NHRDN Virtual Learning Session on Internation HRM: Integrating HRM Across Boundaries

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Speaker: Mr. Avadhesh Dixit, Global Head HR, CMC Ltd

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NHRDN Virtual Learning Session on Internation HRM: Integrating HRM Across Boundaries

  1. 2. Agenda for the Series <ul><li>Globalization and HR Impact </li></ul><ul><li>Global HR Competencies </li></ul><ul><li>International Assignment </li></ul><ul><li>Culture and Diversity </li></ul><ul><li>Employee Communication across borders </li></ul><ul><li>International C&B </li></ul><ul><li>Performance Management in Cultural Context </li></ul><ul><li>Global Training </li></ul><ul><li>Mergers and Acquisitions </li></ul>
  2. 3. GLOBALIZATION
  3. 4. Figure this out … <ul><li>Contribution of Asian Trade to total Global Trade has risen from 18.8% in 1983 to 24.8% in 1993 to 27% in 2008 </li></ul><ul><li>As per official estimates, India has the largest Diaspora of 25 million spread over 136 countries </li></ul><ul><li>According to RBI remittances from Indians working overseas, increased to $46.4 billion (4% of GDP) during 2008-09 from $43.5 billion (3.7% of GDP) in the previous year </li></ul><ul><li>Developing countries lose 10 - 30% of skilled worker & professionals through “ brain drain ”. LDCs are especially affected (ILO 2006) </li></ul><ul><li>US$250 billion sent home by migrant workers is a larger sum than all official development assistance, and FDI (ILO 2006) </li></ul><ul><li>There are around 190 million people globally living in a country NOT of their birth </li></ul><ul><li>Migrant workers make a positive net contribution of around 2.5 billion pound to the UK’s public accounts </li></ul><ul><li>It is estimated that annually between 30 & 50% of health graduates leave South Africa for the US and UK </li></ul>
  4. 5. Globalization.. What it means? <ul><li>Globalization is the ongoing process of greater economic interdependence among countries and is reflected in increasing amount of cross border trade in goods and services, the increasing volume of international financial flows and increasing flow of labor . </li></ul><ul><li>Globalization is an unavoidable process which is taking place independent of us. It forces us to cope with it. There is not room in a globalized world for an economy delinked from world trade and foreign investment. The truth is that if we do not reform rapidly, and position ourselves to compete ,we will be mariginalised.- ( Stanley Fischer) </li></ul><ul><li>Globalization refers to all those processes by which the peoples of the world are incorporated into a single world society, global society. (Albrow) </li></ul><ul><li>Globalization can be defined as the intensification of worldwide social relations which link distant localities in such a way that local happenings are shaped by events occurring many miles away and vice versa. (Giddens) </li></ul>
  5. 6. Globalization Approximately 50% of employee skills become outdated in 3 to 5 years. Source: Facts and Figures from Worlds of e-learning, Training, Work and Jobs, 2003.
  6. 7. ADVENT OF GLOBALIZATION (COLLAPSING OF BORDERS & TIME)
  7. 8. Global Market place <ul><li>Non-Industrial era: cross-border activities were done for reasons of exploration, conquest, conversion & colonization </li></ul><ul><li>Industrial era: improvements in transportation & technology (rail, roads, telephone, internet, automobiles & airplanes) </li></ul><ul><li>RESULT: </li></ul><ul><li>Increased traffic of people, resources, products & capital across borders. </li></ul>
  8. 9. Stages of Globalization Source : Bartlett and Ghoshal, 1992
  9. 10. GLOBAL HR COMPETENCIES
  10. 11. Competencies are like Icebergs 20 % - Visible Education, Skills 80% - Invisible Thinking Style, Behavioral Traits, Occupational Interests, Job Fit.
  11. 12. 7 dimensions of Global HR Professionals Source : Claus (1999) Less than 20% of the knowledge available to a company is used. Source:’Facts and Figures from Worlds of e-learning, Training, Work and Jobs, 2003.
  12. 13. Developing Successful Global HR Practices <ul><li>Understand corporate strategy: where the enterprise is and where it is going. </li></ul><ul><li>Recognize the company's path to globalization and approach to global staffing </li></ul><ul><li>Build a global mindset. </li></ul><ul><li>Look at talent availability from global perspective </li></ul><ul><li>Build credibility through functional excellence </li></ul>
  13. 14. INTERNATIONAL ASSIGNMENT
  14. 15. Purpose <ul><li>Fill skill gaps that cannot be met locally </li></ul><ul><li>To provide a consistency of corporate culture & management coordination / control across global entities </li></ul><ul><li>Helps to develop future global leaders (Pucik, 1992) </li></ul><ul><li>Global Career Opportunities </li></ul><ul><li>Building Global Employer Brand </li></ul>Some Japanese companies take up to three years to prepare their employees for international assignments. Source: SHRM (1999)
  15. 16. Evolution of a Global Location Source : Reynolds (1995)
  16. 17. Process Model Global Strategy External Factors Alignment
  17. 18. International Staffing approaches <ul><li>Ethnocentric </li></ul><ul><ul><li>Hiring and promoting employees on the basis of parent company’s home country frame of reference </li></ul></ul><ul><li>Polycentric </li></ul><ul><ul><li>Hiring and promoting employees on the basis of specific local context of the subsidiary </li></ul></ul><ul><li>Regiocentric </li></ul><ul><ul><li>Hiring and promoting employees on the basis of the specific regional context of the subsidiary </li></ul></ul><ul><li>Geocentric </li></ul><ul><ul><li>Hiring and promoting employees on the basis of ability and experience without considering race or citizenship </li></ul></ul>20-
  18. 19. Stage-1: Assessment & Selection
  19. 20. Expatriate Selection criteria
  20. 21. Stage-2: Management & Assignee Decision <ul><li>Issues addressed here are: </li></ul><ul><li>After potential candidates have been identified, exact nature of the assignment needs to be discussed </li></ul><ul><li>The company finalizes the decision whether sending an assignee across border will meet the staffing need or not </li></ul><ul><li>The assignee to decide if s/he will accept the particular assignment or not </li></ul>
  21. 22. Benefit of International Assignment <ul><li>Global integration </li></ul><ul><li>Financial or Management controls </li></ul><ul><li>Consistent Global Corporate Culture </li></ul><ul><li>Global Sourcing of Talent </li></ul><ul><li>Higher Quality Business Decisions </li></ul><ul><li>Increased Global collaboration </li></ul><ul><li>Higher Quality Relationships </li></ul><ul><li>Workforce development </li></ul><ul><li>Knowledge sharing </li></ul>
  22. 23. Reasons why people refuse <ul><li>The assignment offers no long-term career advantages. </li></ul><ul><li>The organization has a poor record of accomplishment in expatriation and repatriation. </li></ul><ul><li>The repatriation plan is nonexistent or unclear. </li></ul><ul><li>Financial incentives are considered inadequate. </li></ul><ul><li>There is minimal opportunity for personal growth and learning. </li></ul><ul><li>The assignment will disrupt the education of children. </li></ul><ul><li>A spouse/partner is reluctant to adjust his/her career. </li></ul><ul><li>Elderly relatives present concerns. </li></ul><ul><li>The location of the assignment is undesirable. </li></ul><ul><li>Host-country immigration or employment laws are restrictive. </li></ul>
  23. 24. Stage-3: Pre-departure preparation <ul><li>Details to be addressed: </li></ul><ul><ul><li>About the job </li></ul></ul><ul><ul><li>Living arrangements </li></ul></ul><ul><ul><li>Travel logistics </li></ul></ul><ul><ul><li>Family activities </li></ul></ul><ul><li>Pre-departure activities: </li></ul><ul><ul><li>Acquisition of visa/work permits </li></ul></ul><ul><ul><li>Foreign Exchange / Tickets </li></ul></ul><ul><ul><li>Pre-departure health check-up for Self/Family </li></ul></ul><ul><ul><li>Pre-departure cross culture training </li></ul></ul><ul><ul><li>Pre-assignment consultation for employee & family </li></ul></ul>
  24. 25. Pre-departure checklist <ul><li>Documents </li></ul><ul><li>Local transportation </li></ul><ul><li>Living arrangements </li></ul><ul><li>Children </li></ul><ul><li>Education </li></ul><ul><li>Health </li></ul><ul><li>Place of worship </li></ul><ul><li>Activities, recreation and networking </li></ul><ul><li>Shopping </li></ul><ul><li>Everyday culture </li></ul>
  25. 26. Assignment Constituents
  26. 27. <ul><li>Language </li></ul><ul><li>On the Job </li></ul><ul><li>Job Skills </li></ul><ul><li>Cross-cultural assignments </li></ul><ul><li>Multi-cultural Team Building </li></ul>Training for Expatriates
  27. 28. Stage-4: On Assignment <ul><li>The assignee is now at the International location. The following are the key activities undertaken for the assignee: </li></ul><ul><li>Setting the tone for getting off to a positive start </li></ul><ul><li>Presenting the Cross-cultural adjustment cycle </li></ul><ul><li>Discussion of Professional development programs </li></ul><ul><li>Highlighting the changing circumstances </li></ul>
  28. 29. Cross-cultural adjustment cycle Source: Oberg (1960) and then further developed by Black and Mendenhall (1991).
  29. 30. Stage-5: Completing the assignment <ul><li>This is the last stage of the International Assignment management process. </li></ul><ul><li>A significant investment has been made by the company. </li></ul><ul><li>The real pay off will be when the expatriate returns home or goes for next assignment. </li></ul>
  30. 31. Skills expatriates learn abroad <ul><li>Managerial skills </li></ul><ul><li>Tolerance for ambiguity </li></ul><ul><li>Multiple perspectives </li></ul><ul><li>Ability to work with and manage others </li></ul>
  31. 32. Repatriation adjustment cycle Source: Oberg (1960) and then further developed by Black and Mendenhall (1991).
  32. 33. R epatriation programs <ul><li>Re-entry training programs </li></ul><ul><li>Mentoring </li></ul><ul><li>Career planning systems </li></ul><ul><li>Policies on repatriation </li></ul><ul><li>Relocation services </li></ul><ul><li>Recognition and appreciation </li></ul><ul><li>Compensation and benefit adjustments </li></ul><ul><li>Counseling services </li></ul><ul><li>Company commitment to repatriation </li></ul>
  33. 34. Causes of Expatriate Assignment Failure <ul><li>Family adjustment </li></ul><ul><li>Lifestyle issues </li></ul><ul><li>Work adjustment </li></ul><ul><li>Bad selection </li></ul><ul><li>Poor performance </li></ul><ul><li>Other opportunities arise </li></ul><ul><li>Business reasons </li></ul><ul><li>Repatriation issues </li></ul>
  34. 35. Thank You Question and Answer

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