SOLUTION MANUAL FOR
J I JI
ManagingJIaJIGlobalJIWorkforceJI4thJIEditionJIByJICharlesJIVance,JIYongsunJIPaik,JIFabianJIJintaeJIFr
oese,JITorbenJIAndersen
Chapter 1-11
JI
CHAPTER 1 INTRODU JI JI
CTION AND OVERVIEW
JI JI
LECTUREJINOTES
ThisJIintroductoryJIchapterJIexaminesJItheJImanyJIdifferentJIexternalJIglobalJIandJIlocalJIcontextualJIfact
orsJIthatJImayJIinfluenceJIkeyJIinternalJIcompanyJIfactors,JIwhichJIinJIturnJIdetermineJIglobalJIworkforceJ
Imanagement.JIKeyJIperspectivesJIthatJIappearJIthroughoutJItheJItextJIforJIunderstandingJIeffectiveJIgloba
lJIworkforceJImanagementJIareJIalsoJIdiscussed.
LEARNINGJIOBJECTIVES
• IdentifyJIimportantJIfactorsJIinJItheJIexternalJIglobalJImarketJIcontextJItha
tJIcanJIinfluenceJIglobalJIworkforceJIconditionsJIandJIcompanyJImanageme
ntJIpractices;
• DiscussJIimportantJIfactorsJIwithinJItheJIorganizationJIthatJIcanJIinfluenc
eJIworkforceJIconditionsJIandJIcompanyJImanagementJIpractices;
• UnderstandJItheJIvalueJIofJIaJItalentJImanagementJIperspective,JIinclusiv
eJIofJIallJIwhoJIcontributeJItoJIanJIorganization’sJIsuccess;
• DiscussJIapplicationsJIofJIcareerJImanagementJIandJIpersonalJIresponsibilityJIinJIglobal
JIworkforceJImanagement;
• UnderstandJItheJIroleJIofJItheJIHumanJIResourceJIfunctionJIinJIeffectiveJIcorporateJIgovernanc
eJIandJIsustainability;
• DescribeJIpotentialJIbenefitsJIofJIglobalizationJIforJIall;
• UnderstandJItheJIongoingJIchallengeJIofJImanagingJIourJIglobalJIworkforce
JIwithinJItheJIchangingJIforcesJIofJIconvergenceJIversusJIdivergence.
I. INTRODUCTION
A. Today’sJIburgeoningJIgrowthJIofJIbusinessJIonJIaJIglobalJIscaleJI(bothJIhomeJIandJIabroad)JIha
sJIsignificantJIchallengesJIassociatedJIwithJItheJIacquisition,JIdeployment,JIandJImanagementJI
ofJIlabor.
B. CriticalJItoJItheJIsuccessJIofJIallJIorganizations,JIbothJIprofitJIandJInonprofit,JIinJIourJIincreasingl
yJIglobalJImarketplaceJIisJItheJIabilityJItoJIplanJIfor,JIattract,JIdevelop,JIandJIretainJIcapableJIandJ
IcommittedJIemployees,JIwhetherJIthoseJIemployeesJIareJIatJIhomeJIorJIabroad.
C. CompetenceJIinJIworkforceJImanagementJIshouldJInotJIbeJIrestrictedJItoJIthoseJIindividualsJIwh
oJIspecializeJIinJIhumanJIresources,JIbutJIshouldJIbeJIaJItopJIpriorityJIforJIeveryJIexecutive,JImana
ger,JIandJIbusinessJIprofessional.
D. TheJIchallengeJIofJIeffectivelyJImanagingJIhumanJIresourcesJItoJIachieveJIorganizational
JIstrategicJIobjectivesJIonlyJIincreasesJIinJIscopeJIandJIcomplexityJIwithJItheJIintroductionJI
of
, multipleJIcultures,JIdifferingJInationalJIpracticesJIandJIregulations,JIandJIphysicalJIdistancesJIinvo
lvedJIwithJIglobalJIcommerce.
II. GLOBALJIMARKETJICONTEXTJI(EXTERNALJIFACTORS)
CompanyJIleadersJIendeavorJItoJImanageJItheirJIorganizationsJIwithinJIaJIgrowingJIglobalJImarketJIcont
ext,JIwithJIrapidlyJIchangingJIsocial,JIpolitical,JIeconomic,JIandJItechnologicalJIforces.JIKeyJIexternalJIfact
orsJIinfluencingJItheJIeffectiveJImanagementJIofJIhumanJIresourcesJIcanJIdifferJIdramaticallyJIfromJIoneJ
IlocalJIcontextJItoJIanother.
A. PhysicalJIenvironment
FirstJIandJIforemost,JItheJIGlobalJICOVID-
19JIpandemicJIhasJIbeenJItheJImostJIprominentJIrecentJIfactorJIinJIourJIphysicalJIenvironmentJIaffectingJIe
achJIofJIusJIpersonallyJIasJIwellJIasJIoverallJIworkforceJImanagementJIpolicyJIandJIpracticeJIhasJIbeenJIthe
JIglobalJICOVID-
19JIpandemic.JITheJIpandemicJIdramaticallyJIchangedJItheJInatureJIandJIfrequencyJIofJIworkforceJIinter
action,JIencouragingJImoreJIdistant/remoteJIandJIvirtualJIworkingJIarrangements.
Second,JItheJIincreasedJIawarenessJIofJIglobalJIwarmingJIandJIassociatedJIclimateJIchangeJIunderJItheJI
broaderJImanagerialJIphilosophyJIofJIsustainabilityJIisJIhavingJIaJImajorJIimpactJIonJIworkforceJImanag
ement.JIManyJIorganizationsJIareJIencouragingJItheJIuseJIofJIvirtualJImeetingJItechnologiesJIsuchJIasJIZoo
mJIandJIMicrosoftJITeamsJItoJIreduceJItheJIcostJIandJIenergyJIuseJIinJIemployees’JIdomesticJIandJIinterna
tionalJItravel,JIandJItheJIfirstJIexperimentsJIwithJIvirtualJIrealityJImeetings.JIRemoteJIworkingJIarrange
mentsJIthatJIhaveJIbenefittedJIfromJIonlineJItechnologicalJIadvancementsJIareJIalsoJIbeingJIemployedJIt
oJIeaseJIphysicalJIcommutingJIchallengesJIinJIlargeJImetropolitanJIareas.
B. Economy
AsJIlocal,JInational,JIregional,JIandJIglobalJIeconomicJIstrengthJIcanJIhaveJIaJIgreatJIinfluenceJIonJIbusines
sJIactivity,JIeconomicJIconditionsJIcanJIinJIturnJIgreatlyJIaffectJIworkforceJIdecisionsJIforJIcarryingJIoutJI
businessJIactivity.JIWhereJIanJIeconomyJIisJIperceivedJIasJIweak,JIcompanyJIgrowthJIplansJImayJIbeJIputJIo
nJIhold,JIalongJIwithJIaJIfreezeJIinJIhiringJInewJIregularJIemployeesJIandJIaJIgreaterJIemphasisJIonJIusingJIte
mporaryJIemployees.JIWhereJIregionsJImayJIdifferJIinJItheirJIeconomicJIfavorability,JIMNCsJImayJIshiftJI
theirJIbusinessJIactivityJIfocusJItoJIgainJItheJIgreatestJIbenefitJIforJItheJIcompany,JIthusJIplacingJIdiffering
JIworkforceJIdemandsJIinJIdifferentJIregions.JIExchangeJIratesJIacrossJItheJIfinancialJImarketsJIofJItheJIgl
obalJIeconomyJIcanJIaffectJIhumanJIresourceJIarrangementsJItoJIaJIsignificantJIdegree.
C. SocialJIPreferences
ThisJIfactorJIisJImadeJIupJIofJItheJIbroadJIsetJIofJIculture-
basedJIbeliefs,JIvalues,JInorms,JIcustoms,JIattitudes,JIandJIexpectationsJIheldJIbyJIgroups,JIcommunities,J
IandJIsocieties.JISocialJIpreferencesJIareJIalsoJIgreatlyJIinfluencedJIby:
• communicationsJItechnologies,JIsuchJIasJItheJIInternet,JIthatJIincreaseJIwidespreadJIawarenessJIo
fJInewJIissues,JIopportunities,JIandJIsocialJImodelsJI(e.g.,JICSR,JIbasicJIhumanJIrights,JIetc.),JIrapi
dlyJIchangingJItraditionalJInormsJIandJIexpectations.
• otherJIexternalJIfactors,JIsuchJIasJIgovernmentJIlawsJIandJIregulationsJIagainstJIworkplac
eJIdiscrimination.
• growingJIglobalJIsocialJIexpectationJIsupportingJInationalism,JIwhereJInationalJIinterestsJIare
JIplacedJIaheadJIofJIthoseJIofJIotherJIcountriesJIorJImultinationalJIcooperativeJIefforts.
,D. Competition
GlobalJIcompetitionJItoJIincreaseJImarketJIshareJIandJIprofitabilityJIbyJIincreasingJItheJInumberJIofJIsatisf
iedJIcustomersJIandJIatJIlowerJIcostsJIisJIaJIprimaryJIdriverJIofJIglobalization.
• WithJIgreaterJIaccessibilityJItoJIcheaperJIlaborJImarkets,JIcompaniesJIareJImotivatedJItoJImoveJIt
heirJIoperations,JIaffectingJIworkforceJIrelationsJIandJIemploymentJIinJIhomeJIcountryJIandJIhostJ
IcountryJIenvironments.
• WithJItheJIsupportJIofJIadvancingJIinformationJIandJIcommunicationJItechnologies,JIcompanie
sJIareJIableJItoJIgainJIefficienciesJIbyJIconsolidatingJIandJImoving,JIthroughJIoffshoreJIoutsourci
ng,JImanyJIoperationsJItoJIlessJIexpensiveJIlaborJImarkets.
• AJIcompany’sJIhumanJIresourcesJIalsoJIrepresentJIaJIprimaryJIsourceJIofJIcompetitiveJIadvantag
eJIthroughJIsuchJIkeyJIcontributionsJIasJIworkforceJIinnovationJIandJIhumanJIcapability.
• CompaniesJIcompeteJIforJIqualityJIhumanJIresources,JIandJIareJIableJItoJIsuccessfullyJIattractJIan
dJIretainJIhumanJItalentJIthroughJItheirJIworkforceJImanagementJIpractices.
E. Demographics
GeneralJIlaborJIcharacteristics,JIsuchJIasJIage,JIgender,JIethnicity,JIandJIskillJIbase:
• CanJIinfluenceJItheJInatureJIofJIchallengesJIandJIpracticesJIofJIworkforceJImanagement.
• CanJIdifferJIdramaticallyJIfromJIoneJIlocationJItoJIanother.
• LaborJIskillJIbaseJIalsoJIisJIaJIcriticalJIareaJIofJIdemographics,JIwhichJIMNCsJIcarefullyJIconside
rJIwhenJIplanningJIforJIopeningJIoperationsJIinJIotherJIcountries.
F. Innovation
OurJIworldJIisJIchanging,JIposingJIanJIongoingJIchallengeJIforJIorganizationsJItoJImonitorJIandJIanticipateJ
Ichanges,JIandJItoJIadjustJIappropriatelyJItoJIsurviveJIandJIsuccessfullyJIcompete.JIInnovationsJIoftenJIu
sherJIinJImajorJIchangesJIworldwideJIaffectingJIworkforceJImanagement.JITwoJImajorJIformsJIareJIdisc
ussedJIbelow.
1. TechnologicalJIInnovation
TheJIartificialJIintelligenceJI(AI)JIandJIdigitalJIrevolutionJIisJIbecomingJIintegratedJIintoJIandJIhavingJIanJ
IimportantJIimpactJIonJIimportantJIHRJIadministrativeJIdutiesJIthroughoutJItheJIentireJItalentJImanagemen
tJIlifecycle,JIfromJIemployeeJIrecruitmentJItoJItraining,JItoJIperformanceJIfeedbackJIandJIappraisal,JItoJIre
wardsJImanagement,JItoJIretirement.JIInJIaddition,JItechnologicalJIinnovationJIcontinuesJItoJIbringJIincr
easedJIefficienciesJItoJIworkJIprocesses,JIoftenJIreducingJItheJInumberJIofJIworkersJIneededJItoJIachieveJIt
heJIsameJIlevelJIofJIproductivity.
2. BestJIPracticeJIinJIManagement
ThroughoutJItheJIworldJIthereJIareJIcontinuallyJInewJIdevelopmentsJIandJIinnovationsJIinJImanagementJIpracti
ceJIthatJIpotentiallyJIaffectJIpeopleJIinJItheJIworkplaceJI(e.g.,JIoffshoringJIcompanyJIback-
officeJIoperationsJItoJIforeignJIworkJIsites;JIoutsourcing:JIallowsJIcompaniesJItoJIfocusJIonJItheirJIcore
, competenciesJIwhileJIpartneringJIonJIsiteJIorJIonJIaJIdistanceJIbasisJIwithJIotherJIfirmsJIthatJIprovideJIaJIserv
iceJIthatJItheyJIdoJIbest).
OrganizationsJIcanJIpickJIupJInewJIideasJIandJIinnovationsJIforJIimprovingJIworkforceJImanagementJIprac
ticeJIinJIseveralJIways,JIincludingJIattendingJIprofessionalJIconferencesJIandJImeetingsJIwhereJIinformat
ionJIisJIdisseminatedJIformallyJIandJIinformallyJIthroughJInetworking.
G. Governments
GovernmentsJIindividuallyJIandJIcollectivelyJIhaveJIaJIcentralJIroleJIinJIregulatingJIeconomicJIactivityJIa
ndJIcanJIexertJItremendousJIinfluenceJIonJIworkforceJImanagementJIpractices.
1. IndividualJIGovernments
GovernmentsJIareJItypicallyJIactiveJIforcesJItryingJItoJIfacilitateJIeconomicJIhealthJIleadingJItoJIincreasedJI
localJIemploymentJIopportunity—
increasinglyJIactiveJIinJIimprovingJInationalJIinfrastructures,JIinvestingJIinJIeducationJIandJIlaborJIforce
JIskillJIdevelopment,JIandJInegotiatingJItaxJIarrangementsJItoJIsuccessfullyJIattractJIMNCsJIthatJIprovide
JInewJIjobsJIthroughJItheirJIforeignJIdirectJIinvestment.
GovernmentsJIalsoJIhaveJIaJIresponsibilityJItoJImakeJIlawsJIandJImonitorJIlaborJIpracticesJItoJIprotectJIth
eJIrightsJIofJIworkers,JIasJIwellJIasJIthoseJIseekingJIemployment,JIandJItoJIensureJIsafeJIworkingJIconditi
ons.
2. MultilateralJIAgreements
TwoJIorJImoreJIgovernmentsJIformJIagreementsJIandJItreatiesJIthatJIserveJItoJIpromoteJIcross-
borderJIcommerceJIandJIeconomicJIdevelopmentJIforJIallJIgovernmentsJIinvolved.
• OftenJIstipulateJIworkforceJIstandardsJIandJIrequirementsJIthatJIeachJIcountryJImustJIuphold.
• CommonJIcriticism:JItheyJIgenerallyJIonlyJIspecifyJIthatJIpresentJIlaborJIlawsJIofJIeachJIcountryJIb
eJIupheld,JIandJIfailJItoJIrequireJIadherenceJItoJIhigherJIcommonJIstandards.
• TheJImostJIintegratedJImultilateralJIagreementJIisJItheJIEuropeanJIUnionJI(EU),JIwithJIanJIextens
iveJIgoverningJIandJIregulatoryJIstructureJIaffectingJIorganizationsJIinJIallJIEUJIcurrentJIandJIprosp
ectiveJImemberJIcountries,JIasJIwellJIasJIcompaniesJIdoingJIbusinessJIwithinJIthisJIhugeJIeconom
icJIbloc.
TheJIestablishmentJIofJItheJIEUJIandJIitsJIlaborJImobilityJIprovisionsJIhasJIresultedJIinJIaJI
majorJIincreaseJIinJIlaborJImigrationJIacrossJInationalJIborders,JIcreatingJImuchJIgreate
rJIchallengesJIinJImanagingJIdiversityJIthanJIexperiencedJIinJItheJIpast,JIasJIwellJIasJIbringi
ngJIinJItoJIdevelopedJIcountriesJIofJItheJIEUJIanJIincreasingJIsupplyJIofJIhighlyJImotivate
dJIlaborJIfromJIless-
developedJIeconomiesJIandJIgeneratingJIaJIdownwardJIpressureJIonJIlocalJIwages.
EU’sJICharterJIofJIFundamentalJIRightsJIforJIEUJIcitizensJIandJIallJIpersonsJIresidingJIi
nJItheJIEU.JIMajorJIpointsJIofJIEUJICharterJIrelevantJItoJIHRM:
NoJIoneJIshallJIbeJIheldJIinJIslaveryJIorJIservitude.
NoJIoneJIshallJIbeJIrequiredJItoJIperformJIforcedJIorJIcompulsoryJIlabor.
TraffickingJIinJIhumanJIbeingsJIisJIprohibited.
EveryoneJIhasJItheJIrightJItoJIeducationJIandJItoJIhaveJIaccessJItoJIvocationalJIan
dJIcontinuingJItraining.
J I JI
ManagingJIaJIGlobalJIWorkforceJI4thJIEditionJIByJICharlesJIVance,JIYongsunJIPaik,JIFabianJIJintaeJIFr
oese,JITorbenJIAndersen
Chapter 1-11
JI
CHAPTER 1 INTRODU JI JI
CTION AND OVERVIEW
JI JI
LECTUREJINOTES
ThisJIintroductoryJIchapterJIexaminesJItheJImanyJIdifferentJIexternalJIglobalJIandJIlocalJIcontextualJIfact
orsJIthatJImayJIinfluenceJIkeyJIinternalJIcompanyJIfactors,JIwhichJIinJIturnJIdetermineJIglobalJIworkforceJ
Imanagement.JIKeyJIperspectivesJIthatJIappearJIthroughoutJItheJItextJIforJIunderstandingJIeffectiveJIgloba
lJIworkforceJImanagementJIareJIalsoJIdiscussed.
LEARNINGJIOBJECTIVES
• IdentifyJIimportantJIfactorsJIinJItheJIexternalJIglobalJImarketJIcontextJItha
tJIcanJIinfluenceJIglobalJIworkforceJIconditionsJIandJIcompanyJImanageme
ntJIpractices;
• DiscussJIimportantJIfactorsJIwithinJItheJIorganizationJIthatJIcanJIinfluenc
eJIworkforceJIconditionsJIandJIcompanyJImanagementJIpractices;
• UnderstandJItheJIvalueJIofJIaJItalentJImanagementJIperspective,JIinclusiv
eJIofJIallJIwhoJIcontributeJItoJIanJIorganization’sJIsuccess;
• DiscussJIapplicationsJIofJIcareerJImanagementJIandJIpersonalJIresponsibilityJIinJIglobal
JIworkforceJImanagement;
• UnderstandJItheJIroleJIofJItheJIHumanJIResourceJIfunctionJIinJIeffectiveJIcorporateJIgovernanc
eJIandJIsustainability;
• DescribeJIpotentialJIbenefitsJIofJIglobalizationJIforJIall;
• UnderstandJItheJIongoingJIchallengeJIofJImanagingJIourJIglobalJIworkforce
JIwithinJItheJIchangingJIforcesJIofJIconvergenceJIversusJIdivergence.
I. INTRODUCTION
A. Today’sJIburgeoningJIgrowthJIofJIbusinessJIonJIaJIglobalJIscaleJI(bothJIhomeJIandJIabroad)JIha
sJIsignificantJIchallengesJIassociatedJIwithJItheJIacquisition,JIdeployment,JIandJImanagementJI
ofJIlabor.
B. CriticalJItoJItheJIsuccessJIofJIallJIorganizations,JIbothJIprofitJIandJInonprofit,JIinJIourJIincreasingl
yJIglobalJImarketplaceJIisJItheJIabilityJItoJIplanJIfor,JIattract,JIdevelop,JIandJIretainJIcapableJIandJ
IcommittedJIemployees,JIwhetherJIthoseJIemployeesJIareJIatJIhomeJIorJIabroad.
C. CompetenceJIinJIworkforceJImanagementJIshouldJInotJIbeJIrestrictedJItoJIthoseJIindividualsJIwh
oJIspecializeJIinJIhumanJIresources,JIbutJIshouldJIbeJIaJItopJIpriorityJIforJIeveryJIexecutive,JImana
ger,JIandJIbusinessJIprofessional.
D. TheJIchallengeJIofJIeffectivelyJImanagingJIhumanJIresourcesJItoJIachieveJIorganizational
JIstrategicJIobjectivesJIonlyJIincreasesJIinJIscopeJIandJIcomplexityJIwithJItheJIintroductionJI
of
, multipleJIcultures,JIdifferingJInationalJIpracticesJIandJIregulations,JIandJIphysicalJIdistancesJIinvo
lvedJIwithJIglobalJIcommerce.
II. GLOBALJIMARKETJICONTEXTJI(EXTERNALJIFACTORS)
CompanyJIleadersJIendeavorJItoJImanageJItheirJIorganizationsJIwithinJIaJIgrowingJIglobalJImarketJIcont
ext,JIwithJIrapidlyJIchangingJIsocial,JIpolitical,JIeconomic,JIandJItechnologicalJIforces.JIKeyJIexternalJIfact
orsJIinfluencingJItheJIeffectiveJImanagementJIofJIhumanJIresourcesJIcanJIdifferJIdramaticallyJIfromJIoneJ
IlocalJIcontextJItoJIanother.
A. PhysicalJIenvironment
FirstJIandJIforemost,JItheJIGlobalJICOVID-
19JIpandemicJIhasJIbeenJItheJImostJIprominentJIrecentJIfactorJIinJIourJIphysicalJIenvironmentJIaffectingJIe
achJIofJIusJIpersonallyJIasJIwellJIasJIoverallJIworkforceJImanagementJIpolicyJIandJIpracticeJIhasJIbeenJIthe
JIglobalJICOVID-
19JIpandemic.JITheJIpandemicJIdramaticallyJIchangedJItheJInatureJIandJIfrequencyJIofJIworkforceJIinter
action,JIencouragingJImoreJIdistant/remoteJIandJIvirtualJIworkingJIarrangements.
Second,JItheJIincreasedJIawarenessJIofJIglobalJIwarmingJIandJIassociatedJIclimateJIchangeJIunderJItheJI
broaderJImanagerialJIphilosophyJIofJIsustainabilityJIisJIhavingJIaJImajorJIimpactJIonJIworkforceJImanag
ement.JIManyJIorganizationsJIareJIencouragingJItheJIuseJIofJIvirtualJImeetingJItechnologiesJIsuchJIasJIZoo
mJIandJIMicrosoftJITeamsJItoJIreduceJItheJIcostJIandJIenergyJIuseJIinJIemployees’JIdomesticJIandJIinterna
tionalJItravel,JIandJItheJIfirstJIexperimentsJIwithJIvirtualJIrealityJImeetings.JIRemoteJIworkingJIarrange
mentsJIthatJIhaveJIbenefittedJIfromJIonlineJItechnologicalJIadvancementsJIareJIalsoJIbeingJIemployedJIt
oJIeaseJIphysicalJIcommutingJIchallengesJIinJIlargeJImetropolitanJIareas.
B. Economy
AsJIlocal,JInational,JIregional,JIandJIglobalJIeconomicJIstrengthJIcanJIhaveJIaJIgreatJIinfluenceJIonJIbusines
sJIactivity,JIeconomicJIconditionsJIcanJIinJIturnJIgreatlyJIaffectJIworkforceJIdecisionsJIforJIcarryingJIoutJI
businessJIactivity.JIWhereJIanJIeconomyJIisJIperceivedJIasJIweak,JIcompanyJIgrowthJIplansJImayJIbeJIputJIo
nJIhold,JIalongJIwithJIaJIfreezeJIinJIhiringJInewJIregularJIemployeesJIandJIaJIgreaterJIemphasisJIonJIusingJIte
mporaryJIemployees.JIWhereJIregionsJImayJIdifferJIinJItheirJIeconomicJIfavorability,JIMNCsJImayJIshiftJI
theirJIbusinessJIactivityJIfocusJItoJIgainJItheJIgreatestJIbenefitJIforJItheJIcompany,JIthusJIplacingJIdiffering
JIworkforceJIdemandsJIinJIdifferentJIregions.JIExchangeJIratesJIacrossJItheJIfinancialJImarketsJIofJItheJIgl
obalJIeconomyJIcanJIaffectJIhumanJIresourceJIarrangementsJItoJIaJIsignificantJIdegree.
C. SocialJIPreferences
ThisJIfactorJIisJImadeJIupJIofJItheJIbroadJIsetJIofJIculture-
basedJIbeliefs,JIvalues,JInorms,JIcustoms,JIattitudes,JIandJIexpectationsJIheldJIbyJIgroups,JIcommunities,J
IandJIsocieties.JISocialJIpreferencesJIareJIalsoJIgreatlyJIinfluencedJIby:
• communicationsJItechnologies,JIsuchJIasJItheJIInternet,JIthatJIincreaseJIwidespreadJIawarenessJIo
fJInewJIissues,JIopportunities,JIandJIsocialJImodelsJI(e.g.,JICSR,JIbasicJIhumanJIrights,JIetc.),JIrapi
dlyJIchangingJItraditionalJInormsJIandJIexpectations.
• otherJIexternalJIfactors,JIsuchJIasJIgovernmentJIlawsJIandJIregulationsJIagainstJIworkplac
eJIdiscrimination.
• growingJIglobalJIsocialJIexpectationJIsupportingJInationalism,JIwhereJInationalJIinterestsJIare
JIplacedJIaheadJIofJIthoseJIofJIotherJIcountriesJIorJImultinationalJIcooperativeJIefforts.
,D. Competition
GlobalJIcompetitionJItoJIincreaseJImarketJIshareJIandJIprofitabilityJIbyJIincreasingJItheJInumberJIofJIsatisf
iedJIcustomersJIandJIatJIlowerJIcostsJIisJIaJIprimaryJIdriverJIofJIglobalization.
• WithJIgreaterJIaccessibilityJItoJIcheaperJIlaborJImarkets,JIcompaniesJIareJImotivatedJItoJImoveJIt
heirJIoperations,JIaffectingJIworkforceJIrelationsJIandJIemploymentJIinJIhomeJIcountryJIandJIhostJ
IcountryJIenvironments.
• WithJItheJIsupportJIofJIadvancingJIinformationJIandJIcommunicationJItechnologies,JIcompanie
sJIareJIableJItoJIgainJIefficienciesJIbyJIconsolidatingJIandJImoving,JIthroughJIoffshoreJIoutsourci
ng,JImanyJIoperationsJItoJIlessJIexpensiveJIlaborJImarkets.
• AJIcompany’sJIhumanJIresourcesJIalsoJIrepresentJIaJIprimaryJIsourceJIofJIcompetitiveJIadvantag
eJIthroughJIsuchJIkeyJIcontributionsJIasJIworkforceJIinnovationJIandJIhumanJIcapability.
• CompaniesJIcompeteJIforJIqualityJIhumanJIresources,JIandJIareJIableJItoJIsuccessfullyJIattractJIan
dJIretainJIhumanJItalentJIthroughJItheirJIworkforceJImanagementJIpractices.
E. Demographics
GeneralJIlaborJIcharacteristics,JIsuchJIasJIage,JIgender,JIethnicity,JIandJIskillJIbase:
• CanJIinfluenceJItheJInatureJIofJIchallengesJIandJIpracticesJIofJIworkforceJImanagement.
• CanJIdifferJIdramaticallyJIfromJIoneJIlocationJItoJIanother.
• LaborJIskillJIbaseJIalsoJIisJIaJIcriticalJIareaJIofJIdemographics,JIwhichJIMNCsJIcarefullyJIconside
rJIwhenJIplanningJIforJIopeningJIoperationsJIinJIotherJIcountries.
F. Innovation
OurJIworldJIisJIchanging,JIposingJIanJIongoingJIchallengeJIforJIorganizationsJItoJImonitorJIandJIanticipateJ
Ichanges,JIandJItoJIadjustJIappropriatelyJItoJIsurviveJIandJIsuccessfullyJIcompete.JIInnovationsJIoftenJIu
sherJIinJImajorJIchangesJIworldwideJIaffectingJIworkforceJImanagement.JITwoJImajorJIformsJIareJIdisc
ussedJIbelow.
1. TechnologicalJIInnovation
TheJIartificialJIintelligenceJI(AI)JIandJIdigitalJIrevolutionJIisJIbecomingJIintegratedJIintoJIandJIhavingJIanJ
IimportantJIimpactJIonJIimportantJIHRJIadministrativeJIdutiesJIthroughoutJItheJIentireJItalentJImanagemen
tJIlifecycle,JIfromJIemployeeJIrecruitmentJItoJItraining,JItoJIperformanceJIfeedbackJIandJIappraisal,JItoJIre
wardsJImanagement,JItoJIretirement.JIInJIaddition,JItechnologicalJIinnovationJIcontinuesJItoJIbringJIincr
easedJIefficienciesJItoJIworkJIprocesses,JIoftenJIreducingJItheJInumberJIofJIworkersJIneededJItoJIachieveJIt
heJIsameJIlevelJIofJIproductivity.
2. BestJIPracticeJIinJIManagement
ThroughoutJItheJIworldJIthereJIareJIcontinuallyJInewJIdevelopmentsJIandJIinnovationsJIinJImanagementJIpracti
ceJIthatJIpotentiallyJIaffectJIpeopleJIinJItheJIworkplaceJI(e.g.,JIoffshoringJIcompanyJIback-
officeJIoperationsJItoJIforeignJIworkJIsites;JIoutsourcing:JIallowsJIcompaniesJItoJIfocusJIonJItheirJIcore
, competenciesJIwhileJIpartneringJIonJIsiteJIorJIonJIaJIdistanceJIbasisJIwithJIotherJIfirmsJIthatJIprovideJIaJIserv
iceJIthatJItheyJIdoJIbest).
OrganizationsJIcanJIpickJIupJInewJIideasJIandJIinnovationsJIforJIimprovingJIworkforceJImanagementJIprac
ticeJIinJIseveralJIways,JIincludingJIattendingJIprofessionalJIconferencesJIandJImeetingsJIwhereJIinformat
ionJIisJIdisseminatedJIformallyJIandJIinformallyJIthroughJInetworking.
G. Governments
GovernmentsJIindividuallyJIandJIcollectivelyJIhaveJIaJIcentralJIroleJIinJIregulatingJIeconomicJIactivityJIa
ndJIcanJIexertJItremendousJIinfluenceJIonJIworkforceJImanagementJIpractices.
1. IndividualJIGovernments
GovernmentsJIareJItypicallyJIactiveJIforcesJItryingJItoJIfacilitateJIeconomicJIhealthJIleadingJItoJIincreasedJI
localJIemploymentJIopportunity—
increasinglyJIactiveJIinJIimprovingJInationalJIinfrastructures,JIinvestingJIinJIeducationJIandJIlaborJIforce
JIskillJIdevelopment,JIandJInegotiatingJItaxJIarrangementsJItoJIsuccessfullyJIattractJIMNCsJIthatJIprovide
JInewJIjobsJIthroughJItheirJIforeignJIdirectJIinvestment.
GovernmentsJIalsoJIhaveJIaJIresponsibilityJItoJImakeJIlawsJIandJImonitorJIlaborJIpracticesJItoJIprotectJIth
eJIrightsJIofJIworkers,JIasJIwellJIasJIthoseJIseekingJIemployment,JIandJItoJIensureJIsafeJIworkingJIconditi
ons.
2. MultilateralJIAgreements
TwoJIorJImoreJIgovernmentsJIformJIagreementsJIandJItreatiesJIthatJIserveJItoJIpromoteJIcross-
borderJIcommerceJIandJIeconomicJIdevelopmentJIforJIallJIgovernmentsJIinvolved.
• OftenJIstipulateJIworkforceJIstandardsJIandJIrequirementsJIthatJIeachJIcountryJImustJIuphold.
• CommonJIcriticism:JItheyJIgenerallyJIonlyJIspecifyJIthatJIpresentJIlaborJIlawsJIofJIeachJIcountryJIb
eJIupheld,JIandJIfailJItoJIrequireJIadherenceJItoJIhigherJIcommonJIstandards.
• TheJImostJIintegratedJImultilateralJIagreementJIisJItheJIEuropeanJIUnionJI(EU),JIwithJIanJIextens
iveJIgoverningJIandJIregulatoryJIstructureJIaffectingJIorganizationsJIinJIallJIEUJIcurrentJIandJIprosp
ectiveJImemberJIcountries,JIasJIwellJIasJIcompaniesJIdoingJIbusinessJIwithinJIthisJIhugeJIeconom
icJIbloc.
TheJIestablishmentJIofJItheJIEUJIandJIitsJIlaborJImobilityJIprovisionsJIhasJIresultedJIinJIaJI
majorJIincreaseJIinJIlaborJImigrationJIacrossJInationalJIborders,JIcreatingJImuchJIgreate
rJIchallengesJIinJImanagingJIdiversityJIthanJIexperiencedJIinJItheJIpast,JIasJIwellJIasJIbringi
ngJIinJItoJIdevelopedJIcountriesJIofJItheJIEUJIanJIincreasingJIsupplyJIofJIhighlyJImotivate
dJIlaborJIfromJIless-
developedJIeconomiesJIandJIgeneratingJIaJIdownwardJIpressureJIonJIlocalJIwages.
EU’sJICharterJIofJIFundamentalJIRightsJIforJIEUJIcitizensJIandJIallJIpersonsJIresidingJIi
nJItheJIEU.JIMajorJIpointsJIofJIEUJICharterJIrelevantJItoJIHRM:
NoJIoneJIshallJIbeJIheldJIinJIslaveryJIorJIservitude.
NoJIoneJIshallJIbeJIrequiredJItoJIperformJIforcedJIorJIcompulsoryJIlabor.
TraffickingJIinJIhumanJIbeingsJIisJIprohibited.
EveryoneJIhasJItheJIrightJItoJIeducationJIandJItoJIhaveJIaccessJItoJIvocationalJIan
dJIcontinuingJItraining.