GLOBAL HUMAN RESOURCE MANAGEMENT

IMBA 552 International Business and HRM

PURPOSE OF THIS CLASS

To understand the management of global human capital To understand the role of the global human resource function To begin pre-preparation for your international experience To begin the process of writing a thesis

RANK

COUNTRY

POPULATION

% OF WORLD POPULATION 100% 19.9% 17.04% 4.57% 3.47% 3.81% 2.46%

1 2 3 4 5 6

World People s Republic Of China India United States Indonesia Brazil Pakistan

6.7 billion 1.3 billion 1.1 billion .3 billion .2 billion .18 billion .16 billion

FACTS For PUBLICLY TRADED

60,000 MNE s employ over than 45mm people By 2010 this will increase to 75mm In 1957 US contributed 53% to global GDP today 18% In 2003 25 countries employed 40mm people with a total of USD 13.73 trillion in annual revenues and USD 45 trillion in assets Key players besides US, Germany, Great Britain, France and Japan is; south Korea, Mexico, Russia, China, Brazil

OTHERS
Some of the largest international firms are owned by families, especially in China, Taiwan, Thailand, Hong Kong, Indonesia, Malaysia and Singapore Growing numbers of Small Multinationals (SME s)
In Germany there are 350 SME s that dominate their market niche

DRIVERS FOR GLOBALIZATION

Scale Economies Scope Economies Shorter Product Life Cycles Direct Foreign Investment Technology

RATIONALE FOR GLOBAL HRM

Increased travel Rapid and extensive global communications Rapid transfer of new technology Growing trade, foreign competition Improving education Emigration of large numbers of people

COMPETITIVE ADVANTAGE OF NATIONS

Firm Strategy, Structure and Rivalry Factor Endowments Demand Conditions

Related and Supporting Industries

Porter s Diamond (Adapted from Porter:1990)

TRENDS IN THE INTERNATIONAL DIVISION OF LABOR- Reich s New World Order LABORRoutine Production Services In-person Services InSymbolic Analytic Services Positive Economic Nationalism ZeroZero-sum Nationalism Cosmopolitanism

What is Human Resource Management

As a field it is about: the understanding, researching, applying and revising all human resource activities in their internal and external contexts as they impact the process of managing human resources in enterprises throughout the global environment to enhance the experience of multiple stakeholders, including investors, customers, employees, partners, suppliers, environment, and society.

Forms of International HRM

Operation of parent-country firms parentOperation of foreign firms in the home country Operation of Third party nationals Employment of foreign citizens (or recent immigrants and/or their families

DIFFERENCES BETWEEN DOMESTIC AND INTERNATIONAL HRM

Responsibility for greater number of activities Need for greater level of expertise e.g. employment laws Necessity for closer involvement with employees (e.g. expatriate families Greatly expanded and different mix of employees Having to deal with more external influences Having to face greater exposure to problems and difficulties