Human Resource

Management
ELEVENTH EDITION
1
GARY DESSLER

Part 5 | Employee Relations

Chapter 17

Managing Global Human Resources

© 2008 Prentice Hall, Inc. PowerPoint Presentation by Charlie Cook

All rights reserved. The University of West Alabama
After studying this chapter, you should be able to:

1. List the HR challenges of international business.

2. Illustrate how intercountry differences affect HRM.
3. Discuss the global differences and similarities in HR
practices.
4. Explain five ways to improve international
assignments through selection.
5. Discuss how to train and maintain international
employees.

© 2008 Prentice Hall, Inc. All rights reserved. 17–2

HR and the Internationalization of Business
• The Global Challenges
 Coordinating market, product, and production plans
on a worldwide basis.
 Creating organization structures capable of
balancing centralized home-office control with
adequate local autonomy.
 Extending HR policies and systems to service
staffing needs abroad.

© 2008 Prentice Hall, Inc. All rights reserved. 17–3

 Intercountry Differences Affecting HRM

Cultural Economic
Factors Systems

International
Human Resource
Management

Legal and Industrial

Relations Factors

© 2008 Prentice Hall, Inc. All rights reserved. 17–4

 Global Differences and Similarities
in HR Practices

Personnel
Selection
Procedure

International Purpose of
Use of Pay
Incentives
Human Resource Performance
Management Appraisal

Training and
Development
Practices

© 2008 Prentice Hall, Inc. All rights reserved. 17–5

How to Implement a Global HR System
• Best practices for making a global HR system
more acceptable to local managers:
1. Remembering that global systems are more
accepted in truly global organizations.
2. Investigating pressures to differentiate and
determine their legitimacy.
3. Working within the context of a strong corporate
culture is best.

© 2008 Prentice Hall, Inc. All rights reserved. 17–6

A Global HR System (cont’d)
• Best practices for developing a more effective
global HR system:
 Form global HR networks that make local HR
managers a part of global teams.
 Remember that it’s more important to standardize
ends and competencies than specific methods.
• Best practices for implementing the global HR
system:
 Remember, “You can’t communicate enough.”
 Dedicate adequate resources for the global HR
effort.
© 2008 Prentice Hall, Inc. All rights reserved. 17–7
 Staffing the Global Organization (cont’d)

Top Management Values

Ethnocentric

International
Staffing Polycentric
Policy
Geocentric

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 Staffing the Global Organization (cont’d)

Inability of Spouse
Personality
to Adjust

Personal
Why Expatriate Inability to Cope
Assignments with Overseas
Intentions
Responsibilities
Fail

Family Lack of
Pressures Cultural Skills

© 2008 Prentice Hall, Inc. All rights reserved. 17–9

Staffing the Global Organization (cont’d)

Realistic Previews

Careful Screening

Helping Expatriate
Improved Orientation
Assignments Succeed

Cultural and Language Training

Improved Benefits Packages

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Selecting Expatriate Managers
• Adaptability Screening
 Assessing the assignee’s (and spouse’s) probable
success in handling the foreign transfer.
 Overseas Assignment Inventory
 A test that identifies the characteristics and attitudes
international assignment candidates should have.
• Realistic Previews
 The problems to expect in the new job, as well as the
cultural benefits, problems, and idiosyncrasies of the
country.

© 2008 Prentice Hall, Inc. All rights reserved. 17–11

Compensating Expatriates
• The “Balance Sheet Approach”
 Home-country groups of expenses—income taxes,
housing, goods and services, and discretionary
expenses—are the focus of attention.
 The employer estimates what each of these four
expenses is in the expatriate’s home country, and
what each will be in the host country.
 The employer then pays any differences such as
additional income taxes or housing expenses.

© 2008 Prentice Hall, Inc. All rights reserved. 17–12

 International Labor Relations

Characteristics of
European Labor
Relations

Content and
Industry-Wide Employer Multiple Union
Scope of
Centralization Organization Recognition
Bargaining

© 2008 Prentice Hall, Inc. All rights reserved. 17–13

 KEY TERMS

codetermination
expatriates (expats)
home-country nationals
third-country nationals
offshoring
ethnocentric
polycentric
geocentric
adaptability screening
foreign service premiums
hardship allowances
mobility premiums

© 2008 Prentice Hall, Inc. All rights reserved. 17–14