GLOBAL HUMAN RESOURCE MANAGEMENT

IMBA 552 International Business and HRM

PURPOSE OF THIS CLASS

To understand the management of global human capital
To understand the role of the global human resource function To begin pre-preparation for your international experience To begin the process of writing a thesis

RANK

COUNTRY

POPULATION

% OF WORLD POPULATION 100%

1 2 3 4 5 6

World Peoples Republic Of China India United States Indonesia Brazil Pakistan

6.7 billion

1.3 billion
1.1 billion .3 billion .2 billion .18 billion .16 billion

19.9%
17.04% 4.57% 3.47% 3.81% 2.46%

FACTS For PUBLICLY TRADED

60,000 MNEs employ over than 45mm people By 2010 this will increase to 75mm In 1957 US contributed 53% to global GDP today 18% In 2003 25 countries employed 40mm people with a total of USD 13.73 trillion in annual revenues and USD 45 trillion in assets Key players besides US, Germany, Great Britain, France and Japan is; south Korea, Mexico, Russia, China, Brazil

OTHERS
Some of the largest international firms are
owned by families, especially in China, Taiwan, Thailand, Hong Kong, Indonesia, Malaysia and Singapore Growing numbers of Small Multinationals (SMEs)
In Germany there are 350 SMEs that dominate their market niche

DRIVERS FOR GLOBALIZATION

Scale Economies Scope Economies Shorter Product Life Cycles Direct Foreign Investment Technology

RATIONALE FOR GLOBAL HRM

Increased travel Rapid and extensive global

communications Rapid transfer of new technology Growing trade, foreign competition Improving education Emigration of large numbers of people

COMPETITIVE ADVANTAGE OF NATIONS

Firm Strategy, Structure and Rivalry Factor Endowments Demand Conditions

Related and Supporting Industries

Porters Diamond (Adapted from Porter:1990)

TRENDS IN THE INTERNATIONAL DIVISION OF LABOR- Reichs New World Order

Routine Production
Services

Zero-sum Nationalism
Cosmopolitanism Positive Economic
Nationalism

In-person Services
Symbolic Analytic
Services

Routine production services

Routine production as an employee on an assembly line or supervisory jobs or clerical jobs involving repetitive checks on employees and enforcement of standard operating procedures

In person services

Simple repetitive tasks with little training providing services directly to the consumer, e.g. salespersons, hairdressers, waiters, cleaning staff, receptionists, etc.

Symbolic-analytic services
These jobs require skills in problem solving and problem identification, e.g. engineers, architects, managers, research scientists, etc.

Zero sum nationalism

The assumption that there are only two outcomes possible in economic warfare: either we win or they win, so we had better make sure that we win.

Countries therefore close their eyes to globalization and try to protect and improve their own position. Government subsidies for deteriorating industries and a renewed interest in protectionism are the hallmarks of this scenario.

Cosmopolitanism
The ideal of free trade is championed. This is not a zero sum game: the world as a whole can improve Through free trade. By making products where they can be made most cheaply, we all benefit in the end. Reich maintains this is the attitude that will most likely determine the future.

Positive economic nationalism

Each nations citizens take primary responsibility for enhancing the capabilities of their countrymen for full and productive lives, but also work with other nationals to ensure that these improvements do not come at others expense. This argument provides for free trade with some form of government intervention

What is Human Resource Management

As a field it is about: the understanding,

researching, applying and revising all human resource activities in their internal and external contexts as they impact the process of managing human resources in enterprises throughout the global environment to enhance the experience of multiple stakeholders, including investors, customers, employees, partners, suppliers, environment, and society.

Forms of International HRM

Operation of parent-country firms Operation of foreign firms in the home

country Operation of Third party nationals Employment of foreign citizens (or recent immigrants and/or their families

DIFFERENCES BETWEEN DOMESTIC AND INTERNATIONAL HRM

Responsibility for greater number of activities Need for greater level of expertise

e.g. employment laws Necessity for closer involvement with employees (e.g. expatriate families Greatly expanded and different mix of employees Having to deal with more external influences Having to face greater exposure to problems and difficulties