Transcript Human Resource Management TENTH EDITON SECTION 5 Employee Relations and Global HR Robert L. Mathis  John H.

Human Resource
Management
TENTH EDITON
SECTION 5
Employee
Relations
and
Global HR
Robert L. Mathis  John H. Jackson
Chapter 18
Globalization of HR
Management
© 2003 Southwestern College Publishing. All rights reserved.
PowerPoint Presentation
by Charlie Cook
Learning Objectives
After you have read this chapter, you should be able to:
– 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 expatriate
completion rates.
– Identify basic international compensation practices.
– Describe several international health, safety, and
security concerns.
© 2002 Southwestern College Publishing. All rights reserved.
18–2
Globalization of Business and HR
Global Population
Changes
Global
Communications
Globalization
Forces
Global Economic
Interdependence
Regional Alliances
NAFTA, EU
© 2002 Southwestern College Publishing. All rights reserved.
18–3
Types of Global Organizations
Types
Importing and
Exporting
Selling and buying goods and services with
organizations in other countries
Multinational
Enterprise (MNE)
An organization with operating units located in
foreign countries.
Global
Organization
An organization having corporate units in a
number of countries integrated to operate
worldwide.
© 2002 Southwestern College Publishing. All rights reserved.
18–4
Transition to Global Organizations
Figure 18–1a
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18–5
Transition to Global Organizations
Figure 18–1b
© 2002 Southwestern College Publishing. All rights reserved.
18–6
Factors Affecting Global HR Management
Figure 18–2
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18–7
Hofstede’s Culture 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/
Femininity
The degree to which “masculine” values prevail
over “feminine” values.
Uncertainty
Avoidance
The preference of people in a country for structured
rather than unstructured situations.
Long-Term
Orientation
The values people hold that emphasize the future,
as opposed to short-term values focusing on the
present.
© 2002 Southwestern College Publishing. All rights reserved.
18–8
Selected Countries on Hofstede’s
Culture Dimensions
Source: Based on data contained in Geert Hofstede, Cultures
and Organizations (London: McGraw-Hill Book Co., 1991).
© 2002 Southwestern College Publishing. All rights reserved.
Figure 18–3a
18–9
Selected Countries on Hofstede’s
Culture Dimensions
Source: Based on data contained in Geert Hofstede, Cultures
and Organizations (London: McGraw-Hill Book Co., 1991).
© 2002 Southwestern College Publishing. All rights reserved.
Figure 18–3b
18–10
Staffing Global Assignments
Types of Global Employees
Expatriate
Host-Country
National
© 2002 Southwestern College Publishing. All rights reserved.
Third-Country
National
18–11
Types of Global Assignments
Figure 18–4
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18–12
Global Employee
Selection Factors
Figure 18–5
© 2002 Southwestern College Publishing. All rights reserved.
18–13
Causes of Expatriate Assignment Failure
Source: Based on data from Global Relocation Trends Survey Report
(New York: GMAC GRS/Windham International, 2000), 48.
© 2002 Southwestern College Publishing. All rights reserved.
Figure 18–6
18–14
Global Assignment Management Cycle
Figure 18–7
© 2002 Southwestern College Publishing. All rights reserved.
18–15
Intercultural Competency Training
Source: Developed by Andrea Graf, Ph.D., Technical University of
Braunschweig, Germany, and Robert L. Mathis, Ph.D., SPHR.
© 2002 Southwestern College Publishing. All rights reserved.
Figure 18–8
18–16
Expatriate Adjustment Stages
Source: GMAC Relocation Services, used with permission.
© 2002 Southwestern College Publishing. All rights reserved.
Figure 18–9
18–17
International 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.
© 2002 Southwestern College Publishing. All rights reserved.
18–18
Typical Expatriate Compensation Components
Figure 18–10
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18–19
Global Employment
Global Employee
Relations Issues
Global LaborManagement
Relations
Discrimination
Regulations
Globally
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Global Health,
Safety, and
Security
18–20
Union Membership as a Percentage of
the Workforce for Selected Countries
Source: International Labor Organization, available at www.ilope.org.
© 2002 Southwestern College Publishing. All rights reserved.
Figure 18–11
18–21