Managing Global Workforce

Amity Business School

Presented By:Preeti Bisnik (D-5), Krutika Khadgi (D-15),

Charudutt Sharma (D-25), Vinay Dahiya (D-35), Abhishek Gauri (D-45) & Satyabrata Sahu (D-

55)


Managing the Global Workforce

• Meaning of Global Human Resource Management

• Difference between Global HRM with Domestic HRM

• Assessing cultural difference among countries with the help of Hofstede’s Model and Hall’s Model

• Expatriation• Repatriation


Differing GHRM and DHRMGHRM requires :

1) Address a broader range of functional areas

2) Requires more involvement in employee’s personal life

3) Setting up of different HRM systems for different geographic location

4) Organisation forced to deal with more complex external constituencies

5) To deal with international assignments which have high exposure to risks


ASSESSING CULTURE

Culture is central to the study and preparation for effectively managing a global workforce.

Hofstede’s Culture Difference Model

Hall’s Culture Difference Model


GEERT HOFSTEDE’S MODEL

Basically talks about five dimensions:

1) Individualism/ Collectivism (IDV)

2) Power distance (PDI)

3) Uncertainty Avoidance (UAI)

4) Masculinity/ Femininity (MAS)

5) Long-term/Short-term Orientation (LTO)


EDWARD T. HALL’S MODEL

This model talks about culture in terms of: TimeSpaceMaterial goodsFriendshipAgreement


EXPATRIATION: DEFINITION

• Expatriation is derived from its Latin root word expatriare.• Expatriation can be defined as the process of sending a

person to a new place distant from his origin or citizenship.• Expatriation is a complex and costly phenomenon.• The function and application of expatriate workers in

international assignments was originally intended as a way to initiate, expand and control international operations. Currently, the purpose of international expatriate assignments has evolved along with the changing globalization trends.


TYPES OF EXPATRIATE ASSIGNMENTS

1.Long-term expatriate assignments.

2.Short-term expatriate assignments.

3.International commuter.

4.Frequent flyer.

5.Virtual assignments.


Expatriation consists of the following process:

1. Pre-selection (based on competence, adaptiveness & leadership)

2. Orientation & Training (cross cultural training)

3. Developing Long Term Effectiveness.

4. Bringing the Value Added Back Home.


OBERG’S PHASES OF ADAPTATION (1960)


DETERMINING EXPATRIATE COMPENSATION• Balance sheet method

– Expatriate salary based on home country pay

– Additional expenses associated with relocation and assignment

– Hardship and incentives to determine overall reimbursement and compensation level

• Higher-of-home-or-host method– Employee’s salary at

home adjusted upward to account for higher cost of living (localization approach)

– Salary converted to host country’s equivalent when employee is on permanent assignment


According to Mercer’s report (2008), “Expatriate Management Survey – India”, based upon contributions from 40 of the largest corporations in India: 44% of companies in Mercer’s survey compensate their international assignees for tax differentials. Despite spouse dissatisfaction as one of the major factors for failure of international assignments, only 20% of companies surveyed have policies providing spouse support for international assignees. 44% of companies surveyed by Mercer in India use the home country balance sheet approach, to determine expatriate compensation. All top executives are eligible for a car allowance as compared with fewer than half of international assignees at middle and junior management levels, the survey revealed. As a group, only top management assignees are guaranteed education allowances, according to the Mercer survey.

EXPATRIATE MANAGEMENT SURVEY – INDIA


REPATRIATION: DEFINITION

• Repatriation is derived from its Latin root word repatriare.

• Repatriation can be defined as the process of sending back a person to the place of his origin or citizenship.

• The process of repatriation comes under the umbrella of expatriation.


CORPORATE REPATRIATION

• As greater numbers of corporate employees and their families return from assignments abroad, repatriating these people effectively back into the home company and culture is being recognized as a serious challenge.

• On average, companies lose 25% of their overseas assignees within one year of repatriation (Black, 1989; O'Boyle, 1989). Among those who remain, many are not channeled into positions which utilize and advance their international expertise (Adler, 1981; Moran, 1988).

• In a corporate survey, 75% of repatriating employees expressed an interest in repatriation training or counseling (Halsberger and Stroh, 1991)


WHY THERE IS HIGH REPATRIATE ATTRITION RATE?

• Corporate Issues: It is difficult for returning personnel to recognize and prepare for altered corporate structures and current initiatives from a long distance.

• Personal Issues: What people are not prepared for is the fact that the place which used to be called "home" has changed. In addition, once back to former surroundings and relationships, expatriates begin to see how much they have changed as a result of their experiences abroad.

• Financial Issues: A common complaint among returnees is that the company failed to prepare them for the financial shock of coming home. Surprises may include: higher cost of consumer goods; inflation (especially in real estate); reduced standard of living resulting from loss of extra benefits; expenses necessary to reestablish the domestic household; and tax problems which may take several years to resolve.


WHAT ORGANIZATION CAN DO TO DECREASE THIS RATE OF ATTRITION AMONG REPATRIATES?

Educate management About the dynamics of expatriation and repatriation.

Survey repatriated personnel to assess current and future support procedures.

Establish a Global Career Path System Develop Expatriate Mentoring (Coaching or "Godfather") Systems Provide assistance Six-Months prior to the move home. Welcome the expatriate home: formally and informally. Initiate an In-House Repatriation Training Program. Provide "In-Placement" Assistance for the returning employee.

A comprehensive strategy is necessary for the retention of expatriates who will apply a broader world perspective towards the realization of the company's global objectives.


CHALLENGES OF MANAGING GLOBAL WORKFORCE

1.Deployment

2.Knowledge Dissemination / Innovation Transfer

3.Talent Identification & development


DEPLOYMENT :Getting the right skills as and where required in the firm.

Classically firms used to operated internationally but with its headquarters at one place. (Expatriate Model)

But today new talent can be found anywhere from the globe from within the organization.

Also Expatriate Model proves to be quite expensive.

Permanent transfers is not done but short term deployments are made to accomplish a particular task.

Changing a manager’s mindset to a global perspective is not an easy task for the organization.


KNOWLEDGE DISSEMINATION / INNOVATION TRANSFER : Spreading of information regardless of origin.

Earlier under Expatriate Model information always flowed outwards from a central position.

But now organizations require a system where information is received and provided laterally without any biasness.


TALENT IDENTIFICATION : Identifying and developing the qualities required to function well in a global organization.

Biggest challenge for the organization is to recognize the employees who can adapt to the complexities of transnational operations and functions.

Scope of this is so vast that collecting employee information for each employee is a difficult task.

Cultural Biasness and all such things to be avoided, else a deserving and talented employee might be overlooked.

Another challenge was to motivate employees to go and spend time overseas which most talented employees refused to do.


STRATEGIES FOR EFFECTIVELY MANAGING THE

GLOBAL WORKFORCE

Aspatial CareersAwareness Building AssignmentsSWAT TeamsVirtual Solutions


WHO WHAT

Globally oriented, highly mobile people, with proven ability & company loyalty

Long-term overseas assignments

HOW

Deployment Knowledge Dissemination Talent ID & Development

Geographically relocate employees with highlevel skills and rich cross-cultural perspective

Employees with in-depth global experiences &networks in leadership positions across sites

Rotation as development

IMPLEMENTATION Encourage company over country culture Assign within culturally homogenous regions. Use pan-region selection meetings

Evolve selection criteria that are shared across countries. Provide cross-cultural training for families Recognize family life-cycle realities

ASPATIAL CAREERS


AWARENESS BUILDING ASSIGNMENTS

WHO WHAT

High potential employees early in their careers

3 to 12 month assignments

HOW


Technically competent, high potential employees

Cross-cultural immersion to produce global perspective

• Screening for ability to function out of own culture• Develop globally aware future performers

IMPLEMENTATION

Use to bridge geofunctional disconnects Rotate employees with demonstrable competence

Manage the adjustment cycle Use to develop local nationals


SWAT TEAMS

WHO WHAT

Technical specialists Short-term, project-length assignments

HOW


Specialized skills on an as-needed basis

Transfer of technical processes & systems

Specialized skills honed through varied & frequent applications

IMPLEMENTATION

Best SWAT team member has single contributor mindset Use to spread acultural innovation

Good at smaller locations or at start- up Recognize clear limitations


VIRTUAL SOLUTIONS

WHO WHAT

Non-rotating employees who need overseas connections

Electronic communications

HOW


Videoconferencing & E-mail allow virtual deployment

Web pages, bulletin boards, intranets, distance learning & interactive training disperse information across locations

GHRIS, electronic job posting, video & virtualinterviews ID and screen for assignments

IMPLEMENTATION Encourage virtual friendships Couple with cross-culture awareness training GHRIS works best with standardized information

GHRIS trade-off between standardized information & universal access Global job posting for clearly defined jobs Don't expect instant results


The Pricewaterhouse CoopersSurvey Report

<2020>

Source: PwC Talent Mobility 2020 Survey Report


THREE TYPES OF GENERATIONS EXIST:

• BABY BOOMERS

• GENERATION X

• GENERATION Y (MILLENNIALS)


CHALLENGES FOR THE NEW FUTURE

• BABY BOOMERS

• GENERATION X

• GENERATION Y


Global Mobility is Increasing

1970 - 1990 1990 - 2010


The future view - 2020


Changing Workforce Demographics & DynamicsWar for talent


Population shifts and talent gaps will force companies to move to new locations and

exit traditional business locations


The NEW MINDSETNew assignment models and business policies will be framed to support the globally mobile millennials.


Remuneration policiesBy 2020, no longer will we see as many separate remuneration policies for distinct geographic locations. An overarching global policy function (or system) aligned to the talent mobility strategy will become standard. Remuneration packages and employment terms will be contract-based and subject to frequent negotiation


Regulatory transition will occur in 2020 – the government & businesses will work in harmony


The current global shifts will increase the value of HR function in order to create a sustainable talent pipeline that

will be the important driver of business strategy in the future. And to achieve this the following needs need to be

addressed:

Increase people’s employability to better match supply and demand. Redesign migration policies to encourage knowledge sharing and prevent the brain drain. Create global workforce around adaptability and mobility. Build and effectively manage diversity in a complex, multicultural business environment. Use talent for innovation.


Date post:	24-Nov-2014
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Managing Global Workforce

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