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GLOBAL HUMAN
RESOURCE MANAGEMENT
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DEFINITION:
Set of activities aimed managing organizational human
resources at global level to achieve organizational
objectives and achieve competitive advantage over
competitors at national and international level.
Global human resource management (GHRM) is the
process of balancing the integration and differentiation of
HR activities in foreign locations.
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OBJECTIVESOFGLOBALHRM:
Generating awareness of cross cultural sensitivities
Decision Making
Co-ordination
Integrating Mechanisms To reduce the risk of international human resource
To avoid regional disparities
To manage diversifies human capital
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HRFUNCTIONSINGHRM:
HR Staff Development
Global skills management
Change Management
language translation services Expatriate management
Co-ordinate with pay systems
International taxation
Administrative services for expatriates
Managing relations with host governments in a number
of countries around the world.
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MODELOFGHRM:
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EMPLOYEESCATEGORIES:
Home country employees- Employees belonging to
home country of the firm where the corporate head
quarter is situated.
Host country employees- Employees belonging to the
nation in which the subsidiary is situated.
Third country employees- These are the employees
who are not from home country/host country but are
employed at subsidiary or corporate head quarters.
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WHATISANEXPATRIATE??
An employee who is working and temporarily residing in
a foreign country
Some firms prefer to use the term international
assignees
Expatriates are PCNs from the parent country operations
, TCN s transferred to either HQ or another subsidiary,
and HCN s transferred into the parent country
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INTERNATIONAL ASSIGNMENTS CREATE
EXPATRIATES
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REASONSFOR EXPATRIATE FAILURE
Inability of spouse to adjust
Managers inability to adjust
Other family problems
Managers personal or emotional maturity Inability to cope with larger overseas responsibility
Lack of technical competence
Difficulties with new environment
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APPROACHESTOSTAFFING:
Ethnocentric
Polycentric
Regiocentric
Geocentric
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ETHNOCENTRIC:
Strategic decisions are made at headquarters
Limited subsidiary autonomy
Key positions in domestic and foreign operations are
held by headquarters personnel PCNs manage subsidiaries
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POLYCENTRIC:
Each subsidiary is a distinct national entity with some
decision-making autonomy
HCNs manage subsidiaries who are seldom promoted to
HQ positions
PCNs rarely transferred to subsidiary positions
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GEOCENTRIC:
A global approach - worldwide integration
View that each part of the organization makes a unique
contribution
Nationality is ignored in favor of ability
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REGIOCENTRIC:
Reflects a regional strategy and structure
Regional autonomy in decision making
Staff move within the designated region, rather than
globally
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DIFFERENCE BETWEEN DOMESTIC HRM
AND GLOBAL HRM (GHRM)
Level of nationality
Involvement of expatriate management
Complications related with environment
Involvement in employees personal lives Level of risk
Involves constantly changing perspectives
Influenced by more external sources
Heterogeneous and homogenous functions
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SUCCESSFACTORSFORGHRM:
Flexibility to work Manage across cultures
Best business practices
Identify internal and external candidates who already
have those success factors
Provide detailed developmental reports
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THANKS...