MBA_StrategicHRM_Unit8

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2 Strategic HRM www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

3 Unit 8 – Global HRM ▪ Concept of Global/ International HRM ▪ Comparison of Global/ International HRM with Domestic HRM. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

4 CONCEPT www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

5 • Global human resource management is the discipline of taking care of workforces in a public or private company, for organizations that operate in more than one country or continent. It means supporting, managing and engaging employees around the world, deploying common policies but also taking into account local legislation, customs and culture. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

6 • While an organization may use a single brand and deliver similar products and services all over the world, workforces in different operating countries may have very different needs. • Salary benchmarks and typical working hours may be different. • Cultural differences may affect workplace facilities, communication protocols and management frameworks www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

7 • For instance taxation, employment contracts, statutory benefits or performance management. • This can be a complex set of variables to manage under a single employer brand. • The latest global HR cloud software platforms and tools can help organizations plan and manage policies and ensure compliance with local legislation. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

8 How Global HRM is compared with Domestic HRM www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

9 Nature of Global HRM www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

10 • HRM activities • Procurement • Allocation • Utilization www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

Similarities 11 • All HR activities are same • Planning • Hiring • Training & Development • Compensation • Maintain & Motivate www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

Environmental Factors 12 • Consider Internal & External Business Environment Factors www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

Organizational Effectiveness 13 • Through Intervention: • Team Building • Performance Management • Motivation • Multiskilled development www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

Differences 14 www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

15 • HR Planning – Cost & Skills • Integration between Strategic planning & HR Planning • Uniform HR planning activities • Providing developmental opportunities www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

16 • Employee Hiring: • There are four approaches to international recruitment: ethnocentric, polycentric geocentric, regiocentric www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

17 • What is ethnocentric staffing? • The ethnocentric approach to recruitment means that we hire people from our parent country to fill positions all over the world. For example, if we want to fill an executive role in a foreign country, we could: • Relocate one of our existing employees who’s a permanent resident of our parent country. • Hire a person from our parent country who lives or wants to live in the host country. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

18 • The polycentric approach to recruitment means that we hire locals to fill our positions in a host country. For example, we could advertise on local job boards or create a contract with a local recruitment agency. • We use the polycentric approach when [we need the skills of locals to conduct our business. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

19 • The regiocentric approach to recruitment means that we hire or transfer people within the same region (like a group of countries) to fill our open positions. • We use the regiocentric approach when [the costs of transferring an employee from a host country are lower than transferring them from the parent country.] www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

20 • Geocentric approach to recruitment is hiring the best people to fill our positions without regard to where they come from or where they live. This means: • Hiring remote employees. We use this option when we want to hire someone at a place where we don’t have offices. For example, if we want a customer support agent in another time zone to support our customers there. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

Training and Development 21 • Emphasis on Cultural, Language, Global Etiquette and access to training opportunities. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

Compensation 22 • Devising an appropriate strategy • Minimize the discrepancy • Managing Rewards and Recognition and consider tax laws of the land. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

Performance Management 23 • Physical Distance, Time Difference and cost of reporting system • Identification of the raters www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

Industrial Relations 24 • Who? • Attitude of Parent Company towards subsidiary • Union Tactics in subsidiaries. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

Broader Perspective 25 • Deal with HR functions and for instance 9 different types of employees like • Foreign Parent Expatriates • Host parent Expatriates • Foreign parent transferee • Host country nationals • Third country nationals • Expatriates of foreign parents • Third country expatriates of host country • Third country expatriates of Joint Venture • Foreign Headquarter executive • Host Headquarter executive www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

26 • For instance, different definitions of family members is considered in health insurance www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

More Involvement in Employees Personal 27 Lives • Global HR managers are involved more • Social life getting affected in Germany • Foreigners adjusting in Indian routine is quite difficult. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

Changes in Emphasis as PCN and HCN 28 varies • When new subsidiary is setup- More focus on PCN • Gradually as subsidiary is made locals – shift is towards HCN www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

Risk Exposure 29 • High in both DHRM and GHRM • Terrorism, cultural difference and crimes • Expatriate failure – Cost, Process, Brand image. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

30 Domestic HRM Global HRM Political Policy action of National Economics Government Cultural Technological Competitors Staff selection guidelines in host country. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

31 THANK YOU www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL