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Lecture Human resource management: Gaining a competitive advantage (9/e) – Chapter 15

Chapter 15 - Managing human resources globally. The goals of this chapter are: 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. | Chapter 15 Managing Human Resources Globally Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Introduction Organizations function in a global economy. International competition is #1 factor affecting HRM. International expansion can provide a competitive advantage: large numbers of potential customers. low-cost labor. Maquiladora plants telecommunications and information technology enables work to be done more rapidly, efficiently and effectively. A parent country is the country in which the company's corporate headquarters is located. A host country is the country in which the parent country organization seeks to locate (or has already located) a facility. 15- Current Global Changes 15- Factors Affecting HRM in International Markets Figure 15.1 15- Hofstede’s Five Cultural Dimensions Individualism/collectivism - degree to which people act as individuals rather than as members of a group. Power distance - how a culture deals with hierarchical power relationships. Uncertainty avoidance - how cultures deal with the fact that the future is not perfectly predictable. Masculinity-femininity - division of roles between the sexes within a society. Long-term/short-term orientation - tendency of a culture to focus on long-term benefit or short-term outcomes. 15- Implications of Culture for HRM Culture impacts on approaches to managing people. Culture differs on how employees expect leaders to lead, how decisions are handled and what motivates individuals. Culture influences appropriateness of HRM practices. Cultures influences compensation systems and communication and coordination processes. Cultural diversity programs foster understanding of other cultures to better communicate with them. 15- Education/Human Capital Countries differ in their levels of human capital. Human capital is the productive capabilities of individuals—that is, knowledge, . | Chapter 15 Managing Human Resources Globally Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Introduction Organizations function in a global economy. International competition is #1 factor affecting HRM. International expansion can provide a competitive advantage: large numbers of potential customers. low-cost labor. Maquiladora plants telecommunications and information technology enables work to be done more rapidly, efficiently and effectively. A parent country is the country in which the company's corporate headquarters is located. A host country is the country in which the parent country organization seeks to locate (or has already located) a facility. 15- Current Global Changes 15- Factors Affecting HRM in International Markets Figure 15.1 15- Hofstede’s Five Cultural Dimensions Individualism/collectivism - degree to which people act as individuals rather than as .