Global Human Resource Management

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Global Human Resource Management

• Dr. Raj Singh

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Current Global Changes
European Economic Community (EEC) North American
Free Trade Agreement (NAFTA) Growth of
Asia General Agreement on Tariffs and Trade (GATT)
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Factors Affecting HRM in Global Markets
Education / Human Capital
Culture
Human Resource Management
Economic System
Political / Legal System
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Hofstedes Cultural Dimensions
Power distance Uncertainty avoidance Individualism
vs. Collectivism Masculinity vs.Femininity Long-t
erm vs. Short-term
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Implications of Culture for HRM

• Culture may influence
• how subordinates expect leaders to lead, how
  decisions are handled, and what motivates people.
• the appropriateness of HRM practices.
• compensation systems.
• communication and coordination processes in
  organizations.

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Economic System

• Socialist economies give little incentive to
  develop human capital, but ample opportunity
  because education is free.
• Capitalist economies, are the opposite of the
  socialist economies, with higher tuitions at
  state universities but with economic incentives
  through individual salary differences.

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Managing Employee in a Global Context
Types of Employees expatriates parent country
nationals host country nationals third country
nationals
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Managing Employees in a Global Context
Levels of Participation domestic international mul
tinational global
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Managing Expatriates in Global Markets

• Major issues include
• Selection
• Training
• Compensation
• Reacculturation

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Areas to Consider in the Selection of Expatriate
Managers
Motivation Health Language Ability Family
considerations Resourcefulness
initiative Adaptability Career planning Financial
Irwin/McGraw-Hill
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Emphasis in Cross-Cultural Training Programs

• Expatriates must be clear about their own
  cultural background.
• Expatriates must understand the particular
  aspects of culture in the new work environment.
• Expatriates must learn to communicate accurately
  in the new culture.

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Communicating Across Language Barriers

• Verbal behavior
• Nonverbal behavior
• Attribution
• Comprehension
• Motivation

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Compensation of Expatriates

• Total pay packages have four components
• Base salary
• Tax equalization allowances
• Benefits
• Other allowances
• cost-of-living
• housing
• education
• relocation