Lecture #15. Global HRM

8/7/2019 Lecture #15. Global HRM

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Lecture #15. Global HRM:Managing Global Human

Resources

1. HR and internationalization ofbusiness

2. Improving internationalassignments through selection

3. Training and maintaininginternational employees

4. Strategic HR


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1. HR and internationalization ofbusiness

The HR challenges of international businessThe HR challenges of international business

- Deployment. Easily getting the right skills towhere we need them, regardless ofgeographic location

- Knowledge and innovation dissemination.Spreading state-of-the-art knowledge andpractices throughout the organizationregardless of where they originate

- Identifying and developing talent on a globalbases. Identifying who can functioneffectively in a global organization anddeveloping his/her abilities


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How intercountry

differences affect HRM?Culture collective programming ofthe mind, basic values citizens

adhere to, and the ways thesevalues manifest themselves in thenations arts, social programs,

political, and ways of doing thingsEconomic systems

Legal and industrial relations factors


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2. Improving internationalassignments through

selectionWhy international assignments fail?Why international assignments fail?

International staffingInternational staffing

- locals are citizens of the countries where theyare working

- Expatriates are noncitizens of the countries inwhich they are working

- Home-country nationals are citizens of thecountry in which the multinational companyhas its headquarters

- Third-country nationals are citizens of a countryother than the parent or the host country


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.assignments throughselection

Values and international staffing policy:

- Ethnocentric staffing policyEthnocentric staffing policy the firm fillskey management jobs with parent-country

nationals- Polycentric-orientedPolycentric-oriented firm would staff its

foreign subsidiaries with host-countrynationals, and its home office with parent-country nationals

- Geocentric staffing policyGeocentric staffing policy seeks the bestpeople for key jobs throughout the

organization, regardless of nationality


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2. Improving internationalassignments through

selectionSelecting international managers.Following traits are important forsuccess:

- Job knowledge

- Relational skills

- Flexibility/adaptability

- Extracultural openness- Family situation


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3. Training and maintaininginternational employees

Orienting and training employees on internationalassignment. Four step approach:

Level 1. Training focuses on the impact of culturaldifferences, and on raising trainees awareness ofsuch difference and their impact on business

outcomesLevel 2. Getting participants to understand how

attitudes (both negative and positive) are formedand how they influence behavior

Level 3. Training provides factual knowledge abouteh target country

Level 4. Skill building in areas like language andadjustment and adaptation skills


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International compensation

The balance sheet approach

Incentives

Foreign service premiums financial paymentsover and above regular base pay, typicallyranging between 10% and 30% of the base pay

Hardship allowances compensate expatriates forexceptionally hard living and working conditionsat certain locations

Mobility premiums typically, lump-sum paymentsto reward employees for moving from oneassignment to another


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Performance appraisal ofinternational employees

Stipulate the assignments difficulty level

Weigh the evaluation more toward the on-site managers appraisal than toward the

home-site managers distant perceptions ofthe employees performance

If the home-office manager does the actualwritten appraisal, have him/her use a

former expatriate from the same overseaslocation for advice

Modify the normal performance criteriaused for that particular position to fit theoverseas position


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4. Strategic HR

Strategic HRM is the linking of HRMwith strategic goals and objectives in

order to improve business performanceand develop organizational culture thatfoster innovation and flexibility

HR strategies are the HR courses of

action the company uses to achieve itsstrategic aims


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Management values andphilosophy

Employee commitment an employeesidentification with and agreement to pursuethe companys or the units mission to act

like an owner rather than as an employeeCommitment-building HR practices:

- Establish people-first values

- Guarantee fair treatment- Use value-based hiring

- Encourage employees to actualize


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Auditing the HR Function

1. HR and line managers answer the questionWhat should HRs functions be?

2. Participants then rate each of thesefunctions on a 10-point scale to answer the

question How important are each of thesefunctions?

3. How well are each of the functionsperformed?

4. Discussion: what needs improvement?5. How effectively does the HR function use its

resources?

Lecture #15. Global HRM

Documents

Transcript of Lecture #15. Global HRM