Global Resource

Management 9

Objectives

• To discuss how the growth in international business activity affects human resource management

• To identify the factors that most strongly influence HRM in international Market

Topics

•HRM in Global Environment

•Factors Affecting HRM in the International Market

HRM in a Global Environment

• The environment in which organizations operate is rapidly becoming globalized.

• Factors behind the trend toward global expansion include:

New market arenas

Lower labor costs

Trade agreements among nations

Employees in an International Workforce

• Parent country – country where the organization’s headquarters are located.

• Host country – country in which the organization operates a facility.

• Third country – neither the parent nor the host country.

• In general, employees assigned to work in another country are called expatriates.

Employers in the Global Marketplace

• International organization – an organization that has set up operations in one or more foreign countries.

• Multinational companies – overseas operations on a broader scale.

• Global organization – flexible organizations that utilize cultural differences as an advantage.

Employers in the Global Marketplace

• Transnational HRM system – type of HRM system that makes decisions from a global perspective, includes managers from many countries, and is based on ideas contributed by individuals representing a variety of cultures.

Factors Affecting HRM in the International Market

HRM

Culture

Political

Legal System

Economic

System

Human

Capital

Selecting Employees in a Global Labor Market- Human Capital

• Competency in the employee’s area of expertise

• Ability to communicate

• Flexibility and tolerance for ambiguity

• Sensitivity to cultural differences

• Motivation to succeed

• Enjoyment of challenges

• Willingness to learn

• Family support

Compensating an International Workforce (Economic System )

• Compensation includes decisions about:

Pay structure

Incentive pay

Employee benefits

International Labor Relations(Political Legal System)

• Companies that operate across national boundaries often need to work with unions in more than one country.

• Day-to-day decisions about laborrelations are usually handled by each foreign subsidiary.

International Labor Relations(Political Legal System)

• International labor relations must take into account that negotiations between labor and management should take place in different social context not just different economic and legal contexts.

Selecting Expatriate Managers

A successful expatriate manager must be:Sensitive to the host country’s cultural normsFlexibleStrong enough to withstand the culture shockAble to assist family members to adapt

Unit Activitis

• Presentation of Human Resource Development Plan

•HR Word Puzzle

•Quizzes

• Final Exam