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UNIT I
Introduction To GHRM
IHRM Defintitions :
• According to Peter J Dowling and Denice E. Welch IHRM contains three
dimensions.
“It is the interplay among three dimensions-
- The Human resource activities, (HRP, Recruitment &Selection, PAs, T&D
etc)
- Types of employees and (PCNs, HCNs and TCNs)
- Countries of operation (Home country or Parent country, Host Country and
Other country)”
According to P Subbarao:
IHRM is the process of Procuring, allocating and effectively utilizing
human resouces in a Multinational corporation.
It includes perfoming HRM and related activities and arranging for
related and necessary immigration facilities for prospective and current
expatriate employees , by oganisations opeating in domestic and/ or
foreign countries.
Need for IHRM
 Globalisation : Has forced HRM to have international orientation
(movement of firms and it’s Emps all over the world)
 Managing expatriates
(Expatriate : A person who doesn’t belongs to a nation where he is working or One
who is given a foreign assignment)
 Delveloping talent all over the world (Effectively utilize services of
people at both corporate office and at the foreign plants)
 Managing Multicultural workforce
Similarities between HRM & IHRM
• Similarities :
1) Activities are same (HRP, R&D, T&D, Motivation, compensation and Maitanace
etc)
2) Environmental forces which influence the functioning of HR dept. (Political,
Legal, Economic and cultural differences)
3) Ensuring organizational effectiveness through interventions such as team
building, motivation, multi skill development, talent retention and the like. These
interventions apply to both domestic as well as IHRM.
Distinction Between Domestic HRM and IHRM
Differences:
The main difference stems from the complexity of operating in different countries,
having different nationals as employees. In particular , the complexity of IHRM can
be attributed to six factors
- More HR functions and activities ( International relocation etc)
- Need for a Broader perspective (while performing hrm and related functions
Taxation, intenational compensation, Different labour laws etc)
- More involvement in employees personal life (children education, spouse
employment, family adjustment etc)
- Changes in emphasis as the work force mix of PCNs and HCNs varies
- Risk Exposure (Due to terrorism, kidnapping, murders and some times
expatriates may fail)
- Broader External Influences (Govt Regulations and ways of conduct)
• Complexity involved in operating different countries, Varied
nationalities of employees
• Different cultural environment
• Attitudes of senior management
• Extent of reliance of MNC on home country domestic market
( Business activities : Taxation, Interational relocation, Expatriate remuneration,
PAs, Cross cultural training and repatriation
• Increased Complexities: Currency fluctuations, Foreign policies and practices,
Different labour laws
• Increased involvement in employees personal life : Personal taxation, voter
registration and housing, children education, health, recreation and spouse
employment
• Complex Employee Mix : Cultural, political, religious, ethical, Educational and
Legal background
• Increased Risks: Emergency exits for serious illness, personal security,
kindnapping and terrorism )
Major challenges in IHRM
• High Failure Rates – Expatriation and Reatriation
• Deployment – Getting the right mix of Skills in the organization
Regardless of geographical location
• Knowledge and innovation dissemination
• Talent identification and Development
• Barriers to women
• International Ethics
• Language
• Different labour laws
• Different political climate
• Different stages of technological Advancement
• Different values and attitudes
• Roles of religion eg: holy objects, prayers and taboos, holidays etc
• Social organizations eg: Social institutions, authority structures,
interest groups, status systems
Reason for growing interest in IHRM
• Globalisation of Business : Resulting in greater mobilization of Human resources
• Effective mgt of HRs : Which is the major determinant in success of failure of an
international organization
• Indirect costs of poor performance in international business is very costly : for
eg damage to customer relations
• Movement to network structures from traditional hierarchical structures :
where HR play a significant role in development of personal relationships and
horizontal communication channels
• Implementation of international strategies is often constrained by the absence of
competent Managerial personal in overseas assignments
• Implementation of strategies is possible through radical organizational cultures
and cultures are built by proactive HR policies and actions
UNIT II
SOCIO CULTURAL VARIABLES IN GHRM
• According to Geert Hofstede,a Dutch social psychologist,
• culture is “the collective programming of the mind which
distinguishes the member of one group or category of people from
another.”
It tells people who they are, which behaviors are appropriate, and which
are not acceptable in any society. It affects almost everything we do,
see, feel, and believe.
Hofstedes cultural dimensions (6D model)
The six dimensions of national culture are based on extensive research done by Professor Geert
Hofstede, Gert jan Hofstede, Michael Minkov and their research team. (Research based on over
1lakh employees working in IBM in Different nations)
• 1. Power Distance Index (PDI)
• 2. Individualism Versus Collectivism (IDV)
• 3. Masculinity versus Femininity (MAS)
• 4. Uncertainty Avoidance Index (UAI)
• 5. Long-Term Versus Short-Term Orientation (LTO)
• 6.Indulgence Versus Restraint (IVR)
1) Power distance Index
• This refers to the degree of inequality that exists and is accepted –
between people with and without power. The fundamental issue here
is how a society handles inequlities among people.
• Based on PDI we can Classify countries into two
1. Countries (Organisations) with High PDI
2. Countries (organisations) with low PDI
• In societies with high power distance accept a hierarchical order in
which everybody has a place and which needs no further justification
• In societies with low power distance people strive to equalize the
distribution of power and demand justification for inequalities of
power
2) Individualism vs collectivism
• This refers to the strength of the ties that people have to others
within their community.
• Individualism can be defined as a preference for a loosely-knit social
framework in which individulas are expected to take care of only
themselves and their immediate families
• Collectivism, represents a preference for a tightly-knit framework in
society in which individuals can expect their relatives are members of
a particular in-group to look after them in exchange for unquestioning
loyalty.
• This dimension considers the degree to which societies are integrated
into groups and their perceived obligations and dependence on
groups
3) Masculinity vs Femininity
• This dimesion considers the differences in Decision making style
• Hofstede linked what he called ‘masculine’ approach to a hard edged,
fact-based and aggressive style of DM
• It represents a preference in society for achievement, heroism,
assertiveness and material rewards for success
• In masculine cultures, difference b/n gender roles are more rigid
• Femininity – DM involved a much greater degree of consultation and
intuitive analysis
• It stands for a preference for cooperation, modesty, caring for the
weak and quality of life
• Here difference between gender roles are less rigid
4) Uncertainity avoidance index
1. This category essentially considers the different attitudes to risk taking between
countries
2. Hostede looked at the level of anxiety people feel when in uncertain or
unknown situations
• Low levels of UC A indicates a willingness to accept more risk,
Long-Term Orientation vs. Short-Term Orientation
The long-term orientation vs. short-term orientation dimension considers the extent to which
society views its time horizon.
• Long-term orientation shows focus on the future and involves delaying short-term success
or gratification in order to achieve long-term success. Long-term orientation emphasizes
persistence, perseverance, and long-term growth.
• Short-term orientation shows focus on the near future, involves delivering short-term
success or gratification, and places a stronger emphasis on the present than the future.
Short-term orientation emphasizes quick results and respect for tradition.
Indulgence vs. Restraint
The indulgence vs. restraint dimension considers the extent and
tendency for a society to fulfill its desires. In other words, this
dimension revolves around how societies can control their impulses
and desires.
• Indulgence indicates that a society allows relatively free
gratification related to enjoying life and having fun.
• Restraint indicates that a society suppresses gratification of needs
and regulates it through social norms.
Reference link ppt
• Cross cultural issues in global hrm (slideshare.net)
Unit III
Global staffing and Compensation Practices
Q. What is staffing?
Henry foyal’s functions of Management
Planning
Organising
Staffing : Choosing the right person for the right task. Staffing
includes HRP, Recruitment & Selection, Expatriation and Repatriation
Directing
Controlling
Who is an Expatriate?
An employee who doesn’t belong to a nation where he is working. (Foreign
employee)
For Ex: An Indian working in America
These are of three types
1. PCN’s (Parent country National)
2. HCN’s (Host Country Nations)
3. TCN’s (Third country National)
Parent Country : A country where the company’s Head Quarters is located
Host Country : A country Where the company’s Branches (Subsidiaries) can
be found
Third Country: other countries where you can not find either the company’s
head quarters or Subsidiaries
Human Resource Planning
Q. What is HRP? What is IHRP?
HRP : It is the process of estimating or forecasting the right no of
qualified people for the right job and in a right time, not only for
present even for future organizational operations. Or
It is movement of an organization from its current manpower position
to its desired manpower position
IHRP: It is the process of forecasting an international organization’s
demand for and supply of , the right type of people in the right
numbers.
 We look for people with talent or compencies or skills required, in
different nations where they are available at low cost. (Here we
should not compromise on skills and competency that should be)
 Two aspects which are vital in IHRP are
- Skills or competencies or abilities required
- Cost of Resources (Human Resources) Cost of acquiring
people
Q. Why does it (IHRP) require?
 It is to meet (attain or achieve) organizational Objectives.
Formulation of Organizational objectives (formulated as part of Strategic or corporate planning)
People with skills or competencies are required to meet these objectives
IHRP facilitates the requirement of people with required skills and competencies
Six Key issues in IHRP
 Identifying top management potential
 Identifying critical success factors for future international managers
Providing development opportunities
Tracking and managing commitment to individuals in their
international career paths
 Tying strategic business planning to HRP and vice versa
 Dealing with multiple business units while attempting to achieve
globally and regionally focused strategies
Process Of HRP
• Identifying Organizational Objectives
• Identifying Organizational present manpower position
• Estimating or forecasting the demand for Manpower
• Forecasting the supply of Manpower
• Matching the demand with supply
• Taking corrective action ( Based on whether there is surplus or
shortage forecasted)
A) Decision when shortage is forecasted:
1) Recruitment or
2) Asking employees to work overtime or
3) Outsourcing some part of the work
B) Decision when surplus is forecasted:
1) Layoff
2) Voluntary Retirement
3) Retrenchment
C) Decision When Demand = Supply (Continuing the existing state of affairs as it
is)
Recruitment & Selection
Q. What is Recruitment?
It is the process of searching for and stimulating potential candidates to
apply for organizational jobs.
• HRP is the basis for Recruitment
Role of Recruiter in Recruitment :
Candidate
(Seek for job)
Organisation
(Need people to
perform jobs)
Recruiter (Fulfils the requirement of both)
Steps in Recruitment process
 Identifying and Analysing Job Vacancies
 Preparing Job Descriptions and Specifications
 Advertising vacations
 Managing Response
 Arranging (Conducting) interviews
 Informing the final Decision
Recruitment and selection in Global Organisation
In case of R&S in global organisations, organisations not only consider
Just the people with right skills but also can check whether the people
fit-in with the organisations’s culture.
• For Ex : In GE while hiring the people they not only check the skills
but also aims to hire employees globally whose styles, beliefs, and
value systems are consistent with those of organization.
Various issues in Employee Selection :
• There are 4 issues relevant in the context of staffing global businesses.
1) Linking staffing plans with the evolution of MNC
2) Staffing Orientation : An international organisation hires employees either from
i) Parent Country (PCNS) (Adv and Dis Adv) Ex: Sony
ii) Host Country (HCNS) (Adv & Dis adv) Ex: Mcdonald, MNC’s operating in east asia and Australia
iii) Third Country (TCNS) (Adv & Dis adv) Ex: BOSCH German Automaker
a) Ethnocentric : People from Parent country (Home country) are given priority.
(Adv and Dis Adv) Ex: Sony
b) Polycentric : People from host country are given priority During R&S. (Adv & Dis adv) Ex: Mcdonald, MNC’s
operating in east asia and Australia
c) Regiocentric : People from Third country are given much priority during R&S (Adv &Dis Adv) Ex : BOSCH
German Automaker
d) Geocentric : People from all parts of the world are given equal opportunity during R&S (Adv & Dis)
3) Managing Expatriates
4) Female Expatriates
Various issues in Employee Selection :
3) Managing Expatriates :
Q) Who is an Expat?
Ans: A foreign employee or An individual who works anywhere but not in his/her own country of origin
Q) Why do companies like to have expats?
Ans: Because of Globalisation
Q) Who are called as potential expats and How to identify them?
There are few things that help you to identify (know) the potential expats
i) Willingness and enthusiasm of a person to work overseas
ii) looking at their backgrounds- are they multiculturalists themselves. The person also could be preferably
Multilinguist and multifunctionalist
iii) Possess appropriate skills for the positions in overseas
iv) Background of the individual
v) Local laws of host country and the restrictions
vi) Cost (compare the cost of hiring HCNS and PCNs)
Various issues in Employee Selection :
A) Selection criteria for international staffing:
i) Tung in 1981 has conducted a study and identified eighteen variables and grouped them into four categories to decide on the who can be
potential expat.
The Four categories are
i) Technical competence : Technical skills required to perform the job effectively
ii) Relational Skills : Ability to maintain good relations with superiors, subordinates and clients
iii) Ability to cope up with environmental variables : Knowledge about external environmental factors
iv) Family situation : it refers to the ability of expat’s family to adjust to the foreign environment
ii) Mark Mendenhall and Gary oddou in 1985, identified four major dimensions that could influence an expat’s selection and adjustment.
These dimensions are
i) Self orientation : includes activities that contribute to the expat’s self-confidence, Self-esteem and mental hygiene.
ii) Others orientation : it consists of activities and attributes that enhance the expat’s ability to interct effectively with
host citizens and develop lasting R/Ss with them.
iii) Perceptual dimension : is concerned with the ability of expats to understand why foreign nationals behave the
way they do and the ability to make correct attributions about causes for host national’s behaviour.
iv) Cultural toughness dimension: refers to the situation rather than to people. For ex: American expats assigned to a
small village in kerala shall have a tougher time in adjusting than if they had been given or assigned to Sydney in Australia, Where the locals’
culture is identical and they too speak english
iii) Ronen model which is based on tung’s findings, incorporates 5 kinds of predictors for a successful
international assignment. These are
 Job Factors: it is similar technical competence specified by Tung. It Includes
Technical skills
familiarity with host country and headquarters operations
Administrative competence
 Relational Dimensions : Tolerence for ambiguity,
Behavioural flexibility,
Cultural empathy and low
ethnocentrism and Interpersonal skills
 Motivational State : Interest in specific host country culture,
Interest in overseas experience
Willingness to aquire new patterns of attitudes and behaviour
 Family Situation : similar to tung’s family situation
 Language Skills
What are the causes for expatriate failure?
• 10 to 40% failure rate in US based MNC’s (Expat’s failure rate)
• In japan and Europe it is 5% less than when compare to US MNC’s
Reasons for Expat’s failure:-
i) Inability of spouse adjust
ii) Expat’s inability to Adjust In US Organisations
iii) Other family reasons
Iv) Inability to cope up with larger international responsibilities
i) Inability to cope up with larger international responsibilities
ii) Difficulties with new Environment
iii) Personal or emotional problems In Japanese Organisations
iv) Lack of technical competence
v) Inability of spouse to adjust
How to manage Expatriate failure?
Few guidelines that help to minimise expat’s failure are
• Design the job that maximises role clarity, minimizes role conflict
• Educate native and foreign employees in intercultural communication
• Provide opportunity for language lessons
• Provide a technical assistant to help with the new task
• Provide info and equipment pertinent to the new role
• Create open, frequent communication with the home organization
• Ensure assistance from Supervisors, coworkers whenever required
4) Female Expatriates
- Low representation of females- Why?
- It is because
- lack of motivation
- Family constraints
- Host country attitudes
- Stereotyping
- Capabilities (Skills and resilience to cope up with stress)
- What leads to stress (for women at work)?
- Role expectations
- ‘Patron’ male boss
- Threatened male colleagues
- blocked promotions
- Sexual harassment
- Symptoms of stress (Migranes, Tension, sleeplessness, Frustations, Dissatisfaction, Irritation)
- Organisational Processes
Advantages of Female Expatriates:-
- Relational skills
- Novelty
- Shortage
- Role models
Recent trends in international Staffing :
International
Staffing
Workforce Diversity
Recruiting Sources
Offshoring
Dual Career couples
Background checks
Compensation in Global Organisations
What is compensation? ( Remuneration paid by an organization in return to the sevices of an employee)
Types of Compensation?(Two types. Direct and In direct)
Equity in compensation( offering compensation Without any Partiality or bias. Equity includes both Internal
and External equity)
Balanced Pay
Fair Compensation
Distinction between Wage and salary
Factors that determine compensation: (Organisational ability, Legal factors, Cost of living, Compensation in
comparable industries (Competitors), TU bargaining capacity, Employee capabilities)
What is the Basis for compensation?
i) Merit basis (PA helps to decide on) ii) Seniority (Experience) iii) Merit cum seniority
Expatriate compensation:
IS expatriate compensation different from compensation offered to locals?
If it yes
What are the additional components included in Expatriate compensation?
Expatriate Compensation
Objectives of Expatriate Compensation:
• To attract potential candidates
• To retain potential employees
• To motivate Existing employees perform better
• To maintain consistency among Different pay levels In Parent, host
and other country employees
• Be Cost effective
• To establish a compensation system that motivates employees to
move away from parent country to host country or from host country
to parent country or the other
Theories on Expatriate Compensation:
- Contingency Theory : it tells that compensation should
be based the host country and prevailing situations there.
- Resource Based Theory : This theory suggests that the
compensation that is being offered by the firm must be capable enough
to attract and retain talent.
- The Agency Theory : It focuses on
Principal(headquarters)-agency(subsidiary) relationship to determine
compensation structure.
- Equity Theory : It tells that there should be balance
between the Performance of an employee and the compensation that
he receives.
Compensation Strategy
Three categories of variables are significant in deciding on compensation
strategy.
1) Business and operating inputs
2) Industry and the labour market practices and trends
3) Employee inputs and preferences
Components/Structure of International compensation:
Expatriate compensation includes all the components offered to locals, along with there are several additional components included in expatriate compensation.
- Basic Pay
- Stock option( Company shares are issued to the expats)
- Bonus
-Cost of living Allowance
- Tax Equalisation Allowance
-International Market Allowance
- Relocation Allowance
(Setling in and settling out allowance)
- Hardship and danger allowance
- Exchange rate protection allowance
- Housing
- Educational
- Medical
- Insurance
- Gratuty
Complexities in International compensation Management:
Complexities in
international
compensation
Varying
requirements for
facilities
Employee
Expectations
Varying
Fluctuation rates
Consistency and
Equity
Varying Cost of
living
Exchange rate
Fluctuations
Varying Tax rates
Varying Local
conditions
Country
Perspectives
Factors that Affect International Compensation:
Complexities in
international
compensation
MNC’s Internal
Environment
• Goal Orientations and
compensation
objectives
• Competitive strategy
• Organisational culture
• Human Resource
Structure
• Employee-employer
Relations
• Subsidiary role
• Level of Technology
MNC’s External
Environment
• Parent Country
• Labour market
Characteristics
• Local Conditions
• Home and Host
country government
Roles
• Industry type
• Competitors
Strategies
MNC’s Compensation Package
Various Approaches to International Compensation:
• Salary level in Host country
• Negotiation/ Bargaining Approach
• Lumpsum Approach
• Buffet Approach
• Cluster systems approach
• Global approach
• Mutual Investment Approach
• Performance – Based compensation Approach
• Double home country salary & living compensation at the host country
• Balance sheet approach
Project
1) Company and Industry Profile:
Industry Profile: Brief info about the Industry (if project is done in Bharathi cements Info about Cement industry has to be
collected)
company profile:
When the company started?
Who established and the key positions in that company an the people who held these positions.
Awards received
Market position
Competitors
Growth of the company since establishment
2) Prepare for literature review:
Complete details about your Topic (For example Performance Appraisal)
- What is Performance Appraisal?
- Why PA?
- who Conducts?
- What is the Procedure or process to conduct PA?
- Methods Of Appraisal
- Benefits and limitations
Previous studies and the results
3) Decide on your Project Objectives: (What do you wanted to findout through your project?)
Specify at least 3 to 6 objectives.
Project
3) Research Methodology:
- Need for the study
- Scope of the study
- Objectives of the study
- Reseach Design:
- Type of research
- Sampling technique
- Sample size
- Research instrument
- Types of data : i) Primary data sources
ii) Secondary data sources
- Research limitations
Project
4) Data Analysis and Interpretation:
Tools used to analyse data:-
- Simple percentage method
- Correlation
- Regression
- t- test
- For Finance students it depends on the topic selected
5) Findings, Suggestions and conclusion
6) Bibilography - Refernces
UNIT IV
Training & Development
Training: Imparting specific skills or knowledge to an employee.
Benefits:
1) Enhanced (Improvement) skills- Enhanced performance
2) Positive mind set- Self confidence
3) Reduce wastage
4) Save the time
5) Offers Opportunity for career growth (Promotion)
6) More flexible to adopt to the new working environment
7) Firm can get Competetive advantage
8) Enhanced abilities
Training Methods:
Are of two types.
1) On the job Training
2) Off the job Training
Evaluating the effectiveness of training:
1) based on the Results before and after the training
2) Time saved
3) based on increase sales
4) no of complaints resolved before and after the training
5) Coordination with the other employees
6) Improvement in terms skills, knowledge and abilities
Expatraite Training
Who is Expatriate?
What kind of training is required for the expatriate?
- Cross Cultural training
- Language Training
- Hard skills (Technical aspects related to the job) & Soft skills training (communication skills,
interpersonal skills, leadership skills, problem solving, motivational skills)
- field experience
In house training programs
Training by outside agencies
Why Expatriate training is important?
- To make an employee feel flexible (adjust to the) in a new working environment
- To ensure better performance (efficiency)
- To reduce wastage
- Seamless integration
-
Areas of global training
• Cross cultural
• Technical
• Soft skills/interpersonal skills
• Global mind set training
• Language training
• Pre departure training
Cross cultural training – process
• Organisational analysis ( Identify organizational requirements)
• Analysis of employee cultural background
• Analysis of employee assignment (specific need of training will be identied)
• Craft training goals
- short goals
- long term goals
• Design & deliver the cross cultural training program
- content and sequence
- duration and time
- instruments to be used
- delivery model
• Evaluation of training program
Performance Management in Global organisations
What is performance?
Ans: Result or the outcome of an employee in his job
“It is the degree of accomplishment of assigned task.”
Why do firms appraise employee performance?
Ans: “Appraisals meant for improvement but not for punishment”
- To decide on promotions
- To decide on incentives
- To asses training needs
- To offer feedback to the employee
Who appraise an employee performance?
Ans: HR or Departmental heads or combinely by both of these.
One who is evaluating performance is known as Rater
one, whose performance is evaluated is known as ‘ratee’ or ‘Appraisee’
What are the methods used for conducting appraise?
Ans: There two types of methods used for conducting Appraisal
- Traditional Methods
- Modern Methods
Traditional Methods : These are of the following types.
- Ranking method
- Paired comparison method
- Graphical rating scales method
- Checklist method
- Essay Method
- Critical incident Method
Modern Methods:
- 360 Degree Appraisal
- BARS (Behaviourally Anchored rating scales)
- Assessment centres
Challenges of International PFM:
- Total company vs parts of It (making different types of appraisals is critical and conflicting in MNC’s, the aspects of dichotomy in DM and implementation
results in dichotomy in measuring the performance of employees)
- Standard format vs Customized format (It is regarding factors considered for evaluating performance - single format for the total company vs
formats based on the needs of each subsidiary and headquarters)
- Uniformity of Data (MNC’s operating in several countries under various environmental influence(some high income countries some low
income countries and the product has high sales in high income country and low sales in low income country, does not reflect that one is good another is not)
- Environmental variations (environmental factors become more vibrant after the recent phase of globalization – technical advancements, glo-cal strategy,
increased mobility of human resources etc)
- validity of performance criteria (some evaluate based on contribution the contribution to the company some are on the basis of traits)
- Time &distance variations
- Varied levels of maturity and skills (MNC’s should not adapt the same performance appraisal format and scale to measure the perf of head
quarters and subsidiaries – Indians good in mathematical skills and logical thinking, americal good at systematic analysis and sequential thinking)
- Rater competence( Executives without living and working in host country can not have the knowledge and experience of a foreign employee)
- Rater bias ( Halo effect, central tendency, the recency effect etc)
- Host environment
- cultural adjustments
UNIT V
Global industrial relations and people management
• Industrial Relations
• Trade Unions,
• Collective bargaining,
• Disputes/Conflicts,
• Quality Circles and
• Participative Management.- USA – European Countries, Asian Countries and
Middle East.
Industrial Relations
Industrial Relations means- IRs deals with the relationships among employers, employees, trade unions and
the governaments
International industrial Relations:- International IRs deals with the complex relationships among the
employers employing foreign nationals, employees of different nationalities, home and host country
governaments and trade unions of the organizations operating in various countries and their national and
international federations.
Three actors of IRS:
- Workers and their organisations : The total Worker plays an important role in industrial relations. The
total worker includes, worker age, education, family, psychological factors, social background, skills, attitude
towards other s work etc. Workers organisations Known as Trade Unions protect the workers economic interest
through the collective bargaining and by bringing pressure on management through economic and political
tactics.
- Employers and their Organisations: Employers employ the workers, pay the salaries, and various allowances,
provide a variety of benefits, regulates the working relations through the various policies
- Governament: Govt plays a balancing role in between Mgmt and TUs. It exerts its influence on
industrial relations through labour policy, IR policy, implementing labour laws, the process of conciliation by
playing the role of a mediatoretc. It tries to regulate the activities of both employers, employees and their
organisations.
Factors that influence IRs
• Institutional factors
• Economic factors
• Socio cultural factors
• Political and Legal Factors
• Technological Factors
Trade Union
• Dale yoder defined Trade union as “a continuing long term
association of employees, formed and maintained for the specific
purpose of advancing and protecting the interest of the members in
their working relationship”
• Why do workers join trade unions?
- To attain economic security
- To improve their bargaining power
- To ventilate the workers grievances to the mgt
- To inform worker views, ideas, dis satisfaction to the mgt
- To secure protection from unexpected economic needs like illness,
accidents, injury etc
- To satisfy their needs for belongingness and
- to secure power
Characteristics of trade unions
- Trade union may be an association either of the employers or employees or of
independent workers
- TUs are relatively permanent combination of workers
- TU is an association workers who are engaged in securing economic benefits
- The character of TU has been constantly changing
- The origin and growth of TU has been influenced by a no of idealogies
Functions and role of Trade Unions:
The basic functions of trade union are to protect and promote the interest of the workers and
conditions of their employment. The other functions are
a) Militant or protective or intra mural functions: These include protecting the workers interest ie
hike in salaries, job security etc
b) Fraternal or Extra-mural : These include providing financial and non financial assistance to workers
during strikes and lockouts, extention of medical facilities, provision of education, recreation,
provision of social and religious benefits etc
c) Social functions : These include carrying social service activities, discharging social responsibilities
through various sections of the society like educating the customers.
d) Political functions : these include affiliating a union to the political party, seeking the help of
political parties during strikes and lockouts.
e) Ancillary functions : These include
i) Communication : activities, programmes and achievements to its members
ii) Welfare activities : construction of houses, establishing cooperative societies, cooperative credit societies etc
iii) Education : education facilities to its members etc
Trade union structure:
The structure of trade unions in india varies from organization to
organization. However the structure can be classified 5types.
i) Craft unions (trade unions consisting the workers of the same craft or
category)
ii) General unions (consisting the workers of any region, any job generally
form to protect the overall interest of the workers)
iii) Industrial unions (consisting the the workers of different categories
relating to the same industry)
iv) Federations ( trade unions of the same industry or different industries
form into an association inorder to improve trade union strength)
v) International federations (federations at the national level join
international federations in order to gather support at te international
level)
Concerns of trade unions in Multinational companies :
Trade unions influences MNCs HR practices such as
i) Employment
ii) Salaries and benefits
iii) Promotions etc
Influence of Trade unions on Business practices of MNC’s:
i) Optimum size (TUs influences business related decisions such as
Expansion, diversification, mergers, joint ventures and takeovers etc)
ii) Location and shifting (MNCs influence the Govts of their home countries
to change the labour laws, and impose regulations to control the MNCs
from shifting their business practices to developing countries)
iii) Closer of units : MNCs prefer to close the units in countries where the
HR conditions and union influences are unfavourable.
Quality circles and participative management
Practices
Quality Circle:
QC is a small group of employees in the same work area or doing similar
type of work who voluntarily meet regularly for about an hour every
week to identify, analyse and resolve work related problems, not only to
improve quality, productivity and total performance of the
organisationbut also to enrich the of work life of employees.
Dr Deming suggests few points for the successful functioning of Quality
circles in MNCs.
Participative Management
• Participative management is a system of communication and
consultation either formal or informal by which employees of an
organization are kept informed about the affairs of the undertaking
or through which they express their opinions, ideas, suggestions,
contribute to the development of alternative solutions, evaluate
them and help the management in decision making.
• Refer internet to know participative management practices in
various nations

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GHRM PPT.pptx

  • 2. IHRM Defintitions : • According to Peter J Dowling and Denice E. Welch IHRM contains three dimensions. “It is the interplay among three dimensions- - The Human resource activities, (HRP, Recruitment &Selection, PAs, T&D etc) - Types of employees and (PCNs, HCNs and TCNs) - Countries of operation (Home country or Parent country, Host Country and Other country)”
  • 3. According to P Subbarao: IHRM is the process of Procuring, allocating and effectively utilizing human resouces in a Multinational corporation. It includes perfoming HRM and related activities and arranging for related and necessary immigration facilities for prospective and current expatriate employees , by oganisations opeating in domestic and/ or foreign countries.
  • 4. Need for IHRM  Globalisation : Has forced HRM to have international orientation (movement of firms and it’s Emps all over the world)  Managing expatriates (Expatriate : A person who doesn’t belongs to a nation where he is working or One who is given a foreign assignment)  Delveloping talent all over the world (Effectively utilize services of people at both corporate office and at the foreign plants)  Managing Multicultural workforce
  • 5. Similarities between HRM & IHRM • Similarities : 1) Activities are same (HRP, R&D, T&D, Motivation, compensation and Maitanace etc) 2) Environmental forces which influence the functioning of HR dept. (Political, Legal, Economic and cultural differences) 3) Ensuring organizational effectiveness through interventions such as team building, motivation, multi skill development, talent retention and the like. These interventions apply to both domestic as well as IHRM.
  • 6. Distinction Between Domestic HRM and IHRM Differences: The main difference stems from the complexity of operating in different countries, having different nationals as employees. In particular , the complexity of IHRM can be attributed to six factors - More HR functions and activities ( International relocation etc) - Need for a Broader perspective (while performing hrm and related functions Taxation, intenational compensation, Different labour laws etc) - More involvement in employees personal life (children education, spouse employment, family adjustment etc) - Changes in emphasis as the work force mix of PCNs and HCNs varies - Risk Exposure (Due to terrorism, kidnapping, murders and some times expatriates may fail) - Broader External Influences (Govt Regulations and ways of conduct)
  • 7. • Complexity involved in operating different countries, Varied nationalities of employees • Different cultural environment • Attitudes of senior management • Extent of reliance of MNC on home country domestic market
  • 8. ( Business activities : Taxation, Interational relocation, Expatriate remuneration, PAs, Cross cultural training and repatriation • Increased Complexities: Currency fluctuations, Foreign policies and practices, Different labour laws • Increased involvement in employees personal life : Personal taxation, voter registration and housing, children education, health, recreation and spouse employment • Complex Employee Mix : Cultural, political, religious, ethical, Educational and Legal background • Increased Risks: Emergency exits for serious illness, personal security, kindnapping and terrorism )
  • 9. Major challenges in IHRM • High Failure Rates – Expatriation and Reatriation • Deployment – Getting the right mix of Skills in the organization Regardless of geographical location • Knowledge and innovation dissemination • Talent identification and Development • Barriers to women • International Ethics • Language • Different labour laws • Different political climate
  • 10. • Different stages of technological Advancement • Different values and attitudes • Roles of religion eg: holy objects, prayers and taboos, holidays etc • Social organizations eg: Social institutions, authority structures, interest groups, status systems
  • 11. Reason for growing interest in IHRM • Globalisation of Business : Resulting in greater mobilization of Human resources • Effective mgt of HRs : Which is the major determinant in success of failure of an international organization • Indirect costs of poor performance in international business is very costly : for eg damage to customer relations • Movement to network structures from traditional hierarchical structures : where HR play a significant role in development of personal relationships and horizontal communication channels • Implementation of international strategies is often constrained by the absence of competent Managerial personal in overseas assignments • Implementation of strategies is possible through radical organizational cultures and cultures are built by proactive HR policies and actions
  • 12. UNIT II SOCIO CULTURAL VARIABLES IN GHRM • According to Geert Hofstede,a Dutch social psychologist, • culture is “the collective programming of the mind which distinguishes the member of one group or category of people from another.” It tells people who they are, which behaviors are appropriate, and which are not acceptable in any society. It affects almost everything we do, see, feel, and believe.
  • 13. Hofstedes cultural dimensions (6D model) The six dimensions of national culture are based on extensive research done by Professor Geert Hofstede, Gert jan Hofstede, Michael Minkov and their research team. (Research based on over 1lakh employees working in IBM in Different nations) • 1. Power Distance Index (PDI) • 2. Individualism Versus Collectivism (IDV) • 3. Masculinity versus Femininity (MAS) • 4. Uncertainty Avoidance Index (UAI) • 5. Long-Term Versus Short-Term Orientation (LTO) • 6.Indulgence Versus Restraint (IVR)
  • 14. 1) Power distance Index • This refers to the degree of inequality that exists and is accepted – between people with and without power. The fundamental issue here is how a society handles inequlities among people. • Based on PDI we can Classify countries into two 1. Countries (Organisations) with High PDI 2. Countries (organisations) with low PDI • In societies with high power distance accept a hierarchical order in which everybody has a place and which needs no further justification • In societies with low power distance people strive to equalize the distribution of power and demand justification for inequalities of power
  • 15. 2) Individualism vs collectivism • This refers to the strength of the ties that people have to others within their community. • Individualism can be defined as a preference for a loosely-knit social framework in which individulas are expected to take care of only themselves and their immediate families • Collectivism, represents a preference for a tightly-knit framework in society in which individuals can expect their relatives are members of a particular in-group to look after them in exchange for unquestioning loyalty. • This dimension considers the degree to which societies are integrated into groups and their perceived obligations and dependence on groups
  • 16. 3) Masculinity vs Femininity • This dimesion considers the differences in Decision making style • Hofstede linked what he called ‘masculine’ approach to a hard edged, fact-based and aggressive style of DM • It represents a preference in society for achievement, heroism, assertiveness and material rewards for success • In masculine cultures, difference b/n gender roles are more rigid • Femininity – DM involved a much greater degree of consultation and intuitive analysis • It stands for a preference for cooperation, modesty, caring for the weak and quality of life • Here difference between gender roles are less rigid
  • 17. 4) Uncertainity avoidance index 1. This category essentially considers the different attitudes to risk taking between countries 2. Hostede looked at the level of anxiety people feel when in uncertain or unknown situations • Low levels of UC A indicates a willingness to accept more risk,
  • 18. Long-Term Orientation vs. Short-Term Orientation The long-term orientation vs. short-term orientation dimension considers the extent to which society views its time horizon. • Long-term orientation shows focus on the future and involves delaying short-term success or gratification in order to achieve long-term success. Long-term orientation emphasizes persistence, perseverance, and long-term growth. • Short-term orientation shows focus on the near future, involves delivering short-term success or gratification, and places a stronger emphasis on the present than the future. Short-term orientation emphasizes quick results and respect for tradition.
  • 19. Indulgence vs. Restraint The indulgence vs. restraint dimension considers the extent and tendency for a society to fulfill its desires. In other words, this dimension revolves around how societies can control their impulses and desires. • Indulgence indicates that a society allows relatively free gratification related to enjoying life and having fun. • Restraint indicates that a society suppresses gratification of needs and regulates it through social norms.
  • 20. Reference link ppt • Cross cultural issues in global hrm (slideshare.net)
  • 21. Unit III Global staffing and Compensation Practices Q. What is staffing? Henry foyal’s functions of Management Planning Organising Staffing : Choosing the right person for the right task. Staffing includes HRP, Recruitment & Selection, Expatriation and Repatriation Directing Controlling
  • 22. Who is an Expatriate? An employee who doesn’t belong to a nation where he is working. (Foreign employee) For Ex: An Indian working in America These are of three types 1. PCN’s (Parent country National) 2. HCN’s (Host Country Nations) 3. TCN’s (Third country National) Parent Country : A country where the company’s Head Quarters is located Host Country : A country Where the company’s Branches (Subsidiaries) can be found Third Country: other countries where you can not find either the company’s head quarters or Subsidiaries
  • 23. Human Resource Planning Q. What is HRP? What is IHRP? HRP : It is the process of estimating or forecasting the right no of qualified people for the right job and in a right time, not only for present even for future organizational operations. Or It is movement of an organization from its current manpower position to its desired manpower position IHRP: It is the process of forecasting an international organization’s demand for and supply of , the right type of people in the right numbers.  We look for people with talent or compencies or skills required, in different nations where they are available at low cost. (Here we should not compromise on skills and competency that should be)
  • 24.  Two aspects which are vital in IHRP are - Skills or competencies or abilities required - Cost of Resources (Human Resources) Cost of acquiring people Q. Why does it (IHRP) require?  It is to meet (attain or achieve) organizational Objectives. Formulation of Organizational objectives (formulated as part of Strategic or corporate planning) People with skills or competencies are required to meet these objectives IHRP facilitates the requirement of people with required skills and competencies
  • 25. Six Key issues in IHRP  Identifying top management potential  Identifying critical success factors for future international managers Providing development opportunities Tracking and managing commitment to individuals in their international career paths  Tying strategic business planning to HRP and vice versa  Dealing with multiple business units while attempting to achieve globally and regionally focused strategies
  • 26. Process Of HRP • Identifying Organizational Objectives • Identifying Organizational present manpower position • Estimating or forecasting the demand for Manpower • Forecasting the supply of Manpower • Matching the demand with supply • Taking corrective action ( Based on whether there is surplus or shortage forecasted) A) Decision when shortage is forecasted: 1) Recruitment or 2) Asking employees to work overtime or 3) Outsourcing some part of the work
  • 27. B) Decision when surplus is forecasted: 1) Layoff 2) Voluntary Retirement 3) Retrenchment C) Decision When Demand = Supply (Continuing the existing state of affairs as it is)
  • 28. Recruitment & Selection Q. What is Recruitment? It is the process of searching for and stimulating potential candidates to apply for organizational jobs. • HRP is the basis for Recruitment Role of Recruiter in Recruitment : Candidate (Seek for job) Organisation (Need people to perform jobs) Recruiter (Fulfils the requirement of both)
  • 29. Steps in Recruitment process  Identifying and Analysing Job Vacancies  Preparing Job Descriptions and Specifications  Advertising vacations  Managing Response  Arranging (Conducting) interviews  Informing the final Decision
  • 30. Recruitment and selection in Global Organisation In case of R&S in global organisations, organisations not only consider Just the people with right skills but also can check whether the people fit-in with the organisations’s culture. • For Ex : In GE while hiring the people they not only check the skills but also aims to hire employees globally whose styles, beliefs, and value systems are consistent with those of organization.
  • 31. Various issues in Employee Selection : • There are 4 issues relevant in the context of staffing global businesses. 1) Linking staffing plans with the evolution of MNC 2) Staffing Orientation : An international organisation hires employees either from i) Parent Country (PCNS) (Adv and Dis Adv) Ex: Sony ii) Host Country (HCNS) (Adv & Dis adv) Ex: Mcdonald, MNC’s operating in east asia and Australia iii) Third Country (TCNS) (Adv & Dis adv) Ex: BOSCH German Automaker a) Ethnocentric : People from Parent country (Home country) are given priority. (Adv and Dis Adv) Ex: Sony b) Polycentric : People from host country are given priority During R&S. (Adv & Dis adv) Ex: Mcdonald, MNC’s operating in east asia and Australia c) Regiocentric : People from Third country are given much priority during R&S (Adv &Dis Adv) Ex : BOSCH German Automaker d) Geocentric : People from all parts of the world are given equal opportunity during R&S (Adv & Dis) 3) Managing Expatriates 4) Female Expatriates
  • 32. Various issues in Employee Selection : 3) Managing Expatriates : Q) Who is an Expat? Ans: A foreign employee or An individual who works anywhere but not in his/her own country of origin Q) Why do companies like to have expats? Ans: Because of Globalisation Q) Who are called as potential expats and How to identify them? There are few things that help you to identify (know) the potential expats i) Willingness and enthusiasm of a person to work overseas ii) looking at their backgrounds- are they multiculturalists themselves. The person also could be preferably Multilinguist and multifunctionalist iii) Possess appropriate skills for the positions in overseas iv) Background of the individual v) Local laws of host country and the restrictions vi) Cost (compare the cost of hiring HCNS and PCNs)
  • 33. Various issues in Employee Selection : A) Selection criteria for international staffing: i) Tung in 1981 has conducted a study and identified eighteen variables and grouped them into four categories to decide on the who can be potential expat. The Four categories are i) Technical competence : Technical skills required to perform the job effectively ii) Relational Skills : Ability to maintain good relations with superiors, subordinates and clients iii) Ability to cope up with environmental variables : Knowledge about external environmental factors iv) Family situation : it refers to the ability of expat’s family to adjust to the foreign environment ii) Mark Mendenhall and Gary oddou in 1985, identified four major dimensions that could influence an expat’s selection and adjustment. These dimensions are i) Self orientation : includes activities that contribute to the expat’s self-confidence, Self-esteem and mental hygiene. ii) Others orientation : it consists of activities and attributes that enhance the expat’s ability to interct effectively with host citizens and develop lasting R/Ss with them. iii) Perceptual dimension : is concerned with the ability of expats to understand why foreign nationals behave the way they do and the ability to make correct attributions about causes for host national’s behaviour. iv) Cultural toughness dimension: refers to the situation rather than to people. For ex: American expats assigned to a small village in kerala shall have a tougher time in adjusting than if they had been given or assigned to Sydney in Australia, Where the locals’ culture is identical and they too speak english
  • 34. iii) Ronen model which is based on tung’s findings, incorporates 5 kinds of predictors for a successful international assignment. These are  Job Factors: it is similar technical competence specified by Tung. It Includes Technical skills familiarity with host country and headquarters operations Administrative competence  Relational Dimensions : Tolerence for ambiguity, Behavioural flexibility, Cultural empathy and low ethnocentrism and Interpersonal skills  Motivational State : Interest in specific host country culture, Interest in overseas experience Willingness to aquire new patterns of attitudes and behaviour  Family Situation : similar to tung’s family situation  Language Skills
  • 35. What are the causes for expatriate failure? • 10 to 40% failure rate in US based MNC’s (Expat’s failure rate) • In japan and Europe it is 5% less than when compare to US MNC’s Reasons for Expat’s failure:- i) Inability of spouse adjust ii) Expat’s inability to Adjust In US Organisations iii) Other family reasons Iv) Inability to cope up with larger international responsibilities i) Inability to cope up with larger international responsibilities ii) Difficulties with new Environment iii) Personal or emotional problems In Japanese Organisations iv) Lack of technical competence v) Inability of spouse to adjust
  • 36. How to manage Expatriate failure? Few guidelines that help to minimise expat’s failure are • Design the job that maximises role clarity, minimizes role conflict • Educate native and foreign employees in intercultural communication • Provide opportunity for language lessons • Provide a technical assistant to help with the new task • Provide info and equipment pertinent to the new role • Create open, frequent communication with the home organization • Ensure assistance from Supervisors, coworkers whenever required
  • 37. 4) Female Expatriates - Low representation of females- Why? - It is because - lack of motivation - Family constraints - Host country attitudes - Stereotyping - Capabilities (Skills and resilience to cope up with stress) - What leads to stress (for women at work)? - Role expectations - ‘Patron’ male boss - Threatened male colleagues - blocked promotions - Sexual harassment - Symptoms of stress (Migranes, Tension, sleeplessness, Frustations, Dissatisfaction, Irritation) - Organisational Processes
  • 38. Advantages of Female Expatriates:- - Relational skills - Novelty - Shortage - Role models
  • 39. Recent trends in international Staffing : International Staffing Workforce Diversity Recruiting Sources Offshoring Dual Career couples Background checks
  • 40. Compensation in Global Organisations What is compensation? ( Remuneration paid by an organization in return to the sevices of an employee) Types of Compensation?(Two types. Direct and In direct) Equity in compensation( offering compensation Without any Partiality or bias. Equity includes both Internal and External equity) Balanced Pay Fair Compensation Distinction between Wage and salary Factors that determine compensation: (Organisational ability, Legal factors, Cost of living, Compensation in comparable industries (Competitors), TU bargaining capacity, Employee capabilities) What is the Basis for compensation? i) Merit basis (PA helps to decide on) ii) Seniority (Experience) iii) Merit cum seniority Expatriate compensation: IS expatriate compensation different from compensation offered to locals? If it yes What are the additional components included in Expatriate compensation?
  • 41. Expatriate Compensation Objectives of Expatriate Compensation: • To attract potential candidates • To retain potential employees • To motivate Existing employees perform better • To maintain consistency among Different pay levels In Parent, host and other country employees • Be Cost effective • To establish a compensation system that motivates employees to move away from parent country to host country or from host country to parent country or the other
  • 42. Theories on Expatriate Compensation: - Contingency Theory : it tells that compensation should be based the host country and prevailing situations there. - Resource Based Theory : This theory suggests that the compensation that is being offered by the firm must be capable enough to attract and retain talent. - The Agency Theory : It focuses on Principal(headquarters)-agency(subsidiary) relationship to determine compensation structure. - Equity Theory : It tells that there should be balance between the Performance of an employee and the compensation that he receives.
  • 43. Compensation Strategy Three categories of variables are significant in deciding on compensation strategy. 1) Business and operating inputs 2) Industry and the labour market practices and trends 3) Employee inputs and preferences
  • 44. Components/Structure of International compensation: Expatriate compensation includes all the components offered to locals, along with there are several additional components included in expatriate compensation. - Basic Pay - Stock option( Company shares are issued to the expats) - Bonus -Cost of living Allowance - Tax Equalisation Allowance -International Market Allowance - Relocation Allowance (Setling in and settling out allowance) - Hardship and danger allowance - Exchange rate protection allowance - Housing - Educational - Medical - Insurance - Gratuty
  • 45. Complexities in International compensation Management: Complexities in international compensation Varying requirements for facilities Employee Expectations Varying Fluctuation rates Consistency and Equity Varying Cost of living Exchange rate Fluctuations Varying Tax rates Varying Local conditions Country Perspectives
  • 46. Factors that Affect International Compensation: Complexities in international compensation MNC’s Internal Environment • Goal Orientations and compensation objectives • Competitive strategy • Organisational culture • Human Resource Structure • Employee-employer Relations • Subsidiary role • Level of Technology MNC’s External Environment • Parent Country • Labour market Characteristics • Local Conditions • Home and Host country government Roles • Industry type • Competitors Strategies MNC’s Compensation Package
  • 47. Various Approaches to International Compensation: • Salary level in Host country • Negotiation/ Bargaining Approach • Lumpsum Approach • Buffet Approach • Cluster systems approach • Global approach • Mutual Investment Approach • Performance – Based compensation Approach • Double home country salary & living compensation at the host country • Balance sheet approach
  • 48. Project 1) Company and Industry Profile: Industry Profile: Brief info about the Industry (if project is done in Bharathi cements Info about Cement industry has to be collected) company profile: When the company started? Who established and the key positions in that company an the people who held these positions. Awards received Market position Competitors Growth of the company since establishment 2) Prepare for literature review: Complete details about your Topic (For example Performance Appraisal) - What is Performance Appraisal? - Why PA? - who Conducts? - What is the Procedure or process to conduct PA? - Methods Of Appraisal - Benefits and limitations Previous studies and the results 3) Decide on your Project Objectives: (What do you wanted to findout through your project?) Specify at least 3 to 6 objectives.
  • 49. Project 3) Research Methodology: - Need for the study - Scope of the study - Objectives of the study - Reseach Design: - Type of research - Sampling technique - Sample size - Research instrument - Types of data : i) Primary data sources ii) Secondary data sources - Research limitations
  • 50. Project 4) Data Analysis and Interpretation: Tools used to analyse data:- - Simple percentage method - Correlation - Regression - t- test - For Finance students it depends on the topic selected 5) Findings, Suggestions and conclusion 6) Bibilography - Refernces
  • 51. UNIT IV Training & Development Training: Imparting specific skills or knowledge to an employee. Benefits: 1) Enhanced (Improvement) skills- Enhanced performance 2) Positive mind set- Self confidence 3) Reduce wastage 4) Save the time 5) Offers Opportunity for career growth (Promotion) 6) More flexible to adopt to the new working environment 7) Firm can get Competetive advantage 8) Enhanced abilities
  • 52. Training Methods: Are of two types. 1) On the job Training 2) Off the job Training Evaluating the effectiveness of training: 1) based on the Results before and after the training 2) Time saved 3) based on increase sales 4) no of complaints resolved before and after the training 5) Coordination with the other employees 6) Improvement in terms skills, knowledge and abilities
  • 53. Expatraite Training Who is Expatriate? What kind of training is required for the expatriate? - Cross Cultural training - Language Training - Hard skills (Technical aspects related to the job) & Soft skills training (communication skills, interpersonal skills, leadership skills, problem solving, motivational skills) - field experience In house training programs Training by outside agencies Why Expatriate training is important? - To make an employee feel flexible (adjust to the) in a new working environment - To ensure better performance (efficiency) - To reduce wastage - Seamless integration -
  • 54. Areas of global training • Cross cultural • Technical • Soft skills/interpersonal skills • Global mind set training • Language training • Pre departure training
  • 55. Cross cultural training – process • Organisational analysis ( Identify organizational requirements) • Analysis of employee cultural background • Analysis of employee assignment (specific need of training will be identied) • Craft training goals - short goals - long term goals • Design & deliver the cross cultural training program - content and sequence - duration and time - instruments to be used - delivery model • Evaluation of training program
  • 56. Performance Management in Global organisations What is performance? Ans: Result or the outcome of an employee in his job “It is the degree of accomplishment of assigned task.” Why do firms appraise employee performance? Ans: “Appraisals meant for improvement but not for punishment” - To decide on promotions - To decide on incentives - To asses training needs - To offer feedback to the employee Who appraise an employee performance? Ans: HR or Departmental heads or combinely by both of these. One who is evaluating performance is known as Rater
  • 57. one, whose performance is evaluated is known as ‘ratee’ or ‘Appraisee’ What are the methods used for conducting appraise? Ans: There two types of methods used for conducting Appraisal - Traditional Methods - Modern Methods Traditional Methods : These are of the following types. - Ranking method - Paired comparison method - Graphical rating scales method - Checklist method - Essay Method - Critical incident Method Modern Methods: - 360 Degree Appraisal - BARS (Behaviourally Anchored rating scales) - Assessment centres
  • 58. Challenges of International PFM: - Total company vs parts of It (making different types of appraisals is critical and conflicting in MNC’s, the aspects of dichotomy in DM and implementation results in dichotomy in measuring the performance of employees) - Standard format vs Customized format (It is regarding factors considered for evaluating performance - single format for the total company vs formats based on the needs of each subsidiary and headquarters) - Uniformity of Data (MNC’s operating in several countries under various environmental influence(some high income countries some low income countries and the product has high sales in high income country and low sales in low income country, does not reflect that one is good another is not) - Environmental variations (environmental factors become more vibrant after the recent phase of globalization – technical advancements, glo-cal strategy, increased mobility of human resources etc) - validity of performance criteria (some evaluate based on contribution the contribution to the company some are on the basis of traits) - Time &distance variations - Varied levels of maturity and skills (MNC’s should not adapt the same performance appraisal format and scale to measure the perf of head quarters and subsidiaries – Indians good in mathematical skills and logical thinking, americal good at systematic analysis and sequential thinking) - Rater competence( Executives without living and working in host country can not have the knowledge and experience of a foreign employee) - Rater bias ( Halo effect, central tendency, the recency effect etc) - Host environment - cultural adjustments
  • 59. UNIT V Global industrial relations and people management • Industrial Relations • Trade Unions, • Collective bargaining, • Disputes/Conflicts, • Quality Circles and • Participative Management.- USA – European Countries, Asian Countries and Middle East.
  • 60. Industrial Relations Industrial Relations means- IRs deals with the relationships among employers, employees, trade unions and the governaments International industrial Relations:- International IRs deals with the complex relationships among the employers employing foreign nationals, employees of different nationalities, home and host country governaments and trade unions of the organizations operating in various countries and their national and international federations. Three actors of IRS: - Workers and their organisations : The total Worker plays an important role in industrial relations. The total worker includes, worker age, education, family, psychological factors, social background, skills, attitude towards other s work etc. Workers organisations Known as Trade Unions protect the workers economic interest through the collective bargaining and by bringing pressure on management through economic and political tactics. - Employers and their Organisations: Employers employ the workers, pay the salaries, and various allowances, provide a variety of benefits, regulates the working relations through the various policies - Governament: Govt plays a balancing role in between Mgmt and TUs. It exerts its influence on industrial relations through labour policy, IR policy, implementing labour laws, the process of conciliation by playing the role of a mediatoretc. It tries to regulate the activities of both employers, employees and their organisations.
  • 61. Factors that influence IRs • Institutional factors • Economic factors • Socio cultural factors • Political and Legal Factors • Technological Factors
  • 62. Trade Union • Dale yoder defined Trade union as “a continuing long term association of employees, formed and maintained for the specific purpose of advancing and protecting the interest of the members in their working relationship” • Why do workers join trade unions? - To attain economic security - To improve their bargaining power - To ventilate the workers grievances to the mgt - To inform worker views, ideas, dis satisfaction to the mgt - To secure protection from unexpected economic needs like illness, accidents, injury etc - To satisfy their needs for belongingness and - to secure power
  • 63. Characteristics of trade unions - Trade union may be an association either of the employers or employees or of independent workers - TUs are relatively permanent combination of workers - TU is an association workers who are engaged in securing economic benefits - The character of TU has been constantly changing - The origin and growth of TU has been influenced by a no of idealogies
  • 64. Functions and role of Trade Unions: The basic functions of trade union are to protect and promote the interest of the workers and conditions of their employment. The other functions are a) Militant or protective or intra mural functions: These include protecting the workers interest ie hike in salaries, job security etc b) Fraternal or Extra-mural : These include providing financial and non financial assistance to workers during strikes and lockouts, extention of medical facilities, provision of education, recreation, provision of social and religious benefits etc c) Social functions : These include carrying social service activities, discharging social responsibilities through various sections of the society like educating the customers. d) Political functions : these include affiliating a union to the political party, seeking the help of political parties during strikes and lockouts. e) Ancillary functions : These include i) Communication : activities, programmes and achievements to its members ii) Welfare activities : construction of houses, establishing cooperative societies, cooperative credit societies etc iii) Education : education facilities to its members etc
  • 65. Trade union structure: The structure of trade unions in india varies from organization to organization. However the structure can be classified 5types. i) Craft unions (trade unions consisting the workers of the same craft or category) ii) General unions (consisting the workers of any region, any job generally form to protect the overall interest of the workers) iii) Industrial unions (consisting the the workers of different categories relating to the same industry) iv) Federations ( trade unions of the same industry or different industries form into an association inorder to improve trade union strength) v) International federations (federations at the national level join international federations in order to gather support at te international level)
  • 66. Concerns of trade unions in Multinational companies : Trade unions influences MNCs HR practices such as i) Employment ii) Salaries and benefits iii) Promotions etc Influence of Trade unions on Business practices of MNC’s: i) Optimum size (TUs influences business related decisions such as Expansion, diversification, mergers, joint ventures and takeovers etc) ii) Location and shifting (MNCs influence the Govts of their home countries to change the labour laws, and impose regulations to control the MNCs from shifting their business practices to developing countries) iii) Closer of units : MNCs prefer to close the units in countries where the HR conditions and union influences are unfavourable.
  • 67. Quality circles and participative management Practices Quality Circle: QC is a small group of employees in the same work area or doing similar type of work who voluntarily meet regularly for about an hour every week to identify, analyse and resolve work related problems, not only to improve quality, productivity and total performance of the organisationbut also to enrich the of work life of employees. Dr Deming suggests few points for the successful functioning of Quality circles in MNCs.
  • 68. Participative Management • Participative management is a system of communication and consultation either formal or informal by which employees of an organization are kept informed about the affairs of the undertaking or through which they express their opinions, ideas, suggestions, contribute to the development of alternative solutions, evaluate them and help the management in decision making. • Refer internet to know participative management practices in various nations