HRID

2. INTRODUCTION
The globalization of businesses, the emergence of a
borderless workplace, and technological revolution are creating
new challenges for the management of human resources. The
changing role of that HR plays today is a reflection of the changes
that organizations experience in their economic, social, political
and legal environments. They must take a proactive and strategic
stance, assume a global entrepreneurial role, and understand the
implications of globalization in the day-to-day management of the
company’s human resources.

3. THEORETICAL BASES
Despite the rapid growth of multinational corporations
during the past two decades, research in the area of international
human resource management only took off during the past decade.
Since then, there have been a number of studies attempting to
explain the factors that influence the organization and structure of
the international HR function as well as the design of HR
programs for global application.

4. THEORETICAL BASES
According to Adler and Ghadar (1990) pointed out that the
role of HR in the global setting is affected by the stage at which a
multinational corporation is in the global life cycle. The four
stages are as of follows:
1. Domestic 3. Multinational
2. International 4. Global

5. THEORETICAL BASES
1. DOMESTIC
The international human resources hardly has any effect on
the domestic stage for the reason that the plant locations are local
or national. The only time it plays a role is when the product and
service is introduced to foreign clients. This stage mainly focuses
on home market and export.

6. THEORETICAL BASES
2. INTERNATIONAL
The emergence of the role of the HR begins at this stage
since the company has started to branch out and shift its focus to
international marketing (though production is still based on
domestic locations) so there is a need of transfer of technology
internationally.

7. THEORETICAL BASES
3. MULTINATIONAL
In this stage, the company establishes production facilities
in several locations around the world giving the HR a vital role in
recruiting in the host country or undertaking the expatriation of
managers from parent company.

8. THEORETICAL BASES
4. GLOBAL OR TRANSNATIONAL
HR becomes a very significant component of the business
process as the company aims to gain and sustain a competitive
advantage. HR becomes a crucial business partner and strategic
HR programs have to be developed to ensure the hiring, retention
and motivation of employees worldwide.

9. THEORETICAL BASES
According to Perlmutter (1969) the role of the HR in a
global environment is greatly affected by the three states of mind
of international executives that are as of follows:
1. Ethnocentric or home country-oriented
2. Polycentric or host country-oriented
3. Geocentric or world-oriented
4. Regiocentric *Later added in 1979 by Perlmutter with the help of Heenan

10. THE CHANGING GLOBAL ENVIRONMENT AND
IMPLICATIONS FOR THE STRATEGIC
MANAGEMENT OF HUMAN RESOURCES
Changes in the business and work environment resulting
from globalization have important implications for the
management of human resources. To understand these
implications, it is necessary to discuss the characteristics of the
global workplace. They are:
• Diversity of the work force
• Changing nature and organization of work
• Complex nature of the global environment

11. THE CHANGING GLOBAL ENVIRONMENT AND
IMPLICATIONS FOR THE STRATEGIC
MANAGEMENT OF HUMAN RESOURCES
DIVERSITY OF THE WORK FORCE
The increased demand for individuals with special
qualifications not always available in the host country forces
recruitment efforts to be worldwide resulting in different
nationalities and cultures in the workplace. This exerts tremendous
challenge on the management of human resources with regards to
developing human resource programs.

12. THE CHANGING GLOBAL ENVIRONMENT AND
IMPLICATIONS FOR THE STRATEGIC
MANAGEMENT OF HUMAN RESOURCES
CHANGING NATURE AND ORGANIZATION OF WORK
Technological innovations and globalization of business
caused responsibilities for aspects of business to disperse across a
region and around the world. An essential role of the global HR
function is to establish programs that encourage maximum
adaptability and maximum coordination.

13. THE CHANGING GLOBAL ENVIRONMENT AND
IMPLICATIONS FOR THE STRATEGIC
MANAGEMENT OF HUMAN RESOURCES
COMPLEXITY OF THE GLOBAL ENVIRONMENT
The work setting in the global economy is characterized
by:
• Intense competition
• Continuous change
• Political and legal diversity

14. THE CHANGING GLOBAL ENVIRONMENT AND
IMPLICATIONS FOR THE STRATEGIC
MANAGEMENT OF HUMAN RESOURCES
COMPLEXITY OF THE GLOBAL ENVIRONMENT
• Intense competition
HR has to:
- Find knowledgeable workers who have the
competencies and behaviours required to ensure the
organization’s competitiveness
- Provide appropriate training and development programs
- Be creative in designing performance management
systems, incentives, and compensation packages to
reinforce desired behaviours and competencies

15. THE CHANGING GLOBAL ENVIRONMENT AND
IMPLICATIONS FOR THE STRATEGIC
MANAGEMENT OF HUMAN RESOURCES
COMPLEXITY OF THE GLOBAL ENVIRONMENT
• Continuous change
HR challenges:
- tracking employment legislation
- demographic trends and social policy development in
foreign regions
- developing fluency in cross-cultural communication
- ensuring employee security in an increasing turbulent
world

16. THE CHANGING GLOBAL ENVIRONMENT AND
IMPLICATIONS FOR THE STRATEGIC
MANAGEMENT OF HUMAN RESOURCES
COMPLEXITY OF THE GLOBAL ENVIRONMENT
• Political and Legal Diversity
HR Challenge:
- How far HR can go to help organizations prevent
unionization of employees without violating a country’s
unfair labor practice legislation?

17. CONCLUSION
The HR’s role in MNCs depends greatly on the
organization’s structure and strategy. The HR has to adapt in the
working conditions given by the organization and must be able to
work in it effectively.
With this to consider, the HR has to have the seven most
essential skills identified by Eichinger and Ulrich (1995). They are
as of follows:

18. CONCLUSION
1. Global operating skills
2. Business and financial savvy
3. Strategic visioning and critical thinking and problem-solving
skills
4. Ability to use information technology
5. Deep HR technology savvy
6. Change management skills
7. Organization effectiveness

19. REFERENCES
AIB Fellow - Howard V. Perlmutter. (2004, October). Retrieved December 9, 2016, from
https://aib.msu.edu/Fellow/43/Howard-V-Perlmutter
David A. Heenan. (n.d.). Retrieved December 9, 2016, from
http://explore.georgetown.edu/people/dah53/
Diamante, M., & Ledesma-Tan, G. (2007). Human Resource Management: Local and Global
Perspectives. Retrieved December 9, 2016.
Fariborz Ghadar: Distinguished Scholar and Senior Adviser. (n.d.). Retrieved December 9, 2016,
from https://www.csis.org/people/fariborz-ghadar
Lander, S. (n.d.). Geocentric Advantages & Disadvantages. Retrieved December 9, 2016, from
http://yourbusiness.azcentral.com/geocentric-advantages-disadvantages-27693.html
Regiocentrism. (n.d.). Retrieved December 9, 2016, from http://www.mbaskool.com/business-
concepts/human-resources-hr-terms/16220-regiocentrism.html
Strategy and International HRM. (2009). Retrieved December 9, 2016, from
http://blogforhrm.blogspot.com/2009/03/recent-developments-in-theory-and.html
The Creative World of Nancy Adler (MBA '74, Ph.D. '80). (2011, April 4). Retrieved December
9, 2016, from http://www.anderson.ucla.edu/media-relations/2011/nancy-adler

21. Thank You!