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Globally Managing Human Resources

Globally Managing Human Resources. Module Overview. Introduction & Overview Global Megatrends The Difference between Domestic & Global HR Global Corporate Evolution Implications for HR Management Why Global HR is Important Core Global Competencies Strategic Issues Relation to Frame

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Globally Managing Human Resources

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  1. Globally Managing Human Resources

  2. Module Overview • Introduction & Overview • Global Megatrends • The Difference between Domestic & Global HR • Global Corporate Evolution • Implications for HR Management • Why Global HR is Important • Core Global Competencies • Strategic Issues • Relation to Frame • Conclusion & Debrief

  3. Signs of the Globalization 24 Hour Financial Markets Over 400,000 international students from 150 countries study in the US Growth of giant multinationals & global corporations Creation of superblocs NAFTA,EEC,ASEA US Corporations Employ over 60 million overseas workers Global Trade Standards & Regulations Over 3 million Americans work overseas Foreign Investment in the US is over $2 trillion

  4. Global Megatrends • Globalization • Learning Organization • Global Technology • Business Ethics • Creativity • Emerging Roles of Women • Changing Global Workforce Marquardt & Engel, 93

  5. Globalization Trends Traditional sources of competitive advantage (low cost, technology, access to capital) are not sufficient to provide a sustainable edge Contemporary approaches point to core competencies & human assets as keys to success in the global market Pucik, 92

  6. Global HR Management HRM: Those functions undertaken by an organization to effectively utilize its human resources Global HRM: Involves the procurement, allocation, and utilization of human resources across more than one nation on an international (between nations), multinational (many nations), or global scale

  7. Key Distinctions • Global Players • Cultural Diversity • Geographic Dispersion • Environmental Differences

  8. Global Players • Parent Country Nationals (PCNs) • Host Country Nationals (HCNs) • Third Country Nationals (TCNs)

  9. Cultural Diversity • Intracultural • Intercultural • Cross-cultural • Multi-cultural

  10. Environment Economics History Family Natural Resources Politics Language Religion Class Structure Education

  11. International Multinational Global Global Corporate Evolution

  12. The Global Corporation? An organization that: • Has fully & globally integrated its operations • Has the ability to optimize marketing, purchasing, people, engineering, & manufacturing activities world-wide • Has become an “insider” in every nation where it operates • Has a global strategic perspective with a capability for local differentiation Adler, 93

  13. Why Corporations Go Global • Increased foreign competition in domestic markets; • Expanded free trade policies; • Improved telecommunications & information systems; • Lowered transportation or production costs; • Access to foreign technology, skills, knowledge, human, & natural resources; • Opportunities for larger profits; • Worldwide financial systems & global money markets

  14. Importance of Global HR • Reduce unnecessary waste of HR resources • Improve effectiveness in diverse environments • Improve ability to identify viable business environments • Increase competitiveness • Improve satisfaction and retention of personnel • Prevent business loss due to cultural insensitivity

  15. Selection and Staffing • Other cultures: • religion, political affiliation, socio-economic status, union affiliation, age, sex, appearance US themes: merit & qualifications objective legalistic, fair job-centered Arvey, Bhagat, & Salas, 91

  16. Organizational Design Old Forms: New Forms: tall flat complex simple hierarchies networks Arvey, Bhagat, & Salas, 91

  17. Training and Development Training for expatriates • only about 1/3 of US MNCs offer any training about 2/3 of European & Japanese MNCs do • if done, not comprehensive • language training, cultural knowledge, environmental brief • spousal involvement • duration of training (US: 1 week : Japan: 1 year) Arvey, Bhagat, & Salas, 91

  18. Compensation and Benefits • Housing and utilities • Education allowances for children • Cost-of-living allowances • Hardship on-site allowance • Foreign service premium • Tax equalization & protection • Stock ownership • Retirement benefits Arvey, Bhagat, & Salas, 91

  19. Performance Management • Other cultures: • only for certain levels (too costly) • subjective; emphasis on human relations • trait-based • US themes: • objective • job & behaviorally based (observable) • emphasis on outcomes

  20. Global Competencies Global perspective Local responsiveness Synergistic learning Adaptation Foreign experience What to pack......?

  21. Organizational Competencies • Organizational Learning • Continuous Improvement • Competitive Organizational Culture Pucik, 92

  22. Cultural Dominance Cultural Synergy Cultural Compromise Cultural Accommodation Cultural Avoidance Global Strategic Options Adler, 97

  23. Strategic HR Orientations • Adaptive Orientation • Exportive Orientation • Integrative Orientation Taylor, Beechler, & Napier, 96

  24. Relation to the Frame • Transactions • Translation • Transition • Transformation

  25. Amoco Case Questions for discussion: • How can you as leader of this intervention best justify adapting Amoco’s HR policies and practices to be more global? • What aspects of the existing HR system should be changed and why? Provide specific recommendations as to how the system should be modified and when? • What steps would you take to ensure the HR system change process is well managed?

  26. Conclusion & Debrief • Key Lessons? • New Insights? • Personal Perspectives? • Additional thoughts, questions or comments?

  27. “It is time for people to move beyond an awareness of the urgency of global competition and begin to develop skills for success in the global arena” Adler, 93

  28. Global HR Outcomes COMPETITIVE ADVANTAGE ORGANIZATIONAL LEARNING SKILL ENHANCEMENTS CONTINUOUS IMPROVEMENT

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