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8/18/2019 Lecture 6 Global Governance in HRM
http://slidepdf.com/reader/full/lecture-6-global-governance-in-hrm 1/19
Lecture # 6Global Governance
in HRM
SZABIST Islamabad
Facilitator: Muhammad Ahmed Khan
8/18/2019 Lecture 6 Global Governance in HRM
http://slidepdf.com/reader/full/lecture-6-global-governance-in-hrm 2/19
Topics
Topics
• HRM & legislations• Global enterprise system• Global human resource management (GHRM)• Comparison between GHRM & DHRM
• Core HRM activities• GHRM & DHRM dierences & similarities• !actors aecting global HRM• Main issues tac"led in GHRM
• G. Hofstede’s Cultural Dimensions Theory
8/18/2019 Lecture 6 Global Governance in HRM
http://slidepdf.com/reader/full/lecture-6-global-governance-in-hrm 3/19
HRM & L!ISLATI"#S
Most HR decisions are ta"en "eeping in view one
law or another# e$g$
Hiring and iring o employees
%mployee compensationHow and what beneits to oer
ccommodation o employees' dependents
ewer sets o laws even cover people with
disabilities and those see"ing medical leave
absence rom wor" wor"er saety# se*ual
harassment$ etc$
8/18/2019 Lecture 6 Global Governance in HRM
http://slidepdf.com/reader/full/lecture-6-global-governance-in-hrm 4/19
!L"BAL #TR$RIS S%STM
• Due to globali+ation it is diicult to distinguish
between a oreign irm and a domestic outit$• Migrant wor"ers around the globe has posed new
GHRM challenges$
•
,rgani+ations have to ollow HRM policies with aglobal perspective i they strive to capture global
mar"ets$
• %ven upstart irms dealing in cross-border business
have to conorm to sta related globally setbenchmar"s$
• %ective HR policies irms can enhance their
international competitiveness
8/18/2019 Lecture 6 Global Governance in HRM
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strategic and coherent approach to themanagement o an organi+ation's most valued
assets - the .%,./% wor"ing there individually
and collectively$
HMA# RS"R' MA#A!M#T
HMA# RS"R' MA#A!M#T( )h*+
S,illed -or,.orce
Limited a/ailabilit*
$roper utili0ation
1!eor2e lton Ma*o 3 Father o. Human Resource
Mana2ement4
8/18/2019 Lecture 6 Global Governance in HRM
http://slidepdf.com/reader/full/lecture-6-global-governance-in-hrm 6/19
!L"BAL HMA# RS"R' MA#A!M#T
• 0he process o employing# developing and rewarding
people in international or global organi+ation$ n
organi+ation in which operations ta"es place
subsidiaries overseas$ or manages its business
internationally$
• ,r simply 1 0he process o managing people in
2nternational settings1
• GHRM combines "nowledge o business# culture#
history and social practices to help companies ind their
niches in the international community$
8/18/2019 Lecture 6 Global Governance in HRM
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K% FATRS "F !L"BAL HRM
• Dierent labour mar"ets
• Mobility problems3
• /egal# economic# cultural barriers
• Dierent management styles• 4aried compensation practices
• /abour laws$
8/18/2019 Lecture 6 Global Governance in HRM
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'"M$ARIS"#
!HRM
•Handles a wide range o HRMactivities$
•2ssues relate to employees
belonging to many nationalities
•Greater involvement o HR
manager in personal lie o
employees
•Greater e*posure to ris"s in
2nternational assignments
•Manages several e*ternal
actors# e$g$ government
regulations o oreign countries
5HRM
• Deals with a narrow rangeo HRM activities$
• 2ssues relate to employees
belonging to a single
nationality
• /imited involvement o HR
manager in personal lie o
employees
• /imited ris"s in domestic
assignments• /imited e*ternal actors to
deal with$
8/18/2019 Lecture 6 Global Governance in HRM
http://slidepdf.com/reader/full/lecture-6-global-governance-in-hrm 9/19
HUMANRESOURCEMANAGEMENT
Recruitment,Selection,Orientation andExit interview
HR Analysis,Policy andPlanning
EmploymentContract
and Admin.
EmployeeRecords/Dataase
Compensationand !ene"ts
#rainingand
Devp$t
Per%ormanceAppraisal
Employeeand
&aor 'gmt(Relations
'"R HRM A'TI6ITIS
8/18/2019 Lecture 6 Global Governance in HRM
http://slidepdf.com/reader/full/lecture-6-global-governance-in-hrm 10/19
Recruitment,Selection,
Orientation
Compensationand
!ene"ts
#rainingand
Devp$t(
Per%ormanceAppraisal
'ar)eting/
Sales
Operations
inance
Ot*er%unctional
Areas
5IFFR#'S & SIMILARITIS
GLO!ALHUMAN RESOURCE MANAGEMENT
8/18/2019 Lecture 6 Global Governance in HRM
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$olitical conomic
'ulture
La-s and
Re2ulations
Technical
Ad/ancement
FA'T"RS AFF'TI#! !L"BAL HR
8/18/2019 Lecture 6 Global Governance in HRM
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MAI# ISSS TA'KL5 I# !HRM
• How to sta "ey management posts in the Co$5
• Develop managers# who can do business in dierent
countries5
• .re-departure training or international assignments
• How to compensate people in dierent locations5
• How to evaluate the perormance o managers in
dierent countries5
• .erormance management in international assignments
• Repatriation$
8/18/2019 Lecture 6 Global Governance in HRM
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I#TR#ATI"#AL STAFFI#! 789
It is a process o. selectin2 emplo*ees .or
sta..in2 international operations o. an M#'
• Three sources o. sta..in2
a) Home countr* or $arent 'ountr* #ational 1$'#4 %mployees o an organi+ation who are citi+ens o
the country in which the head6uarters o the
company is located$
b4 Host 'ountr* #ationals 1H'#4
%mployees o an organi+ation who are the citi+ens
o the country in which the oreign subsidiary is
located
8/18/2019 Lecture 6 Global Governance in HRM
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I#TR#ATI"#AL STAFFI#! 989
• Three sources o. sta..in2
c4 Third 'ountr* #ationals 1T'#4
%mployees o an organi+ation who are the citi+ens
o the country other than the country where the
organi+ation is head6uartered and the country that
is hosting the subsidiary
8/18/2019 Lecture 6 Global Governance in HRM
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Mana2in2 e;patriate assi2nments
throu2h HRM policies
• 7hy choice o employee or international
assignment is critical to the organi+ation5Mostly e*patriates wor" under minimal supervision at
distant locations# so mista"es in selection may go
unnoticed until it is too late
• !or selection o the best e*patriate employee
the management should3 ccept cultural sensitivity as a selection criterion
%stablish a selection board o e*patriates$
/oo" or candidates with previous international
e*perience
%*plore the possibility o hiring oreign-born
employees who can serve as <e;patriates= in uture
8/18/2019 Lecture 6 Global Governance in HRM
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$o-er 5istance: %*tent to which
individuals e*pect a tiered structure that
emphasi+es status dierence between
subordinates and superiors$$ (2ne6ualityamong the people o a nation)
HRM policies> or2ani0ational character & #ational
culture
Indi/idualism: Degree to which a society
values personal goals# autonomy and
privacy over group loyalty (Moral stance#
political philosophy# ideology or social
outloo" that emphasi+es the moral worth
o the individual)
!eert Ho.stede?s 'ultural 5imensions Theor*
8/18/2019 Lecture 6 Global Governance in HRM
http://slidepdf.com/reader/full/lecture-6-global-governance-in-hrm 17/19
! Ho.stede?s 'ultural 5imensions Theor*
ncertaint* a/oidance :
relects the e*tent to which
members attempt to cope withan*iety by minimi+ing
uncertainty$
Masculinit*8Femininit*: 0he
degree to which 8masculine1values prevail over 8eminine1
values$
8/18/2019 Lecture 6 Global Governance in HRM
http://slidepdf.com/reader/full/lecture-6-global-governance-in-hrm 18/19
Lon2 term8 short term
orientation: %*tent to which values
are oriented towards the .uture
(preserving# persistence) as
opposed to the past or present
(respect to tradition# ulilling socialobligations)
! Ho.stede?s 'ultural
5imensions Theor*