Project Presentation (Sakshi)

8/8/2019 Project Presentation (Sakshi)

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SUBMITTED BY:

SAKSHI SAXENA

MBA-II SEM.


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Global Human Resource Management is a process concerned

broadly with recruiting of persons, training them and putting

them to the most productive usage.

It is also concerned with maintaining of congenial global/

international relations.

It is the essential prerequisite for the success of the

international firm owing to its complexities.


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Global HRM plays a significant role in Planning, Selection,Training, employment, and evaluation of employees for globaloperations.

Global HR managers serve in an advisory or support role toline managers by providing guidelines, searching, training,supporting and evaluating employees.

How a firm recruits, trains and places skilled personnels in itsworld-wide value chains sets it apart from the competition.

The combined knowledge, skills and experiences ofemployees are distinctive and provide myriad advantages to

the firms operations worldwide.


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Staffing Policy

Management Training and development

Performance Appraisal

Compensation Policy

HRM activities, Structure and Policies should be congruent with the

firms strategy and its formal and informal structure and controls.

These mentioned tasks are complicated by profound differences between

countries in labor markets, cultures, legal frames and economic systems.


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What's Staffing Policy?

Selecting individuals with requisite skills to do a particular job.

Tool for developing and promoting corporate culture.

Types of Staffing Policy:

Ethnocentric

Polycentric

Geocentric


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Key Management Positions Filled by Parent-country nationals.

Best suited to international business.

Advantages:

Overcomes lack of qualified managers in host nation.

Unified culture.

Helps transfer core competencies.

Disadvantages:

Produces resentment in host country.

Can lead to cultural myopia.


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Host-country nationals manages subsidiaries. Parent company nationals hold key headquarter Positions. Best suited to multi-domestic business.

Advantages:

Alleviates cultural myopia. Inexpensive to implement. Helps transfer core competencies

Disadvantages:

Limits opportunities to gain experience of host country nationalsoutside their own country.

Can create gap between home and host country operations.


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Seek best people, regardless of nationality.

Best suited to global and trans-national business

Advantages:

Enables the firms to make best use of its human resources.

Equips executives to work in a number of cultures.

Helps build strong unifying culture and informal management network.

Disadvantages:

National immigration policies may limit implementation.

Expensive to implement due to training and relocation.

Compensation structure can be a problem.


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Expatriate: the citizen of one country working in another.

Expatriate Failure: Premature return of the Expatriate manager to

his or her home country-

Cost of failure is high: estimate= 3X the Expatriates annual salary

plus the cost of relocation (impacted by currency exchange rates and

assignment location.)

Inpatriates: Expatriates who are citizens of a foreign country

working in the home country of their multinational employer.


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Inability of spouse to adjust.

Managers inability to adjust.

Other family issues.

Managers personal or emotional immaturity.

Inability to cope up with larger overseas responsibilities.

Difficulties with new environment and climate.

Personal or emotional attachment to native place.

Lack of technical competence.


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Self-orientation:Possessing high self-esteem, self-confidence and mental well-being.

Others- orientation:Ability to develop relationships with the host country nationals Willingnessto communicate.

Perceptual ability:The ability to understand why people of other countries behave the way

they do.Being nonjudgmental and flexible towards the management style.

Cultural toughness:Relationship between country of assignment and the expatriatesadjustment to it.


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Training: Obtaining skills for a particular foreign Posting.

Cultural training: seeks to foster an appreciation of the host countrys

culture.

Language training: can improve expatriates effectiveness, aids in relating

more easily to foreign culture, and fosters a better firm image.

Practical training: ease into day-to-day life of the host country.

Development: Broader concept involving developing managers skills over

his or her career with the firm.

Several foreign postings over a number of years.

Attend management education programs at regular intervals.


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Development programs designed to increase the overall skill levels

of managers through.

ongoing management education.

Rotation of managers through a number of jobs within the firm to

give broad range of experiences.

Used as a strategic tool to build a strong unifying culture and

informal management network.

Above techniques support transnational and global strategies.


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Problems:

Unintentional bias-

Host nation biased by cultural frame of reference. Home country biased by distance and lack of experience working

abroad.

Expatriates managers believe that headquarters unfairly evaluate and

under-appreciate them.

In a survey of personnel managers in U.S. multinationals, 56%

stated foreign assignment either detrimental or immaterial to ones

career.


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More weight should be given to on-site managers evaluation as they

are able to recognize the soft variables.

Expatriates who worked in same location should assist home-officemanager with evaluation.

If foreign on-site manager prepares an evaluation home-office

manager should be consulted before completion of formal evaluation.


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New HR responsibilities. Several activities that are not necessarily encountered

in the domestic HR include international taxation, international relocation and

orientation, administrative services forExpatriates, host government relations.

The need for a broader, international perspective in compensation policy. At any

one time, the HR manager is responsible for a mix of PCNs, HCNs and TCNs

who are nationals of numerous countries. Establishing a fair and comparable

compensation scale, regardless of nationality, is one of the challenges in a global

enterprise.

Greater involvement in the employees personal lives. The HR professionals are

concerned about welfare of the Expatriates and their families for such matters as:

Housing Arrangements, Health care, Schooling of children, safety and security as

well as proper compensation in view of higher cost of living around the globe/

world.


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Managing the mix ofExpatriates versus locals. Organization must be staffed in eachnational location with personnel from the home country, the host country, or thirdcountries.

The mix of staff depends upon several factors, including the international experienceof the firm, cost-of-living and availability of qualified local staff.

Greater risk exposure, when employee productivity falls below acceptable levels orExpatriates returns prematurely from an international assignment, the consequencesare even more pronounced at global front or in international business.

Exposure to political risk and terrorism may require an increased compensationpackage and security arrangements for the employee and his/her family.

External influences of the government and national culture. External to the firm is thebroader context of the host country environment. Especially notable is the influence ofthe government and national culture.


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Technical competence.

Self-reliance.

Adoptability.

Interpersonal skills.

Leadership ability.

Physical and emotional health.

Spouse and dependents prepared for staying in the host country.


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A leading cause of expatriate failure is cultural shock. The confusion andanxiety, often akin to mental depression that can result from living in aforeign culture for an extended period.

Culture shock may affect family members as well.

As many 1/3 assignments end prematurely due to expatriate failure. It is particularly high among employees assigned to culturally dissimilarcountries.

Regular exercise, relaxation techniques or keeping a detailed journal ofexperiences, will help employees deal with culture shock.

It can also be reduced through advance preparation, training and bydeveloping a deep interest in the new surroundings.


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Recruiting, managing and retaining human resources at a firm with global

operations are especially challenging.

Take the example of global organization of Siemens, the German MNC. In 2005,

Siemens had 460,800 employees in some 190 countries. It employed 290,500throughout Europe, 100, 600 in the Americas, 58,000 in the Asia-Pacific region

and 11,900 in Africa, the middle east and Russia.

Like Siemens, firms such as Volkswagen, Hutchison Whampoa, Nestle, IBM,

Anglo American, Unilever, Wal-Mart, Deutsche Post, McDonalds and MittalSteels have more than 150,000 employees working outside of their home

countries.

Management grapples with a wide range of challenges in hiring and managing

workers within the distinctive cultural and legal frameworks that govern

employees practices around the world.


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Successful MNCs give high-potential employees adequate opportunity to

gain experience not just in their home country but at HQ and in other

countries as well.

This broadens the pool of global talent for managerial positions and visiblyshows top managements commitment to global strategy.

At Unilever, employees cannot advance very far in the firm without

substantial international experience. Managers are rotated through various

jobs and locations around the world, especially early in their careers.

Unilever maintains a global talent pool- a searchable database of

employees profiling, their international skill set and potential for supporting

the firms global aspirations. HR managers search the database for the right

recruit regardless of where he/ she may be located.


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Documents

Project Presentation (Sakshi)