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    ISSUES FACED BY HR

    WHEN GOING ABROADBy Cristina Olloqui

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    INTRODUCTION:

    The coming of the 21st century globalization poses

    distinctive HRM challenges to businessesespecially those operating across nationalboundaries as multinational or globalenterprises.

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    Challenges when going abroad:The human resource function faces many challenges duringthe globalization process, including creating global mind-set

    within the HR group, creating practices that will beconsistently applied in different locations/offices while alsomaintaining the various local cultures and practices, and

    communicating consistent corporate culture across the entireorganization.

    But particularly, in order to manage people, HR faces 2 differentchallenges:

    Regarding Structure: Create a proper structure forplanning, monitoring, and controlling activities within thesubsidiaries in the organization.

    Regarding Employees: Manage Local Employees as well asManage Expatriates.

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    Regarding Structure: Creating a consistent corporate culture across the

    entire organization.

    Creating practices that will be consistently appliedin different locations while also maintaining the

    various local cultures and practices. This includes aneffective training to people in different locations.

    Creating consistent communication systems whichmust allow a quick information sharing in order of

    both: Control how a subsidiary is doing, and sharingof resources.

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    Regarding Local Employees:

    When a company goes abroad, it will find mainly 3

    barriers:

    Safety and Labor Difference.

    Language Barriers

    Cultural Differences

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    Main Challenges in India:

    Employee Sourcing: While millions of graduates and post-graduates pass out of Indian universities each year, the actualnumber of employable talent is severely limited.

    Employee Engagement and Talent Retention: Winningthe hearts and minds of talent is of prime importance in thecurrent context. Employees are no longer committed to theircompanies. Their dedication is towards their own professionalgrowth and careers.

    Employee Motivation: Employers have to ensure thatapart from the basics of roti, kapda and makaan, employeesalso expect job satisfaction, learning and developmentfacilities.

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    Main Challenges when working with

    Indians: Used to very formal systems: Indians are used to a hierarchical and

    formal system in the workplace. Supervisors usually shoulder theresponsibility for a deadline and are expected to monitor a lower levelworkers progress.

    The Indian Standard Time: Efficiency and adhering to tight deadlinesare considered normal and is expected of most workers. Indian culture is alittle more laidback. As a result, what is considered a reasonable time and afeasible plan in America may not be right in India.

    Indians often hesitate to say No. They will sometimes take on toomuch work or a project that is beyond their scope just because they do notwant to disappoint their managers or put themselves in your bad books byrefusing. It is important to create a comfortable work environment where itis okay to say no and make mistakes without fear of negative consequences.

    Lack of Participation: In a meeting or group discussion, only the mostsenior person might speak. Often others will remain silent out of respect forhim. This does not necessarily indicate agreement with his views.

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    Managing Expatriates:Due to Globalization many companies have to send

    professionals abroad.

    Unfortunately, many of them feel dissatisfaction with theirjobs or because they cannot adjust to a foreign country. Whenthey are abroad the expatriates need to:

    Adjustment to work;

    Adjustment to interacting with host nationals and Adjustment to the general non-work environment.

    If they dont they are likely to perform poorly at their

    foreign assignment or return to their countries early.

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    Challenges managing Expatriates: Attract people willing to move

    The challenges of designing expatriate compensation

    packages.

    How to train people before going to a different country.

    Planning support and understanding by the companywhereas the expat is overseas.

    How to reallocate people once they have come back to

    their origin country.

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    Expatriates Training Needs: Executive Etiquette for Global Transactions: Prepares

    managers for conducting business globally by training them in othercultures.

    Cross Cultural Transfer: This program shows how culturalvalues affect perceptions and how to transfer knowlegdes andinformation from one subsidiary to another.

    International Protocol and Presentation: This program

    shows the correct way to handle people with tact and diplomacy incountries around the world.

    Language Training.

    Culture in the country and Skills for living in the country.

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    Conclusion:

    Setting up a company

    outside requires avery careful planning,and much of thisplanning involves HR

    department.Without that previous

    planning, the newsubsidiary will hardly

    succeed.

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