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Managing Global Human Resources
Topic - 12
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HR and the Internationalization of
Business
The Global Challenges
– Coordinating market, product, and production plans on
a worldwide basis
– Creating organization structures capable of balancing
centralized homeoffice control with ade!uate local
autonom"
– #$tending HR policies and s"stems
to ser%ice staffing needs abroad
&
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Intercountr" 'ifferences (ffecting
HRM
InternationalHuman Resource
Management
Laborrelations
Political/Legalsystems
Economicsystems
Cultural factorsand ethics
issues
)
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International
Human Resource Management+
Cultural factors and ethics issuesHofstedes cultural dimensions+
• Power distance: It is the e$tent to which the less powerful members of
organizations and institutions -like the famil". accept and e$pect that
power is distributed une!uall"/
• Individualism: It is the degree to which personal independence is%alued o%er group membership/
• Masculinity: Is it is the degree to which tough and asserti%e beha%ior
is encouraged/
• Uncertainty avoidance: It is the degree of comfort with ambiguous
situations and the e$tent to which efforts ha%e been made to minimizeor a%oid these situations/
• Long-term orientation: It is the degree to which the societ" focuses
more on the future, and are willing to dela" shortterm material or
social success or e%en short term emotional gratification in order to
prepare for the future/
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0
InternationalHuman Resource Management+ #conomic 1"stems
There are three economic s"stems+
• Market: (n econom" in which decisions regarding in%estment,
production, and distribution are based on suppl" and demand, and
prices of goods and ser%ices are determined in a free price s"stem/
• Planned: (n econom" in which economic decisions are made b" the
state or go%ernment rather than b" the interaction between consumers
and businesses/
• Mixed economies: (n econom" which allows a le%el of pri%ate
economic freedom in the use of capital, but also allows for
go%ernments to interfere in economic acti%ities in order to achie%e
social aims/
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International
Human Resource Management+ 3olitical,
4egal and 4abor Relations 5actors• 4egal procedures are established and followed
• 3olitical Risks
• 'ifferences in the labor law s"stems of %arious nations
#$amples+
In%oluntar" terminations are %er" e$pensi%e in certain countries like61(/
7Codetermination8 rule in German"/
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Global 'ifferences and 1imilarities
in HR 3ractices
International
!M
Training anddevelopment
practices
se of pay andother incentives
Purpose ofperformance
appraisal
Personnelselection
procedures
9
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1taffing the Global :rganization
International staffing+ Home or local;
– 4ocals
– #$patriates -e$pats.
• Homecountr" nationals
• Thirdcountr" nationals
:ffshoring
– Ha%ing local emplo"ees abroad do
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Management ?alues and
International 1taffing 3olic"
Ethnocentric !eocentric
Top Management
"alues
Polycentric
@
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1electing #$patriate Managers
(daptabilit" 1creening
– (ssessing the assignee8s -and spouse8s.
probable success in handling the foreign transfer/
– Overseas Assignment Inventory• ( test that identifies the characteristics and
attitudes international assignment candidates
should ha%e/
Realistic 3re%iews – Co%er problems to e$pect in the new
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Inability ofspouse
to ad#ust
Inability to cope
$ith overseasresponsibilities
Lac% of culturals%ills
"#y $xpatriate
%ssignments
&ail
Personality ofe&patriate
Personalintentions
'amilypressures
AA
h" #$patriate (ssignments 5ail
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Making #$patriate (ssignments
1uccessful
Realistic previe$s
Careful screening
Cultural and languagetraining
Improved bene(tspac%age
Improved orientationHelping
E&patriate)ssignments
*ucceed
A&
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:rienting and Training #mplo"ees
on International (ssignment
3redeparture training is needed on+
– The impact of cultural differences on
business outcomes
– How attitudes -both negati%e and positi%e.
are formed and how the" influence beha%ior
– 5actual knowledge about the target countr"
–
4anguage and ad
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How to Implement a Global HR
1"stem Best practices in de%eloping
worldwide human resource policies
and practices+
– 5orm global HR networks that make
local HR managers a part of global
teams/
–
Remember that it8s more important tostandardize ends and competencies
than specific methods/
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