LectureTwoEnvironmentofHRM

,Click to edit Master title style,Click to edit Master text styles,Second Level,Third Level,Fourth Level,Fifth Level,*,*,Prof. Shuming Zhao,Lecture Two,Environment of HRM,How does the environment affect HRM?,Issues,What is the development of international business?,What is the impact of the environment on HRM,What is the influences of legal environment upon HRM?,What organizational factors affect HR activities?,What are global HRM strategies?,The International Business and HRM,I. Development of International Business,Stages:,Foreign Trade,Sales Subsidiary,International Division,Multinational Enterprise (MNE),Globalization,Alliances, Partnerships, and Consortia,II. Environmental Factors Affecting HRM,External Environment:,the labor force,legal considerations,society,union,shareholders,competition,customers,technology,the economy,Environmental Factors Affecting HRM,NAFTA, EU, APEC,9.11 Terrorist Attack,SARS,Recent Bird Flu,Market Economic System,Global Village,Labor Migration,Living Standards and Poverty,Environment Protection,Environmental Factors Affecting HRM,Technology: Supersonic Airplane, Sonys Wireless board）,Information Technology: Telegram, Telex, Fax, Internet,Biotech: bioinformatics,Energy Technology: Electric Car,Environmental Factors Affecting HRM,Knowledge Economy vs Traditional Economy: knowledge and Innovation,Competition for Source, Market, and Time,Corporate Strategy: CostDifferentiation,Virtual Organization,Capital vs. Human Capital,Training and Career Development,Competition on Standards,Super firms sell Standards,First class firms sell Brand,Second class firms sell Technology,Third class sell Products,Fourth class firms sell labor,Environmental Factors Affecting HRM,Internal Environment:,operations,marketing,finance,R&D,Accounting,External,Analysis,Opportunities,Threats,Internal,Analysis,Strengths,Weakness,Strategic,Choice,Mission,Goals,Legal Environment: Types of Discrimination,Age Discrimination,Religious Discrimination,Racial Discrimination,Sexual Discrimination,Sexual Harassment,III. The Organizational Context: the Path to global Status,Export department,Sales Subsidiary,International Division,Global Product Division,Global Area Division,the Matrix,Beyond the Matrix,U.S., European, and Japanese Structural Changes,Control Mechanisms in the Networked MNC,Linking Operation Mode and HRM,Determinants of IHRM Approaches and Activities,Managing the Diverse Workforce,IV. Managing the Diverse Workforce,age,functional specialty,profession,sexual orientation,geographic origin,lifestyle,tenure with organization or position,Components and Characteristics of Culture,Definition,a way of life shared by members of some social group,Older members of the group pass to younger ones,shapes behavior and structures perception of the world,Culture.,.,Components and Characteristics of Culture,Thinking (ideas): values, beliefs, myths, and folklore,Doing (norms): laws, status, customs, regulations, ceremonies, fashions, and etiquette,Living (materials): food, clothing, natural resources, tools, etc.,VI. Factors Influencing the Cultural Environment,religion,education,economics,politics,family,class structure,language,history,natural resources/ geography,The religion plays an important role in the difference of culture.,VII. Levels of Culture,Corporate culture,Ethnic culture,Regional culture,National culture,Global culture,VIII. Diversity in the Workplace,The issue of diversity is one reality of being globally competitive.,The challenge of managers in the coming decades will be to recognize that people with common, but difference characteristics from the mainstream, often think differently, act differently, learn differently, and communicate differently. Because every person, culture, and business situation is unique, there are no simple rules for managing diversity.,Diversity in the Workplace,We should all need to develop,patience, open-mindedness, acceptance, and cultural awareness,. Only such measures can productivity be maximized.,Diversity in the Workplace,single parent and working mother,dual-career couples,workers of color,older workers,people with disabilities,immigrants,young persons with limited education or skill,educational level of employees,IX. Organizational Factors affect HR Activities,Stage of internationalization,Mode of operation used in the various foreign markets,Method of control and coordination,Strategic importance of the overseas operations to total corporate profitability,Product,Strategy,Types of,Information,Organizational,Structure,Reward,Systems,Selection,Training, and,Development,of People,Task Design,Performance,Dimension of HRM Practices,Managing,The Human,Resource,Environment,Acquiring,and Preparing,Human,Resources,Assessment,and,Development,of Human,Resource,Compensating,Human,Resources,Competitiveness,Business,Competence,Professional,and Technical,Knowledge,HR Professional,Integration,Competence,Ability to,Manage Change,X. Global HRM,Global HRM: The use of global human resources to achieve organizational objectives without regard to geographic boundaries.,Five functional areas associated with effective global HRM:,Global HR planning, recruitment, and selection,Global training and development,Global compensation and benefits,Global safety and health, and,Global employee and labor relations,1. Global HR Planning, Recruitment, and Selection,A Global organization must have qualified individuals in specific jobs at specific places and times to accomplished its goals. This process involves obtaining such people globally through HR planing, recruitment, and selection.,Global employees can be selected from three different areas including expatriates from parent-country nationals, host-country nationals, and the third country nationals.,(,Mercedes-Benz was able to select the most qualified 900 employees from the 45, 000-applicant pool.),2. Global Training and Development,Global training and development is needed because people, jobs, and organizations are often quite different globally from the way they are domestically. The training and development process should start as soon as the workforce is selected, even before beginning global operations if possible.,(,Mercedes-Benz in the States sent 165 early hires to Germany for their training. After receiving their training, these individuals, along with 70 Germans, conducted employee training in the States.),Large-scale training and development programs are essential for most global relocations.,3. Global Compensation and Benefits,The main reason that organizations relocate to other areas of the world is probably the high wage pressures that threaten their ability to compete on a global basis. Wage pressures and union inflexibility in Germany were the primary reason.,(Mercedes-Benz went global to avoid paying $30 an hour in Germany. Mercedes-Benz paid $13-$18 an hour in Alabama.),Compensation levels are usually much lower globally.,Various in laws, living costs, tax policies, and other factors all must be considered when a company is established global compensation packages.,4. Global Safety and Health,Safety and health laws and regulations vary greatly from country to country.,Workplace safety varies significantly among different countries.,Health care facilities across the globe show wide diversity in their state of modernization.,Firms not only consider safety and health plans, but also have disaster plans for evacuating expatriates if natural disasters, civil conflicts, or wars occur.,5. Global Employee and Labor Relations,The rate of unionism:,U.S., 14.5%; Sweden, 96%; U.K., 50%;,Germany, 43%; Canada, 36%; and Japan & France, 28%,Although the rates appear impressive compared with the States, unions in theses countries are generally less adversarial with management and less focused on wage gains, globalization is a major threat to wage gains worldwide.,6. Global Employee and Labor Relations,Human resource policies and practices must be geared to deal with the global differences in collective bargaining.,The strength and nature of unions differ from country to country. Some countries, like Germany, even require firms to have union or worker representatives on their boards of directors. This practice is very common in European countries.,7. Equal Employment Opportunity in the United States and Labor Law in China,The U.S. Civil Rights Act (1964): An employer cannot discriminate on the basis of race, color, religion, sex, or nation origin with respect to employment,Chinas Labor Law (1995),XI. Barriers to Effective Global HRM,HR management must consider the potential impact of global differences on human resources.,Difference in politics, law, culture, economics, labor-management relations system, and other factors complicate the task of global human resource management.,Some possible barriers to effective global management: Political and legal, culture, economic, labor-management relations, language, etc.,XII. Global HRM Strategies,HR managers must help their corporations achieve the global strategies in the following ways:,understand its multiple, national cultures,integrate and coordinate these differing national cultures,hire and train a truly world-quality and globally aware workforce and management team,develop career planning and management programs,understand global business,develop ability to communicate to global workforce,Thank You,Very Much!,