HRM gaining a competitive advantage chapter 015 3rd ed

Resources Globally Objectives • Identify the recent changes that have caused companies to expand into international markets.. Current Global Changes 15-2  European Economic Community E

Resources Globally

Objectives

• Identify the recent changes that have caused

companies to expand into international markets.

• Discuss the four factors that most strongly

influence HRM in international markets.

• List the different categories of international

employees.

• Identify the four levels of global participation

and the HRM issues faced within each level.

Current Global Changes 15-2

 European Economic Community (EC)

 North American Free Trade Agreement

(NAFTA)

 Growth of Asia

 General Agreement on Tariffs and Trade

(GATT)

 European Economic Community (EC)

 North American Free Trade Agreement

(NAFTA)

 Growth of Asia

 General Agreement on Tariffs and Trade

(GATT)

Factors Affecting HRM in Global

Markets 15-3

Human Resource Management Culture Human Capital Education /

Economic System

Political / Legal System

Hofstede’s Cultural Dimensions 15-4

 Power distance

 Uncertainty avoidance

 Individualism vs

Collectivism

 Masculinity vs.Femininity

 Long-term vs short-term

 Power distance

 Uncertainty avoidance

 Individualism vs

Collectivism

 Masculinity vs.Femininity

 Long-term vs short-term

Managing Employee in a Global

Context 15-5

 Types of Employees

 expatriates

 parent country nationals

 host country nationals

 third country nationals

 Types of Employees

 expatriates

 parent country

nationals

 host country

nationals

 third country

nationals

Managing Employees in a Global

Context 15-6

 Levels of Participation

 domestic

 international

 multinational

 global

 Levels of Participation

 domestic

 international

 multinational

 global

Managing Expatriates in Global

Markets 15-7

Major issues include:

 Selection

 Training

 Compensation

 Reacculturation

Major issues include:

Areas to Consider in the Selection of

Expatriate Managers

15-8

 Motivation

 Health

 Language Ability

 Family considerations

 Resourcefulness &

initiative

 Adaptability

Career planning

 Motivation

 Health

 Language Ability

 Family considerations

 Resourcefulness &

initiative

 Adaptability

Emphasis in Cross-cultural Training

Programs

15-9

 Expatriates must be clear about their

own cultural background.

 Expatriates must understand the

particular aspects of culture in the new work environment.

 Expatriates must learn to

communicate accurately in the new culture.

 Expatriates must be clear about their

own cultural background.

 Expatriates must understand the

particular aspects of culture in the new work environment.

 Expatriates must learn to

communicate accurately in the new culture.

Communicating Across Language

Barriers

15-10

 Verbal behavior

 Nonverbal behavior

 Attribution

 Comprehension

 Design

 Motivation

Compensation of Expatriates 15-11

Total pay packages have

four components:

 Base salary

 Tax equalization

allowances

 Benefits

 Other allowances:

 cost-of-living

 housing

 education

Total pay packages have

four components:

 Base salary

 Tax equalization

allowances

 Benefits

 Other allowances:

 cost-of-living

 housing

 education