Page 241 - DMGT548_GLOBAL_HRM

Global HRM

Notes  Human capital protectionism: It may continue to increase in many countries in non-tariff,
nationalistic forms.

 Global mobility of high-value workers: It continues as multinational companies restrict
new hires and relocate talented employees from within their existing work force.
 Companies in emerging markets: Companies that originate in emerging economies will
continue to succeed in the global marketplace.
 Increased demand for HR metrics: It may bring about a widely accepted set of analytic
measures and methods (global standards) to describe predict and evaluate the quality and
impact of HR practices and the productivity of the work force. However, globalisation is
also driving impetus toward the use of more metrics with greater cultural sensitivity.

Notes How can HR do more to manage these trends?
First, Wallack says, as an HR professional, you must make sure your organisation
understands what globalisation means to you, your company and your business sector —
you must be the one to advocate full understanding of what the drivers are. It’s important
too, to keep in mind that globalisation means different things to different people across
the world. Ernst & Young describes globalisation in The New Mindset as “the level of a
country’s integration with the world economy through the exchange of goods and services,
movement of capital and finance, movement of labour, exchange of technology and ideas,
and cultural integration.” Martin Wolf, in Why Globalisation Works, sums it up more
simply as, “economic integration across borders through markets.” And every person
you ask will probably define it a bit differently.

Did u know? A “global mindset” is often defined as a way of seeing the world and the
globalisation of markets, organisations and individuals. Developing a more global
mindset enables your organisation to be more effectively tackle functional, organisational,
and cross-cultural boundaries and move forward.

13.1.1 Main Challenges in Global HRM

Some major challenges in GHRM have been summarised below:
 High failure rates of expatriation and repatriation
 Deployment-getting the right mix of skills in the organisation regardless of geographical
location
 Knowledge and innovation dissemination-managing critical knowledge and speed of
information flow

 Talent identification and development-identify capable people who are able to function
effectively
 Barriers to women in GHRM

 International ethics
 Language (example, spoken, written, body)
 Different labour laws

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