Human Resource Management TENTH EDITON © 2003 Southwestern College Publishing. All rights reserved. PowerPoint Presentation by Charlie Cook Globalization of HR Management Globalization of HR Management Chapter 18 SECTION 5 Employee Relations and Global HR Robert L. Mathis  John H. Jackson

© 2002 Southwestern College Publishing. All rights reserved. 18–2 Learning Objectives After you have read this chapter, you should be able to: –Identify key forces driving globalization of management and organizations. –Describe how political, legal, economic, and cultural factors affect global HR management. –Discuss the five factors considered necessary to select successful global employees. –Explain the activities needed to increase expatriate completion rates. –Identify basic international compensation practices. –Describe several international health, safety, and security concerns.

© 2002 Southwestern College Publishing. All rights reserved. 18–3 Globalization of Business and HR Global Communications Global Population Changes Global Economic Interdependence Regional Alliances NAFTA, EU Globalization Forces

© 2002 Southwestern College Publishing. All rights reserved. 18–4 Types of Global Organizations

© 2002 Southwestern College Publishing. All rights reserved. 18–5 Transition to Global Organizations Figure 18–1a

© 2002 Southwestern College Publishing. All rights reserved. 18–6 Transition to Global Organizations Figure 18–1b

© 2002 Southwestern College Publishing. All rights reserved. 18–7 Factors Affecting Global HR Management Figure 18–2

© 2002 Southwestern College Publishing. All rights reserved. 18–8 Hofstede’s Culture Dimensions

© 2002 Southwestern College Publishing. All rights reserved. 18–9 Selected Countries on Hofstede’s Culture Dimensions Figure 18–3a Source: Based on data contained in Geert Hofstede, Cultures and Organizations (London: McGraw-Hill Book Co., 1991).

© 2002 Southwestern College Publishing. All rights reserved. 18–10 Selected Countries on Hofstede’s Culture Dimensions Figure 18–3b Source: Based on data contained in Geert Hofstede, Cultures and Organizations (London: McGraw-Hill Book Co., 1991).

© 2002 Southwestern College Publishing. All rights reserved. 18–11 Staffing Global Assignments Types of Global Employees ExpatriateExpatriate Third-Country National Host-Country National

© 2002 Southwestern College Publishing. All rights reserved. 18–12 Types of Global Assignments Figure 18–4

© 2002 Southwestern College Publishing. All rights reserved. 18–13 Global Employee Selection Factors Figure 18–5

© 2002 Southwestern College Publishing. All rights reserved. 18–14 Causes of Expatriate Assignment Failure Figure 18–6 Source: Based on data from Global Relocation Trends Survey Report (New York: GMAC GRS/Windham International, 2000), 48.

© 2002 Southwestern College Publishing. All rights reserved. 18–15 Global Assignment Management Cycle Figure 18–7

© 2002 Southwestern College Publishing. All rights reserved. 18–16 Intercultural Competency Training Figure 18–8 Source: Developed by Andrea Graf, Ph.D., Technical University of Braunschweig, Germany, and Robert L. Mathis, Ph.D., SPHR.

© 2002 Southwestern College Publishing. All rights reserved. 18–17 Expatriate Adjustment Stages Figure 18–9 Source: GMAC Relocation Services, used with permission.

© 2002 Southwestern College Publishing. All rights reserved. 18–18 International Compensation  Balance Sheet Approach –Equalizes cost differences between the international assignment and the same assignment in the home country. Home-country reference point used to maintain a standard of living equivalency. Home-country compensation and other benefits are protected during the international assignment.  Global Market Approach –International assignments are viewed as continual and core components of compensation and benefits are provided regardless of assignment location.

© 2002 Southwestern College Publishing. All rights reserved. 18–19 Typical Expatriate Compensation Components Figure 18–10

© 2002 Southwestern College Publishing. All rights reserved. 18–20 Global Employment Global Employee Relations Issues Global Labor- Management Relations Global Health, Safety, and Security Discrimination Regulations Globally

© 2002 Southwestern College Publishing. All rights reserved. 18–21 Union Membership as a Percentage of the Workforce for Selected Countries Figure 18–11 Source: International Labor Organization, available at