Human Resource

Management

Employee
Employee
Globalization
Globalization of
of Relations
Relations
and
and
HR
HR Management
Management Global
Global HR
HR

Ata Ur Rehman
 Learning
Learning Objectives
Objectives

– Identify key forces driving globalization of management

and organizations.
– Describe how political, legal, economic, and cultural
factors affect global HR management.
– Discuss the five factors considered necessary to select
successful global employees.
– Explain the activities needed to increase retention of
employees.
– Identify basic international compensation practices.
– Describe several international health, safety, and
security concerns.
 Globalization
Globalization of
of Business
Business and
and HR
HR

Global
GlobalPopulation
Population
Changes
Changes

Global
Global Globalization
Globalization Global
GlobalEconomic
Economic
Communications Interdependence
Communications Forces
Forces Interdependence

Regional
RegionalAlliances
Alliances
 Types
Types of
of Global
Global Organizations
Organizations

Types
Importing and Selling and buying goods and services with
Exporting organizations in other countries

Multinational An organization with operating units located in

Enterprise (MNE) foreign countries.

Global An organization having corporate units in a

Organization number of countries integrated to operate
worldwide.
Transition
Transitionto
toGlobal
Global Organizations
Organizations

Figure 18–1a
Transition
Transitionto
toGlobal
Global Organizations
Organizations

Figure 18–1b
Factors
FactorsAffecting
AffectingGlobal
GlobalHR
HRManagement
Management

Figure 18–2
 Culture
Culture Dimensions
Dimensions

Types
Power Distance The inequity among the people of a nation.

Individualism The extent to which people prefer to act as

individuals instead of members of groups.

Masculinity/ The degree to which “masculine” values prevail

Femininity over “feminine” values.

Uncertainty The preference of people in a country for structured

Avoidance rather than unstructured situations.

Long-Term The values people hold that emphasize the future,

Orientation as opposed to short-term values focusing on the
present.
 Selected
SelectedCountries
Countrieson
on
Culture
CultureDimensions
Dimensions

Source: Based on data contained in Geert Hofstede, Cultures

and Organizations (London: McGraw-Hill Book Co., 1991). Figure 18–3a
 Selected
SelectedCountries
Countrieson
onHofstede’s
Hofstede’s
Culture
CultureDimensions
Dimensions

Source: Based on data contained in Geert Hofstede, Cultures

and Organizations (London: McGraw-Hill Book Co., 1991). Figure 18–3b
 Staffing
Staffing Global
Global Assignments
Assignments

Types
Types of
of Global
Global Employees
Employees

Host-Country
Host-Country Third-Country
Third-Country
Expatriate
Expatriate National
National National
National
Types
Types of
ofGlobal
GlobalAssignments
Assignments

Figure 18–4
Global
GlobalEmployee
Employee
Selection
SelectionFactors
Factors

Figure 18–5
 Causes
Causesof
ofExpatriate
ExpatriateAssignment
Assignment Failure
Failure

Source: Based on data from Global Relocation Trends Survey Report

(New York: GMAC GRS/Windham International, 2000), 48. Figure 18–6
Global
Global Assignment
Assignment Management
ManagementCycle
Cycle

Figure 18–7
 Intercultural
InterculturalCompetency
CompetencyTraining
Training

Source: Developed by Andrea Graf, Ph.D., Technical University of

Braunschweig, Germany, and Robert L. Mathis, Ph.D., SPHR. Figure 18–8
 Expatriate
ExpatriateAdjustment
AdjustmentStages
Stages

Source: GMAC Relocation Services, used with permission. Figure 18–9

 International
International Compensation
Compensation
 Balance Sheet Approach
– Equalizes cost differences between the international
assignment and the same assignment in the home
country.
• Home-country reference point used to maintain a
standard of living equivalency.
• Home-country compensation and other benefits are
protected during the international assignment.
 Global Market Approach
– International assignments are viewed as continual
and core components of compensation and benefits
are provided regardless of assignment location.
Typical
TypicalExpatriate
ExpatriateCompensation
CompensationComponents
Components

Figure 18–10
 Global
Global Employment
Employment

Global
Global Employee
Employee
Relations
RelationsIssues
Issues

Global
GlobalLabor-
Labor- Discrimination
Discrimination Global
GlobalHealth,
Health,
Management
Management Regulations
Regulations Safety,
Safety,and
and
Relations
Relations Globally
Globally Security
Security
 Union
UnionMembership
Membershipas asaaPercentage
Percentageof
of
the
theWorkforce
Workforcefor
for Selected
SelectedCountries
Countries

Source: International Labor Organization, available at www.ilope.org. Figure 18–11