How does the environment affect HRM?,Issues,What is the development of international business? What is the impact of the environment on HRM What is the influences of legal environment upon HRM? What organizational factors affect HR activities? What are global HRM strategies?,The International Business and HRM,I. Development of International Business,Stages: Foreign Trade Sales Subsidiary International Division Multinational Enterprise (MNE) Globalization Alliances, Partnerships, and Consortia,II. Environmental Factors Affecting HRM,External Environment: the labor force legal considerations society union shareholders, competition customers technology the economy,Environmental Factors Affecting HRM,NAFTA, EU, APEC 9.11 Terrorist Attack SARS Recent Bird Flu Market Economic System Global Village Labor Migration Living Standards and Poverty Environment Protection,Environmental Factors Affecting HRM,Technology: Supersonic Airplane, Sonys Wireless board） Information Technology: Telegram, Telex, Fax, Internet Biotech: bioinformatics Energy Technology: Electric Car,Environmental Factors Affecting HRM,Knowledge Economy vs Traditional Economy: knowledge and Innovation Competition for Source, Market, and Time Corporate Strategy: CostDifferentiation Virtual Organization Capital vs. Human Capital Training and Career Development,Competition on Standards,Super firms sell Standards First class firms sell Brand Second class firms sell Technology Third class sell Products Fourth class firms sell labor,Environmental Factors Affecting HRM,Internal Environment: operations marketing finance R Sweden, 96%; U.K., 50%; Germany, 43%; Canada, 36%; and Japan & France, 28% Although the rates appear impressive compared with the States, unions in theses countries are generally less adversarial with management and less focused on wage gains, globalization is a major threat to wage gains worldwide.,6. Global Employee and Labor Relations,Human resource policies and practices must be geared to deal with the global differences in collective bargaining. The strength and nature of unions differ from country to country. Some countries, like Germany, even require firms to have union or worker representatives on their boards of directors. This practice is very common in European countries.,7. Equal Employment Opportunity in the United States and Labor Law in China,The U.S. Civil Rights Act (1964): An employer cannot discriminate on the basis of race, color, religion, sex, or nation origin with respect to employment Chinas Labor Law (1995),XI. Barriers to Effective Global HRM,HR management must consider the potential impact of global differences on human resources. Difference in politics, law, culture, economics, labor-management relations system, and other factors complicate the task of global human resource management. Some possible barriers to effective global management: Political and legal, culture, economic, labor-management relations, language, etc.,XII. Global HRM Strategies,HR managers must help their corporations achieve the global strategies in the following ways: understand its multiple, national cultures integrate and coordinate these differing national cultures hire and train a truly world-quality and globally aware workforce and management team develop career planning and management programs understand global business develop ability to communicate to global workforce,