Global Human Resource Management

When we talk about Global Strategy in organizations, we must highlight a key factor that this is efficiently implemented: Human Resources. There are four important points/topics in regards to Global Human Resource Management:

1. Delegation of Personnel Functions – Global Wheel of Human Resources;
2. Management of Expatriation: career management of global managers;
3. Location: need to recruit and motivate local staff;
4. Global Capacity Development: Necessity to develop appropriate skills for global management.

When we highlight the Delegation of Personnel Functions by the "Global Wheel of Human Resources” it should be noted that in the centre of the wheel are the centres of decision/headquarters, where the Board of Directors and key managers are located in an aligned manner with the support of their staff. It must also be noted that this wheel is made up of countries where the organization operates, these countries being supported by three categories of staff:

1. Local managers and staff - this category is based on a subsidiary level. The career and function essentially correspond to local businesses;
2. Global Managers - In this category, the hiring process and the careers are based on different countries while the managers are called "global managers" or "international managers" (name that appears in place of "expatriate managers", this termination has been disappearing);
3. Temporary staff - These are referred as "isolated" staff and they do not have such a great connection with the company.

The profile and the characteristics of the human resources are not the same in an organization adopting a posture of global strategy from an organization operating in a multi-domestic model. So when an organization operates in a Model of Global Strategy, there are more global and multi-cultural managers, local managers can go for a global career and it will be more frequent that staff is transferred to other subsidiaries, as well to other decision centres. In a Multi-Model Domestic, global managers are few and most of them come from a single nationality, move from place to place but usually in top positions and local staff performs their careers within their own country and its subsidiary, although they may occasionally go to other subsidiaries intend to support or learn something. Another key topic portrays the Management of expatriation. Normally expatriate staff is integrated into two categories:

• Expatriates with  Nationality of the Country of Origin, whose nationality is the same as the parent company;
• Expatriates of Different Nationality.

When we talk about expatriation we have to take account the successes and failures of expatriation. As causes of the success we have the support, recognition and recognition of the tasks performed. While as causes of failure there is the inability to adapt, family problems, personal or emotional immaturity, inability to cope with the responsibility, among others.
However, the management of expatriation brings us to a process that we must take into account the Acculturation. The Acculturation is a procedure by which elements of a culture adapt to a different culture. Acculturation can take different attitudes, also known as "4 F's":

1. The Flight attitude is adopted when a person wants to preserve their cultural and when confronted with a new cultural environment the person goes into isolation;
2. The Fight attitude has some similarities to Flight attitude however, instead of the person to isolate and retract, it criticizes the environment in which they enter and claim the superiority of their culture;
3. The Fit attitude describes people who are able to immerse themselves in the local culture and at the same time able to preserve their culture;
4. The Follow attitude shows the readiness of people to adopt the local cultures and assimilate willingly the host environment. There is a tendency to gradually lose contact with the origins and difficulty in balancing the global and local requirements.

For the company, the cost of firing expatriate staff is two or three times greater than the same measure when taken with personnel in the country of origin. Given this situation, companies should establish a coherent set of policies and practices that maximize the benefits of expatriation both for the company and for its employees. Such measures should include 6 very important components, such as:

1. Strategic Vision
2. Preparation and Selection
3. Compensation
4. Mandate
5. Support
6. Promotion in career

Location

Another important item regarding to the Global Human Resource Management aspect is the location. Although expatriate managers (in the place of origin of the company), are considered as vital sources of communication and knowledge transfer in terms of the global network of business units, the competitiveness of companies operating globally is directly dependent on loyalty of human resources recruited locally by the company. The location of managers and support staff helps global companies to break the language barrier that is created and to establish a deeper relationship with the existing network of personal and business contacts.
The location aspect has several advantages for companies that practice. Among which we can highlight the reduction in costs with the placement of personnel from the country of origin into the new established countries, but also entails additional costs as: housing, travel, expenditure on the process of adaptation to the country, language courses, among others.
The practice of this form of recruitment, allows the company to have a more global view of the existing human resources market, as it is not restricted only to the country of origin. This thought allows us to consider the company as framed with the statement “Think global act local”.

The last item with respect to the Global Human Resource Management is the Global Development Capabilities/Competencies. The era of global managers ended, manage ceased to be an individual task to become a three part challenge. Given the constant change and volatility of transnational corporations we cannot speak on the existence of global managers, but three groups of experts: Business Managers, Country Managers and Functional Managers.

1. The Business Managers operate in global business units, dealing with higher scales of efficiency and competitiveness, which promotes a global scale. In this group of managers are required to have a vision of the business as a whole. They are the planners and coordinators whose role outline the strategy of the organization, configure resources and coordinate international transactions;
2. The National Managers operate through local subsidiaries, thus the range of action is managed within each country. Their role involves to satisfy the needs of local consumers, comply with the local government requirements, and to defend the market position against local and foreign competitors. That is to say, the national managers must know how to analyse threats and local opportunities, build local capacity and resources, as well as contribute and actively participate in global strategy;
3. Finally, the Functional Managers operate at the level of the central services of the company (or at a regional level). They need to ensure that the best technology and best practices are transferred to the business in all the countries, therefore the Functional Managers need to coordinate the flow of learning. The knowledge transfer must be accomplished through informal networks for exchanging information, creating specialized and updated information channels.

Summary
In short, the success of global strategies is largely due to (1) the quality of people that are in the basis of its implementation and (2) the overall management requires a total involvement, development and deployment of the staff.

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See also: https://sites.google.com/site/apariciofernandesresearch/

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