1. GLOBAL HUMANGLOBAL HUMAN
RESOURCE MANAGEMENTRESOURCE MANAGEMENT
IMBA 552IMBA 552
International Business and HRMInternational Business and HRM

2. PURPOSE OF THIS CLASSPURPOSE OF THIS CLASS
To understand the management of global
human capital
To understand the role of the global human
resource function
To begin pre-preparation for your
international experience
To begin the process of “writing a thesis”

4. RANK COUNTRY POPULATION % OF
WORLD
POPULATION
- World 6.7 billion 100%
1 People’s
Republic
Of China
1.3 billion 19.9%
2 India 1.1 billion 17.04%
3 United States .3 billion 4.57%
4 Indonesia .2 billion 3.47%
5 Brazil .18 billion 3.81%
6 Pakistan .16 billion 2.46%

5. FACTS For PUBLICLYFACTS For PUBLICLY
TRADEDTRADED
• 60,000 MNE’s employ over than 45mm people60,000 MNE’s employ over than 45mm people
• By 2010 this will increase to 75mmBy 2010 this will increase to 75mm
• In 1957 US contributed 53% to global GDP – today 18%In 1957 US contributed 53% to global GDP – today 18%
• In 2003 25 countries employed 40mm people with a totalIn 2003 25 countries employed 40mm people with a total
of USD 13.73 trillion in annual revenues and USD 45of USD 13.73 trillion in annual revenues and USD 45
trillion in assetstrillion in assets
• Key players besides US, Germany, Great Britain, FranceKey players besides US, Germany, Great Britain, France
and Japan is; south Korea, Mexico, Russia, China, Braziland Japan is; south Korea, Mexico, Russia, China, Brazil

6. OTHERSOTHERS
• Some of the largest international firms areSome of the largest international firms are
owned by families, especially in China,owned by families, especially in China,
Taiwan, Thailand, Hong Kong, Indonesia,Taiwan, Thailand, Hong Kong, Indonesia,
Malaysia and SingaporeMalaysia and Singapore
• Growing numbers of Small MultinationalsGrowing numbers of Small Multinationals
(SME’s)(SME’s)
– In Germany there are 350 SME’s thatIn Germany there are 350 SME’s that
dominate their market nichedominate their market niche

7. DRIVERS FORDRIVERS FOR
GLOBALIZATIONGLOBALIZATION
• Scale EconomiesScale Economies
• Scope EconomiesScope Economies
• Shorter Product Life CyclesShorter Product Life Cycles
• Direct Foreign InvestmentDirect Foreign Investment
• TechnologyTechnology

8. RATIONALE FOR GLOBAL HRMRATIONALE FOR GLOBAL HRM
• Increased travelIncreased travel
• Rapid and extensive globalRapid and extensive global
communicationscommunications
• Rapid transfer of new technologyRapid transfer of new technology
• Growing trade, foreign competitionGrowing trade, foreign competition
• Improving educationImproving education
• Emigration of large numbers of peopleEmigration of large numbers of people

9. Porter’s Diamond (Adapted from Porter:1990)
Firm Strategy,
Structure and
Rivalry
Factor
Endowments Demand
Conditions
Related and
Supporting
Industries
COMPETITIVE ADVANTAGE OF
NATIONS

10. TRENDS IN THE INTERNATIONALTRENDS IN THE INTERNATIONAL
DIVISION OF LABOR- Reich’s New WorldDIVISION OF LABOR- Reich’s New World
OrderOrder
• Routine ProductionRoutine Production
ServicesServices
• In-person ServicesIn-person Services
• Symbolic AnalyticSymbolic Analytic
ServicesServices
• Zero-sum NationalismZero-sum Nationalism
• CosmopolitanismCosmopolitanism
• Positive EconomicPositive Economic
NationalismNationalism

11. Routine production servicesRoutine production services
Routine production as an employee on
an assembly line or supervisory jobs or
clerical jobs involving repetitive checks
on employees and enforcement of
standard operating procedures

12. In person servicesIn person services
Simple repetitive tasks with little
training providing services
directly to the consumer, e.g.
salespersons, hairdressers,
waiters, cleaning staff,
receptionists, etc.

13. Symbolic-analytic servicesSymbolic-analytic services
These jobs require skills in
problem solving and problem
identification, e.g. engineers,
architects, managers, research
scientists, etc.

14. Zero sum nationalismZero sum nationalism
“ The assumption that there are only two
outcomes possible in economic warfare:
either we win or they win, so we had better
make sure that we win.
Countries therefore close their eyes to
globalization and try to protect and improve
their own position.
Government subsidies for deteriorating
industries and a renewed interest in
protectionism are the hallmarks of this
scenario.

15. CosmopolitanismCosmopolitanism
The ideal of free trade is championed. This is not a
zero sum game: the world as a whole can improve
Through free trade. By making products where they
can be made most cheaply, we all benefit in the end.
Reich maintains this is the attitude that will most
likely
determine the future.

16. Positive economic nationalismPositive economic nationalism
Each nations citizens take primary
responsibility for enhancing the
capabilities of their countrymen for full
and productive lives, but also work with
other nationals to ensure that these
improvements do not come at others’
expense.
This argument provides for free trade
with some form of government
intervention

19. What is Human ResourceWhat is Human Resource
ManagementManagement
As a field it is about: the understanding,
researching, applying and revising all human
resource activities in their internal and external
contexts as they impact the process of
managing human resources in enterprises
throughout the global environment to enhance
the experience of multiple stakeholders,
including investors, customers, employees,
partners, suppliers, environment, and society.

20. Forms of International HRMForms of International HRM
• Operation of parent-country firmsOperation of parent-country firms
• Operation of foreign firms in the homeOperation of foreign firms in the home
countrycountry
• Operation of Third party nationalsOperation of Third party nationals
• Employment of foreign citizens (or recentEmployment of foreign citizens (or recent
immigrants and/or their familiesimmigrants and/or their families

21. DIFFERENCES BETWEENDIFFERENCES BETWEEN
DOMESTIC AND INTERNATIONALDOMESTIC AND INTERNATIONAL
HRMHRM
• Responsibility for greater number of activitiesResponsibility for greater number of activities
• Need for greater level of expertiseNeed for greater level of expertise
– e.g. employment lawse.g. employment laws
• Necessity for closer involvement with employees (e.g.Necessity for closer involvement with employees (e.g.
expatriate familiesexpatriate families
• Greatly expanded and different mix of employeesGreatly expanded and different mix of employees
• Having to deal with more external influencesHaving to deal with more external influences
• Having to face greater exposure to problems andHaving to face greater exposure to problems and
difficultiesdifficulties