2. BULLET POINTS
• What is Global HRM?
• Factors affecting GHRM
• Why is Global HRM Critical Today?
• Key Functions of GHRM
• Challenges in Global HRM
• Strategies for Effective GHRM
• The Future of GHRM
3. What is Global HRM?
• The management of human resources on a global scale.
Involves attracting, developing, motivating, and retaining
employees across multiple countries and cultures.
• Deals with a highly diverse workforce from various
cultural backgrounds, requiring deep cultural intelligence
and sensitivity (e.g., Hofstede's cultural dimensions).
• Must navigate and comply with diverse and often
conflicting labor laws, immigration rules, tax treaties, and
regulations of multiple countries.
5. FACTORS AFFECTING GHRM
• Legal and Political Factors- , the legal and political systems are
turbulent. Some governments regularly are overthrown by military
coups. International firms may have to decide strategically when to
comply with certain laws and regulations and when to ignore them
because of operational or political reasons.
• Economic Factors- Many lesser-developed nations are receptive to
foreign investment in order to create jobs for their growing
populations. Global firms often obtain significantly cheaper labor rates
in these countries than they do in Western Europe,Japan, and the
United States.
6. • Cultural Factors- HR has to take over the role of making the people
comfortable with each other over their Cultural differences.
• Geert Hofstede, a Dutch scholar and researcher conducted research
on over 100,000 IBM employees in 53 countries, and he identified five
dimensions useful in identifying and comparing culture.
• They are-
a) Power Distance d) Uncertainity Avoidance
b) Individualism e) Long Term Orientation
c) Masculinity/Femininity
FACTORS AFFECTING GHRM
7. MAIN CATEGORIES OF GHRM
Manages three main categories:
1. Parent-Country Nationals (PCNs): Employees from the
home country working abroad (expatriates).
2. Host-Country Nationals (HCNs): Local employees hired
in the foreign country.
3. Third-Country Nationals (TCNs): Employees from a third
country working in a foreign branch.
8. DIFFERENCE BETWEEN GHRM AND DHRM
Feature Domestic HRM Global HRM
1. Geographic Scope Within one country's borders Across multiple countries and regions
2. Legal & Regulatory One set of national labor laws & regulations
Diverse and often conflicting legal systems &
compliance requirements
3. Cultural Context Relatively homogeneous national culture
Highly diverse international and local
cultures
4. Employee Categories Home-country nationals (local employees)
Parent, Host, and Third-Country Nationals
(including expatriates)
5. Complexity Moderate, focused on local market dynamics
High, balancing global consistency with local
responsiveness
9. GOALS OF GHRM
• Support Global Business Strategy: To align HR practices, policies, and
systems with the organization's international expansion, market entry, and
global competitive strategy.
• Optimize Global Talent Management: To attract, develop, motivate, and retain
a diverse, skilled, and globally competent workforce.
• Ensure Global Legal and Ethical Compliance: To navigate and adhere to the
complex and often conflicting labor laws, tax regulations, immigration
policies, data privacy laws (like GDPR), and ethical standards across all
countries where the organization operates.
• Enhance Global Efficiency and Cost-Effectiveness: To design and implement
HR systems and processes that minimize administrative burden, control
costs, and optimize the utilization of human resources globally.
10. WHY IS GHRM CRITICAL TODAY?
• Globalization: Increased cross-border trade, mergers & acquisitions,
international expansion.
• Global Talent Pool: Access to diverse skills and expertise worldwide.
• Competitive Advantage: Effective GHRM can differentiate an organization,
reduce costs, and improve performance.
• Expatriate Management: Growing need to manage employees working
abroad (expatriates).
• Cultural Sensitivity: Understanding and adapting to local customs is
crucial for success.
• Technological Advancements: Facilitating global communication and HR
systems.
11. KEY FUNCTIONS OF GHRM
• Global Talent Acquisition & Staffing
• Global Training & Development
• Global Compensation & Benefits
• Global Performance Management
• Expatriate Management like Selection, preparation, support, and
repatriation.
• International Industrial Relations
• Diversity & Inclusion
• Global HR Information Systems
12. CHALLENGES IN GLOBAL HRM
• Cultural Differences: Communication styles, work ethics, hierarchy,
individualism vs. collectivism.
• Legal & Regulatory Compliance: Varying labor laws, immigration, data
privacy (GDPR).
• Political & Economic Instability: Impact on operations, talent mobility.
• Repatriation Issues: Challenges for expatriates returning home.
• Ethical Dilemmas: Varying ethical standards across countries.
• Managing Global Teams: Communication across time zones, virtual
collaboration.
13. STRATEGIES FOR EFFECTIVE GHRM
• Develop a Global Mindset: For HR professionals and leaders.
• Localization vs. Standardization: Finding the right balance.
• Robust Expatriate Programs: Comprehensive support from pre-
departure to repatriation.
• Invest in Cross-Cultural Training: For all globally mobile employees.
• Leverage Technology: Global HRIS, virtual communication tools.
• Foster Communication & Collaboration: Across borders and cultures.
• Focus on Global Talent Mobility: Creating career paths across
regions.
15. FUTURE OF GHRM
• Increased Focus on Digital Transformation: AI, automation in HR.
• Gig Economy & Remote Work: Managing a more dispersed global
workforce.
• Sustainability & ESG: Integrating environmental, social, and
governance factors into global HR practices.
• Focus on Employee Experience: Creating a consistent and positive
experience globally.
• Agile HR: Adapting quickly to global changes.
• Image Suggestion: Futuristic cityscape, connected network.
