Steen/Noe et al., © 2013 McGraw-Hill Ryerson HRM in a global environment The environment in which organizations operate is rapidly become a global one Globalization requires HRM to: Align HRM processes and functions with global requirements Adopt a global mindset Enhance capabilities and competencies to become a business partner in acting on global business opportunities LO1

Steen/Noe et al., © 2013 McGraw-Hill Ryerson What is behind this expansion into global markets? Foreign countries can provide new markets with millions (or billions) of new customers Set up operations overseas because of lower labour costs e.g. BRICs offer both low-cost labour and fast- growing economies Advances in technology Encouraged by trade agreements LO1

Steen/Noe et al., © 2013 McGraw-Hill Ryerson Employees in an international workforce Home country Country in which an organization’s headquarters is located Host country Country (other than the home country) in which an organization operates a facility Third country Country that is neither the home country nor the host country of an employer LO1

Steen/Noe et al., © 2013 McGraw-Hill Ryerson Levels of global participation LO1

Steen/Noe et al., © 2013 McGraw-Hill Ryerson Employers in the global marketplace Domestic organization Significant share of workers may be immigrants International organization Sets up one or a few facilities in one or more foreign countries Multinational company Builds facilities in a number of different countries Global organization Uses cultural differences as an advantage Needs a transnational HRM system LO1