Strategic Global Human Resource Management


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Strategic Global Human Resource Management

  1. 1. Strategic Global Human Resource Management: Its Role in Global Networks Michael Harvey & Milorad M. Novicevic Presented By Muhammad Usman
  2. 2. Purpose <ul><li>The purpose of this paper is to develop a theoretical framework for flexible modes of strategic human resource management within a global network organization configuration. </li></ul>
  3. 3. Scheme of Study <ul><li>Introduction </li></ul><ul><li>Proposed theoretical framework </li></ul><ul><li>Specific barriers and competencies. </li></ul><ul><li>Practical implications of the SGHRM system. </li></ul><ul><li>various approaches and challenges of SGHRM systems </li></ul><ul><li>Conclusion </li></ul>
  4. 4. Introduction <ul><li>An important function of a global human resource manager is to shape a culture of developing external linkages (i.e., to local organizations and critical stakeholders) for a global organization </li></ul><ul><li>Global human resource manager facilitates the integration of internal functional (i.e., international human resource management) and cross functional (i.e., global marketing, R&D and operations) </li></ul>
  5. 5. Theoretical framework <ul><li>Existing SIHRM frameworks describe policies and practices focused on aligning the strategic initiatives of the organization with the development of global managers. </li></ul><ul><li>Within these frameworks, a SIHRM system is viewed “as a way for MNCs to effectively manage and control their overseas operations. </li></ul><ul><li>The primary focus is on explaining the practices and policies that MNCs use to coordinate and control the hierarchy of their dispersed global operations </li></ul>
  6. 6. Cont….. <ul><li>Whereas The global network construct can be used to examine not only the tangible network design elements of the global organization (i.e., webs of facilities and product development ties and activities) (Mabert & Venktarmanan 1998), but also to emphasis the social infrastructure and human activities and relations envisioned, built and maintained by global human resource managers. </li></ul><ul><li>Global human resource managers are required to perform HRM systems within socially rich cross-border network structures </li></ul>
  7. 7. Role of Managers in Global Organizations <ul><li>The primary activities of a global human resource manager involve selecting appropriate global human resource strategies. </li></ul><ul><li>Providing a leadership role in the cultural change of the organization under conditions of accelerating strategic ambiguity. </li></ul><ul><li>Global human resource managers are required to possess multiple competencies that are both relational and contingent in nature (Henderson & Clockburn 1995). </li></ul>
  8. 8. Cont…. <ul><li>The global human resource manager is encouraged to promote a spirit of multicultural interpersonal and inter organizational trust, within which members of the networked organizations can learn to cooperate (Barney & Hansen 1994). </li></ul>
  9. 10. Role of SGHRM in Global Networks <ul><li>Global strategic HRM augments the </li></ul><ul><li>Importance of resource flexibility, </li></ul><ul><li>Strategic leadership, </li></ul><ul><li>Human capital, </li></ul><ul><li>Technological and manufacturing advances </li></ul><ul><li>Cooperative synergies between organizational culture and structure </li></ul>
  10. 11. Leadership in Global Network
  11. 12. Implications for International Research <ul><li>SGHRM system requires that the theoretical developments in global assignment research go beyond the standard economic (agency, transaction cost, and control) and social (institutional and political) theories of the firm. </li></ul><ul><li>New theoretical perspectives should extend and supplement the current integrative SIHRM frameworks based on resource-based, resource dependence, and human capital theories. </li></ul><ul><li>Toward global leadership role, a SGHRM system is to be designed to provide all employees across the globe an equitable access to success in the MNC </li></ul>
  12. 13. Barriers to SGHRM in Global Networks <ul><li>Frequent ambiguity about human resource management authority, </li></ul><ul><li>Multiple interdependencies among subsidiaries, </li></ul><ul><li>Increased uncertainty about sustainability of network flexibility and efficiency, </li></ul><ul><li>Possible discontinuities in securing top level support for changes in human resource management systems, and </li></ul><ul><li>Difficulties in acquiring the multiplicity of skills and competencies required for effective SGHRM in knowledge sharing. </li></ul>
  13. 14. Cont……. <ul><li>Multiplicity of network units. </li></ul><ul><li>Global network instability. </li></ul><ul><li>Discontinuities in internal organizational support. </li></ul><ul><li>Multi-dimensionality of strategic human resource leadership task. </li></ul><ul><li>Multi-skill leadership demands for global network human resource management. </li></ul>
  14. 15. Competencies <ul><li>Relational competence to navigate the global network knowledge base through consensus building, accountability charting, conflict management, performance contracting and innovation management. </li></ul><ul><li>Managerial competence to design creative human resource allocations, negotiate concerted strategies, and structure multiparty relationships. </li></ul>
  15. 16. Cont….. <ul><li>Motivational leadership in incentivising units to demonstrate and share skills at joint human resource management problem solving. </li></ul><ul><li>Cross-functional competence in auditing managerial loss of control and difficulties in assessing network accountability in terms of human resource management adaptations </li></ul>
  16. 17. Managerial Issues <ul><li>Managerial issues like the leadership of the organization is dispersed throughout the global system top management must recognize the impact on the organizational hierarchy. </li></ul><ul><li>The top management of the organization must recognize that strategic initiatives may be generated by subsidiaries and shared with other subsidiaries rather than having to come from headquarters. </li></ul>
  17. 18. <ul><li>The governance and control mechanism of the global network organization will need to be modified to allow localized decision-making. </li></ul><ul><li>The selection process for subsidiary management must be modified to align it with the role of the key subsidiary managers and the modified independence of the subsidiaries </li></ul>
  18. 19. Conclusion <ul><li>Transformed role of HRM managers within global networks must be clearly defined. </li></ul><ul><li>The SGHRM system will increase in importance as hypercompetitive, regulatory and technological changes taking place in the global environment drive more companies to adopt a global networks organization. </li></ul>