HRM in a Global Environment
The environment in which organizations operate is rapidly becoming a global one.
More and more companies are entering international markets by
- exporting their product
- building facilities in other countries
- entering into alliances with foreign companies
HRM in a Global Environment
Global activities are simplified and encouraged by trade agreements among nations.
As these trends and arrangements encourage international trade, they increase and change demands on human resource management.
Organizations need employees who understand the customers and suppliers in foreign countries.
Organizations need to understand the laws and customs that apply to employees in other countries.
Employees in an International Workforce
When organizations operate overseas, their employees are vary likely to be citizens of more than one country so they hire a combination of parent-country nationals, host-country nationals, or third-country nationals.
Employees in an International Workforce
Parent-country national – employee who was born and works in the country in which an organization’s headquarters is located.
Host-country national – employee who is a citizen of the country (other than parent country) in which an organization operates a facility.
Third-country national – employee who is a citizen of a country that is neither the parent country nor the host country of the employer.
Expatriates – employees assigned to work in another country.
Employers in the Global Marketplace
International organization – an organization that sets up one or a few facilities in one or a few foreign countries.
Multinational company – an organization that builds facilities in a number of different countries in an effort to minimize production and distribution costs.
Global organization – an organization 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
HRM in a Global EnvironmentThe environment in which organizations operate is rapidly becoming a global one.More and more companies are entering international markets by - exporting their product - building facilities in other countries - entering into alliances with foreign companiesHRM in a Global EnvironmentGlobal activities are simplified and encouraged by trade agreements among nations.As these trends and arrangements encourage international trade, they increase and change demands on human resource management.Organizations need employees who understand the customers and suppliers in foreign countries.Organizations need to understand the laws and customs that apply to employees in other countries.Employees in an International WorkforceWhen organizations operate overseas, their employees are vary likely to be citizens of more than one country so they hire a combination of parent-country nationals, host-country nationals, or third-country nationals.Employees in an International WorkforceParent-country national – employee who was born and works in the country in which an organization’s headquarters is located.Host-country national – employee who is a citizen of the country (other than parent country) in which an organization operates a facility.Third-country national – employee who is a citizen of a country that is neither the parent country nor the host country of the employer.Expatriates – employees assigned to work in another country.Employers in the Global MarketplaceInternational organization – an organization that sets up one or a few facilities in one or a few foreign countries.Multinational company – an organization that builds facilities in a number of different countries in an effort to minimize production and distribution costs.Global organization – an organization 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
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