global hr-intercultural management

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Page 1: Global HR-Intercultural Management

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Page 2: Global HR-Intercultural Management

Beginning of Global HRM

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The dramatic and discontinuous changes taking place in the global environment have contributed to the evolution of traditional multinational corporations (MNCs) into Global Organizations.

- Gimeno & Woo 1996, Wolf 1997, Galunic & Rodan 1998, Westney 1999.

Page 3: Global HR-Intercultural Management

What is Global Human Resource?

Global Human Resource is a process concerned broadly with

recruiting people, training them and putting them to the most

productive usage. It is also concerned with maintaining of

congenial international industrial relations. It is the essential

prerequisite for the success of the international firm owning to its

complexities.

Global human resource does the planning, selection, training,

employment, and evaluation of employees for global operations.

Much of the force of globalisation comes through mergers and

acquisitions.

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Page 4: Global HR-Intercultural Management

Globalizing The Hr - Function

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As companies Globalize, their HR departments need to

understand the challenges of working internationally and

serving a global organization like:

Supporting personnel to serve the needs of their global

organizations.

Acquiring competent personnel to work in a Global

Environment.

Train or explain alliance about and be a better global

business partner.

Administration and use supplement the capabilities for

existing professionals.

Frame and Practice HR polices that adopt multinational

Cultural, Political, Legal and Industrial framework.

Page 5: Global HR-Intercultural Management

Strategy - HRD

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HR professionals should have a thorough knowledge

of global business or it may outsource this function to

strongly established companies in new geographies

and the needs of the local workers in country with

competence.

Since a company's strategy will impact its employees,

HR should understand the Global Landscape and

everything from the recruitment and hiring

techniques used in other countries, to the

establishment of contracts, and compensation and

benefits packages.

Page 6: Global HR-Intercultural Management

Staffing the Global Organization

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Ethnocentric

Polycentric

Geocentric

International Staffing

Policy

Top Management Values

Page 7: Global HR-Intercultural Management

EthnocentricEthnocentricKey management positions filled by parent-Key management positions filled by parent-country nationalscountry nationals-Ex-P&G ,Philips, Matsushita.-Ex-P&G ,Philips, Matsushita.Dutch Mafia.Dutch Mafia.

PolycentricPolycentricHost-country nationals manage Host-country nationals manage subsidiariessubsidiariesParent company nationals hold key Parent company nationals hold key headquarter positions.headquarter positions.Best suited to multi-domestic businesses.Best suited to multi-domestic businesses.

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Page 8: Global HR-Intercultural Management

GeocentricGeocentricSeek best people, regardless of nationalitySeek best people, regardless of nationality

not always possiblenot always possibleBest suited to Global and trans-national Best suited to Global and trans-national businessesbusinessesEX-Colgate-PalmoliveEX-Colgate-Palmolive

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Page 9: Global HR-Intercultural Management

Factors that Influence the Global Work Environment

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Page 10: Global HR-Intercultural Management

Obstacles for Global HR

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Cultural Integration

Communication

Work organization

Political & Social Environment

Page 11: Global HR-Intercultural Management

Hr and the Internationalization of Business

The Global Challenges :

Coordinating market, product, and production plans on a worldwide basis.

Creating organization structures capable of balancing centralized home-office control with adequate local autonomy.

Extending HR policies and systems to service staffing needs abroad.

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Page 12: Global HR-Intercultural Management

What is Intercultural management?Intercultural management may be defined as

effective functioning of diverse groups of people.

Diversity can arise because of variation in ethnicity and nationality.

Most of the existing literature deals with getting managers from different countries to work together.

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Page 13: Global HR-Intercultural Management

Critical Cultural Variables

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Page 14: Global HR-Intercultural Management

Features of Intercultural management

Organizational culturesCommunication methods & systems.HumorOral, literal, and visual skills for benefit of

all playersLeadership Business or personal

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Page 15: Global HR-Intercultural Management

CultureCulture is a system that enables individuals and

groups to deal with each other and the outside world.

Culture means: shared values, beliefs, assumptions of

who and what we are.

They manifest themselves in our behavior and

language, the groups we belong to, the nature of our

society.

They are externalized in our artefacts, our art and

technology.

Our physical environment conditions our technology

and art, our behavior and language,… and our identity

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Page 16: Global HR-Intercultural Management

Culture as an orientation system –Example: Three leading factors reinforcing

misunderstandings1)Cultural divergencePossess of different orientation systems that makes the own social understandable, controllable, influenceable and masterable

2) GeneralizationBelief that the own system of orientation is valid for everybody and has to be respected by all people in the same manner

3) Creation of a routineThe own orientation system has become self-evident and does not require any critical control or reflection

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Page 17: Global HR-Intercultural Management

Language

The most important competence in international

business

Ability to understand and make yourself understood

The most obvious characteristic of another culture

Know at least some of the essential politeness words –

it is a courtesy.

An acquaintance with someone else‘s home language

helps to understand them then they are speaking yours.

Language is not only a vehicle for communication but

gives an insight into a people‘s way of thinking,

attitudes and behaviour.

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Page 18: Global HR-Intercultural Management

HumorBritain and Ireland: humor is used to create a

relaxed atmosphere, ligthen tedium and diffuse

tension, disguises aggression

North America: a speech or presentation starts with

a joke

Other cultures: humor has no place at work

Outside the business environment a sense of humor

is well developed in Germany, Japan or Turkey

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Page 19: Global HR-Intercultural Management

Oral, literal, and visual

Northern cultures are more literal, southern Europeans are more oral

People from literal cultures will not take the spoken word seriously unless it is confirmed in writing (letter, fax)

For oral cultures written communication is primarily for the record confirm letters and faxes with a covering phone call.

In America communication is primarily literal but at the same time more visual than in Europe – incorporating graphics, diagrams and highlightened bullet points

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Page 20: Global HR-Intercultural Management

Multi-Cultural TeamsGuidelines

1. Begin as one would with mono-cultural teams until there is a

problem that appears to have a cultural basis.

2. Differences in national culture, while important, are usually

secondary

3. The mistake made by many managers is not that they leap to

cultural solutions from personal differences, but that they do not

know enough about cultural differences to determine

whether or not they are a factor.20

Page 21: Global HR-Intercultural Management

Dealing with Intercultural Management

Respect and CourtesyToleranceIdentify ProblemsCultural taboosKnow the LawEncourage InteractionSimplify LanguageWritten InstructionsBe Flexible

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Page 22: Global HR-Intercultural Management

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Page 23: Global HR-Intercultural Management

By integrating the two aspects i.e. inter-culture & human resource, one can develop a dynamic capability approach to staff global assignments. Within this integrative theoretical perspective, cross-dimensional managers (i.e., host or third country managers who are transferred into the home country organization on a semi-permanent to permanent basis) can be explored as a potential pool of uniquely qualified global managers to be utilized in global organizations.

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Page 24: Global HR-Intercultural Management

ConclusionsThe need for highly qualified multicultural managers

will increase as more organizations globalize their operations. These global managers may be perceived as organizational resources and, therefore, a resource-based view of human resource management is utilized.

It is envisioned that through proper understanding of inter-cultural norms employees can train themselves to suit the global environment. Instead of viewing culture as a drawback, it can be used as an advantage while dealing with colleagues and handling business situations effectively.

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