Globalization

Globalization of
of HR
HR
Management
Management

© 2003 Southwestern College Publishing. All rights reserved.

 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
NAFTA,
NAFTA,EUEU

© 2002 Southwestern College Publishing. All rights reserved. 18–2

 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.

© 2002 Southwestern College Publishing. All rights reserved. 18–3

 Transition
Transitionto
toGlobal
Global Organizations
Organizations

Figure 18–1a
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 Transition
Transitionto
toGlobal
Global Organizations
Organizations

Figure 18–1b
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 Factors
FactorsAffecting
AffectingGlobal
GlobalHR
HRManagement
Management

Figure 18–2
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 Hofstede’s
Hofstede’s 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.

© 2002 Southwestern College Publishing. All rights reserved. 18–7

 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 18–3a
© 2002 Southwestern College Publishing. All rights reserved. 18–8
 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
© 2002 Southwestern College Publishing. All rights reserved. 18–9
 Selected
SelectedCountries
Countrieson
onHofstede’s
Hofstede’s
Culture
CultureDimensions
Dimensions

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 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

© 2002 Southwestern College Publishing. All rights reserved. 18–11

 Types
Types of
of Global
Global Employees
Employees
 Expatriate
–An employee, working in an operation, who
is not a citizen of the country in which the
operation is located, but is a citizen of the
country of the headquarters organization.
–For example, Japanese-owned firms with
operations in USA have rotated japanese
managers through US operations.

© 2002 Southwestern College Publishing. All rights reserved. 18–12

 Types
Types of
of Global
Global Employees
Employees
 Host-country national
–An employee working for a firm in an
operation who is a citizen of the country
where the operation is located, but where
the headquarters for the firm are in another
country.
–House country national often know the
culture, politics, laws and business customs
better than an outsider would.

© 2002 Southwestern College Publishing. All rights reserved. 18–13

 Types
Types of
of Global
Global Employees
Employees
 Third-country nationals
–A citizen of one country, working in a
second country, and employes by an
organization headquartered in a third
country.
–For example, US citizen working for a British
oil company as a manager in Norway is a
third country national.

© 2002 Southwestern College Publishing. All rights reserved. 18–14

 Global
GlobalEmployee
Employee
Selection
SelectionFactors
Factors

Figure 18–5
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 Four
FourApproaches
Approaches to
to IHRM
IHRM

Make strategic decision as to level of

standardization desired across locations
– Ethnocentric approach
• Exporting organization’s home country practices and policies
to foreign locations
– Polycentric approach
• Allowing each location to develop own practices and policies
– Regiocentric approach
• Developing standardized practices and policies by
geographic region
– Geocentric approach
• Developing one set of global practices and policies applied at
all locations

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