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Managing Global Human Resource Management


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Managing on Global Human Resource Management

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Managing Global Human Resource Management

  1. 1. Managing Global Human Resource Administration HUMAN RESOURCE ADMINISTRATION & DEVELOPMENT (MAEd GS-644) Presenter : Malyn C. Singson
  2. 2. T T o o p ii c p c s s I. Definition of Human Resource Management vs. Global Human Resource Management II. Core Activities of Human Resource Management III. The Differences/Similarities of Global HR IV. Employers in the Global Marketplace V. Factors Affecting Global HR VI. G.Hofstede’s Cultural Dimension VII. Global HR Pressures
  3. 3. VIII. Recruitment/Selection in International Staffing a. Types of Global Staff Members b. Approaches of Global Staffing IX. Criteria for Selection of Employees for foreign assignment X. Stages in Expatriation selection XI. Expatriate preparation and Development Program XII. Compensating Expatriates XIII. Compensating Host Country Nationals XIV. Global Human Resources Development
  4. 4. I. What is HUMAN RESOURCE MANAGEMENT - the strategic and coherent approach to the management of an organization’s most valued assets - the PEOPLE working there individually and collectively. Why HUMAN RESOURCE MANAGEMENT Skilled workforce Limited availability Proper utilization George Elton Mayo – Father of Human Resource Management
  5. 5. GLOBAL HUMAN RESOURCE MANAGEMENT - The process of employing, developing and rewarding people in international or global organization. An organization in which operations takes place subsidiaries overseas. Or manages its business internationally. It combines knowledge of business, culture, history and social practices to help companies find their niches in the international community.
  6. 6. II. CORE ACTIVITIES Employee and Labor Mgnt. Relations Performance Appraisal Training and Dev’t. Recruitment, Selection, Orientation and Exit interview HUMAN RESOURCE MANAGEMENT Compensation and Benefits HR Analysis, Policy and Planning Employment Contract and Admin. Employee Records/ Database HUMAN RESOURCE MANAGEMENT
  7. 7. III. DIFFERENCES/SIMILARITIES Marketing/ Sales Recruitment, Selection, Orientation Compensation and Benefits Finance Operations Training and Dev’t. Performance Appraisal Other functional Areas GLOBAL HUMAN RESOURCE MANAGEMENT
  8. 8. IV. EMPLOYERS IN THE GLOBAL MARKET (Ways to participate in international business) • Importing and Exporting the buying and selling of goods and services with organizations in other countries.
  9. 9. Employers in the Global Market rket • Multinational is an organization that operate branches a and business units in different countries.
  10. 10. Employers in the Global Market rket • Global organization an organization having corporate units in a number of countries that are integrated to operate worldwide,
  11. 11. V. FACTORS AFFECTING GLOBAL HR Economic Economic Political Laws and Laws and Regulations Regulations Culture Culture Technical Technical Advancement Advancement
  12. 12. VI. Geert HOFSTEDE’S CULTURAL DIMENSION THEORY Is a framework for cross-cultural communication. It describes the effects of a society’s culture on the values of its members and how these values relate to behavior.
  13. 13. Geert Hofstede’s Cultural Dimensions Theory  Power Distance: the inequality among the people of a nation.  Individualism: the moral stance, political philosophy, ideology or social outlook that emphasizes the moral worth of the individual.
  14. 14. G. Hofstede’s Cultural Dimensions Theory  Masculinity/Femini nity: the degree to which “masculine” values prevail over “feminine” values.  Uncertainty avoidance : reflects the extent to which members attempt to cope with anxiety by minimizing uncertainty.
  15. 15. G. Hofstede’s Cultural Dimensions Theory  Long term orientation: stands for fostering of virtues oriented towards future rewards through persevance and thrifty.
  16. 16. VII. Pr e Tra serv ns e t fer ale kn nts ow / led ge GLOBAL HR PRESSURES Identifying and Developing talent Deployment/ Service Knowledge and Innovation Dissemination ity rs hip ve rs n i tne U r pa Se rvi ce P rov ide rs S Ap A P pl (S ica y tio ste n m Pr od uc t)
  17. 17. VIII. RECRUITMENT/SELECTION in International Staffing Policy 1. Types of Global Staff Members  2. Expatriate  Host country  Approaches to Global Staffing or Top Management Values     Ethnocentric Polycentric Regioncentric Geocentric Third country national
  18. 18. 1. Types of Global Staff Members • 1.1. Expatriate An employee who is relocated from his/her mother country to work at one of the subsidiaries of the company abroad or at Corporate Headquarters for a period exceeding one year. • 1.2. Host-country national Employee’s nationality subsidiary. •1.3. Third-country national same as location of Citizen of one country, working in second country, and employed by organization headquartered in third country.
  19. 19. Illustration 1 MOTHER COUNTRY Types of Global Staff Members Expatriate  HEADQUARTER Host country National Subsidiary  THIRD COUNTRY
  20. 20. 2. Approaches to Global Staffing/ Top Management Values • 2.1. Ethnocentric staffing Companies primarily hire expatriates to staff higher-level foreign positions. • 2.2. Polycentric staffing When more host-country nationals are used throughout the organization, from top to bottom. • 2.3. Regiocentric staffing Regional groups of subsidiaries reflecting organization’s strategy and structure work as a unit.
  21. 21. Approaches to Global Staffing/ Top Management Values • 2.4. Geocentric staffing Uses worldwide integrated business strategy. Chooses the best person to work at subsidiary. Manager selection is based on competency not on nationality.
  22. 22. IX. CRITERIA FOR SELECTION OF EMPLOYEES FOR FOREIGN ASSIGNMENTS :  Competency in the employee’s area of expertise.  Ability to communicate verbally and nonverbally in the foreign country.  Flexibility, tolerance of ambiguity, and sensitivity to cultural differences.  Motivation to succeed and enjoyment of challenges.  Willingness to learn about the foreign country’s culture, language, and customs.  Support from family members.
  23. 23. X. STAGES IN EXPATRIATION SELECTION 1.Planning Phase 3. Mid-assignment Phase a. Identify the mission/ duration b. Compensation/Benefits 2. Selection Phase a. Approval of the company b. Knowledge/Technical Skills/ International experience d. Personality/Adaptability Screening e. Contract Assignment f. Training/Consultation Phase g. Work Visa h. Pre-departure orientation 4. Evaluation/Reward Phase 5. Repatriation Phase 6. Assessment Phase
  24. 24. XI. EXPATRIATE PREPARATION AND DEVELOPMENT PROGRAM Expatriate Preparation and Development Prior to Departure: Orientation and Training Language Culture History Local Customs Living Conditions During Assignment: Continual Development Expanding Skills Career Planning Home-Country Development Near Completion: Repatriation Orientation Training Lifestyle Workplace Employees
  25. 25. XII. COMPENSATING EXPATRIATES • The “Balance Sheet Approach”  Home-country groups of expenses—income taxes, housing, goods and services, and discretionary expenses—are the focus of attention.  The employer estimates what each of these four expenses is in the expatriate’s home country, and what each will be in the host country.  The employer then pays any differences such as additional income taxes or housing expenses.
  26. 26. COMPENSATION FOR EXPATRIATES (Mo.) POSITION Teacher COUNTRY Dirhams Japan Hongkong Vietnam SALARY 11,0000 AED 156,500 JPY 23,285 HKD CONVERSION @ 12.30 = @ 0.043360 = @ 5.832 = 31,355,000 VND @ 0.00213 = Php 135,300 67,854 135,798 66,786.15 Canada 4,369 CAD @ 41.153 = 179,797 USA 2,5000 USD @ 45.247 = 113,120
  27. 27. COMPENSATION FOR EXPATRIATES (Mo.) POSITION Engineers COUNTRY Middle East Hongkong Canada USA SALARY CONVERSION Php 7,0000 SAR @ 12.06 = 84,420 25,000 HKD 5,380 CAD 5,191.66 USD @ 5.832 = 145,800 @ 41.153 = @ 221,142 45.247 = 234,907
  28. 28. XIII. Compensation for Host-Country Nationals Factors to consider: a. Minimum wage requirements which differs from country to country. b. Working time information and holidays c. Overtime payments and restrictions d. Benefits and severance practices
  29. 29. XIV. Global Human Resource Development • Expatriate Training & Development • Continual Development: Online Assistance and Training • Repatriation Orientation and Training • Safety and Health