Overview

Global Perspectives

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HR Factors that make a specific country appealing

HR Factors include: Labour flexibility Ability to respond to market fluctuations Wage rates Low real wages for hourly and salaried employees Union activity ability to operate with minimal interference Labour availability The availability of skilled and unskilled labour Literacy rates, education, university system, etc. Political stability Good government, minimal interference
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Globalization
The beer industry in Canada http://www.youtube.com/watch?v=yKaIu3-YtAw

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Stages of Internationalization (Figure 2.2)

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Export Department Structure (Figure 2.3)

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HRMs Role in Firms Early Exporting

unclear and limited training of the foreign agency staffing strategies that focus on the international customers demands

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Sales Subsidiary Structure (Figure 2.4)

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HRMs Role in Sales Subsidiary

Staffing HCNs knowledge of foreign market, language, needs HR policies for local employees PCNs maintaining control, ethnocentric attitude, expatriation management ( staffing, training, compensation)
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International Division Structure

(Figure 2.5)

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HRMs Role in International Division Structure ( Foreign Production)

expatriate management monitoring subsidiary HR function communicating corporate policies ( i.e compensation) facilitating control of subsidiaries training ( socialization and pre-departure training) supervising transfer of management and technical know how

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MNEs Two Major Issues of Structure

the extent to which key decisions are to be made at the parent-country headquarters or at the subsidiary units (centralization versus decentralization) the type or form of control exerted by the parent over the subsidiary unit

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Global Product Division Structure

(Figure 2.6a)

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Global Area Division Structure

(Figure 2.6b)

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HRMs Role in Global Product/Area

Division

adapting HRM activities to host countries specific requirements local employee decisions made by subsidiaries
monitoring with less intervening in local affairs

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As MNE Grows a Global Perspective Accelerates

Think global, act local paradox MNEs push toward global integration and host stakeholders push for local responsiveness

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Global Matrix Structure (Figure 2.7)

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International Matrix Structure is Difficult

Matrix is all but unmanageable because of

dual reporting, which leads to conflict and confusion. the proliferation of communication channels which creates informational logjams.

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International Matrix Structure is Difficult

overlapping responsibilities, which produce turf battles and a loss of accountability. the barriers of distance, language, time and culture, which often make it very difficult for managers to resolve conflicts and clarify confusion.

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International Matrix Structure is Difficult

Particular care with staffing

focus less on structure and more on developing the abilities, behaviour and performance of individual managers

HRMs Role in Matrix Structure

staffing (interpersonal skills) management development HR planning Resolving conflict Clarifying roles

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