1. Global HumanGlobal Human
ResourceResource
ManagementManagement
ByBy
Dr. Deborah FerberDr. Deborah Ferber

2. Integration of the world’s
economies and the
globalization of business
continue unabated at the
beginning of the 21st century.

3. Indicators of Globalization
International trade is growing at a more rapid
rate than world output
Foreign direct investment (FDI) flows have set
record levels in recent years
Cross-border inter-firm agreements have risen
dramatically during the last 20 years
Social, economic, and political developments
throughout the world have changed the way
global business is conducted.

4. The People Factor
Firms need to strengthen their presence,
involvement, and relative positions in the
domestic and global marketplace
This can be done by utilizing their global
human resources in a manner that helps
them establish and sustain competitive
advantage

5. Global Human Resource Management
(GHRM)
Refers to the policies and practices
related to managing people in an
internationally oriented organization
Includes the same functions as domestic
HRM
There are many unique aspects to human
resource management in the international
organization

6. Major HRM Problems for the
International Corporation (1 of 2)
1. Selecting and training local managers
2. Companywide loyalty and motivation
3. Speaking local language and understanding
local culture
4. Appraising managers’ overseas performance
5. Planning systematic management succession
6. Hiring local sales personnel

7. Major HRM Problems for the
International Corporation (2 of 2)
7. Compensating local foreign managers
8. Hiring and training foreign technical
employees
9. Selecting and training managers for overseas
10. Dealing with foreign unions and labor laws
11. Promoting or transferring foreign managers
12. Compensating managers for an overseas
assignment

8. The Cultural Nature of Global HRM
The cultural differences between nations
influence the effectiveness of HRM
policies and practices
Of critical importance:
understanding these differences
ensuring that HRM and the cultural
orientation of workers are congruent with
one another

9. The Concept of “Fit” in Global HRM
Internal Fit
Concerned with making
sure that HRM policies
facilitate the work values
and motivations of
employees
Policies must be
structured in ways that
allow headquarters and
foreign subsidiaries to
interact efficiently
External Fit
The degree to which
HRM matches the
context in which the
organization is
operating
The organization must
understand the cultural
and socioeconomic
environment of the
foreign subsidiary

10. Sources of Employees for International
Assignment
Host Country Nationals (HCNs)
employees from the local population
referred to as local nationals
Parent Country Nationals (PCNs)
employees sent from the country in which the
organization is headquartered
referred to as expatriates
Third Country Nationals (TCNs)
employees from a country other than where the
parent organization’s headquarters or operations
are located

11. Characteristics of the Expatriate
Manager:
High Probability for Success
Strong analytical skills
Good language skills
Strong desire to work overseas
Specific knowledge of overseas
culture
Well-adjusted family situation
Complete support of spouse
Behavioral flexibility
Adaptability and open-mindedness
Good relational ability
Good stress management skills
Low Probability for Success
Uncertain technical competency
Weak language skills
Unsure about going overseas
Family problems
Low spouse support
Behavioral rigidity
Unadaptability – closed to new
ideas
Poor relational ability
Weak stress management skills

12. Culture Shock and the Expatriate
Manager
Culture Shock – the frustration and
confusion that result from being
constantly subjected to strange and
unfamiliar cues about what to do and
how to get it done
Does not typically occur during the earliest
days of an overseas assignment

13. Host Country Nationals and the
Global Corporation
Managers who are host country nationals
have distinct advantages over expatriates
cultural sensitivity
understanding of local employees’
motivations and needs
Careful recruitment, selection, and
training of HCNs can reduce or eliminate
the potential problems with using HCNs

14. The Legal and Ethical Climate of
Global HRM
Business practices that are considered
unethical or illegal in the U.S. might be
considered part of the national conduct
of business in other countries
Foreign Corrupt Practices Act of 1977
(FCPA)
Employment discrimination

15. Summary
Global human resource management is
an important component of an
organization’s success in a global
marketplace
Organizations must be sure that their
HRM policies can accommodate a
culturally diverse workforce