Managing Global Managing Global Human Resource Human Resource AdministrationAdministration

Malyn C. SingsonMalyn C. Singson

HUMAN RESOURCE HUMAN RESOURCE ADMINISTRATION & ADMINISTRATION &

DEVELOPMENT DEVELOPMENT

(MAEd GS-644)(MAEd GS-644)

Presenter :Presenter :

T o p i c s T o p i c s T o p i c s T o p i c s

I. Definition of Human Resource Management vs. Global Human Resource Management

II. Core Activities of Human Resource Management

III. The Differences/Similarities of Global HR

IV. Employers in the Global Marketplace

V. Factors Affecting Global HR

VI. G.Hofstede’s Cultural Dimension

VII. Global HR Pressures

IX. Criteria for Selection of Employees for foreign assignment

X. Stages in Expatriation selection

XI. Expatriate preparation and Development Program

XII. Compensating Expatriates

XIII. Compensating Host Country Nationals

XIV. Global Human Resources Development

VIII. Recruitment/Selection in International Staffing a. Types of Global Staff Members b. Approaches of Global Staffing

- the strategic and coherent approach to the - the strategic and coherent approach to the management of an organization’s most valued management of an organization’s most valued assets - the PEOPLE working there individually assets - the PEOPLE working there individually and collectively.and collectively.

I. What is HUMAN RESOURCE MANAGEMENTI. What is HUMAN RESOURCE MANAGEMENT

Why Why HUMAN RESOURCE MANAGEMENTHUMAN RESOURCE MANAGEMENT

Skilled workforce

Limited availability

Proper utilization

George Elton Mayo – Father of Human Resource ManagementGeorge Elton Mayo – Father of Human Resource Management

GLOBAL HUMAN RESOURCE MANAGEMENTGLOBAL HUMAN RESOURCE MANAGEMENT

- - The process of employing, developing and rewarding The process of employing, developing and rewarding people in international or global organization. An people in international or global organization. An organization in which operations takes place subsidiaries organization in which operations takes place subsidiaries overseas. Or manages its business internationally.overseas. Or manages its business internationally.

It combines knowledge of business, culture, history and It combines knowledge of business, culture, history and socialsocial practices to help companies find their niches in the practices to help companies find their niches in the international community.international community.

HUMAN RESOURCE

MANAGEMENT

Recruitment, Selection,

Orientation and Exit interview

HR Analysis, Policy and Planning

Employment Contract

and Admin.

Employee Records/Database

Compensation and

Benefits

Training and

Dev’t.

Performance Appraisal

Employee and

Labor Mgnt. Relations

II. II. CORE ACTIVITIESCORE ACTIVITIES

HUMAN RESOURCE MANAGEMENTHUMAN RESOURCE MANAGEMENT

Recruitment, Selection, Orientation

Compensation and

Benefits

Training and

Dev’t.

Performance Appraisal

Marketing/Marketing/SalesSales OperationsOperations

FinanceFinanceOther Other

functional functional AreasAreas

III. DIFFERENCES/SIMILARITIESIII. DIFFERENCES/SIMILARITIES

GLOBAL GLOBAL HUMAN RESOURCE MANAGEMENTHUMAN RESOURCE MANAGEMENT

• Importing and Exporting Importing and Exporting the buying and selling of the buying and selling of goods and services with organizations in other goods and services with organizations in other countries. countries.

IV. EMPLOYERS IN THE GLOBAL MARKETIV. EMPLOYERS IN THE GLOBAL MARKET (Ways to participate in international business)(Ways to participate in international business)

• Multinational Multinational is ais an organization that operate branches and business units in different countries.

Employers in the Global Marketrket

• Global organization - Global organization - an organization having an organization having corporate units in a number of countries that are corporate units in a number of countries that are integrated to operate worldwide,integrated to operate worldwide,

Employers in the Global Marketrket

PoliticalPolitical EconomicEconomicEconomicEconomic

CultureCultureCultureCultureLaws and Laws and

RegulationsRegulations

Laws and Laws and RegulationsRegulations

Technical Technical AdvancementAdvancement

Technical Technical AdvancementAdvancement

V. FACTORS AFFECTING GLOBAL HRV. FACTORS AFFECTING GLOBAL HR

VI. Geert HOFSTEDE’S CULTURAL DIMENSION THEORYVI. Geert HOFSTEDE’S CULTURAL DIMENSION THEORY

Is a framework for cross-cultural communication. Is a framework for cross-cultural communication.

It describes the effects of a society’s culture on the values of It describes the effects of a society’s culture on the values of

its members and how these values relate to behavior. its members and how these values relate to behavior.

Power DistancePower Distance:: the inequality the inequality among the people of a nation.among the people of a nation.

Geert Hofstede’s Cultural Dimensions TheoryGeert Hofstede’s Cultural Dimensions Theory

IndividualismIndividualism:: the the moral stance, political moral stance, political philosophy, ideology or philosophy, ideology or social outlook that social outlook that emphasizes the moral emphasizes the moral worth of the individual. worth of the individual.

G. Hofstede’s Cultural Dimensions TheoryG. Hofstede’s Cultural Dimensions Theory

Uncertainty Uncertainty avoidance :avoidance : reflects reflects the extent to which the extent to which members attempt to members attempt to cope with anxiety by cope with anxiety by minimizing minimizing uncertainty.uncertainty.

Masculinity/Masculinity/Femininity:Femininity: the the degree to which degree to which “masculine” values “masculine” values prevail over prevail over “feminine” values.“feminine” values.

Long term orientation:Long term orientation: stands for fostering of virtues stands for fostering of virtues oriented towards future oriented towards future rewards through persevance rewards through persevance and thrifty.and thrifty.

G. Hofstede’s Cultural Dimensions TheoryG. Hofstede’s Cultural Dimensions Theory

VII. GLOBAL HR PRESSURESVII. GLOBAL HR PRESSURES

Identifying and

Developing talent

Knowledge and

Innovation Dissemination

Deployment/Service

Univer

sity

partn

ersh

ip

Service Providers

Preserve talents/

Transfer knowledge

S A P (System

Application Product)

VIII. RECRUITMENT/SELECTION inVIII. RECRUITMENT/SELECTION in International Staffing PolicyInternational Staffing Policy

1. Types of Global Staff Members1. Types of Global Staff Members

2. Approaches to Global Staffing or 2. Approaches to Global Staffing or Top Management ValuesTop Management Values

Host countryHost country ExpatriateExpatriate Third country nationalThird country national

EthnocentricEthnocentric PolycentricPolycentric RegioncentricRegioncentric GeocentricGeocentric

• 1.1. Expatriate 1.1. Expatriate

An employee who is relocated from his/her mother An employee who is relocated from his/her mother country to work at one of the subsidiaries of the company country to work at one of the subsidiaries of the company abroad or at Corporate Headquarters for a period abroad or at Corporate Headquarters for a period exceeding one year.exceeding one year.

• 1.2. Host-country national1.2. Host-country national

Employee’s nationality same as location of Employee’s nationality same as location of subsidiary.subsidiary.•1.3. Third-country national 1.3. Third-country national

Citizen of one country, working in second country, Citizen of one country, working in second country, and employed by organization headquartered in third and employed by organization headquartered in third country.country.

1. 1. Types of Global Staff MembersTypes of Global Staff Members

MOTHER COUNTRYMOTHER COUNTRY

THIRD THIRD COUNTRYCOUNTRY

HEADQUARTERHEADQUARTER Expatriate Expatriate

Illustration 1Illustration 1

SubsidiarySubsidiary

Types of Global Staff MembersTypes of Global Staff Members

Host countryHost countryNational National

2. 2. Approaches to Global Staffing/Approaches to Global Staffing/ Top Management ValuesTop Management Values

• 2.1. Ethnocentric staffing 2.1. Ethnocentric staffing

Companies primarily hire expatriates to staff Companies primarily hire expatriates to staff higher-level foreign positions.higher-level foreign positions.

• 2.2. Polycentric staffing 2.2. Polycentric staffing

When more host-country nationals are used When more host-country nationals are used throughout the organization, from top to bottom.throughout the organization, from top to bottom.

• 2.3. Regiocentric staffing 2.3. Regiocentric staffing

Regional groups of subsidiaries reflecting Regional groups of subsidiaries reflecting organization’s strategy and structure work as a unit.organization’s strategy and structure work as a unit.

as a unit. as a unit.

• 2.4. Geocentric staffing 2.4. Geocentric staffing

Uses worldwide integrated business Uses worldwide integrated business strategy. Chooses the best person to work atstrategy. Chooses the best person to work at

subsidiary. Manager selection is based onsubsidiary. Manager selection is based on

competency not on nationality. competency not on nationality.

Approaches to Global Staffing/Approaches to Global Staffing/ Top Management ValuesTop Management Values

IX. CRITERIA FOR SELECTION OFIX. CRITERIA FOR SELECTION OF EMPLOYEES FOR FOREIGN ASSIGNMENTS :EMPLOYEES FOR FOREIGN ASSIGNMENTS :

Competency in the employee’s area of expertise.

Ability to communicate verbally and nonverbally in the foreign country.

Flexibility, tolerance of ambiguity, and sensitivity to cultural differences.

Motivation to succeed and enjoyment of challenges.

Willingness to learn about the foreign country’s culture, language, and customs.

Support from family members.

3. Mid-assignment Phase

X. STAGES IN EXPATRIATION SELECTIONX. STAGES IN EXPATRIATION SELECTION

1.Planning Phase

a. Identify the mission/ duration b. Compensation/Benefits

2. Selection Phase a. Approval of the company b. Knowledge/Technical Skills/ International experience d. Personality/Adaptability Screening e. Contract Assignment f. Training/Consultation Phase g. Work Visa

h. Pre-departure orientation

4. Evaluation/Reward Phase4. Evaluation/Reward Phase

5. Repatriation Phase

6. Assessment Phase6. Assessment Phase

XI. EXPATRIATE PREPARATION AND XI. EXPATRIATE PREPARATION AND DEVELOPMENT PROGRAM DEVELOPMENT PROGRAM

Expatriate Preparation and Development

Prior to Departure: Orientation and Training

During Assignment: Continual Development

Near Completion: Repatriation Orientation Training

Language Culture History Local Customs Living Conditions

Expanding Skills Career Planning Home-Country Development

Lifestyle Workplace Employees

XII. COMPENSATING EXPATRIATES

• The “Balance Sheet ApproachThe “Balance Sheet Approach””

Home-country groups of expensesHome-country groups of expenses—income —income taxes, housing, goods and services, and taxes, housing, goods and services, and discretionary expenses—are the focus of attention.discretionary expenses—are the focus of attention.

The employer estimates what each of these four The employer estimates what each of these four expenses is in the expatriate’s home country, and expenses is in the expatriate’s home country, and what each will be in the host country.what each will be in the host country.

The employer then pays any differences such as The employer then pays any differences such as additional income taxes or housing expenses.additional income taxes or housing expenses.

COMPENSATION FOR EXPATRIATES (Mo.)

POSITIONPOSITION

COUNTRYCOUNTRY PhpPhpCONVERSIONCONVERSION

Teacher Dirhams 11,0000 AED @ 12.30 = 135,300 Teacher Dirhams 11,0000 AED @ 12.30 = 135,300

Japan 156,500 JPY @ 0.043360 = 67,854 Japan 156,500 JPY @ 0.043360 = 67,854

Hongkong 23,285 HKD @ 5.832 = 135,798 Hongkong 23,285 HKD @ 5.832 = 135,798

SALARYSALARY

Vietnam 31,355,000 VND @ 0.00213 = 66,786.15 Vietnam 31,355,000 VND @ 0.00213 = 66,786.15

Canada 4,369 CAD @ 41.153 = 179,797 Canada 4,369 CAD @ 41.153 = 179,797

USA 2,5000 USD @ 45.247 = 113,120 USA 2,5000 USD @ 45.247 = 113,120

COMPENSATION FOR EXPATRIATES (Mo.)

POSITIONPOSITION

COUNTRYCOUNTRY PhpPhpCONVERSIONCONVERSION

Engineers Middle East 7,0000 SAR @ 12.06 = 84,420 Engineers Middle East 7,0000 SAR @ 12.06 = 84,420

Hongkong 25,000 HKD @ 5.832 = 145,800 Hongkong 25,000 HKD @ 5.832 = 145,800

SALARYSALARY

Canada 5,380 CAD @ 41.153 = 221,142 Canada 5,380 CAD @ 41.153 = 221,142 USA 5,191.66 USD @ 45.247 = 234,907 USA 5,191.66 USD @ 45.247 = 234,907

XIII. Compensation for Host-Country Nationals XIII. Compensation for Host-Country Nationals

Factors to consider:

a. Minimum wage requirements which differs from country to country.

b. Working time information and holidays

c. Overtime payments and restrictions

d. Benefits and severance practices

XIV. Global Human Resource Development

• Expatriate Training & DevelopmentExpatriate Training & Development

• Continual Development: Online Assistance and Continual Development: Online Assistance and Training Training

• Repatriation Orientation and TrainingRepatriation Orientation and Training

• Safety and HealthSafety and Health