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Overview

Global Perspectives

1(c) 2008 by Nelson, a division of Thomson Canada Limited.

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HR Factors that make a

specific country appealing

HR Factors include: Labour flexibility

Ability to respond to market fluctuations

Wage rates

Low real wages for hourly and salaried employees Union activity

ability to operate with minimal interference

Labour availability

The availability of skilled and unskilled labour Literacy rates, education, university system, etc.

Political stability

Good government, minimal interference

2(c) 2009 by Nelson Education Limited.

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Globalization

The beer industry in Canada

http://www.youtube.com/watch?v=yKaIu3-YtAw

3(c) 2008 by Nelson, a division of Thomson Canada Limited.

http://www.youtube.com/watch?v=yKaIu3-YtAwhttp://www.youtube.com/watch?v=yKaIu3-YtAwhttp://www.youtube.com/watch?v=yKaIu3-YtAwhttp://www.youtube.com/watch?v=yKaIu3-YtAw

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4(c) 2008 by Nelson, a division of Thomson Canada Limited.

Stages of Internationalization (Figure 2.2)

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5(c) 2008 by Nelson, a division of Thomson Canada Limited.

Export Department Structure (Figure 2.3)

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6(c) 2008 by Nelson, a division of Thomson Canada Limited.

HRMs Role in

Firms Early Exporting

unclear and limited

training of the foreign agency

staffing strategies that focus on the international

customers demands

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7(c) 2008 by Nelson, a division of Thomson Canada Limited.

Sales Subsidiary Structure (Figure 2.4)

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8(c) 2008 by Nelson, a division of Thomson Canada Limited.

HRMs Role in Sales

Subsidiary

Staffing

HCNs

knowledge of foreign market, language, needs

HR policies for local employees

PCNs

maintaining control, ethnocentric attitude, expatriation

management ( staffing, training, compensation)

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9(c) 2008 by Nelson, a division of Thomson Canada Limited.

International Division Structure(Figure 2.5)

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10(c) 2008 by Nelson, a division of Thomson Canada Limited.

HRMs Role in International Division

Structure ( Foreign Production)

expatriate management

monitoring subsidiary HR function

communicating corporate policies ( i.e compensation) facilitating control of subsidiaries

training ( socialization and pre-departure training)

supervising transfer of management and technicalknow how

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11(c) 2008 by Nelson, a division of Thomson Canada Limited.

the extent to which key decisions are to be made at the

parent-country headquarters or at the subsidiary units

(centralization versus decentralization)

the type or form of control exerted by the parent over the

subsidiary unit

MNEs Two Major Issues of

Structure

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12(c) 2008 by Nelson, a division of Thomson Canada Limited.

Global Product Division Structure(Figure 2.6a)

Gl b l A Di i i St t

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13(c) 2008 by Nelson, a division of Thomson Canada Limited.

Global Area Division Structure

(Figure 2.6b)

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14(c) 2008 by Nelson, a division of Thomson Canada Limited.

HRMs Role in Global Product/Area

Division

adapting HRM activities to host countries specific

requirements

local employee decisions made by subsidiaries

monitoring with less intervening in local affairs

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15(c) 2008 by Nelson, a division of Thomson Canada Limited.

As MNE Grows a Global Perspective

Accelerates

Think global, act local paradox

MNEs push toward global integration and host

stakeholders push for local responsiveness

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16(c) 2008 by Nelson, a division of Thomson Canada Limited.

Global Matrix Structure (Figure 2.7)

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17(c) 2008 by Nelson, a division of Thomson Canada Limited.

International Matrix Structure is

Difficult

Matrix is all but unmanageable because of

dual reporting, which leads to conflict and confusion.

the proliferation of communication channels which

creates informational logjams.

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18(c) 2008 by Nelson, a division of Thomson Canada Limited.

International Matrix Structure is

Difficult

overlapping responsibilities, which produce turf battles

and a loss of accountability.

the barriers of distance, language, time and culture,

which often make it very difficult for managers to

resolve conflicts and clarify confusion.

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International Matrix Structure is

Difficult

Particular care with staffing

focus less on structure and more on developing the

abilities, behaviour and performance of individual

managers

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20(c) 2008 by Nelson, a division of Thomson Canada Limited.

HRMs Role in Matrix

Structure

staffing (interpersonal skills)

management development

HR planning

Resolving conflict

Clarifying roles