Page 24 - DMGT548_GLOBAL_HRM

Unit 1: Introduction to Global HRM

There is a wide difference between HRM and global HRM. The international dimensions may Notes
bring with it a host of issues, which the domestic HR function would not normally get involved
in. The distinction between global HRM and HRM are:
1. Being responsible for a greater number of functions and activities, such as the selection,
training and management of international assignees.

2. Having to expand one’s area of expertise to include a much broader knowledge of foreign
country employment laws and global organisation designs.
3. Having to get much more closely involved with employees’ lives as the firm moves
employees to foreign assignments. For example, collecting information and furnishing to
visa authorities about Aids or marital status of employees.

4. Being involved with a greatly expanded and constantly changing mix of employees (from
the host country and foreign locales), adding considerable diversity and complexity to the
HR tasks.
5. Having to cope with more external influences; for example, having to consider the impact
of foreign cultures and laws.

6. Having to face greater exposure to problems and liabilities (for example, making mistakes
in expatriate assignments can cost as much as US$4 million per assignee). The accumulated
direct and indirect costs can be huge.
7. Additional responsibilities like translation of language, both at headquarters and at the
subsidiary level, organising schooling and housing for expatriates and providing
administrative services.
8. Management of differential compensation due to variety of allowances and adjustments.
9. More emphasis on activities like international relocation and orientation, both pre-
departure and post-departure cultural training. Knowledge of international taxation, rate
of inflation and cost of living, including currency fluctuation.

10. Diversity management, like managing people from different cultural and political
backgrounds and gender differences.
11. More contacts with government officials for obtaining visas, tax certificates, fixing of
meetings and so on.
12. More coordination and travel to assess performance of expatriates and solve problems.
(a) More risk management as threats from terrorists, kidnappers and protecting
intellectual property rights of firms.
(b) More public relations work to enhance the multinationals image and deal with
human rights and other NGOs and interest groups operating in different countries.

Task Make a list of at least ten companies operating in India. Now find out which of them
are belonging to India and which are from other countries.

1.4 Employee Transfers

Transfer refers to the shifting of employees form one job to another within the same organization
where salary, responsibilities and category of the new job and the previous job are almost same.

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