Managing Human Recources Globally - Chapter 15

1. MANAGING HUMAN
RESOURCES
GLOBALLY
CHAPTER 15

2. 01
Learning Objectives
02
03
04
05
 Identify recent changes that have caused companies to
expand into international markets.
 Discuss four factors that most strongly influence
HRM in international markets.
 List different categories of international employees.
 Identify four levels of global participation and
HRM issues faced within each level.
 Discuss ways companies select, train, compensate
 and reintegrate expatriate managers.

3. Welcome!!

4. Group 6
Dimas
Student
Abdu
Student
Dr. Nova Mardiana S.
E, M.Si
Lecturer
Permata Din
da
Student

5. Introduction
 Organizations function in a global economy.
 International competition is #1 factor affecting HRM.
 International expansion can provide a competitive
 advantage:
 large numbers of potential
 customers.
 low-cost labor
• Maquiladora plants

6. Current Global Challenges
 European Economic Community
 North American Free Trade Agreement (NAFTA)
 Growth of Asia
 Japan, China, Singapore, Hong Kong and Malaysia are significant
economic forces.
 General Agreement on Tariffs and Trade (GATT)

7. Factor that are affecting in International markets
CULTURE
EDUCATION
ECONOMIC SYSTEM
POLITIC LEGAL
SYSTEM

8. Factor that are affecting in International markets
CULTURE
EDUCATION
ECONOMIC SYSTEM
POLITIC LEGAL
SYSTEM

9. Implications of HRM
1. Culture has an impact on approaches to managing.
2. Culture differs on how employees expect leaders to lead, how decis
ions are handled within the hierarchy and what motivates individu
als.
3. Culture may influence appropriateness of HRM practices.
4. Cultures can influence compensation systems and communication
and coordination processes.
5. Cultural diversity programs foster understanding of other culture
s to better communicate with them.

10. Education and Human Capital
 Countries differ in their levels of human capital.
 A country's human capital is determined by a number of variables, p
rimarily, educational opportunity.
 Countries with low human capital attract facilities that require low sk
ills and low-wage levels.
 Countries with high human capital are attractive sites for direct forei
gn investment that creates high-skill jobs.

11. Economics System
 Under socialist economies, there is little economic incentive to develo
p human capital, but ample opportunity exists because education is fre
e.
 In capitalist systems, the opposite situation exists, with higher tuition
at state universities but economic incentives exist through individual s
alaries.
 Every country varies in terms of culture, human capital and their legal
, political and economic systems.

12. Politics and Legal System
 Dictates requirements of certain HRM practices, such as training, com
pensation, hiring, firing and layoffs.
 Legal system is an outgrowth of the culture, reflecting societal norms.
 U. S. has led the world in eliminating discrimination in the workpl
ace and controlling the process of labor management negotiations.
 Germany has provided employees with a legal right to "codetermi
nation" in the workplace.
 The EEC provides fundamental social rights of workers: freedom
of movement and freedom to choose one's occupation and be fairl
y compensated.

13. Managing Employee in Global Context
 A parent country is the country in which the company's corporate headq
uarters is located.
 A host country is the country in which the parent country organization se
eks to locate (or has already located) a facility.
 A third country is a country other than the host country or parent countr
y.

14. Managing Employee in Global Context
 A parent country is the country in which the company's corporate headq
uarters is located.
 A host country is the country in which the parent country organization se
eks to locate (or has already located) a facility.
 A third country is a country other than the host country or parent countr
y.

15. Levels of Global Participation
Parent
Country
Host
Country
Domestic International Multinational Global
Foreign
subsidiary
Corporate
headquarters
Corporate
headquarters
Corporate
headquarters
Corporate
headquarters
Foreign
subsidiary
Foreign
subsidiary
Foreign
subsidiary
Foreign
subsidiary

16. Training and Development
 Cross Cultural Training
 Behavior in Meetings and Social Settings
 Interpersonal and Communication Skills
 Culture in the New Work Environment

17. Global Organizations
 Global organizations compete on top-quality products and service
s with lowest costs.
 3 Attributes of Transnational HRM System:
1. Transnational scope - HR decisions must be made from a gl
obal rather than a national or regional perspective.
2. Transnational representation reflects the multinational com
position of a company's managers.
3. Transnational process - extent to which the company's plann
ing and decision-making processes include representatives and
ideas from a variety of cultures.

18. Levels of Global Participation
Parent
Country
Host
Country
Domestic International Multinational Global
Foreign
subsidiary
Corporate
headquarters
Corporate
headquarters
Corporate
headquarters
Corporate
headquarters
Foreign
subsidiary
Foreign
subsidiary
Foreign
subsidiary
Foreign
subsidiary