Human Resources Management in the Global Context of Business

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Human Resources Management and Leadership
* HRM in the Global Context of Business
“The increasing interconnectedness of national economies around the world”. “The inexorable integration of markets, nation-states, and technologies… Jobs, knowledge, and capital move across borders with far greater speed than was possible just a few years ago”. Major shifts:

From
Closed markets/protectionism

Manufacturing-based economy

Unipolar world (West)

Home country markets

Consistency/slow change

Home country manufacturing

To
Open markets/liberalization

High-tech, info.-based economy

Multipolar world (BRIC + others)

Home and global markets

Innovation, agility

Outsourcing, offshoring

About the Outsourcing:
Of production, services, and non-core labor to lower-cost suppliers who provide their own operations , as IT, customer support (e.g., help desks), manufacturing, security, maintenance, accounting, payroll, employee benefits Growth in outsourcing: public services, R&D for medical, product testing. * Disadvantages:

* No employment bond between outsourced workforce and home organization; * Potential backlash from customers, community, and current employees; * Possibility of losing control of proprietary technology, client data base, key processes; * Reliability and quality issues of local contractor;

* Human rights issues (e.g., sweatshops, working conditions); * Slower growth due to global economic downturn;
* Implications
Wage inflation (e.g., China) making outsourcing less economically attractive; * Mounting unemployment in Europe and USA pressuring companies to move operations back home (“inshoring”).

About the Offshoring:
When a company moves its factories from its home country to lower-cost countries. * Sending jobs abroad to places where labor is cheap; popular destinations: China, India, Mexico, Philippines. * Practice of offshoring not going away anytime soon!

Cultural Convergence
People are becoming more alike, thus cross-cultural differences are not as important today as they were 50 years ago. * Consumer preferences converge somewhat onto global products; * Shared worldwide concerns (re: environment, health); * Regional integration converge onto cultural values (e.g., EU). Cultural Divergence

Cross-cultural differences continue and are as important, if not more so, today. * “Us” versus “them” mentality;
* Distinctiveness: “People define themselves by what they are not”.

* Organizational Behavior and HRM

Name given to the study of how organizations function, and how people behave within and across organizations. Increasingly relevant in today’s globalized economy as people from different cultural backgrounds work together.

Human Capital
Competencies
Organizational Culture

Mission
* What the organization is about and an organization’s reason for existence; * Useful also at departmental and functional levels.
* Action-oriented declaration of principles of what the organization will do to serve its customers, shareholders, employees. Should be powerful, memorable, easy for everyone to connect with and flexible to allow for changing business conditions. Vision

* What the organization would like to become;
* Seen as destination, an image of what could be, an ideal which employees can relate to emotionally; * Skill in creating a vision (visioning) can be learned;
* Should be inspiring and integrated with the vision of followers, brief, clear and well-communicated, focused and have a future orientation.

Values
Standards that serve as criterion for selecting behaviors in a situation: * National Values – shape country cultures, learned from earlier generations, imposed by present society, and passed on to succeeding generations; * Organizational Values – expected behaviors in organizations, value our clients and employees;...
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