Transcript Chapter 18
CHAPTER 18 HUMAN RESOURCE MANAGEMENT Visit http://wileymanagementupdates.com/ for the latest in business news stories. Copyright © 2011 John Wiley & Sons Chapter 18 Learning Objectives 1. Assess the effects of culture on managers and management policies 2. Examine the sources, qualifications, and compensation of international managers 3. Illustrate the different roles of labor in international markets, especially that of labor participation in management Chapter 18 2 Czinkota: International Business, 8e Human Resource Objectives Recruitment and retention of a workforce Increase effectiveness of workforce Activities and skills needed to meet objectives: Personnel Planning and Staffing Personnel Training Compensation According to Effectiveness Understanding of Labor-Management Relations Chapter 18 3 Czinkota: International Business, 8e Early Stages of Internationalization Primary need is for an export manager Marketing or sales manager of the firm typically is responsible for beginning export activities Will usually hire an export manager from outside rather than promote from within Knowledge of the product or industry is less important than international experience Chapter 18 4 Czinkota: International Business, 8e Advanced Stages of Internationalization Overseas assignment categories: CEO Functional Heads TroubleShooters White- or Blue-Collar Workers Ability to attract talent around the world can be a competitive advantage Company needs: A network of global specialists to work together To develop clear career paths for oversees managers To coordinate and leverage resources across borders Chapter 18 5 Czinkota: International Business, 8e Japanese Firms Seeks Outside Leadership Japanese firms tend to be very insular, and executives typically stick with one company for life and bosses are promoted from within. In June 2010, U-Shin, a mid-sized maker of car parts, began looking outside for a new president. The company is looking for a young, English-speaking boss to replace its current president who has been in place for over 30 years. U-Shin is also taking the highly unusual step of running newspaper advertisements to attract candidates. U-Shin's atypical move suggests that the need to break with tradition and internationalize management is beginning to be recognized down at the level of medium-sized business, the heart of Japanese industry. Source: http://www.economist.com/blogs/asiaview/2010/07/japanese_corporate_culture?fsrc=scn/fb/wl/bl/openingup Chapter 18 6 Czinkota: International Business, 8e Interfirm Cooperative Ventures New Management Challenge Global competition is forging new cooperative ties between firms from different countries Tasks needed: Assign and motivate people so venture will meet goals Strategic management of human resources Chapter 18 7 Czinkota: International Business, 8e Sources for Management Recruitment Sources for recruiting include: Within the Company Other Product or Region Group External Talent Local Managers Expats Criteria for deciding between expatriates and local managers Availability and quality of talent pool Corporate policies Environmental constants on the legal, cultural, and economic fronts Chapter 18 8 Czinkota: International Business, 8e Recruitment During the Internationalization Process During the export stage, outside expertise is sought at first, but the firm then begins to develop its own personnel for international operations When international operations are expanded, a recruitment dilemma may occur when dealing with internal recruitment of young managers Chapter 18 9 Czinkota: International Business, 8e Selection Criteria for Overseas Assignments The role of factual cultural knowledge, or knowledge obtainable from specific country studies, has been widely debated Area expertise includes a knowledge of the basic systems in the region or market for which the manager will be responsible The oversees manager must progress from factual knowledge to interpretive cultural knowledge, which is an acquired ability to understand and appreciate the nuances of foreign cultural traits and patterns Chapter 18 10 Czinkota: International Business, 8e Criteria for Selecting Managers for Overseas Assignment Competence Adaptability •Technical knowledge •Leadership Ability •Experience, Past Performance •Area Expertise •Language • Interest in Overseas Work • Relational Abilities • Cultural Empathy • Appreciation of New Management Styles • Appreciation of Environmental Constraints • Adaptability of Family Chapter 18 11 Personal Characteristics • Age • Education • Sex • Health • Marital Relations • Social Acceptability Czinkota: International Business, 8e Focus on Culture: The GLOW Network at Siemens Siemens has embraced diversity as a fundamental perspective for its business objectives. As part of the company’s four-prong diversity initiative, Siemens has launched the Global Leadership Organization of Women (GLOW). Created to proactively recruit and retain highly qualified women, GLOW is a network dedicated to enlarging the contribution of women to Siemens’s business. Chapter 18 12 Czinkota: International Business, 8e The Selection and Orientation Challenge Adaptability screening usually involves interviewing both the overseas candidate and the candidate’s family to determine how well they are likely to adapt to another culture An orientation program facilitates new workers with their roles and prepares them for overseas assignments Chapter 18 13 Czinkota: International Business, 8e Culture Shock Pronounced reactions to the psychological disorientation when spending an extended time in a new environment Stages include: Initial Euphoria Irritation/ Hostility Adjustment Re-Entry Chapter 18 Enjoying the novelty, largely from the perspective of a spectator Experiencing cultural differences Adapting to the situation Biculturalism or cases of “going native” are possible Returning home to face a possibly changed home environment 14 Czinkota: International Business, 8e Psychological and Physical Symptoms of Culture Shock Culture shock is a condition that affects expats when they move overseas. Here's how to recognize the physical and psychological symptoms of culture shock. Psychosocial Symptoms: • Sadness and loneliness • Homesickness • Idealizing the home culture Physical Symptoms • Fatigue and malaise • Generalized aches and pains • Increase in illness or accidents Source: http://workabroadtravel.suite101.com/article.cfm/psychological-and-physical-symptoms-of-culture-shock Chapter 18 15 Czinkota: International Business, 8e Repatriation Returning home may invoke mixed feelings Reverse cultural shock may emerge Find a place in corporate hierarchy Family must give up their special status Four step process for repatriation planning: Assessment of foreign assignments in terms of environmental constraints and corporate objectives Preparation of the individual for an oversees assignment Communication during the tour on developments at headquarters Reorientation upon reentry Chapter 18 16 Czinkota: International Business, 8e Compensation A firm’s expatriate compensation program has to be effective in the following areas: Home-country salary Assignment-location costs Home-country equivalent purchasing power Compensation of the manager overseas can be divided into two general categories: Base-salary allowances Salary-related allowances Chapter 18 17 Czinkota: International Business, 8e Base Salary and Non-Salary-Related Allowances Base Salary Allowances Non-Salary-Related Allowances • Depends on qualifications, responsibilities, and duties • Cost of Living Allowance (COLA) • Foreign Service Premium • Hardship Allowance • Housing Allowance • Tax-equalization Plan • Relocation allowance • Mobility allowance • Home sale or rental protection, household storage or shipment • Automobile protection • Travel expenses • Temporary living expenses • Education allowance • Medical expenses • Home leave Chapter 18 18 Czinkota: International Business, 8e Labor Participation in Decision Making Rights of information, consultation, and codetermination develop on three levels: The shop-floor level, or direct involvement The management level, or through representative bodies The board level Self management – Independent decision making Codetermination – Employees are represented on supervisory boards to facilitate communication and collaboration Works Council – Workers and managers who participate in decisions affecting them Chapter 18 19 Czinkota: International Business, 8e Improvement of Quality of Work Life Efforts to improve personal and professional development: Team building is aimed at enhancing the cohesiveness of a department Quality circles are groups of workers who meet regularly to discuss issues related to productivity Work scheduling involves preparing schedules of when and how long workers are at the workplace Flextime allows workers to determine their own starting and ending times Chapter 18 20 Czinkota: International Business, 8e The Role of Labor Unions Role varies from country to country Investment decisions can be guided by union considerations Union challenges due to internationalization: Power of the Firm to Move Production Chapter 18 More Difficult to get Financial Data Insufficient Attention to Local Issues 21 Difficulty in being Heard by Decision Makers Czinkota: International Business, 8e Labor Union Puts GM French Factory Plan in Doubt In July 2010, a plan to maintain operations at a General Motors plant in eastern France was in doubt after a labor union refused to sign a deal to freeze salaries and cut working days. Three other unions agreed to the deal after more than 1,000 of 1,150 workers voted to accept conditions set by the Detroit-based carmaker to keep the plant open. General Motors had said it needed all four unions to agree for it to complete the repurchase of a plant it put up for sale in 2008 to help raise cash and avoid bankruptcy at the height of the financial crisis. Source: http://www.ibtimes.com/contents/20100723/labor-union-puts-gm-french-factory-plan-doubt.htm Chapter 18 22 Czinkota: International Business, 8e Focus on Ethics: Labor Unions Attack Nestlé in Russia Workers at a Nestlé factory in the Ural city of Perm came to the Russian capital to complain about management’s refusal to engage in negotiations to increase real wages. Despite the public protests, Nestlé refused to meet the workers’ demands, stating that wages are “above the industry average in the city”. In June 2008, Nestlé agreed to formally recognize the union’s fundamental right to negotiate wages. Chapter 18 23 Czinkota: International Business, 8e Human Resource Policies Anticipate the demand for various skills and have programs to ensure availability of employees when needed HR Strategies: Often workers are imported when there is a shortage Sometimes the company must bring the local labor force up to a desired level of competency Compensation packages are shaped by: Culture Chapter 18 Legislation Collective Bargaining 24 Taxation Characteristics of the Job Czinkota: International Business, 8e