Globalization of HR Management Mathis & Jackson
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This document discusses global human resource management. It covers topics such as the forces driving globalization, different types of global organizations, factors affecting global HR management including cultural dimensions, staffing global assignments, causes of expatriate failure, global compensation practices, and international employee relations issues. The learning objectives are to understand how political, legal, economic and cultural factors influence global HR, and to identify practices for selecting and supporting global employees.
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Globalization of HR Management Mathis & Jackson
- 1. Human ResourceHuman Resource ManagementManagement TENTH EDITONTENTH EDITON © 2003 Southwestern College Publishing. All rights reserved. PowerPoint Presentation by Charlie Cook Globalization of HRGlobalization of HR ManagementManagement Globalization of HRGlobalization of HR ManagementManagement Chapter 18Chapter 18 SECTION 5 Employee Relations and Global HR Robert L. MathisRobert L. Mathis John H. JacksonJohn H. Jackson
- 2. © 2002 Southwestern College Publishing. All rights reserved. 18–2 Learning ObjectivesLearning ObjectivesLearning ObjectivesLearning Objectives After you have read this chapter, you should be able to: – Identify key forces driving globalization of management and organizations. – Describe how political, legal, economic, and cultural factors affect global HR management. – Discuss the five factors considered necessary to select successful global employees. – Explain the activities needed to increase expatriate completion rates. – Identify basic international compensation practices. – Describe several international health, safety, and security concerns.
- 3. © 2002 Southwestern College Publishing. All rights reserved. 18–3 Globalization of Business and HRGlobalization of Business and HRGlobalization of Business and HRGlobalization of Business and HR GlobalGlobal CommunicationsCommunications GlobalGlobal CommunicationsCommunications Global PopulationGlobal Population ChangesChanges Global PopulationGlobal Population ChangesChanges Global EconomicGlobal Economic InterdependenceInterdependence Global EconomicGlobal Economic InterdependenceInterdependence Regional AlliancesRegional Alliances NAFTA, EUNAFTA, EU Regional AlliancesRegional Alliances NAFTA, EUNAFTA, EU GlobalizationGlobalization ForcesForces GlobalizationGlobalization ForcesForces
- 4. © 2002 Southwestern College Publishing. All rights reserved. 18–4 Types of Global OrganizationsTypes of Global OrganizationsTypes of Global OrganizationsTypes of Global Organizations Types Importing and Exporting Selling and buying goods and services with organizations in other countries Multinational Enterprise (MNE) An organization with operating units located in foreign countries. Global Organization An organization having corporate units in a number of countries integrated to operate worldwide.
- 5. © 2002 Southwestern College Publishing. All rights reserved. 18–5 Transition to Global OrganizationsTransition to Global OrganizationsTransition to Global OrganizationsTransition to Global Organizations Figure 18–1a
- 6. © 2002 Southwestern College Publishing. All rights reserved. 18–6 Transition to Global OrganizationsTransition to Global OrganizationsTransition to Global OrganizationsTransition to Global Organizations Figure 18–1b
- 7. © 2002 Southwestern College Publishing. All rights reserved. 18–7 Factors Affecting Global HR ManagementFactors Affecting Global HR ManagementFactors Affecting Global HR ManagementFactors Affecting Global HR Management Figure 18–2
- 8. © 2002 Southwestern College Publishing. All rights reserved. 18–8 Hofstede’s Culture DimensionsHofstede’s Culture DimensionsHofstede’s Culture DimensionsHofstede’s Culture Dimensions Types Power Distance The inequity among the people of a nation. Individualism The extent to which people prefer to act as individuals instead of members of groups. Masculinity/ Femininity The degree to which “masculine” values prevail over “feminine” values. Uncertainty Avoidance The preference of people in a country for structured rather than unstructured situations. Long-Term Orientation The values people hold that emphasize the future, as opposed to short-term values focusing on the present.
- 9. © 2002 Southwestern College Publishing. All rights reserved. 18–9 Selected Countries on Hofstede’sSelected Countries on Hofstede’s Culture DimensionsCulture Dimensions Selected Countries on Hofstede’sSelected Countries on Hofstede’s Culture DimensionsCulture Dimensions Figure 18–3a Source: Based on data contained in Geert Hofstede, Cultures and Organizations (London: McGraw-Hill Book Co., 1991).
- 10. © 2002 Southwestern College Publishing. All rights reserved. 18–10 Selected Countries on Hofstede’sSelected Countries on Hofstede’s Culture DimensionsCulture Dimensions Selected Countries on Hofstede’sSelected Countries on Hofstede’s Culture DimensionsCulture Dimensions Figure 18–3b Source: Based on data contained in Geert Hofstede, Cultures and Organizations (London: McGraw-Hill Book Co., 1991).
- 11. © 2002 Southwestern College Publishing. All rights reserved. 18–11 Staffing Global AssignmentsStaffing Global AssignmentsStaffing Global AssignmentsStaffing Global Assignments Types of Global EmployeesTypes of Global EmployeesTypes of Global EmployeesTypes of Global Employees ExpatriateExpatriateExpatriateExpatriate Third-CountryThird-Country NationalNational Third-CountryThird-Country NationalNational Host-CountryHost-Country NationalNational Host-CountryHost-Country NationalNational
- 12. © 2002 Southwestern College Publishing. All rights reserved. 18–12 Types of Global AssignmentsTypes of Global AssignmentsTypes of Global AssignmentsTypes of Global Assignments Figure 18–4
- 13. © 2002 Southwestern College Publishing. All rights reserved. 18–13 Global EmployeeGlobal Employee Selection FactorsSelection Factors Global EmployeeGlobal Employee Selection FactorsSelection Factors Figure 18–5
- 14. © 2002 Southwestern College Publishing. All rights reserved. 18–14 Causes of Expatriate Assignment FailureCauses of Expatriate Assignment FailureCauses of Expatriate Assignment FailureCauses of Expatriate Assignment Failure Figure 18–6 Source: Based on data from Global Relocation Trends Survey Report (New York: GMAC GRS/Windham International, 2000), 48.
- 15. © 2002 Southwestern College Publishing. All rights reserved. 18–15 Global Assignment Management CycleGlobal Assignment Management CycleGlobal Assignment Management CycleGlobal Assignment Management Cycle Figure 18–7
- 16. © 2002 Southwestern College Publishing. All rights reserved. 18–16 Intercultural Competency TrainingIntercultural Competency TrainingIntercultural Competency TrainingIntercultural Competency Training Figure 18–8 Source: Developed by Andrea Graf, Ph.D., Technical University of Braunschweig, Germany, and Robert L. Mathis, Ph.D., SPHR.
- 17. © 2002 Southwestern College Publishing. All rights reserved. 18–17 Expatriate Adjustment StagesExpatriate Adjustment StagesExpatriate Adjustment StagesExpatriate Adjustment Stages Figure 18–9Source: GMAC Relocation Services, used with permission.
- 18. © 2002 Southwestern College Publishing. All rights reserved. 18–18 International CompensationInternational CompensationInternational CompensationInternational Compensation Balance Sheet Approach – Equalizes cost differences between the international assignment and the same assignment in the home country. • Home-country reference point used to maintain a standard of living equivalency. • Home-country compensation and other benefits are protected during the international assignment. Global Market Approach – International assignments are viewed as continual and core components of compensation and benefits are provided regardless of assignment location.
- 19. © 2002 Southwestern College Publishing. All rights reserved. 18–19 Typical Expatriate Compensation ComponentsTypical Expatriate Compensation ComponentsTypical Expatriate Compensation ComponentsTypical Expatriate Compensation Components Figure 18–10
- 20. © 2002 Southwestern College Publishing. All rights reserved. 18–20 Global EmploymentGlobal EmploymentGlobal EmploymentGlobal Employment Global EmployeeGlobal Employee Relations IssuesRelations Issues Global EmployeeGlobal Employee Relations IssuesRelations Issues Global Labor-Global Labor- ManagementManagement RelationsRelations Global Labor-Global Labor- ManagementManagement RelationsRelations Global Health,Global Health, Safety, andSafety, and SecuritySecurity Global Health,Global Health, Safety, andSafety, and SecuritySecurity DiscriminationDiscrimination RegulationsRegulations GloballyGlobally DiscriminationDiscrimination RegulationsRegulations GloballyGlobally
- 21. © 2002 Southwestern College Publishing. All rights reserved. 18–21 Union Membership as a Percentage ofUnion Membership as a Percentage of the Workforce for Selected Countriesthe Workforce for Selected Countries Union Membership as a Percentage ofUnion Membership as a Percentage of the Workforce for Selected Countriesthe Workforce for Selected Countries Figure 18–11Source: International Labor Organization, available at www.ilope.org.