Name : Kevinia Mayumi Amran

NIM : 2220522066

CHAPTER 17: MANAGING GLOBAL HUMAN RESOURCES

Human Resource Management (HRM) refers to the strategies and methods companies use to
handle various aspects of their international operations involving employees. This includes acquiring,
evaluating, compensating, and addressing labour-related concerns like health, safety, and fairness.
Across different countries, companies encounter political, social, legal, and cultural differences,
compelling them to adjust their HR practices accordingly.

One significant challenge in managing global organizations is staffing. Companies adopt

different approaches such as utilizing expatriates, employees from their home country, locals, or
individuals from third countries. Ethnocentric firms prioritize their home country's perspectives,
polycentric ones focus more on host-country employees, while global employers aim to select the
most suitable candidates, regardless of origin. Selecting employees for international assignments
relies heavily on adaptability screening and providing necessary support to employees' families for a
smooth transition.

Once employees are selected for international roles, the focus shifts to training and support.
Pre-departure training covers cultural impact and understanding attitudes that influence behavior. It
also includes knowledge about the target country and developing language and adjustment skills.
Compensation for expatriates often follows a balance sheet approach, aiming to maintain a similar
standard of living abroad as they had at home. Due to security concerns like terrorism, employers
often take protective measures, such as acquiring kidnapping and ransom insurance. Effective
repatriation programs keep employees informed about happenings in their home offices, periodically
bring them back, and provide formal services for their return.

Globally, employee engagement tends to converge around 61%, with career opportunities
being the primary driver across all regions. As companies increasingly rely on local employees over
expatriates, managers need to understand how to implement a global HR system. This involves
developing an efficient global HR system, making it acceptable, and executing it effectively.
 APPLICATION CASE: “BOSS, I THINK WE HAVE A PROBLEM”

Central Steel Door Corporation, a successful business for 20 years, expanded methodically

across the U.S. and into Canada. However, when aiming for Europe, their usual strategy didn’t yield

success. Attempting to hire a sales manager through the International New York Times led to only a

handful of applicants, with one potentially suitable and others lacking relevant experience. Overseas

HR efforts faced more hurdles as managers sent to Europe were ill-prepared for living expenses and

tax obligations. Additionally, after disappointing sales, firing employees in Europe hit a legal snag due

to contractual requirements, leaving the company in a challenging situation.

QUESTION:

1. Based on this chapter and the case incident, compile a list of 10 international HR mistakes Mr.

Fisher has made so far.

Answer:

- Misunderstanding local labour laws: Failing to understand the local labour laws and

regulations can lead to legal issues and penalties, affecting the organization's reputation

and financial stability.

- Lack of formal policies and procedures: A lack of clear and well-documented policies and

procedures can lead to confusion and inconsistency in the application of HR practices

across different locations.

- Poor communication: Inadequate communication between headquarters and local offices

can result in misalignment of HR practices and policies, leading to confusion and

frustration among employees.

- Inadequate training and support: Failing to provide adequate training and support to

international employees can negatively impact their performance and adaptability,

leading to higher turnover rates and decreased productivity.

 - Ignoring cultural differences: Disregarding cultural differences can lead to

misunderstandings and conflicts among employees, affecting team dynamics and overall

productivity.

- Failing to adapt HR practices to local contexts: Insisting on applying universal HR practices

without considering the unique challenges and needs of each country or region can result

in ineffective management and lower employee satisfaction.

- Poor performance evaluation: Inadequate performance evaluation methods can lead to

unfair assessments of employees' performance, affecting their career development and

motivation.

- Compensation issues: Failing to provide competitive compensation and benefits can result

in employee dissatisfaction and higher turnover rates, affecting the organization's financial

performance and reputation.

- Data privacy and security breaches: Lack of awareness and proper safeguards can lead to

data privacy and security breaches, damaging the organization's reputation and

relationships overseas.

- Unpreparedness for crises and emergencies: Failing to plan for and respond to crises, such

as pandemics or political unrest, can exacerbate the challenges faced by international

employees and the organization.

2. How would you have gone about hiring a European sales manager? Why?

Answer:

- Define the job requirements: I would start by defining the job requirements, including the

necessary skills, experience, and qualifications for the role. This would involve identifying

the key responsibilities of the position, such as managing sales teams, developing sales

strategies, and achieving revenue targets.

- Determine the location: I would decide on the location of the position, whether it would

be based in Europe or in the United States. This would depend on the company's needs

and resources, as well as the availability of qualified candidates.

- Advertise the job: I would advertise the job on relevant job boards and social media

platforms, targeting candidates with experience in sales management and a strong

understanding of the European market.

- Screen and interview candidates: I would screen the resumes and cover letters of the

applicants to identify the most qualified candidates. I would then conduct interviews to

assess their skills, experience, and cultural fit. I would also consider conducting video

interviews to save time and resources.

- Check references: I would check the references of the top candidates to verify their work

experience and performance.

- Make an offer: Once I have identified the best candidate, I would make an offer that

includes a competitive salary, benefits, and any other incentives that would attract and

retain top talent.

- Onboard the new hire: I would ensure that the new hire receives proper onboarding and

training to familiarize them with the company's culture, policies, and procedures. This

would include introducing them to the sales team, providing them with the necessary

tools and resources, and setting clear expectations for their performance.

Hiring a European sales manager requires a thorough understanding of the job

requirements, a targeted recruitment strategy, and a rigorous screening and interview

process to identify the best candidate for the role.

3. What would you do now if you were Mr. Fisher?

Answer:

- Investigate thoroughly: Gather information from the sales team, manager, and other

relevant parties to understand the problem's scope.

- Pinpoint the cause: Identify whether the issue lies with the manager, the team, market

conditions, or other factors.

- Plan a solution: Develop a targeted plan based on investigation findings, possibly involving

additional training or strategy revisions.

- Open communication: Transparently communicate the situation and action plan with all

stakeholders to ensure everyone is informed and aligned.

- Track and adjust: Monitor progress, gather feedback, and adapt the plan as necessary to

drive improvements and address challenges effectively.