Human Resource Management: Sixteenth Edition

Human Resource Management
Sixteenth Edition
Chapter 17
Managing Global Human

Resources
Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved
Learning Objectives (1 of 2)
17.1 List the HR challenges of international business.
17.2 Illustrate with examples how intercountry differences
affect HRM.
17.3 List and briefly describe the main methods for staffing
global organizations.
Learning Objectives (2 of 2)
17.4 Discuss some important issues to keep in mind in
training, appraising, and compensating international
employees.
17.5 Discuss similarities and differences in employee
engagement around the globe
17.6 Explain with examples how to implement a global
human resource management program.
Learning Objective 17.1: List the HR
Challenges of International Business
The Manager’s Global Challenge
• The challenge in managing globally is that what works in
one country may not work in another.
• The global employer faces differences
– Political
– Social
– Legal
– Cultural
What is International Human Resource
Management?
• International Human Resource Management (IHRM)
– the human resource management concepts and
techniques employers use to manage the human
resource challenges of their international operations.
Learning Objective 17.2: Illustrate With
Examples How Intercountry Differences
Affect HRM
Adapting HR Activities to InterCountry
Differences
Figure 17-1 Critical Intercountry
Differences That Influence
International HR Practices
Cultural Factors and Legal Factors
• Countries differ widely in their cultures
• The Hofstede Study
– Power distance
– Individualism
– Masculinity
– Uncertainty avoidance
– Long-term orientation
• Legal Factors
Economic Systems
• Differences in economic systems tend to translate into
differences in human resource management policies.
– Market
– Planned
– Mixed
HR Abroad Example: The European
Union
• Minimum EU Wage
• Working Hours
• Termination of Employment
HR Abroad Example: China
• China’s workforce, while still huge, is growing less quickly
• Recruiting
• Selection
• Compensation
• Labor Unions
Learning Objective 17.3: List and
Briefly Describe the Main Methods
for Staffing Global Organizations
Staffing the Global Organization
• International staffing: home or local?
– Expatriates (Expats)
– Parent (Home-Country) Nationals
– Locals (host-country nationals)
– Third-Country Nationals
Internationalization Stage, Values, and
Staffing Policy
• Ethnocentrically oriented company
• Polycentric company
• Global company
• Expats v s locals
er us
• Other solutions
• Offshoring
Improving Performance: HR as a Profit
Center
Reducing Expatriate Costs
Let’s talk about it…
Trends Shaping HR: Digital and Social
Media
Using Global Virtual Teams
Let’s take a look…
Selecting International Managers (1 of 2)
• Realistic Previews
• Adaptability Screening
• Testing
• Legal Issues
Selecting International Managers (2 of 2)
• Avoiding early expatriate returns
– Personality
– Family pressures
▪ Realistic previews
▪ Careful screening
▪ Improved orientation
Diversity Counts
• Sending Women Managers Abroad
Improving Performance: HR Tools for
Line Managers and Small Businesses
Some Practical Solutions to the Expatriate Challenge
Learning Objective 17.4: Discuss Some
Important Issues to Keep in Mind in Training,
Appraising, and Compensating International
Employees
Training and Maintaining Employees on
International Assignment (1 of 3)
• Orienting and training employees on international
assignment
– Pre-departure training
– On-going training
– Ethics and Codes of Conduct
• Performance appraisal of international managers
– Cultural differences
– Who does the appraisal
– Adapt criteria to the local job
– Weigh the evaluation more toward the on-site
manager’s appraisal
– Use a former expatriate from the same overseas
location for advice
• Compensating managers abroad
– The balance sheet approach
– Incentives
▪ Foreign service premium
▪ Hardship allowance
▪ Mobility premiums
Steps in Establishing A Global Pay
System
Step 1. Set Strategy
Step 2. Identify crucial executive behaviors
Step 3. Global philosophy framework
Step 4. Identify gaps
Step 5. Systematize pay systems
Step 6. Adapt pay policies
Training and Maintaining Employees
Abroad
• Union relations abroad
– More vigorous collective bargaining negotiations
• Safety abroad
– Local worker safety
– Protecting their own international assignees and
international travelers
• Taking Protective Measures
• Kidnapping and Ransom (K&R) insurance
Repatriation: Problems and Solutions
• Wasted investments
– given the investment the employer makes in training
and sending these high-potential people abroad, it
makes sense to try to retain them
• Losing knowledge and experience
• Steps in repatriation
• Simplest thing: value the expatriate’s experience
Improving Performance: HR Practices
Around The Globe
Business Travel
Learning Objective 17.5: Discuss Similarities
and Differences in Employee Engagement
Around the Globe
Employee Engagement Guide for
Managers
• Engagement Around the Globe
Learning Objective 17.6: Explain With
Examples How to Implement a Global
Human Resource Management Program
Managing HR Locally: How to Put into
Practice a Global HR System
Figure 17-2 Best Practices for
Creating Global HR Systems
Developing a More Effective Global HR
System
• Form global HR systems
• HR Networks
– Form global HR networks
– Remember that it’s more important to standardize
ends and competencies than specific methods
Making the Global HR System More
Acceptable
• The Three (3) Best Practices
– Remember that truly global organizations find it easier
to install global systems
– Investigate pressures to differentiate and determine
their legitimacy
– Try to work within the context of a strong corporate
culture.
Implementing the Global HR System
• You can’t communicate enough
– Constant contact
• Dedicate adequate resources
Chapter 17 Review
What you should now know….
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Human Resource Management

Managing Global Human

Reducing Expatriate Costs

Let’s talk about it…

Using Global Virtual Teams

Let’s take a look…

Some Practical Solutions to the Expatriate Challenge

Let’s talk about it…

Let’s talk about it…

What you should now know….

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