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Globally Managing Human Resources. Module Overview. Introduction & Overview Global Megatrends The Difference between Domestic & Global HR Global Corporate Evolution Implications for HR Management Why Global HR is Important Core Global Competencies Strategic Issues Relation to Frame - PowerPoint PPT Presentation
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Copyright 2000 - South-Western College Publishing
Globally Managing Human Resources
Copyright 2000 - South-Western College Publishing Module 25 - 2
Module Overview• Introduction & Overview
• Global Megatrends
• The Difference between Domestic & Global HR
• Global Corporate Evolution
• Implications for HR Management
• Why Global HR is Important
• Core Global Competencies
• Strategic Issues
• Relation to Frame
• Conclusion & Debrief
Copyright 2000 - South-Western College Publishing Module 25 - 3
Signs of the Globalization
Foreign Investment in the US is over $2 trillion
Global Trade
Standards &
Regulations
Over 400,000 international students from 150 countries study in the US
US Corporations Employ over 60 million overseas workers
Over 3 million Americans work overseas
24 Hour Financial MarketsGrowth of giant
multinationals & global corporations
Creation of superblocs
NAFTA,EEC,ASEA
Copyright 2000 - South-Western College Publishing Module 25 - 4
Global Megatrends
• Globalization• Learning Organization• Global Technology• Business Ethics• Creativity• Emerging Roles of Women• Changing Global Workforce
Marquardt & Engel, 93
Copyright 2000 - South-Western College Publishing Module 25 - 5
Globalization Trends
Traditional sources of competitive advantage (low cost, technology, access to capital) are not sufficient to provide a sustainable edge
Contemporary approaches point to core competencies & human assets as keys to success in the global market
Pucik, 92
Copyright 2000 - South-Western College Publishing Module 25 - 6
Global HR Management
HRM: Those functions undertaken by an organization to effectively utilize its human resources
Global HRM: Involves the procurement, allocation, and utilization of human resources across more than one nation on an international (between nations), multinational (many nations), or global scale
Copyright 2000 - South-Western College Publishing Module 25 - 7
Key Distinctions
• Global Players• Cultural Diversity• Geographic Dispersion• Environmental Differences
Copyright 2000 - South-Western College Publishing Module 25 - 8
Global Players
• Parent Country Nationals (PCNs)• Host Country Nationals (HCNs)• Third Country Nationals (TCNs)
Copyright 2000 - South-Western College Publishing Module 25 - 9
Cultural Diversity
• Intracultural• Intercultural• Cross-cultural• Multi-cultural
Copyright 2000 - South-Western College Publishing Module 25 - 10
Environment
Language Religion
Politics
Family
ClassStructure
NaturalResources
HistoryEconomics
Education
Copyright 2000 - South-Western College Publishing Module 25 - 11
Global Corporate Evolution
GlobalMultinationalInternational
Copyright 2000 - South-Western College Publishing Module 25 - 12
The Global Corporation?
An organization that:
• Has fully & globally integrated its operations
• Has the ability to optimize marketing, purchasing, people, engineering, & manufacturing activities world-wide
• Has become an “insider” in every nation where it operates
• Has a global strategic perspective with a capability for local differentiation
Adler, 93
Copyright 2000 - South-Western College Publishing Module 25 - 13
Why Corporations Go Global
• Increased foreign competition in domestic markets;
• Expanded free trade policies;
• Improved telecommunications & information systems;
• Lowered transportation or production costs;
• Access to foreign technology, skills, knowledge, human, & natural resources;
• Opportunities for larger profits;
• Worldwide financial systems & global money markets
Copyright 2000 - South-Western College Publishing Module 25 - 14
Importance of Global HR
• Reduce unnecessary waste of HR resources
• Improve effectiveness in diverse environments
• Improve ability to identify viable business environments
• Increase competitiveness
• Improve satisfaction and retention of personnel
• Prevent business loss due to cultural insensitivity
Copyright 2000 - South-Western College Publishing Module 25 - 15
Selection and Staffing
Other cultures:religion, political affiliation, socio-economic status, union affiliation, age, sex, appearance
US themes:merit & qualifications
objective
legalistic, fair
job-centered
Arvey, Bhagat, & Salas, 91
Copyright 2000 - South-Western College Publishing Module 25 - 16
Organizational Design
Old Forms: New Forms:
tall flat
complex simple
hierarchies networks
Arvey, Bhagat, & Salas, 91
Copyright 2000 - South-Western College Publishing Module 25 - 17
Training and Development
Training for expatriates– only about 1/3 of US MNCs offer any training
about 2/3 of European & Japanese MNCs do– if done, not comprehensive– language training, cultural knowledge,
environmental brief– spousal involvement– duration of training
(US: 1 week : Japan: 1 year)Arvey, Bhagat, & Salas, 91
Copyright 2000 - South-Western College Publishing Module 25 - 18
Compensation and Benefits
• Housing and utilities• Education allowances for children• Cost-of-living allowances• Hardship on-site allowance• Foreign service premium• Tax equalization & protection• Stock ownership• Retirement benefits
Arvey, Bhagat, & Salas, 91
Copyright 2000 - South-Western College Publishing Module 25 - 19
Performance Management
Other cultures:– only for certain levels (too costly)– subjective; emphasis on human relations– trait-based
US themes:– objective– job &
behaviorally based (observable)
– emphasis on outcomes
Copyright 2000 - South-Western College Publishing Module 25 - 20
Global Competencies
Global perspective
Local responsiveness
Synergistic learning
Adaptation
Foreign experience
What to pack......?
Copyright 2000 - South-Western College Publishing Module 25 - 21
Organizational Competencies
• Organizational Learning
• Continuous Improvement
• Competitive Organizational Culture
Pucik, 92
Copyright 2000 - South-Western College Publishing Module 25 - 22
Global Strategic Options
CulturalCulturalAccommodationAccommodation
Cultural SynergyCultural Synergy
CulturalCulturalAvoidanceAvoidance
CulturalCulturalDominanceDominance
Cultural CompromiseCultural Compromise
Adler, 97
Copyright 2000 - South-Western College Publishing Module 25 - 23
Strategic HR Orientations
• Adaptive Orientation
• Exportive Orientation
• Integrative Orientation
Taylor, Beechler, & Napier, 96
Copyright 2000 - South-Western College Publishing Module 25 - 24
Relation to the Frame
• Transactions
• Translation
• Transition
• Transformation
Copyright 2000 - South-Western College Publishing Module 25 - 25
Amoco CaseQuestions for discussion:• How can you as leader of this intervention best justify adapting
Amoco’s HR policies and practices to be more global?• What aspects of the existing HR system should be changed and
why? Provide specific recommendations as to how the system should be modified and when?
• What steps would you take to ensure the HR system change process is well managed?
Copyright 2000 - South-Western College Publishing Module 25 - 26
Conclusion & Debrief
• Key Lessons?• New Insights?• Personal Perspectives?• Additional thoughts, questions or comments?
Copyright 2000 - South-Western College Publishing
“It is time for people to move beyond an awareness of the urgency of global competition and begin to
develop skills for success in the global arena”
Adler, 93
Copyright 2000 - South-Western College Publishing Module 25 - 28
Global HR Outcomes
ORGANIZATIONAL LEARNING
COMPETITIVE ADVANTAGE
CONTINUOUS IMPROVEMENT
SKILL
ENHANCEMENTS
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