Strategic Human Resource Management

(Barry) #1
Section Two

foreign nationals to the United States for a few years’ training
with the parent company and having them take on the
managerial or professional responsibilities in their countries.
The legal restrictions involved in these actions may be critical.
Some large organizations have human resource management
specialists who have developed expertise in working through
the legalities for such moves.


Global Sourcing of Labor


Innovative uses of labor on a global basis are evident. One
example is a large U.S. insurance company in which claims are
processed in Ireland. The combination of a common language,
an educated labor force, a shortage of jobs, and relatively low
wages make this an attractive option. As operations have been
set up, claims data are sent from the United States using
overnight airmail and electronic transmission. An interesting
benefit of this relationship is that, in addition to the low cost of
labor, there is a time differential advantage as work delivered
overnight can be worked on several hours prior to the normal
starting time of 8:00 A.M. on the East Coast. Additionally, U.S.
companies sometimes have data entry performed offshore in
order to take advantage of wage differentials. In some
instances, data entry is performed by clerical workers who do
not even speak English. For example, American Airlines has
data entry performed in China and Barbados.^131

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