managing the global work force
TRANSCRIPT
-
8/4/2019 Managing the Global Work Force
1/22
Group-8, Section-3
-Dagar Katyal
-Mohammad Khurram
-Prachi Sawant
-Shuchita Shekhar
-Vivek Joseph
-
8/4/2019 Managing the Global Work Force
2/22
International Imperative
Why organizations expand internationally
To capture enhanced market opportunities thatforeign countries may present
To achieve economies of scale in production and
administration by expanding scope and volume ofoperations to international markets
Keeping up with industry leaders may requireorganization to enter foreign markets
Acquiring ownership of foreign-based organizationor subsidiary
-
8/4/2019 Managing the Global Work Force
3/22
International Imperative
As companies in theUnited States andBritain cut software
jobs and outsource toother countries inorder to drive downcosts, countries such
as India continue tosee employment rise.
-
8/4/2019 Managing the Global Work Force
4/22
International Expansion
Strategies for expanding internationally Exporting locally produced goods to host
country
Subcontracting or licensing production ofcertain goods or services to foreign partner
Entering into joint venture with foreignpartner
Setting up operations (making a directinvestment) in form of foreign branch orsubsidiary
-
8/4/2019 Managing the Global Work Force
5/22
Employees in an Global Workforce
Parent-country national
Employee who was born and works in the country in which anorganizations headquarters is located.
Host-country national Employee who is a citizen of the country (other than parent
country) in which an organization operates a facility.
Third-country national
Employee who is a citizen of a country that is neither theparent country nor the host country of the employer.
Expatriates Employees assigned to work in another country.
-
8/4/2019 Managing the Global Work Force
6/22
Employers in the Global Marketplace
International organization An organization that sets up one or a few facilities in
one or a few foreign countries.
Multinational company An organization that builds facilities in a number of
different countries in an effort to minimizeproduction and distribution costs.
Global organization
An organization that chooses to locate a facilitybased on the ability to effectively, efficiently, andflexibly produce a product or service using culturaldifferences as an advantage.
-
8/4/2019 Managing the Global Work Force
7/22
Factors Affecting HRM in International Markets
GlobalHRM
Culture
EducationEconomicSystems
Political-Legal
Systems
-
8/4/2019 Managing the Global Work Force
8/22
Culture
A communitys set of shared assumptionsabout how the world works and what idealsare worth striving for.
Culture can greatly affect a countrys laws.
Culture influences what people value, so itaffects peoples economic systems andefforts to invest in education.
Culture often determines the effectivenessof various HRM practices.
-
8/4/2019 Managing the Global Work Force
9/22
Culture
Cultural characteristics influence the waysmembers of an organization behave toward oneanother as well as their attitudes toward variousHRM practices.
Cultures strongly influence the appropriatenessof HRM practices.
Cultural differences can affect how people
communicate and how they coordinate theiractivities.
-
8/4/2019 Managing the Global Work Force
10/22
Hofstedes Cultural Dimensions
Individualism/Collectivism Describes the strength of the relationbetween an individual and otherindividuals in the society.
Power Distance Concerns the way the culture deals with
unequal distribution of power and definesthe amount of inequality that is normal.
Uncertainty Avoidance Describes how cultures handle the fact thatthe future is unpredictable.
Masculinity/FemininityThe emphasis a culture places on practices
or qualities that have traditionally beenconsidered masculine or feminine.
Long-term/Short-termOrientation
Suggests whether the focus of culturalvalues is on the future (long term) or thepast and present (short term).
-
8/4/2019 Managing the Global Work Force
11/22
Culture
Organizations must prepare managers torecognize and handle cultural differences. Recruit managers with knowledge of other
cultures
Provide training
For expatriate assignments, organizations mayneed to conduct an extensive selection process
to identify individuals who can adapt to newenvironments.
-
8/4/2019 Managing the Global Work Force
12/22
Education and Skill Levels
Companies with foreign operations locate incountries where they can find suitableemployees.
The educations and skill levels of a countryslabor force affect how and the extent towhich companies want to operate there.
In countries with a poorly educatedpopulation, companies will limit theiractivities to low-skill, low-wage jobs.
-
8/4/2019 Managing the Global Work Force
13/22
Economic System
The economic system provides many of theincentives or disincentives for developing the valueof the labor force.
In developed countries with great wealth, laborcosts are relatively high. This impactscompensation and staffing practices.
Income tax differences between countries make
pay structures more complicated when they crossnational boundaries.
-
8/4/2019 Managing the Global Work Force
14/22
Political-Legal System
The countrys laws often dictate the requirementsfor HRM practices: training, compensation, hiring,firing, and layoffs.
An organization that expands internationally mustgain expertise in the host countrys legalrequirements and ways of dealing with its legalsystem.
Organizations will hire one or more host- countrynationals to help in the process.
-
8/4/2019 Managing the Global Work Force
15/22
Emotional Cycle for Foreign Assignment
HoneymoonCultural
ShockRecovery Adjustment
-
8/4/2019 Managing the Global Work Force
16/22
International HRM
International HRM requires Managing broader range of functional areas
Becoming more involved in employees
personal lives Setting up several different HRM systems for
different geographic locations
Dealing with more complex external
constituencies Participating in international assignments
that have heightened exposure to personalrisk
-
8/4/2019 Managing the Global Work Force
17/22
Four Approaches to IHRM
Make strategic decision as to level of standardizationdesired across locations
Ethnocentric approach
Exporting organizations home country practices and policies to
foreign locations Polycentric approach
Allowing each location to develop own practices and policies
Regiocentric approach
Developing standardized practices and policies by geographicregion
Geocentric approach
Developing one set of global practices and policies applied at alllocations
-
8/4/2019 Managing the Global Work Force
18/22
Four Approaches to IHRM
-
8/4/2019 Managing the Global Work Force
19/22
Managing Global Workforce:
Challenges and Strategies
Challenges: Deployment in getting right skills to right
place in organization, regardless of
geographic location Knowledge and innovation dissemination
and transfer, where all business unitsconcurrently receive and provide information
Talent identification and development ofthose employees with abilities and skills tofunction effectively in global organization
-
8/4/2019 Managing the Global Work Force
20/22
Managing Global Workforce:
Challenges and Strategies
Strategies for managing global workforce
Develop careers for employees to provide richcontextual knowledge of environments and cultures.
Provide specific awareness building assignments thatdevelop cross-sensitivity in high potential employeesin short time
Utilize expert SWAT teams deployed on short-term
basis for operational problems technical projects Adopt virtual solutions by using electronic
communication technologies to connect localemployees to distant problems
-
8/4/2019 Managing the Global Work Force
21/22
-
8/4/2019 Managing the Global Work Force
22/22