m

Beginning of Global HRM

The dramatic and discontinuous changes taking place in the

global environment have contributed to the evolution of
traditional multinational corporations (MNCs) into Global
Organizations.

- Gimeno & Woo 1996, Wolf 1997, Galunic &

Rodan 1998, Westney 1999©
 î at is Global Human Resourcem

ô Global Human Resource is a process concerned broadly with recruiting

people, training them and putting them to the most productive usage. It is
also concerned with maintaining of congenial international industrial
relations. It is the essential prerequisite for the success of the international
firm owning to its complexities.

ô Global human resource does the planning, selection, training, employment,

and evaluation of employees for global operations.

ô Much of the force of globalisation comes through mergers and acquisitions.


Globalizing T e Hr - Function
0s companies Globalize, their HR departments need to
understand the challenges of working internationally and
serving a global organization like:
ô Supporting personnel to serve the needs of their global organizations.
ô 0cquiring competent personnel to work in a Global Environment.
ô Train or explain alliance about and be a better global business partner.
ô 0dministration and use supplement the capabilities for existing
professionals.
ô Frame and Practice HR polices that adopt multinational Cultural,
Political, Legal and Industrial framework.

ë
utrategy - HRD

ô HR professionals should have a thorough knowledge of global

business or it may outsource this function to strongly established
companies in new geographies and the needs of the local workers in
country with competence.
ô Since a company's strategy will impact its employees, HR should
understand the Global Landscape and everything from the
recruitment and hiring techniques used in other countries, to the
establishment of contracts, and compensation and benefits
packages.

^
utaffing t e Global Organization
Top Management Values

Et nocentric

International
Polycentric
utaffing Policy

Geocentric


Et nocentric
ôey management positions filled by parent-
parent-country
nationals
-Ex
Ex--P&G ,Philips, Matsushita.
Dutch Mafia.

Polycentric
ôHost
Host--country nationals manage subsidiaries
ôParent company nationals hold key headquarter
positions.
ôBest suited to multi-
multi-domestic businesses.

J
Geocentric
ôSeek best people, regardless of nationality
ônot always possible
ôBest suited to Global and trans-
trans-national businesses
ôEX
EX--Colgate
Colgate--Palmolive

a
V
  V




   


Obstacles for Global HR

ô Cultural Integration

ô Communication

ô Work organization

ô Political & Social Environment

m
 Hr and t e Internationalization of
Business

T e Global C allenges :
ô Coordinating market, product, and production plans on a
worldwide basis.
ô Creating organization structures capable of balancing
centralized home-office control with adequate local
autonomy.
ô Extending HR policies and systems to service staffing needs
abroad.

mm
 î at is Intercultural management?
x Intercultural management may be defined as effective
functioning of diverse groups of people.

x Diversity can arise because of variation in ethnicity

and nationality.

x Most of the existing literature deals with getting

managers from different countries to work together.

m

Critical Cultural Variables

m
 Features of Intercultural
management
x Organizational cultures
x Communication methods & systems.
x Humor
x Oral, literal, and visual skills for benefit of all players
x Leadership
x Business or personal

më
 Culture
x Culture is a system that enables individuals and groups to deal
with each other and the outside world.
x Culture means: shared values, beliefs, assumptions of who
and what we are.
x They manifest themselves in our behavior and language, the
groups we belong to, the nature of our society.
x They are externalized in our artefacts, our art and technology.
x Our physical environment conditions our technology and art,
our behavior and language,« and our identity

m^
 Culture as an orientation system ±
Example: T ree leading factors reinforcing
misunderstandings
1)Cultural divergence
x Possess of different orientation systems that makes the own social
understandable, controllable, influenceable and masterable

‰) Generalization
x Belief that the own system of orientation is valid for everybody and
has to be respected by all people in the same manner

) Creation of a routine
x The own orientation system has become self-evident and does not
require any critical control or reflection

m
 ºanguage
x The most important competence in international business
x 0bility to understand and make yourself understood
x The most obvious characteristic of another culture
x now at least some of the essential politeness words ± it is a
courtesy.
x 0n acquaintance with someone elseµs home language helps to
understand them then they are speaking yours.
x Language is not only a vehicle for communication but gives
an insight into a peopleµs way of thinking, attitudes and
behaviour.

mJ
Humor
x Britain and Ireland: humor is used to create a relaxed
atmosphere, ligthen tedium and diffuse tension, disguises
aggression
x North 0merica: a speech or presentation starts with a joke
x Other cultures: humor has no place at work
x Outside the business environment a sense of humor is well
developed in Germany, Japan or Turkey

ma
Oral, literal, and visual
x Northern cultures are more literal, southern Europeans are
more oral

x People from literal cultures will not take the spoken word
seriously unless it is confirmed in writing (letter, fax)

x For oral cultures written communication is primarily for the

record ü confirm letters and faxes with a covering phone call.

x In 0merica communication is primarily literal but at the same

time more visual than in Europe ± incorporating graphics,
diagrams and highlightened bullet points

m
Multi-Cultural Teams
Guidelines

1. Begin as one would with mono-cultural teams until there is a problem that

appears to have a cultural basis.

2. Differences in national culture, while important, are usually secondary

3. The mistake made by many managers is not that they leap to cultural

solutions from personal differences, but t at t ey do not know enoug about

cultural differences to determine w et er or not t ey are a factor.

Dealing wit Intercultural Management
x Respect and Courtesy
x Tolerance
x Identify Problems
x Cultural taboos
x now the Law
x Encourage Interaction
x Simplify Language
x Written Instructions
x Be Flexible

m
   
 
  

#
 
   
  !"" 

%
 #
 $
   

% &
 

å By integrating the two aspects i.e. inter-culture & human
resource, one can develop a dynamic capability approach
to staff global assignments. Within this integrative
theoretical perspective, cross-dimensional managers (i.e.,
host or third country managers who are transferred into
the home country organization on a semi-permanent to
permanent basis) can be explored as a potential pool of
uniquely qualified global managers to be utilized in
global organizations.


Conclusions
x The need for highly qualified multicultural managers will
increase as more organizations globalize their operations.
These global managers may be perceived as organizational
resources and, therefore, a resource-based view of human
resource management is utilized.

x It is envisioned that through proper understanding of inter-

cultural norms employees can train themselves to suit the
global environment. Instead of viewing culture as a drawback,
it can be used as an advantage while dealing with colleagues
and handling business situations effectively.

ë