Transcript Human Resource Management - Mike Mullen

4-2
Global Human Resource
Management (GHRM)
 Refers
to the policies and practices related to
managing people in an internationally oriented
organization
 Includes
the same functions as domestic
HRM and many aspects unique to
international organizations
See Exhibit 4-2
4-3
Maquiladoras
 Refer
to Mexican assembly plants
 Used by international companies for routine
production processes
 Attempts to gain manufacturing and labor cost
advantages
 Sometimes called “twin plants”
4-4
Culture and the Workplace:
Hofstede’s Theory of Cultural Relativity
FIVE DIMENSIONS
 Individual
versus Collectivism
 Power distance
 Avoidance of uncertainty
 Masculinity
 Long-term versus short-term orientation
Assertiveness
Sweden, NZ
Egypt, Ireland
Spain, US,
Greece
Long term v
Short term
Russia, Argt,
Poland
Slovenia,
Ireland
Denmark,
Canada, ND
Masculinity
Sweden,
Denmark, Slov
Italy, Brazil
S. Korea, Egypt
Morocco
Uncertainty
Avoidance
Russia, Hungary US Mexico
Israel
Austria
Germany
Individualism
collectivism
Denmark Japan
Hong Kong
Egypt US
Greece Hungary
Germany
LOW
MODERATE
HIGH
4-5
Concept of “Fit” in
Global HRM
Fit is the degree to which policies
and practices are congruent with:
 The
firm’s international strategy
Internal fit
 Work-related
External fit
values of foreign cultures
4-6
Multinational and
Global Corporations
GCs
MNCs
Early stage of international
strategy
 Has operations in many
nations
 Viewed as separate
enterprises
 Control remains with home
office


Staffs based on expertise

Operate wherever cost
effective

World is labor source and
marketplace
4-7
Sources of Employees for
International Assignments
HCN
TCN
PCN
Host Country
Nationals
(HCNs) are
workers
from the local
population
(local nationals)
Parent Country
Nationals (PCNs)
are employees
sent from the
home country
(expatriates)
Third Country
Nationals
(TCNs) are
employees from
a country other
than the parent &
host countries
4-8
International Orientation
PHILOSOPHY
CORPORATE
STRUCTURE
Ethnocentric
Multinational
Geocentric
Global
4-9
The Expatriate Manager
Managing the expatriate’s adjustment
is a primary focus of GHRM functions like:
 Selection
for expatriate assignments
 Comprehensive pre-departure training
 Compensation and benefits packages that
consider situational factors like family
 Development and career planning
4-10
Culture Shock
 Feelings
 Results
of frustration and confusion
from being constantly subjected
to strange and unfamiliar cues about
what to do and how to get it done
4-11
Phases of Expatriate Training
PREDEPARTURE
Language
skills
Nation and
culture orientation
Personal
and
family orientation
Career planning
ASSIGNMENT
Language
Skills
Local mentoring
Stress training
 Business issues

REPATRIATION
Financial
management
Reentry shock
Career
management
4-12
Resistance to Using Locals (HCNs)

Locals will not adopt the parent company’s
culture and management style.

The level of commitment that locals may
have to the organization.

The host country nationals may not have
the expertise that expatriates have.

Effective communication will be impaired
between the host country and home offices.
Legal and Ethical Climate of Global
HRM
Legal Issues
Political and legal
considerations
 “Gift giving”
 Employment discrimination
American laws typically
more stringent
Civil Rights Act of 1991
applies to American firms
operating abroad

Ethical Issues
 Employee
participation
 Labor relations
 Profits versus basic
human rights ( Sweat
Shops)
Expatriate Assignments
How much do they cost?
Are they worth it?
Expatriate Costs
 Foreign
service
incentive
 Cola
 Housing
 Travel
 Cost of maintaining
2 homes
 Tax make up
 Education
allowances
 Household staff
 Automobile
 Vacation premium
 Repatriation
 Tax preparation
 Financial counseling
Expatriate Risks
*Out of the loop
*Repatriation Problems
Why Companies Stay Onshore