managing the global work force

8/4/2019 Managing the Global Work Force

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Group-8, Section-3

-Dagar Katyal

-Mohammad Khurram

-Prachi Sawant

-Shuchita Shekhar

-Vivek Joseph


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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


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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.


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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


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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.


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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.


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Factors Affecting HRM in International Markets

GlobalHRM

Culture

EducationEconomicSystems

Political-Legal

Systems


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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.


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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.


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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).


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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.


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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.


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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.


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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.


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Emotional Cycle for Foreign Assignment

HoneymoonCultural

ShockRecovery Adjustment


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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


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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


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Four Approaches to IHRM


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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


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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


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managing the global work force

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