prepared by. annisa citra elsa mayasari freda sitorus muhammad saflianto richard

Prepared by.

Annisa CitraElsa MayasariFreda Sitorus

Muhammad SafliantoRichard

Managing Human Resources GloballyChapter 15

Managing Human Resources GloballyChapter 15Introduction

Competitive advantages:1. New markets - Large number of potential customers2. Building facilities in other countries – Lower labor costs (for unskilled jobs)3. Rapid Increase in telecommunication & IT –

Work done more rapidly, efficiently, effectively

Strategically manage human resourcesin an international context

RANK COMPANY REVENUES PROFITS ($ MILLIONS) ($MILLIONS)

1 ExxonMobil 339,938.0 36,130.02 Wal-Mart Stores 315,654.0 11,231.03 Royal Dutch Shell 306,731.0 25,311.04 BP 267,600.0 22,341.05 General Motors 192,164.0 -10,567.0

Managing Human Resources GloballyChapter 15Current Global Change

European Economic Community (EEC)

Close geographic proximity

Most of European countries agreed to participate in EEC - 1992

“ A Confederation of most of the European nations that agree to engage in free tradewith one another, with commerce regulated by an overseeing bodycalled the European Commission (EC) ”

North American Free Trade Agreement (NAFTA)

“ An agreement among Canada, The United States, and Mexico that has createda free market even larger than the European Economic Community “

A free trade agreement since 1989

Has increased U.S. investment in Mexico

Managing Human Resources GloballyChapter 15Current Global Change

The Growth of Asia

“ An additional global market that is of economic consequence to many firms lies in Asia “

Asian flu

General Agreement on Tariffs and Trade (GATT)

“ An international framework of rules and principles for reducing trade barriers acrosscountries around the world “

Managing Human Resources GloballyChapter 15Factors Affecting HRM in Global Markets

Culture

Education –Human Capital

EconomicSystem

Political –Legal System

Human ResourceManagement

Factors Affecting Human Resource Management in International Markets


Culture


EconomicSystem



Factors Affecting Human Resource Management in International Markets

CULTURE

The most important factor influencing international HRMReasons:1. Determines the others 3 factors affecting HRM in global markets2. Determines effectiveness

The set of important assumptions

Hofstede’s Cultural Dimensions Individual-collectivism Power distance Uncertainty avoidance Masculinity-feminity Long term–Short term Orientation

Implications of Culture for HRMImportant impact on approaches to managing people


Culture


EconomicSystem



EDUCATION – HUMAN CAPITAL

Productive capabilities of individuals – that is the Knowledge, Skills, experienceThat have economic value


Culture


EconomicSystem


Human ResourceManagementPOLITICAL – LEGAL SYSTEM

• Regulation• Requirements for certain HRM practices• Legal system is an outgrowth of the culture in which it exist


CultureEducation –Human Capital

EconomicSystem Political –

Legal System


ECONOMIC SYSTEM

• A country’s culture is integrally tied to its economic system• The health of the system can have an important impact• Affects by taxes on compensation packages

Managing Human Resources GloballyChapter 15Managing Employees in a Global Context

Types of International Employees

• Parent country• Host country• Third country• Expatriate• Parent-country nationals (PCNs)• Host-country nationals (HCNs)• Third-country nationals (TCNs)

CorporateHeadquarters


ForeignSubsidiary

ForeignSubsidiary

ForeignSubsidiary

ForeignSubsidiary

ForeignSubsidiary



Increasing participation in global markets

Domestic International Multinational Global

ParentCountry

HostCountry

Managing Human Resources GloballyChapter 15Managing Expatriates in Global Markets

Human Resource in Managing Expatriates

Staffing and Selection•Communicate the value of international assignment for the company global Mission•Ensure those with highest potential move internationally• Provide short term assignment to increase the pool of employee with international experience•Recruit employees who have lived or who were educated abroad

Training & Career•Make international assignment planning a part of career development•Encourage early international experience•Create learning opportunities during the assignment•Use international assignment as a leadership development tools

PA & Compensation•Differentiate PM based on their roles•Align Incentives with expatriation objectives•Tailor benefits to the expatriate needs•Emphasizes rewarding careers rather than short term outcomes

Repratioation•Involve the family in the orientation program at the beginning and at the end•Establish mentor relationship•Support for dual careers•Secure opportunities for the returning manager to use knowledge and skills learned while being assisgned

Managing Human Resources GloballyChapter 15Managing Employees in a Global Context

Managing Expatriates in Global Markets

Selection of Expatriate Managers

Training and Development of Expatriates

Compensation of Expatriates

Reacculturation of Expatriates

Chapter 16

Strategically Managing the HRM Function

““explore the changes in HRM function and manage the explore the changes in HRM function and manage the

changes”changes”

Index :Index :

- HRM Roles and its Strategies

- Assessment for HRM

- Improving HRM efficiency and effectiveness

- Applied Technology (Software) for HRM

- The future for HR professionals

Transactional (65 – 75%)Benefits administration

Record keepingEmployee services

Traditional (15 – 30%)Recruitment and selection

TrainingPerformance management

CompensationEmployee relations

Transformational (5 – 15%)Knowledge managementStrategic redirection and

renewalCultural change

Management development

HRM Activities in Terms of Strategic ValueHRM Activities in Terms of Strategic Value

Stra

tegic

Strategic

HRM Basic Perspective : HRM Basic Perspective : Customer-Oriented PerspectiveCustomer-Oriented Perspective

CustomersLine managersStrategic plannersEmployees

HRM functionHRM function

TechnologyStaffingPerformance managementRewardsTraining and development

Customers’ needsCommitted employeesCompetent employees

HR’s Stra

tegy HRM function : Customer-oriented

HRM activities :

Strategic value

HR Strategy : the basic processHR Strategy : the basic process

Scan the external environment

Identify strategic business issues

Identify people issues

Develop HR strategy

Communicate HR strategy

Line executives involvement :-Input provider- members of the dev. Team- communication receiver- approver

Ways to Generated an HR Strategy Ways to Generated an HR Strategy

Business issues/outcomes

3 different Inside-Out Stages

People issues/outcomes HR Strategy

People issues/outcomes

HR Strategy

People issues/outcomes

HR Strategy

Business-Linked(5 cases)

People-Linked(7 cases)

HR Focused(3 cases)

An Outside-in Perspective

Business issues/outcomes

People issues/outcomes HR Strategy

Business-Driven(5 cases)

Index :Index :






Assessment of an HRM FunctionAssessment of an HRM Function

Objectives

-Marketing the function :

- Providing accountability :

Approaches for Evaluating Effectiveness

-Audit approach

Focuses on reviewing various outcomes of HR function using list of

key indicators and measuring it through its customers.

Example :

Demerit : its solely voicing out the employees

Key Indicators CS Measures

Labor Relations Ratio of grievances by plan to number of employees

Assistance provided to line managers in handling grievances

Assessment of an HRM FunctionAssessment of an HRM Function

Approaches for Evaluating Effectiveness

-Analytical approach

Focuses on reviewing various outcomes of HR function by

determining the impact of, or the financial cost and benefits of a

program or practice.

Example :

Cost-benefits-analysis

Human resources accounting-Capitalization of salary-Net present value of expected wage payments- Returns on human assets and human investments

Utility Analysis-Turnover cost- Absenteeism and sick leave costs- Gains from selection program- Impact of positive employee attitudes- Financial gains of training program

Index :Index :














Improving HRM Activities in Terms of Strategic ValueImproving HRM Activities in Terms of Strategic Value

Stra

tegic

Strategic

Outsourcing

Process redesign, information technology

Restructuring HRM Organization StructureRestructuring HRM Organization Structure

VP, HRM

Director StaffingDirector

CompensationDirector Training &

Development Director Planning

Historical HRM Organizational Structure

New HRM Organizational Structure

VP, HRM

Centers for Expertise-Rewards- Staffing

- Training & Dev.- Communications

Traditional/transformational

Field Staff-HR Generalist

Transformational/traditional

Service Center-Information technology

- Claim processing

Transactional










Stra

tegic

Strategic

Outsourcing

Process redesign, information technology


1. Outsourcing

A use of an outside organization for a broad of services

2. Process Redesign

Review and redesign of work processes to make them more efficient and

improve the quality of the end product or services

Indentify the process to be reengineered

Understand the process

Redesign the process

Implement the new process

feedback

Improving HRM Activities in Terms of Strategic ValueImproving HRM Activities in Terms of Strategic Value3. New Technology - HRM Information Systems

Applying advanced application of knowledge, procedures and equipment that

have not been used before.

a. Transaction process

b. Decision support systems

c. Expert systems

Current:

a. Interactive voice technology

b. Networks and client-server

architecture

c. Relational database

d. Imaging

e. Expert systems

f. Groupware

New/Add :

Improve effectiveness through increasing access to information, improving communications, improving the speed which HRM transaction and information can be gathered and reducing the cost and facilitating the administration of HRM function such as recruiting, training and performance management

Index :Index :






Applied Technology (Software) to Ease HRM Function Applied Technology (Software) to Ease HRM Function to be More Strategicto be More Strategic









Traditional Face to face

delivery

Outsourcing

Electronic Delivery

Process redesign,

information technology

Index :Index :






The Future for HR ProfessionalsThe Future for HR Professionals

Nowadays HR functions become more strategic by becoming the “SOURCE OF PEOPLE EXPERTISE – People Issues

HR must posses and use knowledge of how people can do and play role as well as the policies, programs, and practices that can leverage the firm’s

people as a source of competitive advantage

HR Basic Competencies

Business Competences

Proffessional – Technical

Knowledge

Management of Change Process

Integration competence

Thank You

prepared by. annisa citra elsa mayasari freda sitorus muhammad saflianto richard

Documents

human resources

global markets human

international markets

managing employees

economic value slide

international hrm reasons

mexico slide

world slide