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
- Brexit (Britain + exit)
- Trade tariffs & NAFTA becomes USMCA
T- PP becomes CPTPP
Employees in a international workforce
Home country
Country in which an organiza-tion’s headquarters are located
Host country
Country (country other than the home country) in which an organization operates a facility
Third country
Country that is neither the home country or the host country of an employer
Expatriates:
employees assigned to work in another country.
Companies use home, host, or third-country employees to various degrees
Levels of global participation
ch10 p.10
Employer in global market
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.
Culture (con.) :
Hofstede’s Six Dimensions
- Individualism/collectivism
- Power distance
- Uncertainty avoidance
- Masculinity/femininity
- Long-term/short-term orientation
- Indulgence/restraint
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.
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.
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.
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 stashes associes 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
International labour relations
Increasingly need to work with unions in more than one country
- Day-to-day decisions about labour relations, handled by each subsidiary
International labour relations takes place in a different legal, social, and economic context
- Cultural differences come into play (e.g., negotiation styles)
- Working with host country nationals can help
Global relocation success factors
Top reason for assignment failure:
- Inability of family to adjust
Trailing partner career transition services
Expatriate personality
Cross-cultural training
Career development activities
International assignment letter
