Page 249 - DMGT548_GLOBAL_HRM

Global HRM

Notes provide the necessary training so that they have the requisite negotiating skills to handle
problem situations that may arise.
5. Ensure that employees understand the difference between corrupt bribery payments,
gifts, and allowable facilitation payments. Given the strong positions taken by governments
on ethical behaviour, it is important that all staff is fully briefed on their responsibilities
in this regard.

Self Assessment

State whether the following statements are true or false:
6. Cross cultural differences does not matter while international managers take decisions.
7. Bribery and corruption are frequent ethical problems encountered by international
managers.
8. Ethics is not very important aspect for the business operating internationally.
9. Ethical relativists believe that the fundamental principles of right and wrong transcend
the cultural boundaries.
10. The pre-departure training of the expatriates should include training on the ethical aspects
of the subsidiary operating abroad.
11. FDI regulation also accounts for the implications of the ethics and social responsibility.
12. HR functions are responsible for many of the activities that build a sense of corporate
identity.

13.3 Strategies of IHRM

Human resource is the most significant part of an organisation. With organisations going global,
the functions and responsibilities of HRM have also enhanced. Below are described the strategies
for IHRM with the steps towards them.

13.3.1 Steps to a Global Human Resources Strategy

The scarcity of qualified managers has become a major constraint on the speed with which
multinational companies can expand their international sales. The growth of the knowledge-
based society, along with the pressures of opening up emerging markets, has led cutting-edge
global companies to recognise now more than ever that human resources and intellectual capital
are as significant as financial assets in building sustainable competitive advantage. To follow
their lead, chief executives in other multinational companies will have to bridge the gap between
their companies’ human resources rhetoric and reality. HR must now be given a prominent seat
in the boardroom.
Good HR management in a multinational company comes down to getting the right people in
the right jobs in the right places at the right times and at the right cost. These international
managers must then be meshed into a cohesive network in which they quickly identify and
leverage good ideas worldwide.

Such an integrated network depends on executive continuity. This in turn requires career
management to insure that internal qualified executives are readily available when vacancies
occur around the world and that good managers do not jump ship because they have not been
recognised.

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