Page 28 - DMGT548_GLOBAL_HRM

Unit 1: Introduction to Global HRM

 Advances in transportation and telecommunications infrastructure, including the rise of Notes
the Internet, are major factors in globalisation, generating further interdependence of
economic and cultural activities.
 HRM refers to those activities undertaken by an organisation to utilise its human resources
effectively.

 Even those organisations who consider themselves immune to transactions across
geographical boundaries are connected to the wider network globally.
 Globalisation involves the diffusion of ideas, practices and technologies. It is something
more than internationalisation and universalisation.
 Key drivers of globalisation are market drivers, costs drivers, technology drivers,
government drivers and competitive drivers.

1.6 Keywords

Economic Globalisation: Economic globalisation is the process of increasing economic
integration between countries, leading to the emergence of a global marketplace or a single
world market.
Ethnocentric: Approach in which key positions at the domestic and foreign operations are held
by management personnel of headquarters.
Free Trade Zones (FTZ): A FTZ is an area within which goods may be landed, handled,
manufactured or reconfigured, and re-exported without the intervention of the customs
authorities.
Global Information System: A global information system is a data communication network
that crosses national boundaries to access and process data in order to achieve corporate goals
and strategic objectives.

ISO: The International Organisation for Standardisation is an international standard-setting body
promulgates worldwide proprietary, industrial, and commercial standards. It was founded on
February 23, 1947, the organisation.

Online Community: It is a virtual community that exists online and whose members enable its
existence through taking part in membership ritual.
Parent Country Nationals (PCNs): PCNs are managers who are citizens of the country where
the MNC is headquartered.
Third Country Nationals (TCNs): TCNs are managers who are citizens of countries other than
the one in which the MNC is headquartered or the one in which it is assigned to work by the
MNC.

1.7 Review Questions

1. Explain in detail the Global Human Resource Management.
2. Write short notes on:
(a) Types of International Employees.
(b) Objectives of Global HRM.
3. Describe the Model of International HRM.

4. Explain the Ethnocentric, Regiocentric, and Polycentric approaches to IHRM.

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