MA GLOBAL BUSINESS

CORE COURSE IN
HUMAN RESOURCE MANAGEMENT IN THE GLOBAL ENVIRONMENT
Academic year
2007 - 2008

Good Employer?
1
Class
Ethical leadership in International HRM

Objectives
After attending this class, you should start practicing and learning about:

1. Identify the professional nature of human resource

management and its classical functions in global
contexts.
2. The ability towards individual and on-going learning, and
at the same time, with team management skills to work
effectively with people in an increasingly global
environment.
3. Social skills understanding in HRM the interests of a
range of stakeholders: investors, managers, employees,
including professionals, trade unions, politicians.
4. Moral competence for trust development in organizations

HUMAN RESOURCE MANAGEMENT IN THE GLOBAL ENVIRONMENT

Sources:
Essential reading:
„ “Business ethics and human resource management.
Themes and issues”. Diana Winstanley, Jean Woodall,
Edmund Heery. Personnel Review. Volume 25, Number
6, 1996. pp. 5-12.

Further reading:
„ Edwards,T. and Rees, C. International Human Resource
Management, Prentice Hall, 1st edition, 2006. Chap. 13.
„ Guillén, M. “Ética en las organizaciones. Construyendo
confianza”, Prentice Hall, 1st edition, 2006. Chap.1.

1
 WHAT IS HUMAN RESOURCE
MANAGEMENT?

„ Human resource (HR) management refers to the

practices and policies you need to carry out the
personnel aspects of your management job,
specifically, acquiring, training, appraising,
rewarding, and providing a safe and fair
environment for your company’s employees

The Nature of a Profession

ƒ Existence of a Common Body of Knowledge
ƒ A Procedure for Certifying Members of a
Profession
ƒ Performance Standards are Established by
Members of a Profession

ƒ Society for Human Resource

Management
ƒ American Society for Training and
Development
ƒ International Personnel Management
Association
ƒ WorldatWork
ƒ Human Resource Certification
Institute

Traditional functions of the

Human Resource Department

c Planning for staffing.

d Recruiting and hiring.
e Training and development.
f Appraising compensation and benefits.
g Overseeing changes in employment
status.

2
 Determining Human Human
Resource
Resource Needs Planning

Recruiting
Acquiring Qualified
Employees
The Human Selection

Resource Training

Management Developing Qualified

Employees Performance
Process Appraisal

Summary Retaining Compensation

Qualified
Employee
Employees Motivation

Why Is HR Management Important to All

Managers?
Personnel mistakes you don’t want to make -

„ Hiring the wrong person for „ Having your company taken to

the job
„ Experiencing high turnover
„ Finding employees not doing
their best
court or to mass media because
of your discriminatory or unfair
actions
„ Having your company cited
under federal occupational
safety laws for unsafe practices
„ And…

Differences between Domestic

HRM and IHRM

„ More HR activities
„ The need for a broader perspective
„ More involvement in employees’ personal lives
„ Changes in emphasis as the workforce mix of
expatriates and locals varies
„ Risk exposure
„ Broader external influences

3
Definition of IHRM
The field of IHRM is about
understanding, researching, applying
and revising all human resource
activities in their internal and external
contexts as they impact the processes
of managing human resources in
organisations throughout the global
environment to enhance the
experience of multiple stakeholders

Social Responsibility
Organizational Stakeholders
Those groups, individuals, and organizations who are
directly affected by the practices of an organization
and who therefore have a stake in its performance

Social Responsibility
The attempt of a business to balance its commitments
to groups and individuals in its environment,
including customers, other businesses, employees, and
investors (stakeholders)

4. Competing by Meeting
Stakeholders’ Needs
Employees Investors

CORPORATION

Customers Suppliers

Local
Communities
4 - 12

4
 Comparing traditional and new perspectives
Traditional
Traditional New
New
PEOPLE
PEOPLE == COST
COST PEOPLE
PEOPLE == RESOURCE
RESOURCE

Threat Opportunity
Short term Long term
Quantitative Qualitative
Dependent Independent
Adapted Non-adapted
Not-flexible Flexible
Minimize Optimize
Results Means + Results

Decision
Decision making
making in
in organizations:
organizations: Three
Three “e”
“e” model
model
Common
Common characteristics
characteristics to
to every
every organization
organization

Means People Ends

Three
Three “e”
“e” model:
model: consequence
consequence from
from organizational
organizational nature
nature

Efficiency Ethics Effectiveness

Results Results Results

Means People Ends
© 2006 Prentice Hall. Guillén

Virtuous
Virtuous vs
vs vicious
vicious circle
circle of
of ethical
ethical trust
trust
1.
1. Ethical
Ethical 2.
2. Employees
Employees
decision
decision motivation
motivation
making
making PERSON

Micro level
ETHICS
Building
trust
ENVIRONMENT

ORGANIZATION
4.
4. 3.
Reputation 3. Ethical
Ethical
Reputation corporate
corporate
culture
culture
Macro level Meso level
© 2006 Prentice Hall. Guillén

5
stakeholders
stakeholders
ENVIRONMENT

ORGANIZATION

INPUTS
INPUTS OUTPUTS
OUTPUTS

INDIRECT
INDIRECT DIRECT
DIRECT INDIRECT
INDIRECT
STAKEHOLDERS:
STAKEHOLDERS: STAKEHOLDERS:
STAKEHOLDERS: STAKEHOLDERS:
STAKEHOLDERS:

Suppliers
Suppliers Members
Members Receivers
Receivers

Government
Government Owners
Owners Community
Community

© 2006 Prentice Hall. Guillén

Concentric
Concentric circles
circles of
of social
social responsibility
responsibility
PRIMARY
PRIMARYRESPONSIBILITIES
RESPONSIBILITIES
Tertiary
To
Topeople
peopledirectly
directlyinvolved
involved
(stakeholders)
(stakeholders)in
inspecific
specific
organizational
organizationalmission.
mission.
Secondary

SECONDARY
SECONDARYRESPONSIBILITIES
RESPONSIBILITIES

Primary To
Topeople
peopleindirectly
indirectlyinvolved
involved
responsibilities (stakeholders)
(stakeholders)in
inspecific
specific
organizational
organizationalmission.
mission.

TERTIARY
TERTIARYRESPONSIBILITIES
RESPONSIBILITIES
To
Toother
otherpeople
peopleand
andsocial
social
agents,
agents,not
notdevoted
devotedtotothe
the
specific organizational mission.
specific organizational mission.

© 2006 Prentice Hall. Guillén