Global Human Resource Management & Strategic Management

1. Global Human Resource Management&Strategic Management By: Solmon N Raja, M.B.A, B.Sc

2. Beginning of Global HRM The dramatic and discontinuous changes taking place in the global environment have contributed to the evolution of traditional multinational corporations (MNCs) into Global Organisations that are more of a network nature. - Gimeno & Woo 1996, Wolf 1997, Galunic & Rodan 1998, Westney 1999.

3. Beginning of Global HRM The global network form of organizing roles and activities infuses into the firm a heightened need for cross-functional interdependence, which in turn, can increase role ambiguity for a human resource manager. - Grimm & Smith 1997.

4. INTRODUCTION An important function of a Global Human Resource Manager is to shape a Culture of Developing External linkages (i.e., to local organisations and critical stakeholders) for a global organisation. On the other hand, it is vital the global human resource manager facilitates the integration of internal functional (i.e., international human resource management) and crossfunctional (i.e., GlobalMarketing, R&D and operations) relationships within the various competency centres of the global organisation. - Mudambi & Helper 1998

5. INTRODUCTION Moreover, the expanded number of relationships needed in both the internal and external global network settings further increases the complexity of establishing an appropriate Global Human Resource System - Zucker 1987

6. Concepts of Global HRM • Cross Cultural - Diverse • Cross-Functional Interdependence • Local organisations • Stakeholders • Golbal Marketing, R&D, Operations • Integrated – Knowledge • Strategic Management Based on previous discussions….

7. Need for Global HRM – Strategic Management • Recruitment and selection of employees who can succeed at their jobs and who will stay with your organization, and • Making sure that employees' abilities are optimally nurtured and developed so that the company can receive an optimal return on the investment made in these employees. Company's most expensive assets is its human capital, the human resources of the organization. The management of your human resources focuses on:

8. Strategy - HRM HR professionals should have a thorough knowledge of global business or it may outsource this function to strongly established companies in new geographies and the needs of the local workers in country with competence. Since a company's strategy will impact its employees, HR should understand the Global Landscape and everything from the recruitment and hiring techniques used in other countries, to the establishment of contracts, and compensation and benefits packages.

9. Globalizing the HR - Function • As companies Globalize, their HR departments need to understand the challenges of working internationally and serving a global organization like: • Supporting personnel to serve the needs of their global organizations. • Acquiring competent personnel to work in a Global Environment. • Train or explain alliance about and be a better global business partner. • Administration and use supplement the capabilities for existing professionals. • Frame and Practice HR polices that adopt multinational Cultural, Political, Legal and Industrial framework.

10. Change-Management • The development of organization and, particularly, manage change impacts the success of your business. • Managing change and growth across cultures and geographies requires specific knowledge of the impact of change and growth needs in particular cultures. • Collecting and analyzing data on work culture • Employee climate surveys to assure responses are culturally appropriate. • Understanding of cross-border change initiatives • greatly reduce the usual issues created by change initiatives and address culturally specific issues relating to such cultural dimensions as Need for Certainty. 

11. Companies that institute either small or large scale change need to attend to the needs of the employees before, during and after this process. Organisation should support the Change process throughout its life cycle. It must • Facilitate the charter of change implementation teams • Effective employee communications • Design and deliver cross-cultural training for multi-cultural or virtual implementation teams • Provide change team leader support and • Data/information from assessment results - the impact of the change Change-Management..

12. RECRUITMENTand SELECTION • This is particularly challenging in a global organization where biggest challenges will be Finding, Retaining and Developing a Superior Global Workforce. • Models used for effective Selection and Hiring: • Well written Job Descriptions and • Competency Models that clearly delineate success behaviors. • Understanding Cultural Differences in the recruitment process, the selection of candidates and what motivates employees in various cultures is crucial to the success of global organizations

13. Interview Techniques Behavior Event Interviewing (BEI) or Targeted Interviewing (TI) are far more effective at identifying exactly what capabilities particular candidates could bring to your organization. This is particularly important when recruiting and selecting across cultures. RECRUITMENTand SELECTION….

14. Assimilating New Employees In this competitive environment for attracting good global talent, companies need to pay particular attention to the perception of the company on the part of candidates and new hires. A well thought out and extensive assimilation process often makes new employees more likely to stay. This process should start before the offer is made, and many companies have assimilation plans for at least the initial six months on the job. This is especially important in group and relationship cultures as it helps the new employees feel welcomed into the group and gives them time and structure to establish relationships that will be important to the employee as well as anchor their loyalty to the company.

15. Global Workforce Development Helping employees recognize that they work in a Multi-Cultural Environment or a Global Environment General awareness programs are a good start. In addition, specific programs targeted to functional needs like Global Marketing and Global e-learning Development on culture-specific needs,.

16. Performance Management • Cultures with a preference for Certainty (prefer to know the Structure and Rules rather than handle Ambiguity) prefer Competency Based Performance Systems. • Communicating Exactly: • What is expected • Defining the levels of behaviors • Assessing employees all against the same criteria • Standardization of Performance • feels more fair and responsive to many employees.

17. Global Leadership Selection and Retention • Differentiating successful employees based on their Competency Vs Behaviors, recruiting (external) and selecting (internal) reduces the need for development since they already have the skills necessary to succeed. • The global leadership competencies required for success include: • The flexibility to work and manage across cultures • The ability to be the voice of the local culture to home office while being the voice of home office to the local employees • Understanding of and ability to adapt to cultural differences as they impact business practices

18. Practices to Succeed and Stay Global Leaders: • Define the behaviors associated with the actual success factors in YOUR company • Identify internal and external candidates who already have those success factors • Provide Accurate, Reliable and Detailed selection or recruitment data • Provide detailed developmental reports • Accurately Asses and match Role ( Job-Demand) and Individual ( Capability) Global Leadership Selection and Retention…

19. Global Succession Management and Development • Organisation demand Talent Development or Succession Management to retain top talent and stay competitive. Linking both to a Leadership Competency Model leverages Investments, Communicates Expectations, and Rewards (and retains) deserving talent through: • Define Leadership and Management competencies • Develop Succession processes • Assess talent • Identify areas for Individual Development

20. Strategy Map and Action Learning Strategy Map for business and helps organizations manage the strategy implementation through a Balanced Score Card and Strategic Action Plans. Organizations can benefit from the Strategy Map output to prioritize investments and their change initiatives, as well as putting figures to targets and preparing appropriate action plans. • Action Learning involves some parameters about expected outcomes, timeframes, and how to collect information – and monitor team learn. Periodic re-views using the questionnaire insures they: • Learn about cross-functional issues • Meet people from all over the company • Get into" the day to day issues these people face. • Well defined action learning projects can resolve seemingly insurmountable business issues, develop and challenge talent, and cost nowhere near what a month at business school would cost

21. ABSTRACT • The need for highly qualified multicultural managers will increase as more organizations globalize their operations. These global managers may be perceived as organizational resources and, therefore, a resource-based view of human resource management is utilized. At the same time, relational view of human capital provides insight into the value of managers who have unique local market knowledge (i.e., social knowledge)

22. By integrating the two aspects of the resource-based view, one can develop a dynamic capabilities approach to staffing global assignments. Within this integrative theoretical perspective, cross-dimensional managers (i.e., host or third country managers who are transferred into the home country organization on a semi-permanent to permanent basis) can be explored as a potential pool of uniquely qualified global managers to be utilized in global organizations. ABSTRACT…..

23. CONCLUSION It is envisioned that through this unique building of managerial talents, organizations can develop / maintain a distinct competitive advantage in the markets they enter. Inpatriation as an innovative means to develop managers as strategic resources to be used in formulating and implementing a global strategic plan. Thank You…! Solmon N Raja, M.B.A, B.Sc E-Mail: solmon@live.in