CHAPTER 10 Managing Human Resources Globally Flashcards
HRM in a Global Environment
- Globalization can provide new markets with millions (or billions) of new customers
- Set up operations globally because of lower labour costs
- Advances in telecommunications and information technology
Global Trade Agreements
Global activities are encouraged by trade agreements, however, trade agreements have faced disruption
Employees in an International Workforce
-Home country
-Host country
-Third country
-Expatriates:
employees assigned to work in another country.
Companies use home, host, or third-country employees to various degrees
Employers in the Global Marketplace
-Domestic organization:
Significant share of workers may be immigrants
-International organization:
Sets up one or a few facilities in other countries
-Multinational company:
Builds facilities in a number of different countries
-Global organization
Uses cultural differences as an advantage
Needs a transnational HRM system
Factors Affecting HRM in International Markets - Culture
A community’s set of shared assumptions about how the world works and what ideals are worth striving for.
-Greatly affects country’s laws.
-Cultural influences may be expressed through customs, languages, religions, and so on.
-Influences what people value, so it affects people’s economic systems and efforts to invest in education.
-May determine effectiveness of HRM practices.
-Hofstede 6 dimensions
Cultural differences can affect how people communicate and how they coordinate their activities.
Organizations must prepare managers to recognize and handle cultural differences.
-Recruit managers with knowledge of other cultures.
-Provide training to give existing managers cultural knowledge.
Organizations must select expatriates carefully.
-Expatriates must be able to adapt to new environments.
Factors Affecting HRM in International Markets - Education and Skill Levels
-Canada has growing need for knowledge- and skilled-workers
-Labor markets in many countries are very attractive because they offer high skill levels and low wages.
-Educational opportunities vary per country.
-Education and skill levels of country’s labor force affect how and the extent to which companies operate there.
Factors Affecting HRM in International Markets - Economic System
Closely tied to the culture of the country.
-Provides many incentives or disincentives for developing the value of the labor force.
Labor costs relatively high in developed, wealthy countries.
-Impacts compensation, recruiting, and selection decisions.
Income tax differences between countries complicate pay structures when they cross national boundaries.
Factors Affecting HRM in International Markets - Political-Legal System
Country’s government and laws impact HRM.
Dictates requirements for certain practices:
-Training, compensation, hiring, firing, and layoffs.
Organizations must gain expertise in host country’s legal requirements and ways of dealing with legal system.
-Host-country nationals can be hired to help in process.
Workforce Planning in a Global Economy
Decisions about the level of participation in a global economy
Decisions about where and how many employees are needed
-Cost and availability of workers
-Outsourcing considerations
-Flexibility to reduce workforce when needed
Criteria for Success: International Assignments
-Competency in area of expertise
-Ability to communicate
-Flexibility and tolerance for ambiguity
-Sensitivity to cultural differences
-Motivation to succeed
-Enjoyment of challenges
-Willingness to learn
-Support from family
Emotional Stages Associated with a Foreign Assignment
Honeymoon–>Culture Shock–>Recovery–>Adjustment
Selecting Expatriate Managers
Managers need technical competence in the area of operations.
The organization should consider each candidate’s skills, learning style, and approach to problem solving.
Adapting to new culture requires:
-Maintaining positive self-image and feeling of well-being.
-Fostering relationships with host-country nationals.
-Perceiving and evaluating host country’s environment accurately.
Training & Developing Global Workforce
Special challenges:
-T&D programs should be effective for all participants
-Employers need to provide training in how to handle challenges
Training programs for international workforce:
-Some techniques and media will be more effective than others due to language and cultural issues
-Support of management is required
-Assign a person in charge of the training program
-Must consider global differences among participants
Cross-Cultural Preparation:
Training to prepare employees and their families for a global assignment
-Preparation for departure
-The assignment itself
-Preparation to return home
Performance Management Across National Boundaries
General principles apply but specific methods require consideration of legal requirements, local business practices, and national culture
Differences may include:
-Which behaviours are rated
-How performance is measured
-Who performs the rating
-Type and how feedback is provided
Compensating & Rewarding Employees
Pay structure:
Market pay structures may differ in terms of pay level and relative worth of jobs
Incentive pay:
Incentives for employees e.g. for high risk areas
Benefits & services:
Must take into account laws, employee expectations, and values
