hrm10e chap18
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Human ResourceHuman ResourceManagementManagement
TENTH EDITONTENTH EDITON
© 2003 Southwestern College Publishing. All rights reserved. PowerPoint Presentation
by Charlie Cook
PowerPoint Presentation
by Charlie Cook
Globalization of HRGlobalization of HRManagementManagement
Globalization of HRGlobalization of HRManagementManagement
Chapter 18Chapter 18
SECTION 5EmployeeRelations
andGlobal HR
SECTION 5EmployeeRelations
andGlobal HR
Robert L. Mathis Robert L. Mathis John H. Jackson John H. Jackson
© 2002 Southwestern College Publishing. All rights reserved. 18–2
Learning ObjectivesLearning ObjectivesLearning ObjectivesLearning Objectives
After you have read this chapter, you should be able to:
– Identify key forces driving globalization of management and organizations.
– Describe how political, legal, economic, and cultural factors affect global HR management.
– Discuss the five factors considered necessary to select successful global employees.
– Explain the activities needed to increase expatriate completion rates.
– Identify basic international compensation practices.
– Describe several international health, safety, and security concerns.
© 2002 Southwestern College Publishing. All rights reserved. 18–3
Globalization of Business and HRGlobalization of Business and HRGlobalization of Business and HRGlobalization of Business and HR
Global Global CommunicationsCommunications
Global Global CommunicationsCommunications
Global Population Global Population ChangesChanges
Global Population Global Population ChangesChanges
Global Economic Global Economic InterdependenceInterdependence
Global Economic Global Economic InterdependenceInterdependence
Regional AlliancesRegional AlliancesNAFTA, EUNAFTA, EU
Regional AlliancesRegional AlliancesNAFTA, EUNAFTA, EU
Globalization Globalization ForcesForces
Globalization Globalization ForcesForces
© 2002 Southwestern College Publishing. All rights reserved. 18–4
Types of Global OrganizationsTypes of Global OrganizationsTypes of Global OrganizationsTypes of Global Organizations
Types
Importing and Exporting
Selling and buying goods and services with organizations in other countries
Multinational Enterprise (MNE)
An organization with operating units located in foreign countries.
Global Organization
An organization having corporate units in a number of countries integrated to operate worldwide.
© 2002 Southwestern College Publishing. All rights reserved. 18–5
Transition to Global OrganizationsTransition to Global OrganizationsTransition to Global OrganizationsTransition to Global Organizations
Figure 18–1a
© 2002 Southwestern College Publishing. All rights reserved. 18–6
Transition to Global OrganizationsTransition to Global OrganizationsTransition to Global OrganizationsTransition to Global Organizations
Figure 18–1b
© 2002 Southwestern College Publishing. All rights reserved. 18–7
Factors Affecting Global HR ManagementFactors Affecting Global HR ManagementFactors Affecting Global HR ManagementFactors Affecting Global HR Management
Figure 18–2
© 2002 Southwestern College Publishing. All rights reserved. 18–8
Hofstede’s Culture DimensionsHofstede’s Culture DimensionsHofstede’s Culture DimensionsHofstede’s Culture Dimensions
Types
Power Distance The inequity among the people of a nation.
Individualism The extent to which people prefer to act as individuals instead of members of groups.
Masculinity/ Femininity
The degree to which “masculine” values prevail over “feminine” values.
Uncertainty Avoidance
The preference of people in a country for structured rather than unstructured situations.
Long-Term Orientation
The values people hold that emphasize the future, as opposed to short-term values focusing on the present.
© 2002 Southwestern College Publishing. All rights reserved. 18–9
Selected Countries on Hofstede’sSelected Countries on Hofstede’sCulture DimensionsCulture Dimensions
Selected Countries on Hofstede’sSelected Countries on Hofstede’sCulture DimensionsCulture Dimensions
Figure 18–3aSource: Based on data contained in Geert Hofstede, Cultures and Organizations (London: McGraw-Hill Book Co., 1991).
© 2002 Southwestern College Publishing. All rights reserved. 18–10
Selected Countries on Hofstede’sSelected Countries on Hofstede’sCulture DimensionsCulture Dimensions
Selected Countries on Hofstede’sSelected Countries on Hofstede’sCulture DimensionsCulture Dimensions
Figure 18–3bSource: Based on data contained in Geert Hofstede, Cultures and Organizations (London: McGraw-Hill Book Co., 1991).
© 2002 Southwestern College Publishing. All rights reserved. 18–11
Staffing Global AssignmentsStaffing Global AssignmentsStaffing Global AssignmentsStaffing Global Assignments
Types of Global EmployeesTypes of Global EmployeesTypes of Global EmployeesTypes of Global Employees
ExpatriateExpatriateExpatriateExpatriate Third-Country Third-Country NationalNational
Third-Country Third-Country NationalNational
Host-Country Host-Country NationalNational
Host-Country Host-Country NationalNational
© 2002 Southwestern College Publishing. All rights reserved. 18–12
Types of Global AssignmentsTypes of Global AssignmentsTypes of Global AssignmentsTypes of Global Assignments
Figure 18–4
© 2002 Southwestern College Publishing. All rights reserved. 18–13
Global Employee Global Employee Selection FactorsSelection Factors
Global Employee Global Employee Selection FactorsSelection Factors
Figure 18–5
© 2002 Southwestern College Publishing. All rights reserved. 18–14
Causes of Expatriate Assignment FailureCauses of Expatriate Assignment FailureCauses of Expatriate Assignment FailureCauses of Expatriate Assignment Failure
Figure 18–6Source: Based on data from Global Relocation Trends Survey Report (New York: GMAC GRS/Windham International, 2000), 48.
© 2002 Southwestern College Publishing. All rights reserved. 18–15
Global Assignment Management CycleGlobal Assignment Management CycleGlobal Assignment Management CycleGlobal Assignment Management Cycle
Figure 18–7
© 2002 Southwestern College Publishing. All rights reserved. 18–16
Intercultural Competency TrainingIntercultural Competency TrainingIntercultural Competency TrainingIntercultural Competency Training
Figure 18–8Source: Developed by Andrea Graf, Ph.D., Technical University of Braunschweig, Germany, and Robert L. Mathis, Ph.D., SPHR.
© 2002 Southwestern College Publishing. All rights reserved. 18–17
Expatriate Adjustment StagesExpatriate Adjustment StagesExpatriate Adjustment StagesExpatriate Adjustment Stages
Figure 18–9Source: GMAC Relocation Services, used with permission.
© 2002 Southwestern College Publishing. All rights reserved. 18–18
International CompensationInternational CompensationInternational CompensationInternational Compensation
Balance Sheet Approach– Equalizes cost differences between the
international assignment and the same assignment in the home country.• Home-country reference point used to maintain a
standard of living equivalency.• Home-country compensation and other benefits are
protected during the international assignment.
Global Market Approach– International assignments are viewed as
continual and core components of compensation and benefits are provided regardless of assignment location.
© 2002 Southwestern College Publishing. All rights reserved. 18–19
Typical Expatriate Compensation ComponentsTypical Expatriate Compensation ComponentsTypical Expatriate Compensation ComponentsTypical Expatriate Compensation Components
Figure 18–10
© 2002 Southwestern College Publishing. All rights reserved. 18–20
Global EmploymentGlobal EmploymentGlobal EmploymentGlobal Employment
Global EmployeeGlobal EmployeeRelations IssuesRelations Issues
Global EmployeeGlobal EmployeeRelations IssuesRelations Issues
Global Labor-Global Labor-Management Management
RelationsRelations
Global Labor-Global Labor-Management Management
RelationsRelations
Global Health, Global Health, Safety, and Safety, and
SecuritySecurity
Global Health, Global Health, Safety, and Safety, and
SecuritySecurity
Discrimination Discrimination Regulations Regulations
GloballyGlobally
Discrimination Discrimination Regulations Regulations
GloballyGlobally
© 2002 Southwestern College Publishing. All rights reserved. 18–21
Union Membership as a Percentage of Union Membership as a Percentage of the Workforce for Selected Countriesthe Workforce for Selected Countries
Union Membership as a Percentage of Union Membership as a Percentage of the Workforce for Selected Countriesthe Workforce for Selected Countries
Figure 18–11Source: International Labor Organization, available at www.ilope.org.