.1.1 1.

20
Chapter 1.
Introduction to Global Human
.2.1 2.26 Resource Management
Contents ..
1.1 Introduction to Global Human Resource Management- Conceptual Frámework
1.2 Meaning and Definition of Global Human Resource Management
ent 1.3 Features of Global Human Resource Management

3.1 3.28 1.4 Objectives of Global Human Resource Managemer

1.5 Development of Global Human Resource Management

1.6 Significance of Global HRM in International Business

1.7 Categorization of Countries and Employees in the concept of Global Human

Resource Management
4.1 4.24
Domestic Human
1.8 Difference between Global Human Resource Management and
Resource Management
Points to Remember

Question for Discussion

Multiple Choice Questions (MCQs)
Learning Objectives...
After reading this chapter, you should be able to:
Global Human Resource Management, its
Understand the concepts related

definitions, features and objectives

regarding development of Global Human Resource
Provide an overview

Management.
Countries well as Employees in Global Human Resource
Explain Categorization of
as

Management
between Global Human Resource Management and
Recognize the difference
Domestic Human Resource Management
1.1
Global Human Resource Management Introduction to Global Human Resource Management
1.1 INTRODUCTION To GLOBAL HUMAN RESOURCE MANAGEMENT.
CONCEPTUAL FRAMEWORK
Globalization is the process of international integration arising from the
interchange of world views, products, ideas and other aspects of
Culture According to the Levin Institute, the term Globalization refers to the
increasing connections people, companies and states are forming around the
world The process of forming social and economic ties across vast distances is
nothing historically; however, technological improvements
new
and liberal trade
agreements have increased these connections
greatly in contemporary times.
Advances in transportation and
telecommunications infrastructure, including the
rise of the
Internet, are major factors in
globalization, generating further
interdependence of economic and cultural activities. With
globalization,
Companies moving out of political boundaries have also
enhanced the need for
human resource functions to
go global.
With the advent of
globalization, organizations big or small have ceased to be
local, they have become global! This has
increased the workforce
cultural sensitivities have diversity and
emerged like never before. International dimensions of
business and the
globalization of business have a significant on impact human
resource
management. All this led to the
development of Global Human
Resource Management.
HRM refers to those activities undertaken
by
resources effectively.
an
organization to utilize its human

Human resource
management (HRM) as a business
practice comprises several
processes, which when used together are
supposed to achieve the theoretical
goals mentioned aboveThese practical processes include:
1. Induction and orientation-
2.
Recruitment and selection
3 Induction and orientation
4. Personnel administration
5. Training and development
1.2
Global Human Resource Management Introductionto Global Human Resource Management

6. Skills management
7. Travel management (sometimes assigned to accounting)

8 Time management
9. Compensation in wage or salaries
10. Employees benefits administration-
11. Payroll (sometimes assigned to accounting)
12. Performance appraisal
13. Personnel cost planning
.(Global HRM is the process of recruiting, allocating and effectively utilizing the
human resource in multinational corporations across the national boundaries.
Firms operating in international markets face different conditions and

competitions. Multinationals are characterised by an interdependence of

resources and responsibilities across all business units regardless of national

boundaries.
These companies have to cope with large flows of components, products,
and information among their subsidiaries and this demandssa
resources, people
complex process of coordination and cooperation involving strong cross-unit
worldwide
integrating devices, a strong corporate identity anda well developed
management perspective.
National cultural traits also play a critical role in the conduct of business by

influencing preferences and the values, beliefs and oehaviour of

customer

internal and external perspectives of

employees. Thus, culture affects both
of doing business and its results.
management, including the cost
in any type of business activity but their role has become
People play a key role
very critical in the
new economy and service sector.
who consider themselves immune to transactions
Even those organizations
boundaries are now connected to the wider network
across geographical
globally. They are in one way or dependent upon organizations that
the other

may even not have heard about. There is interdependence between organizations
in various areas and functions.

1.3
Global Human Resource Introductionto Global Human Resource Manac
Management anagement
.The preliminary function Management isis that
that the
of global Human Resource
the
organization carries a local appeal in the host country despite maintaining an
international feel. All HRM functions are carried out in a global context.
Example
Any multinational/international company would not like to be called as
local
however the same wants a domestic touch in the host country and there lies the
challenge.
The tield of Global Human Resource
Management has been characterized
by
three broad
approaches, viz
1. Firstly, it
emphasizes cross-cultural management approach and
examining human
behavior within
organizations from an international perspective
2.
Secondly, a comparative industrial relations and HRM literature seeks to
compare and analyze HRM systems in various describe
3. countries
Thirdly, to focus on aspects of HRM in multinational firms

1.2 MEANING AND DEFINITiON OF

GLOBAL HUMAN RESOURCE
RESOURCE
MANAGEMENT
Global human resource
management, sometimes reterred to as
global HRM, is an
umbrella term that includes all aspects of an
organization's HR. payroll and talent
management processes operating on a
global scale
Global human resource management is the process of
employing. developing
and rewarding people in international or global organization
.
Global organization is the organisation in which
operations takes place overseas
or it is the organisation which manages its business
internationally. It combines
knowledge of business. culture. history and social
practices to help comp
find their niches in the international
community
.Global human resource management is the
proces of procuring, allocating and
effectively utilizing human resources in Multinational Corporation

1.4
Global Human Resource Management IntroductiontoGlobal Human Resource Management
.Global human resource management is a field which is about understanding
researching, applying and revising all human resource activities in their internal
and external contexts as they impact the process of managing human resources
in enterprises throughout the global environment to enhance the experience of
multiple stakeholders, including investors, customers, employees, partners,
suppliers, environment and society.

1.3 FEATURES OF GLOBAL HUMAN RESoURCE MANAGEMENT

Human Resource Management is a process of bringing people and organizations

together so that the goals of each are met. The various features of Global Human
Resource Management include:
1. It is pervasive in nature as it is present in all enterprises.
2. Its focus is on results rather than on rules.
3. It tries to help employees develop their potential fully.
4. It encourages employees to give their best to the organization.
5. It is all about people at work, both as individuals and groups.
6. It tries to put people on assigned jobs in order to produce good results.
7. It helps an organization meet its goals in the future by providing for competent
and well motivated employees.
8. It tries to build and maintain cordial relations between people working at various
levels in the organization.
9. It is a multi-disciplinary activity, utilizing knowledge and inputs drawn from

Psychology, Economics, etc.

1.4 OBJECTIVES OF GLOBAL HUMAN RESOURCE MANAGEMENT

Global Human Resource Management is the discipline of taking care of

workforces in a public or private company and for organizations that operate in

more than one country or continent.

Global Human Resource Management means supporting, managing and

engaging employees around the world, deploying common policies and also
taking into account local legislation, customs and culture. Following are
objectives of Global Human Resource Management
1.5
Global Human Resource Management Introduction to Global Human Resource Manae
ment
1. Itenhances to develop managerial
skills, organizational knowledge and technical
abilities of HR
managers
and employees;
2. To develop more and better handle of
global business operations;
3. 10
manage and secure the performance, compensation and career path
of
employees.
Create a local appeal without
compromising upon the global identity.
5
Generating awareness of cross cultural sensitivities among managers globally and
hiring of staff.across geographic boundaries.
6. Training upon cultures and sensitivities of the host country.

1.5
DEVELOPMENT OF GLOBAL. HUMAN RESoURCE MANAGEMENT
The global human resource management should develop and implement such
policies and practices that are according to the host countries. Therefore the
influence of global variations on human resources should be considered
by the
global human resource
management. Also there are a number of challenges or
barriers in the ways of
global human resource management which influence its
Overall credibility. So here are some barriers that come in the way of effective
global human resource
management.
Barriers to Global HRM
1. Political & Legal Factors
Throughout the world, the political and legal systems are diversified. The
organizations deal with the political and legal systems that are fairly stable as well
as particularly in the
developed countries of Europe. On the other hand, in certain
other countries, there are relatively unstable political and legal systems.
The governments of certain countries face coups, corruption and
dictatorial rules
thus badly affecting the legal and bussiness environment. Owing to internal
politics, the legal systems in certain count ries are also becoming unstable. In this
way the variations in the political and legal systems, around the world become a
hurdle in the effective global human resounce management.

1.6
Global Human Resource Management Introduction to Global Human Resource Management

2. Cultural Factors
of
unique culture which is slightly similar to the cultures
Every country has its own

should
other countries of the worlad. The global human resource management
which are in accordance with
apply policies and procedures in the organization
the
of the employees of
the local culture of the country or region. Even most
there may be
foreign subsidiary should be hired from the host country. Since
prohibited in
certain cultural norms that are allowed in one country but are

another country.
human
barrier for the smooth working ofthe global
So, cultural factors become a

Therefore the expatriates of the

resource management of any organization.
norms and values of the
organization should also take into account the cultural
make that
The management should also thus
sure
host country to some extent.
subsidiaries
the implemented wider corporate culture is being followed in all the

of the globally operating organization.

3. Economic Factors
barrier for the effective global human
.The economic factor is also regarded as a

as there is not any Single economic system operating

resource management
of the capitalist system, the efficiency and productivity are

globally. In case

Indeed by making such policies

focused by the management of the organization.
that promote efficiency. On
the other system of economics,
and procedures,
concentrated by the
elimination of unemployment is
which is the socialist, the
and
although by sacrificing productivity
management of the organization
before the
is harmful for the organization. So
definitely
efficiency which
of any global human resource policy
or

development and implementation

the economic barrier of the
the management of the organization,
practice by
the organization.
should be properly comprehended by
global operations becomes a
difference in the labour costs
àround the world also
Moreover, the
business.
serious problem for a global

1.7
Global Human Resource
Management Introduction to Global Human Resource Management

4. Labor/Management Relations Factor

The policies and procedures of the qlobal human resource management are

affected by the relations of workers and employees along with tne management

because the nature of these relations varies from one country to another cOuntry

of the world.

1.6 SlGNIFICANCE OF GLOBAL HRM IN INTERNATIONAL BUSINESs

AS the success of domestic business depends on its human resources, the success
ot a multinational company depends international human
on resource
management. Human resaources managers are kind of people or managers of any
business organization and are responsible for managing a wide range of

employees.
The human resource manager in multinational company with divisions or
a

subsidiaries in foreign countries has all the normal HR responsibilities plus a

brace of additional tasks that offshore operations of his
are specific to
department. He is literally responsible for international human resource
management.
Global human resource management functions covermany different activities
related to a business organization's employees and contractors. The first and
most important is the staffing
needs of the company whether staff members are
company employees or outside contractors. Other functions include recruiting
and training employees, ensuring that they are performing at expected levels or
better, handling performance issues and making certain that personnel and
management policies conform to laws and regulations.
Global human resource management is also involved in
how the company
manages employee compensation and benefits, employee records and personnel
policies and practices.
The primary difference between domestic human resource management and
Global human resource management is the added knowledge and responsibilities
required due to foreign operations. These typicaly include language (in non-

1.8
Global Human Resource Management Introduction to Global Human Resource Management

and national regulations and

English speaking offshore organizations), the local
laws governing business operations within a foreign country; currency exchange
incentives and, perhaps most
rates, career outlooks, company benefits and
contacts.
important the ethics and etiquette expectations of foreign business
Global human resource management people must understand these differences

and stand ready to keep other company people informed of them to

clearly
prevent embarrassing situations and unintentional 'affronts' from occurring.
Basic human resources are a management activity while human resources
development is considered as a profession. The latter is targeted more specificlly
to developing personnel inside organizations through career development,

training activities. Both functions have

organizational development and
decades that
undergone very-significant evolutions during the past several so

they now play major roles in staffing, managing and training people so that they

will perform in an optimum manner for the organization.

Today, Global human resource management is the fastest-growing subset of HR

due to the growing trend for global business operations.
Significance of Human Resources in International Business
To achieve a competitive advantagein the global market, effective exploitation of
human resources is of significant importance. To be in competition and
have sustainable advantage, it is necessary to manage internal resources in
efficient way. For sustainable advantage in competition, creation of value is

important, but it should be rare, it must be inimitable and must be non-

sustainable. For the sustainable competitive advantage, human resources are the
most important factor as it is inimitable, non-substitutable as well as valuable and

rare.

1. Human Resources Valuable

. For sustainable competitive advantage, resources must be valuable. The demand
for labor is different in different firms and it is more different across the countries
than it is within the countries due differences in availability of capital, difference
of labor practices and social and cultural norms which are related to the work.

1.9
Global Human Resource Management Introduction to Global Human Resource Management
The labor
supply is also different across countries than within the countries ditee
to ditterence in hygiene, health care, nourishment, training and
educational
opportunities. As competition becomes more global, there is an
opportunity for
creating value through human resources. Human resources must have control
OrmaTion, awareness, recognition and rewards to be the source of
competitive
advantage.
2. Human Resources -

Rare
o be source of sustainable competitive advantage, the resource should be rare.
Human skills are distributed
normally in the population and are rare. Human
resources vary in worth and different
jobs require different skills and finding
these skills are rare.
International firms have and can draw more labor pool;
have great
they
potential for developing the valuable and rare resources than the
domestic firms which draw from only labor
pool.
3. Human Resources Inimitable
I t will be more difficult to imitate the resources in the presence of causal
ambiguity and social complexity.
(a) Causal Ambiguity
Exists when their is any
imperfection in understanding of the link between a
firm's resources and
competitive advantage. If the firm which is in the
competition is not able to identify the human resources which are
responsible for
competitive advantage, cannot imitate the advantage. Causal
it
ambiguity is
caused mainly due to team production. When the work is done in
team, it
becomes difficult to identify who had contributed maximum to
achieve the goal.
(b) Social Complexity
It may arise from the transaction-specific relationships. The competitive
advantage can be gained due to complex social situation. Even when the
relationships are too complex, it is better to consider the value of relationship
which may be due to the human transactions. The value can be developed due to
the knowledge and trust which had been developed over the time. Human
interaction may lead to social complexity.
1.10
 Introduction to Global Human Resource Management
Global Human Resource Management
I n the global competition, the social complexity and causal ambiguity act as a

barrier to imitation. It becomes difficult for the outsiders to understand the

competitive advantage due to differences in customs and norms. The imitation

becomes impossible due to religion, culture and political alliances.

4. Human Resources Non-substitutable

T o stay in the competitive global environment, there should be no good
substitute available. Finding the good substitute is the difficult task. Human
resources are the factor which can be transferred across the technologies,

products and markets. Human resources are thus valuable. If the firm has
obtained high level of learning capabilities then providing good training ensures

that resources do not becomes out of date.

I t is possible to substitute all the other resources for the short-term and they
can't eliminate the substitution of the human resources for long.

1.7 CATEGORIZATION OF coUNTRIES AND EMPLOYEES IN THE

cONCEPT OF GLOBAL HUMAN RESOURCE MANAGEMENT

1. Expatriates
A n expatriate (commonly abbreviated expat) is a person temporarily or
permanently residing in a country and culture other than that of the person's

upbringing.
The word comes from the Latin terms ex ("out of") and patria ("country,

fatherland").
.In its broadest sense, an expatriate is any person living in a different country from
where he is a citizen. In common usage, the term is often used in the context of

professionals sent abroad by their companies, as opposed to locally hired staff.

.The differentiation found in common usage usually comes down to socio-
economic factors, so skilled professionals working in another country are
described as expatriates, whereas a manual labourer who has moved to another
country to earn more money might be labelled as an immigrant'.
There is no set definition and usage does vary depending on context and

individual preferences and prejudices.

1.11
Global Human Resource Management Introductionto Global iunidn NEsource Manage

The used foforta

term 'expatriate' in some countries also has a legal context used

purposes.
An expatriate living in a country can receive a favorable tax treatm ment. In this
context, a person can only be expatriate if they move to a
other ththan
country other
their own to work with the intent of returning to their home country within
certain period. The number of years can vary as per taxjurisdiction, but
Dut 5 yearsis
years i
the most commonly used maximum not affected by taxes, 3
by taxes,
period. If you are
years is normally the maximum time spent in one county.

International corporations often have a company-wide policy and coachinn

system that includes spouses at an earlier stage in the decision-making process
Not many companies provide any compensation for loss of income of expatriate
Spouses, although they often do provide other benefits and assistance. The level
of support differs, ranging from offering a job-hunting course for spouses at the
new location to full service
partner support structures, run by volunteering
supported by the organization.
spouses
There are several advantages and
disadvantages of using expatriate employeesto
staff international company subsidiaries.
Advantages include, permitting closer
control and coordination of international subsidiaries and
providing a broader
global perspective. Disadvantages include high transfer costs, the possibility of
encountering local government restrictions and possibly creating a problem of
adaptability to foreign environments.
HR departments often use services of relocation companies,
who assist expats in
moving abroad as well as managing expat's related administrative issues such as
assignment management, financial management and reporting to name a few.
2. Categorization of Countries
There are three basic sources that the MNCS can tap for overseas positions:
(a) Parent Country Nationals (PCNs)
PCNs are managers who are the citizens of the country where the MNC 5
headquartered. In fact, sometimes the term 'headquarters' nationals' is also used.
These managers are commonly called expatriates, or simply, exports, which refers
to those who live and work away from their parent country.
1.12
Global Human Resource Management Introduction to Global Human Resource Management
.There are a variety of reasons for using PCNs. The most common reason was to

start up operations. MNCs prefer to have their own people launch a new venture.

The second most common reason was that the parent country people had the

necessary managerial and technical expertise (Tung, 1982).

(b) Host Country Nationals (HCNs)

HCNs are local managers who are hired by the MNC. There are many reasons for

hiring them at the lower or middle-level ranks.

Many countries require the MNC to hire loca talent as part of opening their
markets to MNCs. For example, in Brazil, two-thirds of employees in any foreign

subsidiary have to be Brazilian nationals.

I n India too, before pproving joint venture agreements, the government restricts
the number of expatriates to be employed, primarily to limit the foreign
exchange outflow and to prepare Indian nationals to undertake the responsibility

at a future time.
PCNs fill usually top positions, but this is not always the case. For example,

companies following the multi-domestic philosophy or polycentric approach

would select most positions, including top ones, from the host country, but
usually after starting the operations.
(c) Third Country Nationals (TCNs)
.TCNs are managers who are citizens of countries other than the one in which the
MNC is headquartered or the one in which it is assigned to work by the MNC.
Tung (1991) found that the two most important reasons that American MNCs use

third country nationals are:

) These people have the necessary expertise,

(i) They were judged to be the best ones for the job.
Japanese companies usually do not hire TCNs, while Phatak (1995) found that US
companies usually prefer TCNs from Europe.

.TCNs are found typically in large MNCs in advanced stages of growth.

1.13
Global Human Resource Management Introduction to Global Human Resource Manaco
anagement
A number of are cited for using them. One is that thei
eir salary
advantages
package is usually less than that of a PCN. The knowledge of local language, like
English was the reason for choosing British managers by US companies inn former
former
British colonies like India, Jamaica, West Indies and Kenya.

loday, a new breed of multi-linqual, multi-experienced global-managers' has

emerged. These new managers are part of a growing group or
international
executives who can manage across borders and do not fit the traditional
third
Country mould. With unified Europe and North America and Asia
a
becomina
business hubs, such global managers are now in great demand.
3.
Categorization of Employees
Domestic HRM involves employees with national boundary. IHRM deals
only one
more and more with a multicultural workforce.
The types of employees of an international organization can be broadly
categorized into parent country national, host
country national and Third
country
national. It is the nationality of the
employee which determines the person's
category as PCN, HCN or a TCN.

(a) Parent Country National (PCN) or the Home

Country National
These employees belong to the where country the company has its head
quarters.
Advantages of Employing a PCN to the Firm
(i)A PCN is better familiar with the goals,
objectives, policies, systems, procedures
and practices of the headquarters.
(i) A PCN can more effectively communicate and maintain liaison with
home-office
personnel.
(il) A PCN can easily exercise control over the subsidiary's operations.
Disadvantages of Employing a PCN to the Firm
() It is difficult for a PCN to adapt to the foreign language, culture, socio-economic,
political and legal environment.
(i) It is too costly for the firm to send him and his family to the subsidiaries.
1.14
Global Human Resource Management Introduction to Global Human Resource
Management
Ci) Compensation differences between PCN and HCN may create problems.
(iv) The host countries' nationals may lose jobs when the PCN are transferred to the

subsidiaries
(v PCNs may not be able to adjust to a new country and hence may even fail to
perform their duties effectively.
(b) Host Country National or HCNs
Host Country Nationals belong to the country where the subsidiary is located.
Advantages of HCNs
() A HCN is familiar with the cultural, social and political factors and business
practices in the host country and can respond effectively to the demands for
localization of the subsidiary's operations if required.
(i) A HCN costs less to a company compared to a PCN or TCN.
(ii) An MNC arranges for training and development of employees and provides them
opportunities for growth which leads to increase in their commitment and
motivation.
(iv) No need to obtain work permit to employ them.
Disadvantages of HCNs
() Difficulties in exercising effective control over the subsidiary's operations.
(i) It is difficult for a HCN to communicate with the headquarters compared to PCN.
(ii) HCN gets less opportunity for gaining international and cross-cultural experience.
(c)Third Country Nationals or TCNs
Third country employees are the employees who are neither from home country
nor from the host country. For example, if a multinational Japanese company
employs a French person in its Indian subsidiary, then French would be a third
country employee since he neither belongs to India nor Japan.
Advantages of TCNs

(i) They are the compromise between PCNs and HCNs.

(ii) TCN are usually career international business managers.

(ii) TCN are less expensive to employ than PCN.

(iv) TCN may be better exposed about the host environment than PCN.
1.15
Global Human Resource Management Introduction to Global Human Resource Managem.

Disadvantages of TCNs
(0 Host countries may be sensitive with respect to nationals of Specific countries.

(i) Local nationals are prevented in their efforts to upgrade their own ranks and

assume responsible positions in the multinational subsidiaries.

1.8 DIFFERENCE BETWEEN GLOBAL HUMAN RESOURCE

MANAGEMENT AND DOMESTIC HUMAN RESOURCE
MANAGEMENT
Global Human Resource Management is managing the human
resources
internationally by the multinational firms. Global Human Resource Management
IS a broader concept which encompasses more functions which are more
heterogeneous compared to domestic HRM.
The basic differences between Domestic Human Resource
Management and
Global Human Resource Management can be outlined as follows:
1. Domestic HRM is related to HR activities at
national level while Global Human
Resource Management is related to HR activities at international level.
2. Domestic HRM is concerned with managing
mainly the home country employees
whereas Global Human Resource
Management is concerned with managing
employees who may be either locals or the expatriates.
3 Global Human Resource Management also covers additional activities such as
global skills management, expatriate management etc. whereas these need not
performed at domestic level HRM.
4. Global Human Resource Management requires more involvement in the personal
lives of employees than domestic HRM.
5. Global Human Resource
Management is very complicated as compared to
domestic HRM due to heavy influence of external factors, differences in the
cultural backgrounds, language etc.
6. Global Human Resource Management involves higher risk than domestic HRM.
7. Global Human Resource Management involves more external factors to deal with

compared to Domestic HRM.

1.16
Global Human Resource Management Introduction to Global Human Resource Management

8. The variables either diminish or accentuate differences between domestic and

Global Human Resource Management are:
(a) Cultural differences
(b) The industry with which the multinational is primarily involved.
)Reliance of the multinational on its home-country domestic market.

(d) The attitudes of senior management.

POINTS TO REMEMBER
Globalization is the process of international integration arising from
interchange of world views, products, ideas and other aspects of culture.
According to the Levin Institute, the term Globalization refers to the increasing
connections people, companies and states are forming around the world.
HRM refers to those activities undertaken by an organization to utilize its human
resources effectively.
Global HRM is the process of recruiting, allocating and effectively utilizing the
human resource in multinational corporations across the national boundaries.

Global Human Resource Management is the discipline of taking care of

workforces in a public or private company, for organizations that operate in more
than one country or continent.
Human Resource Management is a process of bringing people and organizations

together so that the goals of each are met.

Global Human Resource Management means supporting, managing and

engaging employees around the world, deploying common policies but also

taking into account Iocal legislation, customs and culture.

T h e global human resource management should develop and implement such
policies and practices that are according to the host countries.
The barriers that come in the way of effective global human resource
are Political and Legal Factors, Cultural Factors, Economic Factors
and Labour or Management related factors.

1.17
Global Human Resource tirce Managemen
Introduction to Global Human Resource Manan
Management
There are three basic urces, the MNCs can tap for overseas positio
itions. h are
aient Country Nationals (PCNs), Host Country Nationals (HCNs), and T
Thite
ountry Nationals
(TCNs), while Categorization of employees are Parent Colurs.
tr
National (PCN) the Home
or
Country National, Host Country National or HC
and Third Country Nationals or TCNs.
Global Human Resource
Management is managing the nurman
resourr-
internationally by the multinational firms. Global Human Resource
Sd
Managermers
broader concept which encompasses more tunctions which are
mora
heterogeneous compared to domestic HRM.

QUESTIONS FOR DISCUSSION

Explain in detail about the
concept Global Human Resource Management.
2Explain the Features and Objectives
of Global Human Resource
3 How the Global Management.
Human Resource Management is developed and
explainsthe
barriers to overcome it?
4 Describe the
Categorization of Countries and
Employees in Global Human
Resource Management.
5 Explain in detail the
difference between Global Human
Resource Management
and Domestic Human Resource
Management.
6. Write Short Notes

(A) Global Human Resource

Management
(B) Domestic Human Resource Management
C) Parent Country Nationals (PCNs), Host Country Nationals (HCNs) and Third
Country Nationals (TCNs)
(D) Barriers to Global HRM
(E) Objectives of Global HRM.

1.18
Global Human Resource Management Introductionto Global Human Resource Management

Multiple Choice Questions

1. The scope of global human resource management (THRM) includes. *********"

(a) Staff recruitment (b) Staff Development

(c) Compensation (d) All of the above
2 * * * * e process of international integration arising trom the interchange

of world views, products, ideas and other aspects of culture.

(a) Globalization (b) Network
(C) Culture (d) None of the above
3 ********* ***
is a process of bringing people and organizations together so that the
goals of each are met.
(a) Global HRM (b)
(b) Human Resource Management

(c) Organization (d) Company

44 A major difference between domestic and Global HRM is the resultof
(a) Increased compiexities such as currency fluctuations, foreign HR policies and

practices and divergent labour laws

(b) The number of employees covered by the HR policies

(C) The ease with which employees adjust to new cultures

(d) The emergence of effective cross-border management styles

5 What does TCN stand for?

(a) Host Country National (b) Expatriates
(c) Home Country National (d) Third Country National

6. The non citizens employees of a country in which they are working is classifies

as ********.

(a) Subordinates (b) Expatriates

(c) Coordinates (d) None of the above

7 The USA executives who are working in Australia branch of UK multinational

Bank are example of *********.

(b) Home Country Nationals

(a) Third Country Nationals
(c) Second Country Nationals(d) None of the above
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Global Human Resource
Management Introduction to Global Human Resource Managem.
ment
8. The USA citizen works in China in subsidiary of country whose Headquarters i

located in USA is an example of .

(a) Home Country Nationals
(b) Expatriates
(c) Second
Country Nationals
(d) Both (a) and (b)
9 are local
managers who are hired by MNCs.
...

(a) Parent Country Nationals

(b) Host Country Nationals
(c) Third Country Nationals
(d) None of These
10 Global
assignments in which
employees are sent to understand global
operations and are
required to have intercultural
******** ****.
understanding are called

(a) Strategic Assignments

(b) Development Assignments
(c) Non Development Assignments
(d) Managerial Assignments
Ans. (1) -

(d). (2) -

(a), (3) -

(b), (4) -

(a), (5) (d), (6) (b), (7)

-
-
-

(a), (8) -

(a),
(9)-(b). (10) -(6).

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