CHAPTER 15: Human Resource Management Chapter 3: THE WORLD MARKETPLACE

1. CHAPTER 15: Human Resource Management &  Chapter 3: THE WORLD MARKETPLACE

2. BUILDING A TOP-QUALITY WORKFORCE CHAPTER 16: Human Resource Management

3. HUMAN RESOURCE MANAGEMENT: BRINGING BUSINESS TO LIFE Human Resource Management � maximizing the effectiveness of the workforce. Recruiting world-class talent Promoting career development Boosting organizational effectiveness

4. HUMAN RESOURCE MANAGEMENT CHALLENGES: MAJOR HURDLES Older Workers Younger Workers Women Workers Work-Life Balance Wage Gap Outsourcing Lawsuits

5. BEST-PAID EXECUTIVES OF PUBLIC COMPANIES DURING THE PAST DECADE

6. BEST-PAID EXECUTIVES OF PUBLIC COMPANIES DURING THE PAST DECADE

7. HUMAN RESOURCE PLANNING: DRAWING THE MAP Click the link to view the variety of offerings and information provided by the HR department at Home Depot. The website is also used to manage internal HR functions. Click on the videos too.Click the link to view the variety of offerings and information provided by the HR department at Home Depot. The website is also used to manage internal HR functions. Click on the videos too.

8. ANALYZING HUMAN ASSETS Job Analysis What skills does the workforce already have? What skills do they need?

9. RECRUITMENT: FINDING THE RIGHT PEOPLE Internal Recruiting � transferring or promoting employees within the company. Boosts Morale Proven Track Record Lower Recruiting Costs External Recruiting � looking for employees outside the firm. Recruiting Resources: Employment Websites Newspaper Ads Trade Associations Employment Centers Colleges/Universities

10. SELECTION: MAKING THE RIGHT CHOICE Note that tests must measure skill and aptitude, companies must be careful about what they test.Note that tests must measure skill and aptitude, companies must be careful about what they test.

11. STRUCTURED INTERVIEW Develop a list of questions prior to interview Focus questions on behaviors and experiences Note that traditional interviews say very little about potential employees.Note that traditional interviews say very little about potential employees.

12. INTERVIEW GAFFES: THINGS NOT TO DO �What five or six adjectives best describe you?� �Really, really, really, really, really cool!� �Were you late because you got lost?� �No. It was such a nice day that I didn�t mind driving slowly.� �Why should I hire you?� �Because they say you should always hire people better than yourself.� �What do you find interesting about this job? �The money. I don�t really care what your company does.� �How would you define a �problem person�?� �Anyone who disagrees with me.�

13. JOB OFFERS & CONTINGENT WORKERS It is important for managers to set a probationary period with new hires Typically 3 to 6 months Employees will become permanent if everything works out Companies with fluctuating employment needs may opt to hire contingent workers Temporary Full-Time Independent Contractors On-call Workers

14. TRAINING AND DEVELOPMENT: HONING THE COMPETITIVE EDGE Increase innovation Increase technology adoption Increase productivity Increase motivation Decrease liability

15. ORIENTATION Effective orientations are the first step in the development process Introduce employees to the company culture Strong orientation programs reduce employee turnover

16. ON-THE-JOB TRAINING

17. OTHER TRAINING OPTIONS

18. EVALUATION: ASSESSING EMPLOYEE PERFORMANCE Performance Appraisals Formal feedback Compare actual to expected results May impact compensations, incentives, promotions, transfers and terminations HR should create an evaluation tool that ties into the company�s objectives Evaluation should be a feedback PROCESS Managers should be trained Employees should be informed of the process

19. COMPENSATION: SHOW ME THE MONEY Compensation � the combination of pay and benefits.

20. PERFORMANCE PAY OPTIONS

21. BENEFITS: FROM BIRTHDAY CAKES TO DEATH BENEFITS Social Security Medicare Contributions Unemployment Payments Workers� Compensation Federal Family and Medical Leave Paid Vacation & Holidays Paid Sick Days Health Insurance Retirement Programs Product Discounts Tuition Reimbursement

22. CAFETERIA-STYLE BENEFITS Providing employees a set dollar amount per person that they spend on company benefits. Allows employees to tailor their benefits to their individual needs.

23. EMPLOYEE HEALTH AND WELLNESS PROGRAMS

24. FLEXIBLE SCHEDULING

25. SEPARATION: BREAKING UP IS HARD TO DO Employees will leave for a variety of reasons Fired Laid Off Transfers Career Changes Personal Reasons Employers should proceed carefully to avoid wrongful termination lawsuits Note that many recent job losses in the economy have been for economic reasons, globalization and the cost savings of outsourcing. Most companies attempt to be empathetic to laid off workers.Note that many recent job losses in the economy have been for economic reasons, globalization and the cost savings of outsourcing. Most companies attempt to be empathetic to laid off workers.

26. TITLE VII: CIVIL RIGHTS ACT OF 1964 Prohibits discrimination in hiring, firing, compensation or privileges of employment based on race, color, religion, sex or national origin Supplemented with legislation to cover age, disability and pregnancy Title VII created the Equal Employment Opportunity Commission (EEOC) Note that this is very influential legislation.Note that this is very influential legislation.

27. LEGAL ISSUES: HR AND THE LONG ARM OF THE LAW

28. Business without Borders Chapter 3: THE WORLD MARKETPLACE

29. With technology and telecommunications booming, and trade barriers falling, the economic boundaries between nations have begun to blur. Note the impact of technology on the speed in which globalization is currently growing. Discuss why technology breaks down international barriers. Note the impact of technology on the speed in which globalization is currently growing. Discuss why technology breaks down international barriers.

30. WORLDWIDE ECONOMIC GROWTH The opportunities around the world are growing. The number of people of with cell phones is a big indicator. Cell phone penetration in China and India is skyrocketing. 350 million in China which is going to double in the next 5 years and 55 million in India which is a 900% increase.The opportunities around the world are growing. The number of people of with cell phones is a big indicator. Cell phone penetration in China and India is skyrocketing. 350 million in China which is going to double in the next 5 years and 55 million in India which is a 900% increase.

31. BRIC countries- Brazil, Russia, India and China

32. KEY REASONS FOR INTERNATIONAL TRADE Access to Factors of Production Reduced Economic Risk Innovation Competitive Advantage Emphasize that globalization provides a variety of new opportunities for companies to gain access to new customers, creative/cheap labor and inexpensive infrastructure for facilities. Decisions to trade require countries to look at the opportunity cost.Emphasize that globalization provides a variety of new opportunities for companies to gain access to new customers, creative/cheap labor and inexpensive infrastructure for facilities. Decisions to trade require countries to look at the opportunity cost.

33. COMPETITIVE ADVANTAGE

34. GLOBAL TRADE: TAKING MEASURE Balance of Trade Trade Deficit Trade Surplus Balance of Payments Balance of Payments Deficit Balance of Payments Surplus Exchange Rates Countertrade Click the Internet icon to review trade statistics. The website is interactive and will allow you to select the statistics that you would like to view.Click the Internet icon to review trade statistics. The website is interactive and will allow you to select the statistics that you would like to view.

35. United States Balance of Trade

36. U.S. Balance of Payments (International Transactions)

37. EXCHANGE RATES: WHO BENEFITS? Discuss the measures of trade and what it means that the dollar is weak. How does that impact customers? American consumers? American businesses? U.S. travelers to Europe: Dollar buys more in Europe. American firms with European operations: Operating costs are lower. European exporters: Europe products are less in US, they export more and we import more. European travelers to the U.S.: Euro buys more in America. European firms with American operations: Operating costs are lower. American exporters: Products are less expensive in Europe, we export more, Europe imports more. Discuss the measures of trade and what it means that the dollar is weak. How does that impact customers? American consumers? American businesses? U.S. travelers to Europe: Dollar buys more in Europe. American firms with European operations: Operating costs are lower. European exporters: Europe products are less in US, they export more and we import more. European travelers to the U.S.: Euro buys more in America. European firms with American operations: Operating costs are lower. American exporters: Products are less expensive in Europe, we export more, Europe imports more.

38. American Dollar Exchange Rate

39. GLOBAL MARKET DEVELOPMENT OPTIONS

40. STRATEGIES FOR FINDING GLOBAL SUPPLIERS Note the examples in the text and the relationships that Gap, Apple and other domestic companies have with foreign manufacturers. Note how technology has made it easier and more efficient to work with foreign partners. Click link to view a China Manufacturers� website and global sourcing services they offer.Note the examples in the text and the relationships that Gap, Apple and other domestic companies have with foreign manufacturers. Note how technology has made it easier and more efficient to work with foreign partners. Click link to view a China Manufacturers� website and global sourcing services they offer.

41. STRATEGIES FOR REACHING GLOBAL MARKETS Licensing Authority given by domestic firm for rights to produce/market its product and use trademarks/patents. Franchising Providing the right to produce and market products under its operating requirements. Direct Investment Firms acquire businesses or develop new facilities in foreign countries. Joint Ventures Two or more companies joining forces to pursue specific opportunities (Partnership or Strategic Alliances The links will take you to the websites of Kentucky Fried Chicken (right) and McDonalds (left). Note to students the cultural differences on the websites of the different fast food companies. In South Africa all of the children are black and the sport being shown is soccer. What have been you experiences with fast-food in other countries? Many companies may also decide to employ a variety of strategies to reach global markets. These strategies may also include partnerships. The links will take you to the websites of Kentucky Fried Chicken (right) and McDonalds (left). Note to students the cultural differences on the websites of the different fast food companies. In South Africa all of the children are black and the sport being shown is soccer. What have been you experiences with fast-food in other countries? Many companies may also decide to employ a variety of strategies to reach global markets. These strategies may also include partnerships.

42. MULTINATIONAL FIRMS Click the slide for the answers to each product/company to appear.Click the slide for the answers to each product/company to appear.

43. BARRIERS TO INTERNATIONAL TRADE Sociocultural Differences Economic Differences Political & Legal Differences Review Exhibit 3.1. Click the link to go to the CIA Factbook. Ask the students to suggest several countries and then review their social, economic and political situations. Compare the GDP for each country with the students. Note that the factbook details other potential barriers/issues that may be social/political.Review Exhibit 3.1. Click the link to go to the CIA Factbook. Ask the students to suggest several countries and then review their social, economic and political situations. Compare the GDP for each country with the students. Note that the factbook details other potential barriers/issues that may be social/political.

44. SOCIAL/CULTURAL DIFFERENCES Nonverbal Communication Forms of Address Attitudes toward punctuality Religious Celebrations Business Practice/Gifts

45. OOPS: TRANSLATION GAFFS �It takes a virile man to make a chicken affectionate� Perdue Farms slogan �It takes a tough man to make a chicken tender� translation in Mexico. Irish Manure Liquor / Silver Dung Rolls Royce? Several foreign companies have introduced products in Germany with the word �mist� which roughly translates into �dung� or �manure� �Nothing sucks like an Electrolux� Electrolux, a Swedish maker vacuum cleaners, introduced their vacuums in the U.S. with a literal translation of their slogan. �Come Alive� Pepsi�s campaign in China failed because its message came across as �Pepsi brings your ancestors back from their graves.�

46. ECONOMIC DIFFERENCES Exchange Rates Population Per Capita Income Infrastructure Transportation Communication Energy Finance Companies will need to think about internet access and electronic payment availability. Most companies have figured out innovative versions of their product that are profitable in foreign markets.Companies will need to think about internet access and electronic payment availability. Most companies have figured out innovative versions of their product that are profitable in foreign markets.

47. POLITICAL & LEGAL DIFFERENCES Political regimes differ around the world Legal Differences Lack of Enforcement Bribery Political Climate Stability Violence Piracy and intellectual property is a problem in several foreign nations

48. PROTECTIONISM

49. TRADE RESTRICTIONS Tariffs Taxes levied against imports Quotas Limitations on the amount of specific products that may be imported from certain countries Voluntary Export Restrictions Limitations on the amount of specific products that one nation will export to another Embargo Total ban on international trade of a certain item or a total halt in trade with a specific nation

50. GLOBAL EMPLOYMENT

51. REVERSE BRAIN DRAIN Many talented immigrants are moving home to take advantage of new economic opportunities. US companies can cut costs by sourcing employees from overseas. But is America losing potential innovators such as Sergey Brin, founder of Google?

52. FREE TRADE: THE MOVEMENT GAINS MOMENTUM There has been a global move toward free trade � the unrestricted movement of good and services across borders.

53. GATT AND WORLD TRADE ORGANIZATION (WTO) General Agreement on Tariffs & Trade (GATT) Established in 1948 Now encompasses 125 nations Slashed tariffs by about 30% Promote International Trade Settle Trade Disputes Note the recent controversies of the WTO.Note the recent controversies of the WTO.

54. FREE TRADE The World Bank 185 Member Countries Reduce World Poverty in Developing World Influence Global Economy Provide Financial Assistance Low interest loans The International Monetary Fund Support Stable Exchange Rates Facilitate International Payments Adopt Economic Policies Promote Trade Lend money to member nations Organizations believe that trade is important to eradicate poverty.Organizations believe that trade is important to eradicate poverty.

55. TRADING BLOCS/COMMON MARKETS The North American Free Trade Agreement (NAFTA) The largest trading bloc US, Canada, Mexico European Union (EU) The largest common market 27 nations; combined GDP $15Trillion Goal is to bolster Europe�s trade position Note EU membership and the countries planning to join.Note EU membership and the countries planning to join.