Managing Globalize Human

Resource

Presented to: Ma’am Moshina

Presented by : Rabia Yahya

Aqsa Nawab Iram Shehzadi

Iqra bashir Farhat Iftakhar

Human Resource Management (HRM)

“ It refers to the activities an organization carries out to use its human resources effectively”.

In simple words:

“if a firm or an organization expands its sales or production beyond the national boundaries, then it is globalization”

Globalization

Globalization means:

“ Processes that reduce barriers among countries”

How Different Is Globalize HR

Different labor markets Mobility problem legal economic culture barriers Different management styles Varied compensation Labor laws

Benefits of Globalization * Free flow of capital , increased in total capital employed . * Free flow of technology . * Increase in industrialization. * Spread of production facilities through out the global. * Balanced development of world economies. * Increase in consumption . * High living standards . * Balanced human development . * Decrease in unemployment rate .

Main functions global HRM 1. Staffing and recruiting

2. Salaries and compensation 3. Training and development

4. Administration

5. Performance appraisal

6. Employee relation

Strategic Role of Globalize HR Performance appraisal to measure the behavior ,firm wants to encourage . Compensation must create incentives for action inline with the strategy . Effective training to acquire right skill set to help performance jobs effectively . Behavior , congruent with the desired organization culture. Right people at right posting. Strategy is implementation through organization architecture.

Staffing Policy &

HRM Issues International Business

Staffing policy is concerned with the selection of employees for particular jobs.

Selecting individuals who have the skill to do a particular jobTool for developing and promoting the desired corporate culture (norms & value system) of the firm

Managers should decide most suitable staffing policy to success in HRM international business.

Types Of Staffing Policy Approaches

There are three types of staffing policy:

I. Ethnocentric approachII.Polycentric approachIII.Geocentric approach

Ethnocentric approacho All key management positions are filled by parent – country nationals.o One’s own culture is superioro Overlooks important cultural factorso Host country lacks qualified professionalso Maintain a unified corporate cultureo Create value by transferring core competencieso Limits advancement opportunities for host country nationalso Leads to resentment, lower productivity, and high turnover in employees.o E.g.: Procter & Gamble, Toyota.

Polycentric approach

Decentralized control Business Units in different countries have autonomy from home office, like a local Co. No standard forms or procedures Recruits host country nationals to manage subsidiaries, while parent country nationals occupy key positions at corporate HQ. Less expensive to implement

Geocentric approach• It seeks the best people for key jobs, throughout the organization, regardless of nationality.• Based on informed knowledge of home and host countries.• Hybrid of Ethno and Poly• Enables firms to make best use of its HR• Helps building a strong unifying corporate culture and informal management network.

Types Of HRM Issues In International Business

Expatriation Compensation Repatriation

Expatriation

o HR managers must determine when or where to expatriate.o Expatriate workers are frequently assigned to key positions in overseas operations.

Compensation

o The compensation of expatriate workers must be examined along with compensation of local workers and the compensation of workers in the home country.

Repatriationo Repatriation happens when the worker needs to come back to the home country, usually to continue working for the companyo Repatriation also happens when the expatriate worker retires

Effect of Globalization on HRM