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Introduction to the Gloal Human
Resources Discipline
ep 30, 2013
cope—The Gloal Human Resources functional area deals with all aspects of HR within the worldwide context, including U..-
ased entities doing usiness internationall or non-U..-ased entities operating in their own locale or worldwide. It includes
matters such as management of gloal workforces, expatriation and repatriation, HR practices and laws around the world and those
arising in speci�c countries and regions. It also includes matters that focus on careers, communications, legal and regulator issues,
technolog, metrics, outsourcing and e�ective practices in the Gloal HR arena. It does not include matters involving U..
immigration policies and visas or the requirements for verifing eligiilit to work in the United tates, which are encompassed in
the ta�ng Management functional area.
Overview
HR professionals in organizations ranging from Fortune 100 multinational corporations to 100-emploee �rms that import raw materials from
aroad need information on how to practice human resources in a gloal econom.
ven HR professionals working in organizations with a primaril local or domestic focus recognize that gloal issues have an increasing
in�uence on markets, suppl chains and usiness practices. HR professionals cite increased gloal competition for jos, markets and talent
as the No. 3 trend a�ecting the workplace, just ehind the growing complexit of legal compliance for emploers and just ahead of the
passage of federal health care legislation.
The same stud reports that HR practitioners must develop new competencies, primaril through developing cross-cultural understanding
and sustantial knowledge in international emploment legislation, laor law and economic trends.
Companies are lured into developing countries not onl cheap laor, ut increasingl skilled or trainale laor and proximit to
growth markets. No longer are other countries entirel dependent on the health of the U.. econom. Developing countries—particularl
China and India—are driving a wave of gloal growth. ee, More Companies Turn to Asia for Highl killed Talent (/ResourcesAndTools/hr-
topics/gloal-hr/Pages/AsianTalent.aspx).
A multitude of international trade agreements allow for the ease and cost-e�cienc of products moving across orders. ee, xport.gov
(www.shrm.orghttp://export.gov/FTA/index.asp).
2030, gloalization ma triple the middle class in developing countries. As man as 1.2 illion people are expected to rise out of povert,
gaining a purchasing power of etween $4,000 to $17,000 a ear. That eventualit represents a phenomenal market opportunit for
companies worldwide.
https://www.shrm.org/ResourcesAndTools/hr-topics/global-hr/Pages/AsianTalent.aspx
http://export.go ...
3122017 Introduction to the Global Human Resources Disciplin.docx
1. 3/12/2017 Introduction to the Global Human Resources
Discipline
https://www.shrm.org/resourcesandtools/tools-and-
samples/toolkits/pages/introglobalhr.aspx 1/4
Introduction to the Human
Resources Discipline
30, 2013
—
The Human Resources functional area deals with all asp
ects of HR within the worldwide context, including -
entities doing or non- -
entities operating in their own locale or worldwide. It inc
ludes
matters such as management of workforces, expatriation
and repatriation, HR practices and laws around the world and th
ose
arising in speci�c countries and regions. It also includes matter
s that focus on careers, communications, legal and is
sues,
metrics, outsourcing and e�ective practices in the
HR arena. It does not include matters involving
immigration policies and visas or the requirements for
g to work in the United which are encompas
2. sed in
the �ng Management functional area.
Overview
HR professionals in organizations ranging from Fortune 100 mu
ltinational corporations to 100-
�rms that import raw materials from
need information on how to practice human resources in
a
HR professionals working in organizations with a primaril
local or domestic focus recognize that issues have an i
ncreasing
in�uence on markets, chains and practices. H
R professionals cite increased al competition for mar
kets and talent
as the No. 3 trend a�ecting the workplace, just the grow
ing of legal compliance for and just ahe
ad of the
passage of federal health care legislation.
The same reports that HR practitioners must develop new
competencies, through developing cross-
cultural understanding
and knowledge in international legislat
ion, law and economic trends.
Companies are lured into developing countries not onl che
ap skilled or and p
3. to
growth markets. No longer are other countries depende
nt on the health of the Developing countries—
China and India—
are driving a wave of growth. More Companies Tur
n to Asia for Talent (/ResourcesAndTools/hr-
-hr/Pages/AsianTalent.aspx).
A multitude of international trade agreements allow for the ease
and cost-
e� of products moving across rs.
(www.shrm.orghttp://export.gov/FTA/index.asp).
2030, triple the middle class in developi
ng countries. As as 1.2 people are expected to ris
e out of
gaining a purchasing power of $4,000 to $17,000 a
ar. That represents a phenomenal market opportunit
for
companies worldwide.
https://www.shrm.org/ResourcesAndTools/hr-topics/global-
hr/Pages/AsianTalent.aspx
http://export.gov/FTA/index.asp
3/12/2017 Introduction to the Global Human Resources
Discipline
5. Facets of HR Functional Areas
The practice of human resources is a functional area in it
self, as well as a facet of all other HR functional areas.
leadership
The world is moving ever faster toward operating as a single int
egrated marketplace, and a large part of that trend is the prolifer
ation of
multinational corporations. poses special c
hallenges for multinational corporations, including lea
dership
challenges.
The of ss leadership is the focus of much
research, and organizations are looking at what it
takes to
an e�ective leader. While there is no quick answer, rese
arch points to common themes to help HR professionals a
leadership development program. Growing Demand
for Leaders (www.shrm.org/hr- -
Part of the challenge of leadership is adjusting leadershi
p to the particular culture(s) where the organization does
Research Reveals Fundamentals of Leadership (w
6. ww.shrm.org/ResourcesAndTools/hr- -
competencies/leadership-and-navigation/Pages/Research-
-Leadership.aspx)
An e�ective leader is one who has the to master
international issues, set direction, e� lead pe
ople from
di�erent cultures and nations, and align resources. A glo
leader should have a mindset (i.e., the to ta
ke an
international perspective and inclusive of other cultures and
views), toward (i.e., the various et
hnic, cultural,
religious and class groups that exist within a enterprise),
and respect for human and the welfare of all
s—wherever
live and work.
The leader must concerned with integration, t
hat is, a that emphasizes a of approach, st
andardization
of processes and a common corporate culture across oper
ations despite di�erences among cultures and laws.
�ts and compensation
https://www.shrm.org/hr-today/news/hr-
news/Pages/globaldemand.aspx
https://www.shrm.org/ResourcesAndTools/hr-topics/behavioral-
competencies/leadership-and-navigation/Pages/Research-
7. Global-Leadership.aspx
3/12/2017 Introduction to the Global Human Resources
Discipline
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As companies aim to streamline their �ts and compensatio
n plans, attempt to their o�erings. What often
emerges from
this e�ort is a how are re
munerated that is � enough to adapted
Pursue Grade Despite Challenges (www.shr
m.org/ResourcesAndTools/hr-
to
More countries that were slow to adapt individual incentive plan
s are warming up to the practice. While a incentive plan
helps create
a more cohesive culture, implementing it can challenging.
"Danger is a special of incentive that often comes int
o in a world market. Decades ago, for example, oil compan
ies lured
into taking dangerous overseas o�ering ex
tra compensation. incentive allowances (sometimes refe
rred to as
location allowances), such as foreign service, hardshi
8. p and danger are premiums o�ered companies to enco
urage
to accept di�erent of expatriate assignments.
To determine the right amount, need to take several factors
, such as
housing, crime and remoteness, into consideration.
and social
ethics and are important elements of op
erating in another An organization's practices in this a
rea can
e�ective in communicating the to all potent
ial and existing as well as to governments in other c
ountries.
Corporate social is a
trend that HR can in�uence. 2007 Corporate Respo
Pilot
Report (www.shrm.org/hr- -and-
forecasting/research-and-
is de�ned as the commitment organizations to
e �nancial performance with tions to the of lif
e of their
the local and at large. HR has a
n to use to its message gl
9. Workers seek out that promote social and e
nvironmental . initiatives help togeth
er disparate
multinational cultures.
Cultural di�erences, language religious practices and
sexual orientation all factor into the modern workplace. Take th
is concept
and even more complicated issues emerge. Transplantin
g an organization's programs in another requi
res
researching the issues, which di�erent from the
ones encountered in the home
De�nition of pert (/Res
ourcesAndTools/hr- - -
and-cultural-
e�ectiveness/Pages/De�
x)
and Inclusion Are Priorities for Top
RM Research Finds (/ResourcesAndTools/hr-topics/ -
-and-cultural-
e�
& Inclusion: Perceptions, Practices, & Attitu
10. des Report (/hr- -and-forecasting/research-
and-
cattitudes.aspx)
relations
Living and working forth challenging issu
es in relations, performance, and motiva
tion. One
of dealing with these is through a emp assistance p
rogram —
often referred to as an international or
provide solutions in diverse cultural situations to support or mai
ntain maximum on-the-
performance. multinational
organizations have to o�er their international
s—including their non- - workforce—
the �ts of a
relations
https://www.shrm.org/ResourcesAndTools/hr-
topics/compensation/Pages/GlobalGrades.aspx
https://www.shrm.org/hr-today/trends-and-forecasting/research-
and-
surveys/Pages/2007_20corporate_20social_20responsibility_20p
ilot_20study.aspx
https://www.shrm.org/ResourcesAndTools/hr-topics/behavioral-
competencies/global-and-cultural-
effectiveness/Pages/DefinitionofDiversityShouldBeGlobal.aspx
12. Compliance with the Occupational and Health Act
(/ResourcesAndTools/legal-and- -
970.aspx) will not adequate or even appropriate when operat
ing in other
countries, which have their own and regulations.
itself has recognized the need for in,
for example,
chemical and classi�cation and has adopted the United
Nations G Harmonized of Classi�cation and L
of
Chemicals (https://www.epa.gov/pesticide- -
-and-ghs-comparison-and-samples).
Understanding various risks is to formulate a
ppropriate and policies. For example, threats of
terrorism
against certain nationals doing in particular c
ountries are a fact of life. In some areas, expatriates, particularl
executives,
need protection. Multinational Tra
vel Insurance O�ers Protection (/ResourcesAndTools/hr-
-
hr/Pages/Multinational-Travel-Insurance-
Protection.aspx) and Travel Disaster Preparedness: Travel Polic
During National/International
Unrest (/ResourcesAndTools/tools-and-
samples/policies/Pages/cms_003923.aspx).
13. Geographic, cultural and technological factors pose challenges i
n developing and plans that integrate a
of
jurisdictional imperatives and cultural norms. For a detailed trea
tment on and health.
�ng management
poses challenges in sta�ng management f
or multinational corporations. What works well in one
might not
work as well in another —
and might even illegal.
particular sta�ng management challenges associated with
HR include recruiting, relocation, intern
ational
assignment management, and outsourcing.
recruiting. Thanks to the accelerating tren
d, companies have more options to �nd the est people for the
right
HR professionals are asked to source candidates f
or numerous positions—
not just IT and support, management, R&D,
sales and marketing—
from around the world. HR will need to screen, test, in
terview and move talent into more and
than ever challenging HR to �gure out whic
14. h recruitment strategies work in which cultures. When recr
uiting in Asia,
for example, attract candidates with work/life
e, recognition and project When recruiting in
urope, focus on
empowerment, �t, work challenge and opportunities for mo
vement.
relocation. Concerns and trailing-
spouse issues continue to dominate the reasons
turn down expatriate
assignments. Careful selection, preparation and communication
can help ease the transition. As for logistics and support, each d
estination,
it China or the U.K., comes with its own special challenges.
International assignment management. International assignment
management is a complex function one that o�ers the HR
professional opportunities for growth as well as the chanc
e to to the expatriate experie
nce and the
organization's line.
Managing International Assignments (/ResourcesAndTools/tools
-and-samples/toolkits/Pages/cms_010358.aspx)
https://www.shrm.org/ResourcesAndTools/legal-and-
compliance/employment-
