Solution Manual For
Managing a Global Workforce 4e By Charles Vance, Yongsun Paik, Fabian Jintae Froese,
Torben Andersen
CHAPTER 1
INTRODUCTION AND OVERVIEW
LECTURE NOTES
This introductory chapter examines the many different external global and local contextual
factors that may influence key internal company factors, which in turn determine global
workforce management. Key perspectives that appear throughout the text for understanding
effective global workforce management are also discussed.
LEARNING OBJECTIVES
• Identify important factors in the external global market context that
can influence global workforce conditions and company management
practices;
• Discuss important factors within the organization that can influence
workforce conditions and company management practices;
• Understand the value of a talent management perspective, inclusive
of all who contribute to an organization’s success;
• Discuss applications of career management and personal responsibility in global
workforce management;
• Understand the role of the Human Resource function in effective corporate governance
and sustainability;
• Describe potential benefits of globalization for all;
• Understand the ongoing challenge of managing our global workforce
within the changing forces of convergence versus divergence.
I. INTRODUCTION
A. Today’s burgeoning growth of business on a global scale (both home and abroad) has
significant challenges associated with the acquisition, deployment, and management of
labor.
B. Critical to the success of all organizations, both profit and nonprofit, in our increasingly
global marketplace is the ability to plan for, attract, develop, and retain capable and
committed employees, whether those employees are at home or abroad.
C. Competence in workforce management should not be restricted to those individuals who
specialize in human resources, but should be a top priority for every executive, manager,
and business professional.
D. The challenge of effectively managing human resources to achieve organizational
strategic objectives only increases in scope and complexity with the introduction of
,multiple cultures, differing national practices and regulations, and physical distances
involved with global commerce.
,II. GLOBAL MARKET CONTEXT (EXTERNAL FACTORS)
Company leaders endeavor to manage their organizations within a growing global market
context, with rapidly changing social, political, economic, and technological forces. Key external
factors influencing the effective management of human resources can differ dramatically from
one local context to another.
A. Physical environment
First and foremost, the Global COVID-19 pandemic has been the most prominent recent factor in
our physical environment affecting each of us personally as well as overall workforce
management policy and practice has been the global COVID-19 pandemic. The pandemic
dramatically changed the nature and frequency of workforce interaction, encouraging more
distant/remote and virtual working arrangements.
Second, the increased awareness of global warming and associated climate change under the
broader managerial philosophy of sustainability is having a major impact on workforce
management. Many organizations are encouraging the use of virtual meeting technologies such
as Zoom and Microsoft Teams to reduce the cost and energy use in employees’ domestic and
international travel, and the first experiments with virtual reality meetings. Remote working
arrangements that have benefitted from online technological advancements are also being
employed to ease physical commuting challenges in large metropolitan areas.
B. Economy
As local, national, regional, and global economic strength can have a great influence on business
activity, economic conditions can in turn greatly affect workforce decisions for carrying out
business activity. Where an economy is perceived as weak, company growth plans may be put on
hold, along with a freeze in hiring new regular employees and a greater emphasis on using
temporary employees. Where regions may differ in their economic favorability, MNCs may shift
their business activity focus to gain the greatest benefit for the company, thus placing differing
workforce demands in different regions. Exchange rates across the financial markets of the
global economy can affect human resource arrangements to a significant degree.
C. Social Preferences
This factor is made up of the broad set of culture-based beliefs, values, norms, customs, attitudes,
and expectations held by groups, communities, and societies. Social preferences are also greatly
influenced by:
• communications technologies, such as the Internet, that increase widespread awareness of
new issues, opportunities, and social models (e.g., CSR, basic human rights, etc.), rapidly
changing traditional norms and expectations.
• other external factors, such as government laws and regulations against workplace
discrimination.
• growing global social expectation supporting nationalism, where national interests are
placed ahead of those of other countries or multinational cooperative efforts.
, D. Competition
Global competition to increase market share and profitability by increasing the number of
satisfied customers and at lower costs is a primary driver of globalization.
• With greater accessibility to cheaper labor markets, companies are motivated to move
their operations, affecting workforce relations and employment in home country and host
country environments.
• With the support of advancing information and communication technologies, companies
are able to gain efficiencies by consolidating and moving, through offshore outsourcing,
many operations to less expensive labor markets.
• A company’s human resources also represent a primary source of competitive advantage
through such key contributions as workforce innovation and human capability.
• Companies compete for quality human resources, and are able to successfully attract and
retain human talent through their workforce management practices.
E. Demographics
General labor characteristics, such as age, gender, ethnicity, and skill base:
• Can influence the nature of challenges and practices of workforce management.
• Can differ dramatically from one location to another.
• Labor skill base also is a critical area of demographics, which MNCs carefully consider
when planning for opening operations in other countries.
F. Innovation
Our world is changing, posing an ongoing challenge for organizations to monitor and anticipate
changes, and to adjust appropriately to survive and successfully compete. Innovations often
usher in major changes worldwide affecting workforce management. Two major forms are
discussed below.
1. Technological Innovation
The artificial intelligence (AI) and digital revolution is becoming integrated into and having an
important impact on important HR administrative duties throughout the entire talent management
lifecycle, from employee recruitment to training, to performance feedback and appraisal, to
rewards management, to retirement. In addition, technological innovation continues to bring
increased efficiencies to work processes, often reducing the number of workers needed to
achieve the same level of productivity.
2. Best Practice in Management
Throughout the world there are continually new developments and innovations in management
practice that potentially affect people in the workplace (e.g., offshoring company back-office
operations to foreign work sites; outsourcing: allows companies to focus on their core
Managing a Global Workforce 4e By Charles Vance, Yongsun Paik, Fabian Jintae Froese,
Torben Andersen
CHAPTER 1
INTRODUCTION AND OVERVIEW
LECTURE NOTES
This introductory chapter examines the many different external global and local contextual
factors that may influence key internal company factors, which in turn determine global
workforce management. Key perspectives that appear throughout the text for understanding
effective global workforce management are also discussed.
LEARNING OBJECTIVES
• Identify important factors in the external global market context that
can influence global workforce conditions and company management
practices;
• Discuss important factors within the organization that can influence
workforce conditions and company management practices;
• Understand the value of a talent management perspective, inclusive
of all who contribute to an organization’s success;
• Discuss applications of career management and personal responsibility in global
workforce management;
• Understand the role of the Human Resource function in effective corporate governance
and sustainability;
• Describe potential benefits of globalization for all;
• Understand the ongoing challenge of managing our global workforce
within the changing forces of convergence versus divergence.
I. INTRODUCTION
A. Today’s burgeoning growth of business on a global scale (both home and abroad) has
significant challenges associated with the acquisition, deployment, and management of
labor.
B. Critical to the success of all organizations, both profit and nonprofit, in our increasingly
global marketplace is the ability to plan for, attract, develop, and retain capable and
committed employees, whether those employees are at home or abroad.
C. Competence in workforce management should not be restricted to those individuals who
specialize in human resources, but should be a top priority for every executive, manager,
and business professional.
D. The challenge of effectively managing human resources to achieve organizational
strategic objectives only increases in scope and complexity with the introduction of
,multiple cultures, differing national practices and regulations, and physical distances
involved with global commerce.
,II. GLOBAL MARKET CONTEXT (EXTERNAL FACTORS)
Company leaders endeavor to manage their organizations within a growing global market
context, with rapidly changing social, political, economic, and technological forces. Key external
factors influencing the effective management of human resources can differ dramatically from
one local context to another.
A. Physical environment
First and foremost, the Global COVID-19 pandemic has been the most prominent recent factor in
our physical environment affecting each of us personally as well as overall workforce
management policy and practice has been the global COVID-19 pandemic. The pandemic
dramatically changed the nature and frequency of workforce interaction, encouraging more
distant/remote and virtual working arrangements.
Second, the increased awareness of global warming and associated climate change under the
broader managerial philosophy of sustainability is having a major impact on workforce
management. Many organizations are encouraging the use of virtual meeting technologies such
as Zoom and Microsoft Teams to reduce the cost and energy use in employees’ domestic and
international travel, and the first experiments with virtual reality meetings. Remote working
arrangements that have benefitted from online technological advancements are also being
employed to ease physical commuting challenges in large metropolitan areas.
B. Economy
As local, national, regional, and global economic strength can have a great influence on business
activity, economic conditions can in turn greatly affect workforce decisions for carrying out
business activity. Where an economy is perceived as weak, company growth plans may be put on
hold, along with a freeze in hiring new regular employees and a greater emphasis on using
temporary employees. Where regions may differ in their economic favorability, MNCs may shift
their business activity focus to gain the greatest benefit for the company, thus placing differing
workforce demands in different regions. Exchange rates across the financial markets of the
global economy can affect human resource arrangements to a significant degree.
C. Social Preferences
This factor is made up of the broad set of culture-based beliefs, values, norms, customs, attitudes,
and expectations held by groups, communities, and societies. Social preferences are also greatly
influenced by:
• communications technologies, such as the Internet, that increase widespread awareness of
new issues, opportunities, and social models (e.g., CSR, basic human rights, etc.), rapidly
changing traditional norms and expectations.
• other external factors, such as government laws and regulations against workplace
discrimination.
• growing global social expectation supporting nationalism, where national interests are
placed ahead of those of other countries or multinational cooperative efforts.
, D. Competition
Global competition to increase market share and profitability by increasing the number of
satisfied customers and at lower costs is a primary driver of globalization.
• With greater accessibility to cheaper labor markets, companies are motivated to move
their operations, affecting workforce relations and employment in home country and host
country environments.
• With the support of advancing information and communication technologies, companies
are able to gain efficiencies by consolidating and moving, through offshore outsourcing,
many operations to less expensive labor markets.
• A company’s human resources also represent a primary source of competitive advantage
through such key contributions as workforce innovation and human capability.
• Companies compete for quality human resources, and are able to successfully attract and
retain human talent through their workforce management practices.
E. Demographics
General labor characteristics, such as age, gender, ethnicity, and skill base:
• Can influence the nature of challenges and practices of workforce management.
• Can differ dramatically from one location to another.
• Labor skill base also is a critical area of demographics, which MNCs carefully consider
when planning for opening operations in other countries.
F. Innovation
Our world is changing, posing an ongoing challenge for organizations to monitor and anticipate
changes, and to adjust appropriately to survive and successfully compete. Innovations often
usher in major changes worldwide affecting workforce management. Two major forms are
discussed below.
1. Technological Innovation
The artificial intelligence (AI) and digital revolution is becoming integrated into and having an
important impact on important HR administrative duties throughout the entire talent management
lifecycle, from employee recruitment to training, to performance feedback and appraisal, to
rewards management, to retirement. In addition, technological innovation continues to bring
increased efficiencies to work processes, often reducing the number of workers needed to
achieve the same level of productivity.
2. Best Practice in Management
Throughout the world there are continually new developments and innovations in management
practice that potentially affect people in the workplace (e.g., offshoring company back-office
operations to foreign work sites; outsourcing: allows companies to focus on their core
