MGT 598, Boyd Jennifer

EFFECTIVE GLOBALHR MANAGEMENT

HELPING US-BASED HR PROFESSIONALS SUCCESSFULLY

SUPPORT MULTI-NATIONALSIN THE UNITED KINGDOM

Presented by:

Jennifer Elaine Boyd, MBA HRM

Robert Morris University Illinois, 2011 Study Abroad 3

Overview

Increase intercultural understanding to effectively support multi-national/global organizations;

Identify cross-cultural differences and challenges among UK businesses;

Employ effective communication systems in the multi-national working environment.


Globalization

Why do firms internationalize? Enhance market opportunities; Achieve greater economies of scale;

ProductionAdministrative

Competitive pressure from rival firms to enter foreign markets;

Acquisition activity;Controlling ownership of foreign-based

organization or subsidiary.

http://rds.yahoo.com/_ylt=A2KJke1mOAVO1S0AGg6jzbkF/SIG=13ogg6thr/EXP=1308993766/**http:/quicksilverdigital.com/FillTek/Intrecco/public_html/images/trans_gray_globe_on_black_crop.gif


Starting - Point First rule – Assess the host country and

organizational dynamics;

Second rule – Distinguish between acceptable and unacceptable cultural norms (embrace cultural differences);

Third rule – “Recognize the role local

zones play and the challenges they uniquely face” (Salisbury, 2010).


Starting - Point

Fourth rule – Build Trust & Cultivate Relationships.


Comparative Geographical Region The term “United States” when used in the

geographical sense means the Continental United States, Alaska, Hawaii, Puerto Rico, Guam, and the Virgin Islands of the United States.


Comparative Geographical Region

United Kingdom Western Europe, islands

including the northern one-sixth of the island of Ireland

Includes: England Northern Ireland Scotland Whales

Northwest of France


Global Business Strategy

Export

Subcontract/license

Joint venture

subsidiary

Local Culture

National Culture

Corporate Culture

(Values, Ethics)


Assessing Culture

First Dimension Individualistic societies value the

development of and focus on the individual;

Collective societies value togetherness, harmony, belongingness, and loyalty to others.

(Mello, pp. 612, 2010)


Assessing Culture

Second Dimension“Power distance looks at the extent to which

a society is hierarchical, with an unequal distribution of power among its members, as opposed to one where there are few distinctions and power is more evenly distributed among Individuals.”

(Mello, pp. 612, 2010)


Assessing Culture Third Dimension

Uncertainty avoidance refers to the extent to which a society feels comfortable with ambiguity, and values as well as encourages risk-taking.

Fourth Dimension Masculine or feminine tendencies

○ Masculine society is one that is more aggressive and assertive, focused on achievements.

○ Feminine society is one that emphasizes interpersonal relationships and sensitivity toward the welfare and well-being of others.

14

Hofstede’s Cultural Dimensions

Country Individualism/Collectivism

Power Distance

Uncertainty Avoidance

Quantity of Life

United Kingdom

Individual Small Moderate Strong

United States

Individual Small Low Strong

Robert Morris University Illinois, 2011 Study Abroad


Business Etiquette and Protocol in the UK A firm shake hand Is the norm; There are no issues over gender; People shake upon meeting and

leaving; Maintain eye contact during the

greeting ; Avoid anything prolonged; Use courtesy titles or Mr., Mrs., or

Miss, and their surname; Wait until invited before moving to first

name basis; Business cards are exchanged at the

initial introduction without formal ritual.

(Kwintessential, 2011)


Strategic HR

Cultural AnalysisUnderstand obvious and subtle variations

that exists between locations; Approach work in a systematic and

confident manner;Deliver policies, procedures and decision

results in a legally compliant and locally appropriate fashion.


Key Considerations

Identify local laws impacting current staff and workforce planning initiatives.Employment Contracts

Expatriate Management“Imported” Labor to host country


HR’s Role

HR must manage a broader range of functional areas:Clarifying taxation issues;Coordinating foreign currencies;Exchange rates;Compensation plans;Working with families of employees working

overseas.


Working in the UK

Immigrant CategoriesHigh – value migrantsSkilled workersTemporary workersDomestic workerSole representative of overseas firmRepresentative of overseas newspaper,

news agency or broadcasting organization


ID Differences

United States Photo ID United Kingdom Photo ID


Employment “If you are a

Commonwealth citizen and at least one of your grandparents was born in the UK, you can apply to come here to work.”

(UK Border Agency, 2011)


European Union

Termination considerationsTypically more stringent – employee favorAcquired rightsCollective redundancyWork councilsPersonal data protection


Managing Expatriates Cultural preparations;

Family adjustment Compensation and

taxation factors; Localization of permanent

expats; Repatriation.

Reverse culture shockReposition in home country


US Business Meetings Punctuality is important; Meetings appear relaxed, but taken quite

seriously;Meetings are typically followed by an agenda;Meetings conclude with decision summary/minutes.

Visual aides are generally used;Statistics are used to back-up business case; Most impressed by data analysis.

Emphasis on controlling time.



UK Business Meetings Punctuality is important; Meetings are often determined by the

composition of attendees;Same level – generally free flow of ideas;Senior ranking – will generally do most of

the speaking. Exaggerated claims are avoided during

presentations.



Building Relationships US

Formal; Verbal communication is direct and straight forward; Values logic and linear thinking Does not insist on relationship history to conduct business; Relationship develops upon contract signing; Dress Code:

○ Varies upon geographic region;○ ‘Casual Friday’ is common.

UK Quite Formal; Verbal communication is direct, but modest; Written communication follows strict rules of protocol; Prefer long-standing relationships; Younger generation not as rigid. Dress Code:

○ Business dress attire is typically formal;○ “Smart Casual.”


Works CitedBhagat, R.S. & Prien, K.O. Landis, D. (Ed); Bhagat, R.S. (Ed), (1996). Handbook of intercultural training (2nd ed). Thousand Oaks, CA , US: Sage Publications, Inc.

http://www.google.com/imgres?q=hr+managing+change+global+workforce+model&um

Kwintessential. (2011). UK language, culture, customs and

etiquette. http.//www.kwintessential.co.uk/resources/global-etiquette/UK.html

Kwintessential. (2011). US language, culture, customs and

etiquette. http://www.kwintessential.co.uk/resources/global- etiquette/usa.html

Mello, J. (2010). Global human resource management. In J.W.

Calhoun (Ed.), Strategic human resource management

(pp. 610 – 623). Mason, OH: Cengage Learning.

Salisbury, M. GPHR. (2011, Mach 16).

Effective global hr leadership. Robert Morris University Illinois. Morris Graduate School of Management. PowerPoint lecture presented for SHRM-Morris Student Chapter. Chicago, IL.

UK Border Agency. (2011). Retrieved from

http://www.ukba.homeoffice.gov.uk/workingintheuk/



http://www.kwintessential.co.uk/resources/global-

http://www.kwintessential.co.uk/resources/global-

http://www.ukba.homeoffice.gov.uk/w

MGT 598, Boyd Jennifer

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