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Global Diversity
Global Diversity
Global Diversity
Global Diversity
Global Diversity
Global Diversity
Global Diversity
Global Diversity
Global Diversity
Global Diversity
Global Diversity
Global Diversity
Global Diversity
Global Diversity
Global Diversity
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Global Diversity

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  • 1. Global HumanGlobal Human ResourceResource ManagementManagement ByBy Dr. Deborah FerberDr. Deborah Ferber
  • 2. Integration of the world’s economies and the globalization of business continue unabated at the beginning of the 21st century.
  • 3. Indicators of Globalization International trade is growing at a more rapid rate than world output Foreign direct investment (FDI) flows have set record levels in recent years Cross-border inter-firm agreements have risen dramatically during the last 20 years Social, economic, and political developments throughout the world have changed the way global business is conducted.
  • 4. The People Factor Firms need to strengthen their presence, involvement, and relative positions in the domestic and global marketplace This can be done by utilizing their global human resources in a manner that helps them establish and sustain competitive advantage
  • 5. Global Human Resource Management (GHRM) Refers to the policies and practices related to managing people in an internationally oriented organization Includes the same functions as domestic HRM There are many unique aspects to human resource management in the international organization
  • 6. Major HRM Problems for the International Corporation (1 of 2) 1. Selecting and training local managers 2. Companywide loyalty and motivation 3. Speaking local language and understanding local culture 4. Appraising managers’ overseas performance 5. Planning systematic management succession 6. Hiring local sales personnel
  • 7. Major HRM Problems for the International Corporation (2 of 2) 7. Compensating local foreign managers 8. Hiring and training foreign technical employees 9. Selecting and training managers for overseas 10. Dealing with foreign unions and labor laws 11. Promoting or transferring foreign managers 12. Compensating managers for an overseas assignment
  • 8. The Cultural Nature of Global HRM The cultural differences between nations influence the effectiveness of HRM policies and practices Of critical importance: understanding these differences ensuring that HRM and the cultural orientation of workers are congruent with one another
  • 9. The Concept of “Fit” in Global HRM Internal Fit Concerned with making sure that HRM policies facilitate the work values and motivations of employees Policies must be structured in ways that allow headquarters and foreign subsidiaries to interact efficiently External Fit The degree to which HRM matches the context in which the organization is operating The organization must understand the cultural and socioeconomic environment of the foreign subsidiary
  • 10. Sources of Employees for International Assignment Host Country Nationals (HCNs) employees from the local population referred to as local nationals Parent Country Nationals (PCNs) employees sent from the country in which the organization is headquartered referred to as expatriates Third Country Nationals (TCNs) employees from a country other than where the parent organization’s headquarters or operations are located
  • 11. Characteristics of the Expatriate Manager: High Probability for Success Strong analytical skills Good language skills Strong desire to work overseas Specific knowledge of overseas culture Well-adjusted family situation Complete support of spouse Behavioral flexibility Adaptability and open-mindedness Good relational ability Good stress management skills Low Probability for Success Uncertain technical competency Weak language skills Unsure about going overseas Family problems Low spouse support Behavioral rigidity Unadaptability – closed to new ideas Poor relational ability Weak stress management skills
  • 12. Culture Shock and the Expatriate Manager Culture Shock – the frustration and confusion that result from being constantly subjected to strange and unfamiliar cues about what to do and how to get it done Does not typically occur during the earliest days of an overseas assignment
  • 13. Host Country Nationals and the Global Corporation Managers who are host country nationals have distinct advantages over expatriates cultural sensitivity understanding of local employees’ motivations and needs Careful recruitment, selection, and training of HCNs can reduce or eliminate the potential problems with using HCNs
  • 14. The Legal and Ethical Climate of Global HRM Business practices that are considered unethical or illegal in the U.S. might be considered part of the national conduct of business in other countries Foreign Corrupt Practices Act of 1977 (FCPA) Employment discrimination
  • 15. Summary Global human resource management is an important component of an organization’s success in a global marketplace Organizations must be sure that their HRM policies can accommodate a culturally diverse workforce

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