Transcript INTERNATIONAL HUMAN RESOURCES MANAGEMENT

COMPONENTS OF HRM
Recruitment
Selection
Training
& Development
Performance Appraisal
Compensation
Labor Relations
INTERNATIONAL HRM
Basic
HRM issues remain
Must choose a mixture of
international employees
How much to adapt to local
conditions?
EMPLOYEES IN MULTINATIONAL
ORGANIZATIONS
Local
country nationals (LCNs)
Expatriate workers or home
country nationals (HCNs)
Third country nationals (TCNs)
IHRM ORIENTATIONS
Ethnocentric
Polycentric
Regiocentric
Global
IHRM ORIENTATION AND
MULTINATIONAL STRATEGY
Early
stages of
internationalization =
ethnocentric IHRM
Multilocal strategies =
ethnocentric or regiocentric
Regional strategy = closer to the
global
International
strategy =
ethnocentric or polycentric
IHRM
Transnational strategies = a
global IHRM
MULTINATIONAL MANAGERS
Host
country or expatriate?
USING HOST COUNTRY
MANAGERS
Do
they have the expertise for
the position?
Can we recruit them from
outside the company?
USING EXPATRIATE MANAGERS
Do
parent country managers have
the appropriate skills?
Are they willing to take expatriate
assignments?
Do any laws affect the
assignment of expatriate
managers?
IS THE EXPATRIATE WORTH
IT?
High
cost
High failure rate
EXHIBIT 11-3 PAYING FOR
THE EXPATRIATE MANAGER
is
P
ar
ai
h
S
g
on
an
K
o
o
gh
ng
o
ky
on
nd
Lo
T
H
B
as
e
S
al
ar
y
350000
300000
250000
200000
$
150000
100000
50000
0
REASONS FOR U.S.
EXPATRIATE FAILURE
Spouse
fails to adapt
Manager fails to adapt
Other problems within the
family
Personality of the manager
Level of responsibilities
Lack
of technical proficiency
No motivation for assignment
MOTIVATIONS TO USE EXPATS
Managers
acquire international
skills
Coordinate and control operations
dispersed activities
Communication of local
needs/strategic information to
headquarters
KEY EXPATRIATE SUCCESS
FACTORS
Professional/technical
Relational
competence
abilities
Motivation
Family situation
Language skills
Willingness to accept position
PRIORITY OF SUCCESS
FACTORS
Depends
on :
 Assignment length
 Cultural distance
 Amount of required interaction
with local people
 Job complexity/responsibility
EXHIBIT 11.5 SHOWS A
DECISION MATRIX USED TO
SET PRIORITIES OR
DIFFERENT SUCCESS
FACTORS DURING
SELECTION
Expatriate
Success
Factors
Longer
Duration
Professional/
Technical
Skills
Relational
Abilities
International
Motivation
Family
Situation
Language
Skills
High
Assignment Characteristics
Greater
More
Interaction
More
Cultural
and
Complex or
DisCommunica- Responsimilarity tion
sible Job
Requirements
with Locals
Neutral
Moderate
High
Moderate
High
High
Moderate
High
High
High
High
High
High
Neutral
Moderate
Moderate
High
High
Neutral
EXPATRIATE TRAINING
TRAINING RIGOR
The extent of effort by trainees
and trainers required to prepare
the trainees for expatriate
positions
LOW RIGOR TRAINING
Short
time period
Lectures
Videos on local culture
Briefings on company operations
company operations
HIGH RIGOR TRAINING
Lasts
over a month
Experiential learning
Extensive language training
Often includes interactions with
host country nationals
EXHIBIT 11.6 SHOWS VARIOUS
TRAINING TECHNIQUES AND
THEIR OBJECTIVES AS THE
RIGOR OF THE CROSSCULTURAL TRAINING GROWS
Techniques: Field trips to
host country, meetings
High with managers experienced
Training in host country, meetings
Rigor with host country
nationals, intensive
language training.
Objectives: Develop
comfort with host country
national culture, business
culture, and social
institutions.
Techniques:
Experiential learning
exercises, role playing,
simulations, case
Midlevel studies, survival
language
training.
Training
Rigor
Objectives: General and
specific knowledge of
host country culture,
reduce ethnocentrism.
Techniques: Lectures,
videotapes, reading
background material.
Objectives: Provide
Low background information on
Training host country business and
Rigor national cultures, basic
information on company
operations.
EXHIBIT 11.8 SHOWS SOME
OF THE TRAINING CONTENT
THAT HELPS SUPPORT A
COMPANY'S MULTINATIONAL
STRATEGY
Multinational
Strategy
Multilocal
Example Additional Training Needs
Parent country nationals: Local business culture,
political environment, laws, technology transfer.
Host country nationals: Production or service
practices.
Regional
Parent country nationals: How to facilitate two-way
technology transfer and corporate culture transfer.
Host country nationals: Corporate culture,
manufacturing or service systems.
International
Transnational
Parent country nationals: How to facilitate
technology transfer; knowledge of local business
culture, political environment.
Host country nationals: Sales and service systems.
All nationals: Corporate culture, strategies.
CHALLENGES OF EXPATRIATE
PERFORMANCE APPRAISAL
Unreliable
data
Complex and volatile
environments
Time differences and distance
separation
Local cultural situations
STEPS TO IMPROVE THE
PROCESS
1. Fit the evaluation criteria to
strategy.
2. Fine tune the evaluation criteria
3. Use multiple evaluators with
varying periods of evaluation
EXHIBIT 11.9
Shows
several sources of
information a superior or the
HRM professionals may use to
evaluate an expatriate managers
E v a lu a tio n
S o u rc e s
C r ite r ia
P e r io d s
S e lf e v a lu a tio n
M e e tin g o b je c tiv e s
M a n a g e m e n t s k ills
P ro je c t s u c c e s s e s
S ix m o n th s a n d a t
th e c o m p le tio n o f
a m a jo r p ro je c t
S u b o r d in a te s
L e a d e r s h ip s k ills
C o m m u n ic a tio n s k ills
S u b o r d in a te
d e v e lo p m e n t
A fte r c o m p le tio n
o f m a jo r p ro je c t
P e e r e x p a tr ia te a n d
h o s t c o u n try
m anages
T e a m b u ild in g
In te r p e r s o n a l s k ills
C r o s s -c u ltu r a l
in te r a c tio n s k ills
S ix m o n th s
O n -s ite s u p e r v is o r
M a n a g e m e n t s k ills
L e a d e r s h ip s k ills
M e e tin g o b je c tiv e s
A t th e c o m p le tio n
o f s ig n ific a n t
p ro je c ts
C u s to m e rs a n d
c lie n ts
S e r v ic e q u a lity a n d
tim e lin e s s
N e g o tia tio n s k ills
C r o s s -c u ltu r a l
in te r a c tio n s k ills
Y e a r ly
EXPATRIATE COMPENSATION
THE BALANCE SHEET
APPROACH
Provides
a compensation
package that equates purchasing
power
BALANCE SHEET COSTS
Allowances
for cost of living,
housing, utilities, furnishing,
educational expenses, medical
expenses, club memberships, and
car and/or driver expenses
Domestic
Assignment
Expenses and
Spendable
Income
Base Salary
Taxes
Expatriate Assignment Expenses and Balanced
Spendable Income + Allowances
= Base Salary
Allowances as an incentive to take position,
+
foreign service premium, hardship pay, R&R
= Taxes
+ Allowances to balance extra tax payments
Goods and
Services
= Goods and Services
Housing
Allowances to cover cost of living differences,
+ housing, children’s education, medical costs,
automobile, recreation, home leave travel
= Housing
Allowances for moving expenses, settling in
+ expenses, initial housing costs, and furnishing
allowances
Spendable
Income
= Spendable Income
OTHER APPROACHES
Parent
country wages everywhere
Wean expatriates from allowances
Pay based on local or regional
markets
Cafeteria selection of allowances
Global pay systems
THE REPATRIATION PROBLEM
Difficult
for many organizations
"Reverse culture shock"
Expatriates must relearn own
national and organizational
culture
Includes whole family
STRATEGIES FOR SUCCESSFUL
REPATRIATION PROVIDE:
A strategic
purpose for repatriation
A team to aid the expatriate
Home country information sources
Training and preparation for the
return
Support for expatriate and family
INTERNATIONAL
ASSIGNMENTS FOR WOMEN
TWO IMPORTANT "MYTHS"
Myth
1: women do not wish to
take international assignments
Myth 2: women will fail in
international assignments
because of the foreign culture's
prejudices against local women
SUCCESSFUL WOMEN
EXPATRIATES
Foreign
not female
Emphasize nationality not gender
The woman's advantage
Strong in relational skills
A wider range of interaction
options
CONCLUSIONS
HRM
functions
IHRM challenges
IHRM orientations
Expatriate managers
The role of women in
multinational organizations