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What is GHRM?
Global Human resource management (GHRM) refers to the activities an organization carries out to utilize
effectively its human resources in internationally
02
Staffing
05
Compensation,
03 Labor relations
Performance
evaluation
01
Determining the
firm's human
resource strategy
04
Management
development
2
0 2
Operation of
parent-
country firms
Operation of
foreign firms
in the home
country
Operation of
Third party
nationals
Employment
of foreign
citizens
3
Responsibility for greater number of activities
.
Greatly expanded and different mix of employees
4
Inter Country Differences
01 02 03 04
5
• Problem of integration.(HQ to Subsidiary) • Strategy is implemented through
• Problem of differentiation.(Flexibility in policies organizational architecture
and practices) • Right people at right postings
• Effective training to acquire right skill
• Involves constantly changing perspectives
• Behaviour, congruent with the desired
• Requires more involvement in employees organizational culture
personal lives • Compensation must create incentives for
• Is influenced by more external sources actions inline with the strategy
• Performance appraisal to measure the
• Involves a greater level of risk than typical
behaviour, firm wants to encourage
domestic HRM
6
Approaches to GHRM
Geocentric
Regiocentric
Polycentric
HR policies are coordination
HR policies are adapted to meet within the region to as great
the circumstances in each foreign extent as possible
country. The subsidiaries are
basically independent from
headquarters
7
Expatriate Managers Expatriate Pay
• Expatriates are citizens of one • Acc. To “Balance Sheet
country, who are working in Approach”, it equalizes
another country purchasing power across
countries so employees can
• Inpatriates is a subset of enjoy the same living standard
expatriates who are citizens of a in their foreign posting, as the
foreign country, working in the enjoyed at home
home country of their • It also provides financial
multinational employer. (e.g., incentives to offset qualitative
citizen of India, who moves to U.S differences between assignment
to work for Microsoft) locations
8
After selection, the next step is training the manager to do the specific job
MDP is a broader concept, it is intended to develop a manager’s skills over their career in the firm, e.g.,
sending managers on various foreign postings over years to build their cross cultural sensitivity and experience
MDP have a strategic purpose, and helps reinforce desired culture of the firm by creating an informal network
9
Cultural training
Understanding the culture of host country, enhance
effectiveness, familiarization trip before formal transfer
Language training
Manager’s ability to interact, help build rapport and
improve manager’s effectiveness
Practical training
Adjust to day to day life in host country, establish a
routine, successful adaptation, support network of
friends
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of
• ORIENTATION
a. Pre-arrival Orientation
• Cultural briefing
• Assignment briefing
• Shipping requirements
• CAREER DEVELOPMENT
• Helping the expatriate to move up in the organization ladder, expand his knowledge, learn new things
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Documentary Programmes:- Foreign country’s history, culture, institutions etc.
Culture Assimilation:- With the help of exposure to a series of simulated inter-cultural incidents, typical
problem solutions.
Language Instruction:- Conversational language skills are taught through a variety of methods MDP
have a strategic purpose, and helps reinforce desired culture of the firm by creating an informal network
Sensitivity Training:- Experiential exercises teach awareness of the impact of one’s actions on
others
Field Experience:- Firsthand exposure to ethnic subcultures in one’s own country or to foreign
cultures
12
Compensation
Appraising
Selection
Recruitment
globally
Variations in HR practices
13
Identify the
vacancy
Recruitment
Compensation
Appraising
Selection
Arrange for an
online Advertising
assessment, the vacancy
GD, Interview
Managing the
Shortlisting
response
14
Self Others Perceptual Cultural
orientation orientation ability toughness
Compensation
Recruitment
Appraising
Selection
Self esteem, self Ability to interact with To understand the Relationship
confidence, mental host country’s particular between country
nationals, relationship
well being, adapt behaviour of of assignment and
development and
their interest in willingness to people in host how well an
food, sports, music communicate by countries, expatriate adjusts
and hobbies learning local empathise
language
15
Performance Appraisal
Compensation
Recruitment
Appraising
Selection
Due to
proximity,
Biasness by
onsite Consultation
To evaluate To evaluate cultural
manager of home
the the frame of Unfair
should country
performance performance reference evaluation
evaluate soft manager to
of Managers of Expatriates and
variables of balance out
expectations
expatriate’s
performance
16
Compensation
National differences in
Compensation
Recruitment
Appraising
compensation
Selection
National differences in economic
circumstances and practices
17
• The Hotel Paris’s competitive strategy is, “To use
superior quest service to differentiate the Hotel Paris
properties , and to thereby increase the length of stay
and return rate of guests, and thus increase revenues
and profitability”
• HR manger Lisa Cruz must now formulate functional
Policies and activities that support this competitive
strategy, by eliciting the required employee behaviors
and competencies
• With hotels in 11 cities in Europe and United States,
Lisa knew the company had to do a better job of
managing its global human resources
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• There was no formal means of identifying or training management
employees for duties abroad (either for both going to Europe or U.S.)
• Recently, after spending upwards of $600,000 sending a U.S. manager and
her family abroad, they had to return her abruptly when the family
complained bitterly of missing their friends back home
• High performing services and hotel firms had formal departure training
programs for at least 90% of the employees they send abroad; the Hotel
Paris had no such programs
• Each city’s hotel operating its own hotel local HR information system, there
was no easy way for Lisa, the CFO, or the company’s CEO to obtain reports
or metrics like turnover, absences or worker’s compensation cost across all
hotels
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“If we can’t measure how each hotel is doing in
terms of hotel metrics like these, there is really no
way to manage these activities, so there is no
telling how much lost profits and wasted efforts
are dragging down each hotel’s performance.” Lisa
received approval to institute new global human
resources programs and practices
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Proficient in at Minimum 5
Only regular
Willingness least 3 location
employees
to work languages preference
can work
abroad (French, English from
abroad
and one more) employee