global hrm for international business- mba

2. With the advent of globalization,
organizations - big or small have ceased to
be local, they have become global! This has
increased the workforce diversity and
cultural sensitivities have emerged like never
before. All this led to the development of
Global Human Resource Management.

3.  Globalization, the process of integrating a
business's operations and strategies across a
wide array of cultures, products and ideas, is
having an impact on the role of human resource
managers. Once concerned with the impact of
local issues on employees, human resources must
now consider the effects of workforce diversity,
legal restrictions and the interdependence
between training and professional development
on the organization. As such, the five main
functions of global human resource management
are vital concepts to the strategic operation of a
business.

4.  The preliminary function of global Human
Resource Management is that the
organization carries a local appeal in the
host country despite maintaining an
international feel.

5.  Create a local appeal without compromising
upon the global identity.
 Generating awareness of cross cultural
sensitivities among managers globally and
hiring of staff across geographic boundaries.
 Training upon cultures and sensitivities of the
host country.

6.  Decision Making: There is a certain degree
of centralization of operating decision
making. Compare this to the International
strategy, the core competencies are
centralized and the rest are decentralized.
 Co-ordination: A high degree of coordination
is required in wake of the cross cultural
sensitivities. There is in addition also a high
need for cultural control.
 Integrating Mechanisms: Many integrating
mechanisms operate simultaneously

7. RANK COUNTRY POPULATION % OF
WORLD
POPULATION
- World 6.7 billion 100%
1 People’s
Republic
Of China
1.3 billion 19.9%
2 India 1.1 billion 17.04%
3 United States .3 billion 4.57%
4 Indonesia .2 billion 3.47%
5 Brazil .18 billion 3.81%
6 Pakistan .16 billion 2.46%

8.  Some of the largest international firms are
owned by families, especially in China,
Taiwan, Thailand, Hong Kong, Indonesia,
Malaysia and Singapore
 Growing numbers of Small Multinationals
(SME’s)
 In Germany there are 350 SME’s that dominate
their market niche

9.  Increased travel
 Rapid and extensive global communications
 Rapid transfer of new technology
 Growing trade, foreign competition
 Improving education
 Emigration of large numbers of people

10.  Operation of parent-country firms
 Operation of foreign firms in the home
country
 Operation of Third party nationals
 Employment of foreign citizens (or recent
immigrants and/or their families

11. TRAINING AND MANAGEMENT DEVELOPMENT
 Training begins where selection ends and it focuses
upon preparing the manager for a specific job
 Management development is concerned with developing
the skills of the manager over his or her career with the
firm

12. A key issue in international labor relations is
the degree to which organized labor is able to
limit the choices available to an international
business
 A firm's ability to pursue a transnational or
global strategy can be significantly constrained
by the actions of labor unions

13.  Helping organisational employees recognize that
they work in a multi-cultural environment or a
global environment so that they can undersatnd the
expectations of Different Cultures.

14.  The meaning of job titles and job responsibilities
vary across cultures.HR Dept. helps the employees
in adapting local practices which makes them
appropriate for various geographies in which they
work.

15. The global leadership competencies required for
success include:
i. The flexibility to work and manage across cultures
ii. The ability to be the voice of the local culture to
home office while being the voice of home office to
the local employees
iii. Understanding of and ability to adapt to cultural
differences as they impact business practices