|HRM500 Week 9 Scenario Script: Globalization|
|Slide 1||Scene 1
|HRM500_9_1_Angela-1: Welcome back, team! The company has decided to expand globally and we need to explore HR planning, selection, training, and compensation in international settings. Also, we will need to examine guidelines for managing employees sent on international assignments.
The environment in which organizations operate is rapidly becoming a global one. Foreign markets can provide the business with new customers. In addition, by operating overseas, we can reduce our labor costs.
At today’s meeting, we will examine employees in an international workforce.
|Slide 2||Scene 2 – Angela’s office||HRM500_9_2_Angela-1: As we operate globally, our employees are likely to function as citizens of more than one country. Can you define the terms used for the different countries involved in a global operation?
HRM500_9_2_Ashley-1: We should first look at the parent country, which is the country where the organization’s headquarters are located.
A host country is a country in which an organization operates a facility. Great Britain is a host country of General Motors because they have operations there.
HRM500_9_2_Michael-1: A third country is neither the parent country nor the host country of an employer. A third country can be brought into the mix by hiring a person to work for the company that is not originally from the parent country or host country.
Expatriates are employees assigned to work in another country. Expatriates are common in organizations expanding globally. The extent to which companies use parent-country, host country, or third country nationals varies.
|Slide 3||Scene 3 – Angela’s office||HRM500_9_3_Angela-1: Thank you for the thorough explanation on the terms for the different countries involved in an international operation. There are also many different levels at which a company can be involved in overseas business.
This can range anywhere from shipping products to customers in other countries all the way to transforming the organization into a truly global one, with operations, employees, and customers in many countries. Can you tell me more about methods of doing business globally, team?
HRM500_9_3_Ashley-1: We sure can! An international organization is one that sets up one or a few facilities in one or more countries.
A multinational organization is one that builds facilities in a number of different countries in an effort to minimize production and distribution costs.
HRM500_9_3_Michael-1: A global organization is one that chooses to locate a facility based on the ability to effectively, efficiently, and flexibly produce a product or service, using cultural differences as an advantage.
Using a transnational HRM system allows decisions to be made from a global perspective, includes managers from many countries, and is based on ideas contributed by people representing a variety of cultures.
HRM500_9_3_Ashley-2: Decisions that are the outcome of a transnational HRM system balance uniformity with flexibility. This balance and the variety of perspectives should work together to improve the quality of decision making. The participants from various countries and cultures contribute ideas from a position of equality, rather than the parent country’s culture dominating.
HRM500_9_3_Angela-2: That makes sense! It sounds like Montrose’s efforts to increase our international business will have many positive results. What can you tell me about the differences in HRM in global markets?
|Slide 4||Scene 4 – Some type of tab or business circles interaction
||HRM500_9_4_Michael-1: (home screen of interaction): There are several factors affecting HRM in international markets. These include culture, education, economic systems, and political-legal systems.
HRM500_9_4_Ashley-1a: (Tab A): Culture has the greatest influence on international HRM. Culture is a community’s set of shared assumptions about how the world works and what ideals are worth striving for.
Culture is important to HRM for two reasons. It often determines the other three international influences. Culture can greatly affect a country’s laws, because laws often are based on the culture’s definitions of right and wrong. Culture also influences what people value, so it affects people’s economic systems and efforts to invest in education.
HRM500_9_4_Michael-1b: (Tab B): Countries also differ in the degree to which their labor markets include people with education and skills of value to employers. The United States suffers from a shortage of skilled workers in many occupations, and the problem is expected to increase. The labor markets in many foreign countries are very attractive because they offer high skills and low wages.
HRM500_9_4_Ashley-1c (Tab C): In addition, a country’s economic system, whether capitalist or socialist – as well as the government’s involvement in the economy through taxes, compensation, price controls and other activities – influences human resource management practices in a number of ways.
HRM500_9_4_Michael-1d (Tab D): A country’s political-legal system strongly impacts human resource management. The country’s laws often dictate the requirements for certain HRM practices, such as training, compensation, hiring, firing, and layoffs.
Laws and regulations in other countries reflect the norms of their cultures. An organization that expands internationally must gain expertise in the host country’s legal requirements and ways of dealing with its legal system. It is considered helpful for an organization to hire one or more host-country nationals to help with this process.
|Slide 5||Scene 5 – Angela’s office||HRM500_9_5_Angela-1: That explanation was very helpful – thanks! What else can you tell me about HRM’s roles in the new global workforce?
HRM500_9_5_Ashley-1: As economic and technological changes around the world create a global environment for organizations, human resource planning is involved in decisions about participating as an exporter or as an international, multinational, or global company.
HRM500_9_5_Michael-1: Many companies have their headquarters in the United States plus facilities located in outside countries. Organizations must understand the business and social culture of the regions they are operating in.
Organizations often meet this need by hiring host-country nationals to fill most of their foreign positions. A host-country national can more easily understand the values and customs of the local workforce than someone from another part of the world can.
HRM500_9_5_Ashley-2: Training and developing a global workforce can be challenging. Training and development programs should be effective for all participating employees, regardless of their country of origin. When organizations hire employees to work in a foreign country or transfer to another country, the employer needs to provide the employees with training on how to handle the challenges associated with working in the foreign country.
HRM500_9_5_Michael-2: Performance management across national boundaries can be challenging based on culture, legal requirements, local business practices, and national cultures. Differences may include which behaviors are rated; how they are rated; the extent to which performance is measured; who performs the rating; and how feedback is provided.
|Slide 6||Scene 6 – Angela’s office||HRM500_9_6_Angela-1: Great information on training and performance management for international employees, team! We just have a few final issues to address today…what can you tell me about compensation in a global workforce?
HRM500_9_6_Michael-1: Compensating an international workforce includes decisions about pay structure, incentive pay and employee benefits.
All these decisions become more complex when an organization has an international workforce. HR specialists may need to make extra efforts to administer these systems effectively.
HRM500_9_6_Angela-2: Hmmm… ok – good to know. How about issues dealing with labor relations overseas?
HRM500_9_6_Ashley-1: When managing goals for labor relations, for overseeing labor agreements, and for monitoring labor performance, day to day decisions are usually handled by each foreign subsidiary.
HRM500_9_6_Angela-3: Isn’t that difficult to coordinate with HRM at the home office?
HRM500_9_6_Michael-2: Great question! What we’ve learned through our research is that at some point, most international and global organizations assign managers to foreign posts. These assignments give rise to significant human resource challenges, from selecting managers for these assignments to preparing them, compensating them and helping them adjust to their return home.
HRM500_9_6_Angela-4: Is there anything we at Montrose can do to ensure that our managers being transferred overseas have a positive and successful experience?
HRM500_9_6_Ashley-2: Absolutely! The successful adaptation of expatriate managers is dependent on a few key factors – the ability to maintain a positive self-image; the ability to foster relationships with host country nationals; and the ability to perceive and evaluate the host country’s environment accurately.
HRM500_9_6_Angela-5: I’ll talk to the board of directors and we’ll get on those suggestions right away! Thanks, team. Let’s complete a brief practice activity on managing human resources globally before wrapping things up for today.
|Slide 7||Case Study drag and drop interaction:
Read the following case studies of expatriate manager candidates and decide whether to hire them for Montrose’s new call center in India or not.
Case #1: Susan – Worked in Montrose’s HR department for 6 years; fluent in English, Spanish, Chinese, and Indian; has traveled abroad extensively in the past.
Case #2: Anthony – Worked in Montrose’s HR department for 3 years; fluent in English and Arabic; prefers a stable work environment with little changes from day to day; no international experience or travels.
Case #3: Mark – Worked in Montrose’s Call Center for 1 year; began studying Indian through Rosetta Stone in anticipation of trying for this position; outgoing and enthusiastic personality.
Case #4: Jeannette – Worked in Montrose’s Call Center for 5 years; no language or travel experience; introverted and detail-oriented personality; prefers solo work tasks to group work tasks.
|Slide 8||Scene 7 – Angela’s office||HRM500_9_7_Angela-1: Great work today, team! Let’s do a quick review…We have discussed the growth of international business; identified factors that impact HRM in international markets; discussed how the differences among countries impact HR planning; explained how companies select and train employees in a global market; analyzed challenges related to managing performance and compensating employees; and discussed the use of expatriates in international assignments.
We’ll meet back here same time next week to discuss our final topic – creating and maintaining high performance organizations.
In the meantime, please remember to complete your discussions on HRM and the Global Environment and Education. Also, check out the video I recommended, “Trends in Global HR” – it really ties in with what we’ve discussed here today.
I hope you both have an excellent week!