Global Human Resource Management

Global Human Resource Mnagement

With the advent of globalization, organizations - big or small have ceased to be local, they have become global! This has increased the workforce diversity and cultural sensitivities have emerged like never before. All this led to the development of Global Human Resource Management.

Globalization and HR Globalization, the process of integrating a

business's operations and strategies across a wide array of cultures, products and ideas, is having an impact on the role of human resource managers. Once concerned with the impact of local issues on employees, human resources must now consider the effects of workforce diversity, legal restrictions and the interdependence between training and professional development on the organization. As such, the five main functions of global human resource management are vital concepts to the strategic operation of a business.

Preliminary function The preliminary function of global Human

Resource Management is that the organization carries a local appeal in the host country despite maintaining an international feel.

Objectives of global HRM Create a local appeal without

compromising upon the global identity. Generating awareness of cross cultural

sensitivities among managers globally and hiring of staff across geographic boundaries.

Training upon cultures and sensitivities of the host country.

strategic role of Human resources Management

Decision Making: There is a certain degree of centralization of operating decision making. Compare this to the International strategy, the core competencies are centralized and the rest are decentralized.

Co-ordination: A high degree of coordination is required in wake of the cross cultural sensitivities. There is in addition also a high need for cultural control.

Integrating Mechanisms: Many integrating mechanisms operate simultaneously

RANK COUNTRY POPULATION % OF WORLDPOPULATION

- World 6.7 billion 100%1 People’s

RepublicOf China

1.3 billion 19.9%

2 India 1.1 billion 17.04%3 United States .3 billion 4.57%4 Indonesia .2 billion 3.47%5 Brazil .18 billion 3.81%6 Pakistan .16 billion 2.46%

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 (SME’s) In Germany there are 350 SME’s that

dominate their market niche

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

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

Global Human Resource Management

TRAINING AND MANAGEMENT DEVELOPMENT

Training begins where selection ends and it focuses upon preparing the manager for a specific job

Management development is concerned with developing the skills of the manager over his or her career with the firm

INTERNATIONAL LABOR RELATIONS

A key issue in international labor relations is the degree to which organized labor is able to limit the choices available to an international business

A firm's ability to pursue a transnational or global strategy can be significantly constrained by the actions of labor unions

Developing Organisational Employees

Helping organisational employees recognize that they work in a multi-cultural environment or a global environment so that they can undersatnd the expectations of Different Cultures.

Localizing organizational Employee Handbook and Job

Descriptions

The meaning of job titles and job responsibilities vary across cultures.HR Dept. helps the employees in adapting local practices which makes them appropriate for various geographies in which they work.

Global Leadership Selection and Retention

The global leadership competencies required for success include:

i. The flexibility to work and manage across cultures

ii. The ability to be the voice of the local culture to home office while being the voice of home office to the local employees

iii. Understanding of and ability to adapt to cultural differences as they impact business practices

Thank you!