Lecture 6 Global Governance in HRM

8/18/2019 Lecture 6 Global Governance in HRM

http://slidepdf.com/reader/full/lecture-6-global-governance-in-hrm 1/19

Lecture # 6Global Governance

in HRM

SZABIST Islamabad

Facilitator: Muhammad Ahmed Khan



Topics

Topics

• HRM & legislations• Global enterprise system• Global human resource management (GHRM)• Comparison between GHRM & DHRM

• Core HRM activities• GHRM & DHRM dierences & similarities• !actors aecting global HRM• Main issues tac"led in GHRM

• G. Hofstede’s Cultural Dimensions Theory



HRM & L!ISLATI"#S

Most HR decisions are ta"en "eeping in view one

law or another# e$g$

Hiring and iring o employees

%mployee compensationHow and what beneits to oer

ccommodation o employees' dependents

ewer sets o laws even cover people with

disabilities and those see"ing medical leave

absence rom wor" wor"er saety# se*ual

harassment$ etc$



!L"BAL #TR$RIS S%STM

• Due to globali+ation it is diicult to distinguish

between a oreign irm and a domestic outit$• Migrant wor"ers around the globe has posed new

GHRM challenges$

•

,rgani+ations have to ollow HRM policies with aglobal perspective i they strive to capture global

mar"ets$

• %ven upstart irms dealing in cross-border business

have to conorm to sta related globally setbenchmar"s$

• %ective HR policies irms can enhance their

international competitiveness



strategic and coherent approach to themanagement o an organi+ation's most valued

assets - the .%,./% wor"ing there individually

and collectively$

HMA# RS"R' MA#A!M#T

HMA# RS"R' MA#A!M#T( )h*+

S,illed -or,.orce

Limited a/ailabilit*

$roper utili0ation

1!eor2e lton Ma*o 3 Father o. Human Resource

Mana2ement4



!L"BAL HMA# RS"R' MA#A!M#T

• 0he process o employing# developing and rewarding

people in international or global organi+ation$ n

organi+ation in which operations ta"es place

subsidiaries overseas$ or manages its business

internationally$

• ,r simply 1 0he process o managing people in

2nternational settings1

• GHRM combines "nowledge o business# culture#

history and social practices to help companies ind their

niches in the international community$



K% FATRS "F !L"BAL HRM

• Dierent labour mar"ets

• Mobility problems3

• /egal# economic# cultural barriers

• Dierent management styles• 4aried compensation practices

• /abour laws$



'"M$ARIS"#

!HRM

•Handles a wide range o HRMactivities$

•2ssues relate to employees

belonging to many nationalities

•Greater involvement o HR

manager in personal lie o

employees

•Greater e*posure to ris"s in

2nternational assignments

•Manages several e*ternal

actors# e$g$ government

regulations o oreign countries

5HRM

• Deals with a narrow rangeo HRM activities$

• 2ssues relate to employees

belonging to a single

nationality

• /imited involvement o HR

manager in personal lie o

employees

• /imited ris"s in domestic

assignments• /imited e*ternal actors to

deal with$



HUMANRESOURCEMANAGEMENT

Recruitment,Selection,Orientation andExit interview

HR Analysis,Policy andPlanning

EmploymentContract

and Admin.

EmployeeRecords/Dataase

Compensationand !ene"ts

#rainingand

Devp$t

Per%ormanceAppraisal

Employeeand

&aor 'gmt(Relations

'"R HRM A'TI6ITIS



Recruitment,Selection,

Orientation

Compensationand

!ene"ts

#rainingand

Devp$t(

Per%ormanceAppraisal

'ar)eting/

Sales

Operations

inance

Ot*er%unctional

Areas

5IFFR#'S & SIMILARITIS

GLO!ALHUMAN RESOURCE MANAGEMENT



$olitical conomic

'ulture

La-s and

Re2ulations

Technical

Ad/ancement

FA'T"RS AFF'TI#! !L"BAL HR



MAI# ISSS TA'KL5 I# !HRM

• How to sta "ey management posts in the Co$5

• Develop managers# who can do business in dierent

countries5

• .re-departure training or international assignments

• How to compensate people in dierent locations5

• How to evaluate the perormance o managers in

dierent countries5

• .erormance management in international assignments

• Repatriation$



I#TR#ATI"#AL STAFFI#! 789

It is a process o. selectin2 emplo*ees .or

sta..in2 international operations o. an M#'

• Three sources o. sta..in2

a) Home countr* or $arent 'ountr* #ational 1$'#4 %mployees o an organi+ation who are citi+ens o

the country in which the head6uarters o the

company is located$

b4 Host 'ountr* #ationals 1H'#4

%mployees o an organi+ation who are the citi+ens

o the country in which the oreign subsidiary is

located



I#TR#ATI"#AL STAFFI#! 989

• Three sources o. sta..in2

c4 Third 'ountr* #ationals 1T'#4

%mployees o an organi+ation who are the citi+ens

o the country other than the country where the

organi+ation is head6uartered and the country that

is hosting the subsidiary



Mana2in2 e;patriate assi2nments

throu2h HRM policies

• 7hy choice o employee or international

assignment is critical to the organi+ation5Mostly e*patriates wor" under minimal supervision at

distant locations# so mista"es in selection may go

unnoticed until it is too late

• !or selection o the best e*patriate employee

the management should3 ccept cultural sensitivity as a selection criterion

%stablish a selection board o e*patriates$

/oo" or candidates with previous international

e*perience

%*plore the possibility o hiring oreign-born

employees who can serve as <e;patriates= in uture



$o-er 5istance: %*tent to which

individuals e*pect a tiered structure that

emphasi+es status dierence between

subordinates and superiors$$ (2ne6ualityamong the people o a nation)

HRM policies> or2ani0ational character & #ational

culture

Indi/idualism: Degree to which a society

values personal goals# autonomy and

privacy over group loyalty (Moral stance#

political philosophy# ideology or social

outloo" that emphasi+es the moral worth

o the individual)

!eert Ho.stede?s 'ultural 5imensions Theor*



! Ho.stede?s 'ultural 5imensions Theor*

ncertaint* a/oidance :

relects the e*tent to which

members attempt to cope withan*iety by minimi+ing

uncertainty$

Masculinit*8Femininit*: 0he

degree to which 8masculine1values prevail over 8eminine1

values$



Lon2 term8 short term

orientation: %*tent to which values

are oriented towards the .uture

(preserving# persistence) as

opposed to the past or present

(respect to tradition# ulilling socialobligations)

! Ho.stede?s 'ultural

5imensions Theor*



Than, %ou

Lecture 6 Global Governance in HRM

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