eHR01
Global HRM
Prof R K Singh
AIMA CME
GHRM-Introduction & Overview
GHRM :Introduction
HRM refers to the activities an organization
carries out to use its human resource
effectively. It is a complex task in a purely
domestic firm, but-
HR functions are far more complex in
an Global business where staffing,
management development,
performance evaluation, and
compensation activities are
complicated by profound differences
between countries- in labour markets,
language, culture, legal systems,
economic systems and the like.
AIMA-CME
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GHRM : Introduction and Overview
Approaches to GHRM:
1.
Cross Cultural Management Approach
2.
Comparative HR system-Countrywise
3.
HRM in MNCs.
Model of GHRM : Three Dimensions
1.
HR Activities (PAU)
2.
Type of Employees (HCNs, PCNs, and
TCNs)
3.
The Countries ( Host, Home, Other)
AIMA-CME
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GHRM-Introduction & Overview
Defining GHRM :
“GHRM is the interplay among
the three dimensions- HR
Activities, Types of Employees
and Countries of Operation.”
AIMA-CME
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GHRM-Introduction & Overview
Defining GHRM :
“GHRM is the procurement,
allocation, utilization and
motivation of human resources
in the Global arena. GHRM is
critical to the strategy and
success of global operations.”
AIMA-CME
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GHRM- Introduction & Overview
HRM vs GHRM :
1.
2.
3.
4.
5.
6.
More HR activities
The need for a broader perspective
More involvement in employees’
personal lives
Changes in emphasis as the
workforce mix of expatriates and
locals varies
Risk exposure and
More external influences.
AIMA-CME
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GHRM:The Organizational Context
GHRM-Various Approaches:
1. Ethnocentric
2. Polycentric
3. Regiocentric
4. Geocentric
AIMA-CME
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GHRM:The Organizational Context
Ethnocentric Approach:

A policy in which all key management
positions are filled by parent-country
nationals.

Strategic decision making is centralized to
the parent country headquarter.

A firm must pursue an ethnocentric
staffing policy if the host country lacks
qualified and experienced individuals to fill
senior management positions, especially
when they operate in less developed
countries
AIMA-CME
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GHRM:The Organizational Context
Polycentric Approach:

This policy requires that host-country
nationals be considered to manage
subsidiaries while parent-country
nationals occupy key positions at
corporate headquarters.

This policy may be less expensive to
implement, reducing the costs of value
creation while operating overseas.

Strategic Decision Making for the
subsidiary operation is decentralized.
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GHRM:The Organizational Context
Geocentric Approach:
1.
This policy seeks the best people for
key jobs throughout the
organization, regardless of
nationality.
2.
First, it enables the firm to make the
best use of its human resources.
3.
Second, a geocentric policy enables
the firm to build a cadre of Global
executives who feel at home
working in a number of cultures.
…..Cont.
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GHRM:The Organizational Context
Geocentric Approach:
4. Global composition of the
management team, which
results from geocentric staffing,
tends to reduce the cultural
myopia and enhances local
responsiveness.
5.The employees would be
satisfied and happy if their
company follows this type of
policy.
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