement of expatriate management Complications related with environment Involvement in employees personal lives Level of risk Involves constantly changing perspectives Influenced by more external sources Heterogeneous and homogenous functions

SUCCESS FACTORS FOR GHRM:

Flexibility to work Manage across cultures Best business practices Identify internal and external candidates who already have those success factors Provide detailed developmental reports

THANKS...