Foundations of Human Resources Management

1. Foundations of Human Resources Management

2. There are several reasons why human resources management is different in the global environment than in domestic markets: • Differences in labour market worldwide ( i.e. labour costs, workers) • Differences in labour mobility ( i.e. moving from country to country – culture, language, legal etc.) • Different managerial practices

3. What Makes Up the Labour Market? • Host-country nationals, or locals, are natives of the country in which they work. ( i.e. you working at Best Buy) • Locals are usually culturally sensitive and easy to find, but they may not have the knowledge and skills needed by the foreign company.

4. What Makes Up the Labour Market? • In other cases, the companies must choose expatriates - people who live and work outside their native countries. ( i.e. A Canadian running a hockey rink in Thailand)

5. What Makes Up the Labour Market • Expatriates from the country in which their company is headquartered are called parent-country nationals, or home-country nationals. ( i.e. A Canadian from RIM working in their factory in China) • Parent-country nationals often have the needed knowledge and skills and the right company orientation, but they often lack the appropriate local language and cultural skills. • Companies usually find parent-country nationals more expensive to hire then other types of workers. • Also, local laws could restrict employment of these parent-country nationals.

6. What Makes Up The Labour Market? • Expatriates from countries other than the home country of their company or the host country are called third-country nationals. • Third-country nationals could be more adaptable to local conditions than parent-country nationals. • They may speak the local language and be able to make needed changes in culturally sensitive ways. • In some cases, they could be more acceptable to locals than parent-country nationals. • However, they may lack the desired company orientation. Regulations may make it difficult to hire them unless locals are unqualified.

7. 4 Types of Human Resources Management Approaches 1) Ethnocentric • uses natives of the parent country of a business to fill key positions at home and abroad. • Ex. US parent company managed by Americans and Mexican subsidiary also managed by Americans.

8. Ethnocentric

9. 4 Types of Human Resources Management Approaches 2) Polycentric • uses natives of the host country to manage operations within their country and parent-country natives to manage at head-quarters. • Ex. Australian Parent Company has Australianmanagers, and Indian Subsidiary has Indian managers

10. Polycentric

11. 4 Types of Human Resources Management Approaches 3) Regiocentric • uses managers from various countries within geographic regions of a business - in terms of the host country. • Ex. US parent company has American managers, Italian subsidiary has a variety of managers from geographic regions like France and Germany

12. Regiocentric

13. 4 Types of Human Resources Management Approaches 4) Geocentric Approach • the best available managers without regard for their countries of origin. • Ex. UK parent company has a variety of managers and US subsidiary has a variety of managers

14. Geocentric Approach