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CHAPTER 1: The Globalization of Human Resource Management

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... culture Dilemma of standardization vs. adaptation Global integration Local responsiveness Research on ... International human resource management IHRM ... – PowerPoint PPT presentation

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Title: CHAPTER 1: The Globalization of Human Resource Management


1
CHAPTER 1 The Globalization of Human Resource
Management
2
Learning objectives (chapter 1)
  • Define globalization
  • Describe the many drivers of globalization
  • Explain how business and human resource
    management are becoming internationalized
  • Describe the different roles for the HR
    department as an organization changes its
    international presence
  • Identify characteristics of successfully
    internationalized human resource departments
  • Define IHRM
  • Describe the differences between domestic and
    international HRM
  • Explain the reasons for the relatively late
    development of IHRM
  • Explain how the organizations degree of
    internationalization affects HRM policies and
    practices
  • Discuss how an IHRM strategic plan can further
    the organizations international business
    objectives

3
The internationalization of business
4
Who is globalizing?
  • Large, medium and small companies
  • Developed and emerging market countries

5
IHRM in action 1.1 Harry Ramsdens goes
international
  • What are some of the difficulties Harry Ramsden
    faces as the company internationalizes?
  • Does a small to medium-sized enterprise face a
    different set of challenges than a large
    multinational enterprise when it goes
    international?

6
Drivers of globalization
  • Travel
  • Rapid and extensive global communications
  • Rapid development and transfer of technology
  • Free trade
  • Education
  • Migration
  • Knowledge sharing
  • Pressure on costs
  • Search for new markets
  • Homogenization of cultures
  • E-Commerce

7
The increasing importance of international
business
  • Definition of globalization
  • Scope of global commerce
  • MNE and SMEs as global players
  • Rate of globalization

8
The strategic decision to go international
  • Why firms internationalize
  • The context of the firm
  • External environment scan
  • Internal capabilities of the enterprise
  • Globalization and HR
  • Impact of globalization on HR
  • HRs role

9
International orientation
  • Ethnocentric
  • Polycentric
  • Regiocentric
  • Geocentric

10
The internationalization of human resource
management
11
HRM challenges in becoming global
  • Developing a global mindset inside HR
  • Aligning core HR processes and activities
  • Enhancing global competencies and capabilities of
    HR

12
Forms of international HRM
  • Headquarters of multinationals
  • Home country subsidiaries of foreign-owned
    enterprises
  • Domestic firms
  • Government agencies and NGOs

13
Figure 1.1 International human resource
management
14
IHRM in action 1.2 International expansion for
a local U.S. accounting firm
  • How is the global expansion of this firm serving
    its employees and customers?

15
The development of IHRM
  • Establishing an international HR strategy
  • Differences between international and domestic
    IHRM
  • Development of the IHRM function

16
Establishing an international HR strategy
  • Country selection
  • Global staffing
  • Recruitment and selection
  • Compensation
  • Standardization or adaptation

17
International vs. domestic HRM
  • More HR functions and activities
  • Broader perspective and expertise
  • More involvement in peoples lives
  • Wider mix of employees
  • More external factors and influences
  • Greater level of risk

18
Development of the IHRM function
  • SHRM Global Forum
  • IHR service providers
  • GPHR Certification
  • HR as strategic partners in internationalization
    efforts

19
Strategic IHRM
20
HRs integration into international strategy
planning
  • Impact of international strategy on HR
  • Stage of internationalization
  • Global nature of the industry
  • Structure of international operations
  • Organizational culture
  • Dilemma of standardization vs. adaptation
  • Global integration
  • Local responsiveness

21
Research on strategic IHRM
  • Influences on HR practices of
  • Local/national culture
  • Managerial practices
  • Organizations life cycle
  • Linkage between HQ and subsidiaries

22
The evolving international HR function
23
Support of the strategic objectives of the MNE
  • Transactional HR services at local, cross-border
    and global levels
  • IHR services to support the MNE

24
Key terms
  • MNEs
  • Globalization
  • Global mind-set
  • IHRM
  • International business
  • Internationalization
  • Ethnocentric, polycentric, regiocentric, and
    geocentric orientations
  • SIHRM
  • GPHR certification
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