Human Resource Management

A Global Perspective

What is Global HRM ? What is International HRM? What is Domestic HRM?

Domestic HRM
HR Planning Staffing(Recruiting and Selection) Performance Management Training and Development Compensation Industrial Relations

International and Global HRM

International HRM is
Managing an international workforce including expatriates, frequent commuters, cross-cultural team members and specialists involved in international knowledge transfer.

Global HRM is
Managing international HR activities through the application of global rule-sets.

Difference between Global HRD and Domestic HRD

Factors that differentiate
Learners/Trainees Culture Administration Learning Style Physical and Financial Resources Political and Economic Environment Role of Trainers Language

International HRM
International Perspective Analyse HRM in various countries HRM in multinational firms

The cultural environment

The industry (ries) within which the multinational is primarily involved

Domestic and International activties of the HRM function

Extent of reliance of the multinational on its home-country or domestic market

Attitudes of senior managers

The industry (ries) within which the multinational is primarily involved The cultural environment Attitudes of senior managers

Extent of reliance of the multinational on its home-country or domestic market

Domestic and International activties of the HRM function

Complexity involved in different countries and employing different national categories of employees

Parent Country Nationals

HCNS
National Border

HCNS
PCNS PCNs

Subsidiary operations Country A

Subsidiary operations Country B

National Border

Inter relationships between the field

Cross Cultural Management (A)

IHRM in the multinational context

Comparative Hr and IR Systems(B)

Global Human Resource Management

Categories of employees in an International firm

Host Country Nationals (HCNs)

(Procure , Allocate, Ultilise)

Parent Country Nationals(PCNs))

(Procure , Allocate, Ultilise

Third- Country Nationals(TCNs))

(Procure , Allocate, Ultilise)

Global HRM and Domestic HRM

Six factors which differentiate international HRM from domestic HRM.

1. More HR activities
2. The need for a broader perspective 3. More involvement in employees personal lives 4. Changes in emphasis as the workforce mix of expatriates and locals varies 5. Risk exposure 6. More external influences.

More HR Activities
International Taxation International Relocation and Orientation
Pre-departure training , immigration details, housing, shopping, medical care

Administration Services
Medical, Visa, Ticketing

Translation Services

BROADER PERSPECTIVE
Expatriate premium/Foreign Service premium Equity Issues

Involvement in Employees Personal Lives

Cross cultural mentoring, Housing arrangements, Health care , schooling of children Employment relations closely connected with personal profile, family status etc Recreational programmes

Changes in emphasis as the workforce mix of PCNs and HCNs varies

Ability to change emphasis and resource allocation from expatriate issues to local staff selection

Risk Exposure
Exposure to chances of expatriate failure and subsequent cost of failure Terrorism and required protection Risk of getting caught in political environment

Broader External Influences

Type of Government State of the economy Labour Policies and cost Learning and Development styles

Variables that moderate diference between DHRM and IHRM

Culture Shock , Adjustments, negative feelings

Emic- Etic Distinction

Cultural Environment

Variables that moderate diference between DHRM and IHRM

Multidomestic industry

Global Industry

Industry Type

Variables that moderate diference between DHRM and IHRM

Growth in mergers and acquisitions

Global Competition

Organisationa l restructuring & Advances in technology and communicati on

Forces for change