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Managing The Global Work Force

The document discusses several factors that affect human resource management in international markets, including culture, education and skill levels, economic systems, and political-legal systems. It notes that culture can influence values and effectiveness of HR practices. Education and skills of a country's workforce determine the types of operations companies establish there. The economic and legal environments also impact compensation, hiring practices, and more. Managing a global workforce presents challenges around deploying skills worldwide, sharing knowledge, and developing talent with global experience.

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Prachi Sawant
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48 views22 pages

Managing The Global Work Force

The document discusses several factors that affect human resource management in international markets, including culture, education and skill levels, economic systems, and political-legal systems. It notes that culture can influence values and effectiveness of HR practices. Education and skills of a country's workforce determine the types of operations companies establish there. The economic and legal environments also impact compensation, hiring practices, and more. Managing a global workforce presents challenges around deploying skills worldwide, sharing knowledge, and developing talent with global experience.

Uploaded by

Prachi Sawant
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Group-8, Section-3 -Dagar Katyal -Mohammad Khurram -Prachi Sawant -Shuchita Shekhar -Vivek Joseph

International Imperative
Why organizations expand internationally
To capture enhanced market opportunities that

foreign countries may present To achieve economies of scale in production and administration by expanding scope and volume of operations to international markets Keeping up with industry leaders may require organization to enter foreign markets Acquiring ownership of foreign-based organization or subsidiary

International Imperative
As companies in the

United States and Britain cut software jobs and outsource to other countries in order to drive down costs, countries such as India continue to see employment rise.

International Expansion
Strategies for expanding internationally
Exporting locally produced goods to host

country Subcontracting or licensing production of certain goods or services to foreign partner Entering into joint venture with foreign partner Setting up operations (making a direct investment) in form of foreign branch or subsidiary

Employees in an Global Workforce


Parent-country national
Employee who was born and works in the country in which an

organizations headquarters is located.

Host-country national
Employee who is a citizen of the country (other than parent

country) in which an organization operates a facility.

Third-country national
Employee who is a citizen of a country that is neither the

parent country nor the host country of the employer.

Expatriates
Employees assigned to work in another country.

Employers in the Global Marketplace


International organization
An organization that sets up one or a few facilities in

one or a few foreign countries.

Multinational company
An organization that builds facilities in a number of

different countries in an effort to minimize production and distribution costs.

Global organization
An organization that chooses to locate a facility

based on the ability to effectively, efficiently, and flexibly produce a product or service using cultural differences as an advantage.

Factors Affecting HRM in International Markets


Education Economic Systems

Culture

Global HRM

PoliticalLegal Systems

Culture
A communitys set of shared assumptions

about how the world works and what ideals are worth striving for. Culture can greatly affect a countrys laws. Culture influences what people value, so it affects peoples economic systems and efforts to invest in education. Culture often determines the effectiveness of various HRM practices.

Culture
Cultural characteristics influence the ways

members of an organization behave toward one another as well as their attitudes toward various HRM practices. Cultures strongly influence the appropriateness of HRM practices. Cultural differences can affect how people communicate and how they coordinate their activities.

Hofstedes Cultural Dimensions


Describes the strength of the relation Individualism/Collectivism between an individual and other individuals in the society. Power Distance Uncertainty Avoidance Concerns the way the culture deals with unequal distribution of power and defines the amount of inequality that is normal. Describes how cultures handle the fact that the future is unpredictable. The emphasis a culture places on practices or qualities that have traditionally been considered masculine or feminine. Suggests whether the focus of cultural values is on the future (long term) or the past and present (short term).

Masculinity/Femininity
Long-term/Short-term Orientation

Culture
Organizations must prepare managers to recognize and handle cultural differences. Recruit managers with knowledge of other cultures Provide training For expatriate assignments, organizations may need to conduct an extensive selection process to identify individuals who can adapt to new

environments.

Education and Skill Levels


Companies with foreign operations locate in

countries where they can find suitable employees. The educations and skill levels of a countrys labor force affect how and the extent to which companies want to operate there. In countries with a poorly educated population, companies will limit their activities to low-skill, low-wage jobs.

Economic System
The economic system provides many of the

incentives or disincentives for developing the value of the labor force. In developed countries with great wealth, labor costs are relatively high. This impacts compensation and staffing practices. Income tax differences between countries make pay structures more complicated when they cross national boundaries.

Political-Legal System
The countrys laws often dictate the requirements

for HRM practices: training, compensation, hiring, firing, and layoffs. An organization that expands internationally must gain expertise in the host countrys legal requirements and ways of dealing with its legal system. Organizations will hire one or more host- country nationals to help in the process.

Emotional Cycle for Foreign Assignment

Honeymoon

Cultural Shock

Recovery

Adjustment

International HRM
International HRM requires
Managing broader range of functional areas
Becoming more involved in employees

personal lives Setting up several different HRM systems for different geographic locations Dealing with more complex external constituencies Participating in international assignments that have heightened exposure to personal risk

Four Approaches to IHRM


Make strategic decision as to level of standardization desired across locations
Ethnocentric approach Exporting organizations home country practices and policies to foreign locations Polycentric approach Allowing each location to develop own practices and policies Regiocentric approach Developing standardized practices and policies by geographic region Geocentric approach Developing one set of global practices and policies applied at all locations

Four Approaches to IHRM

Managing Global Workforce: Challenges and Strategies


Challenges:
Deployment in getting right skills to right

place in organization, regardless of geographic location Knowledge and innovation dissemination and transfer, where all business units concurrently receive and provide information Talent identification and development of those employees with abilities and skills to function effectively in global organization

Managing Global Workforce: Challenges and Strategies


Strategies for managing global workforce Develop careers for employees to provide rich contextual knowledge of environments and cultures. Provide specific awareness building assignments that develop cross-sensitivity in high potential employees in short time Utilize expert SWAT teams deployed on short-term basis for operational problems technical projects Adopt virtual solutions by using electronic communication technologies to connect local employees to distant problems

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