Global HRM

Different set of challenges

‡ ‡ ‡ ‡ ‡ ‡ Deployment of right people to right place Spreading knowledge globally Identifying talent National Cultures Economic systems (Capitalism redefined) Legal and Labor Relations

Personnel Selection
‡ ‡ ‡ ‡ Interviews Technical skills and knowledge Job experience Different factors
± Mexico ³who do you know´ ± China - How well do you test

Pay
‡ Incentive pay important in China ‡ Incentive pay less important in USA

HRM Effectiveness
‡ ‡ ‡ ‡ ‡ Communicate Communicate Dedicate enough resources Network Focus on end result not how you get there

View of Global Operations

‡ Ethnocentric
± Duplicate home country practices

‡ Polycentric
± Indigenous staff off shore. Home country staff at HQ

‡ Geocentric
± Find the best and put them where they can have the greatest impact

Staffing
‡ Expatriates
± Live in one country work in another for a short period of time

‡ Offshoring

Why Expatriates Fail

‡ ‡ ‡ ‡ ‡ Personality Family pressure Selection Lack of close friends Screen, screen, screen

Compensation
‡ ‡ ‡ ‡ ‡ ‡ Equalize earning power Foreign service premium Hardship premium Education allowance Housing allowance Tax help (some countries tax rate up to 70% if high income individual.)

Other Challenges
‡ ‡ ‡ ‡ Union relationships Terrorism Kidnapping Repatriation