Chapter 9

Global HR Strategies
Introduction to global HR strategies; Developing HR as a value added function International Business and HR: The International Organisations may typically be divided into 3 sections: International Organisation (Domestic firm that builds on its existing capabilities to penetrate overseas market), Multinational Corporations (Operating units located in foreign countries, they function as autonomous units), Global Corporations (Control over its worldwide operations through a centralized home office). These International Organisations face various challenges which are generic as well as HR specific: Coordinating market, product, and production plans on a worldwide basis Creating organization structures capable of balancing centralized home-office control with adequate local autonomy. Extending its HR policies and systems to service its staffing needs abroad Deployment Knowledge and innovation dissemination Identifying and developing talent on a global basis Global Staffing Issues Selecting candidates for overseas assignment Assignment terms and documentation Immigration processing Cultural and language orientation and training Compensation administration and payroll processing Career planning and development Handling of Family matters

International Staffing PCN (Parent Country National)- They are the citizen of the country in which headquarter of the MNC is located. Example: US National posted in India in an Organisation whose head office is located in USA HCN (Host / Home Country Nationals) - They are those employees of an organisation who are citizen of the country in which the foreign subsidiary is located. Example: Indian National Posted in a American Company operating from India TCN (Third Country Nationals) - These are the citizen of a country other than country where the organization is headquartered & the country that is hosting the subsidiary. Example: US Company, operating from India employing a Srilankan National.

Approaches to staffing subsidiaries Ethnocentric- all strategic decision are made at headquarter. PCN at key position at headquarter as well as foreign subsidiary. Korean firms in India such as LG, Samsung are headed by Koreans. Polycentric- the subsidiary has some autonomy in making decision. Managers following this approach staff foreign subsidiaries of their firm with HCN. Geocentric- integrated global philosophy. Staff may be PCN,HCN or TCNS for both headquarter & subsidiaries Five Factors Important in and Their Components Job Knowledge and Motivation Relational Skills Flexibility/Adaptability Cultural adjustment Family Situation International Assignee Success,

Expatriate Assignment: Assigning roles to the employees in the International Organisation requires utmost planning. Such employees are termed as Expatriates. There are various elements that need to be considered while deploying Employees to International assignments. The deployment may fail due to the following reason: Bad selection Cultural Adjustment Failure of family to adjust Poor performance Lack of understanding The deployment may lead to success as well with following comnsiderations: Providing realistic previews Careful screening Improved orientation Cultural and language training Improved benefits packages Expatriate Trainings: Rotating assignments that permit overseas managers to grow professionally. Management development centers around the world where executives hone their skills. Classroom programs provide overseas executives with educational opportunities similar to stateside programs. Continuing, in-country cross-cultural training

Use of returning managers as resources to cultivate the global mind-sets of their homeoffice staff. Use of software and the Internet for cross-cultural training.

Global HR Issues: Terrorism & Safety Employee protective measures through Crisis management teams Kidnapping and ransom (K&R) insurance Kidnapping: the employee is a hostage until the employer pays a ransom. Extortion: threatening bodily harm. Detention: holding an employee without any ransom demand. Threats to property or products unless the employer makes a payment. Developing HR as a value added Function: Employee Management Procurement & Deployment Training & Development at Global Level with Assessment centre format Competency Management Merit Based Evaluation: Performance & Promotions Developing from Cost Centre to Profit Centre

**Note: The above notes are hints on specific topics and require self study through various sources like relevant Books & Internet. Some points are essential & deliberately mentioned in brief; it should be taken as Indicative points and not exhaustive.