MA GLOBAL BUSINESS CORE COURSE IN HUMAN RESOURCE MANAGEMENT IN THE GLOBAL ENVIRONMENT Academic year 2007 - 2008

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Class

Good Employer? Ethical leadership in International HRM

Objectives After attending this class, you should start practicing and learning about:

1. Identify the professional nature of human resource management and its classical functions in global contexts. 2. The ability towards individual and on-going learning, and at the same time, with team management skills to work effectively with people in an increasingly global environment. 3. Social skills understanding in HRM the interests of a range of stakeholders: investors, managers, employees, including professionals, trade unions, politicians. 4. Moral competence for trust development in organizations

HUMAN RESOURCE MANAGEMENT IN THE GLOBAL ENVIRONMENT

Sources:
Essential reading: “Business ethics and human resource management. Themes and issues”. Diana Winstanley, Jean Woodall, Edmund Heery. Personnel Review. Volume 25, Number 6, 1996. pp. 5-12. Further reading: Edwards,T. and Rees, C. International Human Resource Management, Prentice Hall, 1st edition, 2006. Chap. 13. Guillén, M. “Ética en las organizaciones. Construyendo confianza”, Prentice Hall, 1st edition, 2006. Chap.1.

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WHAT IS HUMAN RESOURCE MANAGEMENT?
Human resource (HR) management refers to the practices and policies you need to carry out the personnel aspects of your management job, specifically, acquiring, training, appraising, rewarding, and providing a safe and fair environment for your company’s employees

The Nature of a Profession
Existence of a Common Body of Knowledge A Procedure for Certifying Members of a Profession Performance Standards are Established by Members of a Profession
Society for Human Resource Management American Society for Training and Development International Personnel Management Association WorldatWork Human Resource Certification Institute

Traditional functions of the Human Resource Department

Planning for staffing. Recruiting and hiring. Training and development. Appraising compensation and benefits. Overseeing changes in employment status.

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Determining Human Resource Needs Acquiring Qualified Employees

Human Resource Planning Recruiting Selection Training Performance Appraisal Compensation Employee Motivation

The Human Resource Management Process Summary

Developing Qualified Employees Retaining Qualified Employees

Why Is HR Management Important to All Managers?
Personnel mistakes you don’t want to make Hiring the wrong person for the job Experiencing high turnover Finding employees not doing their best Having your company taken to court or to mass media because of your discriminatory or unfair actions Having your company cited under federal occupational safety laws for unsafe practices
And…

Differences between Domestic HRM and IHRM
More HR activities The need for a broader perspective More involvement in employees’ personal lives Changes in emphasis as the workforce mix of expatriates and locals varies Risk exposure Broader external influences

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Definition of IHRM
The field of IHRM is about understanding, researching, applying and revising all human resource activities in their internal and external contexts as they impact the processes of managing human resources in organisations throughout the global environment to enhance the experience of multiple stakeholders

Social Responsibility
Organizational Stakeholders
Those groups, individuals, and organizations who are directly affected by the practices of an organization and who therefore have a stake in its performance

Social Responsibility
The attempt of a business to balance its commitments to groups and individuals in its environment, including customers, other businesses, employees, and investors (stakeholders)

4. Competing by Meeting Stakeholders’ Needs
Employees Investors

CORPORATION

Customers Local Communities

Suppliers

4 - 12

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Comparing traditional and new perspectives
Traditional Traditional PEOPLE = COST PEOPLE = COST New New PEOPLE = RESOURCE PEOPLE = RESOURCE

Threat Short term Quantitative Dependent Adapted Not-flexible Minimize Results

Opportunity Long term Qualitative Independent Non-adapted Flexible Optimize Means + Results

Decision making in organizations: Three “e” model Decision making in organizations: Three “e” model Common characteristics to every organization Common characteristics to every organization Means People Ends

Three “e” model: consequence from organizational nature Three “e” model: consequence from organizational nature

Efficiency

Ethics

Effectiveness

Results Means

Results People

Results Ends
© 2006 Prentice Hall. Guillén

Virtuous vs vicious circle of ethical trust Virtuous vs vicious circle of ethical trust
1. Ethical 1. Ethical decision decision making making

PERSON

2. Employees 2. Employees motivation motivation

Micro level

ENVIRONMENT

ETHICS Building trust

ORGANIZATION
4. 4. Reputation Reputation Macro level 3. Ethical 3. Ethical corporate corporate culture culture Meso level
© 2006 Prentice Hall. Guillén

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stakeholders stakeholders
ENVIRONMENT ORGANIZATION

INPUTS INPUTS INDIRECT INDIRECT STAKEHOLDERS: STAKEHOLDERS: Suppliers Suppliers Government Government DIRECT DIRECT STAKEHOLDERS: STAKEHOLDERS: Members Members Owners Owners

OUTPUTS OUTPUTS INDIRECT INDIRECT STAKEHOLDERS: STAKEHOLDERS: Receivers Receivers Community Community

© 2006 Prentice Hall. Guillén

Concentric circles of social responsibility Concentric circles of social responsibility
PRIMARY RESPONSIBILITIES PRIMARY RESPONSIBILITIES

Tertiary

Secondary

To people directly involved To people directly involved (stakeholders) in specific (stakeholders) in specific organizational mission. organizational mission.

SECONDARY RESPONSIBILITIES SECONDARY RESPONSIBILITIES

Primary responsibilities

To people indirectly involved To people indirectly involved (stakeholders) in specific (stakeholders) in specific organizational mission. organizational mission.

TERTIARY RESPONSIBILITIES TERTIARY RESPONSIBILITIES

To other people and social To other people and social agents, not devoted to the agents, not devoted to the specific organizational mission. specific organizational mission.
© 2006 Prentice Hall. Guillén

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