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Globalization of HRM
Highlights
Globalization of business continues to grow because of forces such as population changes, economic
Interdependence, regional alliances, and global communications capabilities.
Organizations doing business internationally may evolve from organizations engaged in importing and
exporting activities, to multinational enterprises, or to global organizations.
Legal, political, economic, and cultural factors influence global HRmanangement.
Culture consists of the societal forces that affect the values, beliefs, and actions of a distinct group of
people.
One scheme for classifying national cultures considers power distance, individualism,
masculinity/femininity, uncertainty avoidance, and long-term orientation.
Staffing global jobs can be done using expatriates, host-country nationals, and third-country nationals.
Global assignments can be used for a number of reasons and for varying durations.
The selection of global employees should consider cultural adjustment, organizational requirements,
personal characteristics, communications skills, and personal/family factors.
Once selected, the assignments of global employees must be managed through both effective
expatriation and repatriation.
Training and development for international employees focus on pre-departure orientation and training,
continued employee development, and readjustment training for repatriates.
Compensation practices for international employees are much more complex than those for domestic
employees because many more factors must be considered.
Global organizations must be concerned about the health, safety, and security of their employees.
Labor-ma nagement relations vary from country to country.
CASE STUDY
One of the best –known companies worldwide is McDonald’s Corporation. The fast-good chain, with its
symbol of the golden arches, has spread from the United States into 91 countries. With more than
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18,000 restaurants worldwide, McDonald’s serves 33 million people each day. International sales
represent an important part of McDonald’s business, and more than 50% of the company’s operating
income comes from sales outside the US. To generate these sales, McDonald’s employ more than 2
million people.
Operating in so many different countries means that McDonald’s has had to adapt its products, services,
and HR practices to legal, political, economic, and cultural factors in each one of those countries. A few
examples illustrate how adaptations have been made. In some countries, such as India, beef is not
acceptable as a food to a major part of the population, so McDonald’s uses lamb or mutton. To appeal
to Japanese customers, McDonald’s developed teriyaki burgers. Separate dining rooms for men and
women are constructed in McDonald’s restaurants in some Middle Eastern countries.
HR practices must adapt to different cultures. Before beginning operations in a different country, HR
professionals at McDonald’s research the country and determine how HR activities must be adjusted.
One method of obtaining information is to contact HR professionals from other U.S. firms operating in
the country and ask them, questions about laws, political factors, and cultural issues. In addition, the
firm conducts an analysis using a detailed outline to ensure that all relevant information had been
gathered. Data gathered might include what employment restrictions exist on ages of employees and
hours of work, what benefits must be offered to full-time and part-time employees (if part-time work is
allowed), and other operational requirements. For instance, in some of the former communist countries
in Eastern Europe, employers provide locker rooms and showers for their employees. These facilities are
necessary because shower facilities, and even consistent water supplies, are unavailable in many homes,
particularly in more rural areas around major cities. Also, public transportation must be checked to
ensure employees have adequate means to travel to work.
Once a decision has been made to begin operations in a new country, the employment process must
begin. Often, McDonald’s is seen as a desirable employer, particularly when its first restaurant is being
opened in a country. For instance, in Russia, 27,000 people initially applied to work at the first
McDonald’s in Moscow. Because customer service is so important to McDonald’s, recruiting and
selection activities focus on obtaining employees with customer service skills. For worker positions such
as counter representative and cash ier, the focus is to identify individuals who will be friendly, customer
service-oriented employees. A ‘’trial” process whereby some applicants work for a few days on a
conditional basis may be used to ensure that these individuals will represent McDonald’s appropriately
and will work well with other employees.
For store managers, the company uses a selection profile emphasizing leadership skills, high work
expectations, and management abilities appropriate to a fast-paced restaurant environment. Once
applicant screening and interviews have been completed, individuals are asked to work for up to a week
in a restaurant. During that time, both the applicants and the company representatives evaluate one
another to see if the job “fit” is appropriate. After the first group of store managers and assistant
managers are selected, future managers and assistant managers are chosen using internal promotions
based on job performance.
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Once the restaurants are staffed, training becomes crucial to acquaint new employees with their jobs
and the McDonald’s philosophy of customer service and quality. McDonald’s has taken its Hamburger
University curriculum from the United States and translated it into 22 different languages to use in
training centers throughout the world. Once trainers and managers complete the training, they then
conduct training for all employees selected to work at McDonald’s locations in the foreign countries.
(Adapted from The Economist, some years ago.)
VOCABULARY
EXPATRIATION: Preparing and sending global employees to their foreign assignments.(arrive/adjustment
to host country.)
REPATRIATION: Planning, training, and reassignment of global employees to their home countries.
(return to home country.)
QUESTIONS.
1.Identify cultural factors that might be important in a training program for food handlers at
McDonald’s in Saudi Arabia.
2.Rather than focusing on the differences, what similarities do you expect to exist among
McDonald’s customers and employees in both the United States and Thailand (or your country)?
Dear Students,
Thank you for your good start. I am so glad for your attention and
enthusiasm for the first-lecture attendance, I have nothing to give you
except a bit of knowledge on HRM that I think I have. I am also sorry for the
inconvenience that happened to the class due to the computer problems.
I enclose herewith: 3 files
1. 1.The first assignment that will be due on next Sunday (July 14), by email.
The length is not much important than your idea(s) and being on-time.
Enjoy now !
2.
T 2.The texts that are my final decision after we met in the first lecture.
There are only 2 books. The first book that will be the text we use regularly
in the class (as shown in my PPT presentation). Enjoy later!
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3. PowerPoint for Chapter 1
The third lecture on July 21, 2013, I would like to apologize to cancel the lecture.
Because I will be on my personal trip to Macao & Hong Kong between 1821 July, 2013 for Hong Kong Book Fair with Chula Book Publishing Center.
By my absence, you can enjoy to study the case study and Chapter 1 from
the PPT that related to the textbook.
There is also my observation for some of our friends in the class that
cannot comprehend my English lecture so well and lack of business
management background. I plan to have an early period about 30 minutes
before the class begins to have a small group discussion concerned
with some technical terms on management, or alike. And probably we can
be getting acquainted with each other much better. Anyone would like to
join, join. Anyway, please let me know beforehand. Any other suggestions,
if any, will be very much appreciated.
With Best Regards, and have a good day (and everyday).
Wiroj Tirakungovit
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