Transcript Document

Human Resource Management
Management is the art of
getting things done
through people,
and things get done better
with the right people.
Human Resource Management
 Set of activities directed at attracting,
developing, and maintaining the
effective workforce necessary to
achieve a firm’s objective
Human Resource Management Goals
Planning – what people will we need?
•Job Analysis
•Forecasting
Retaining –how do we keep them?
•Wages, Salary, Benefits
•Job Enrichment
Recruiting – how do we get them?
•Recruiting
•Selecting
Training –keep‘em up to speed?
•Training & Development
•Performance Appraisals
International Human Resource
Management
 Differences in culture, levels of
economic development, and legal
systems among countries make the task
more complex for international HR
managers.
– Selecting
– Training
– Compensation and benefits
International Human Resource
Management
 Select staff from home country, host
country, or third country?
International Managerial Staffing Needs
 Staffing Categories
– Managerial and Executive Employees
– Non-managerial Employees
Scope of Internationalization
 Size of staffing tasks depends on scope
of firm’s international involvement
– Export department
– International division
– Global organization
Centralization versus Decentralization
of Control
 Centralized firms
– Favor home country managers
– Most common among international
division form
 Decentralized firms
– Favor host country managers
– Most common among multidomestic
firms
Staffing Philosophy
 Parent Country Nationals (PCNs)
 Host Country Nationals (HCNs)
 Third Country Nationals (TCNs)
Strategies for Staffing
 Ethnocentric staffing model – PCNs in
upper-level positions
 Polycentric staffing model – HCNs
because they know the market best
 Geocentric staffing model – choose the
most qualified people regardless of
nationality
Necessary Skills and Abilities for
International Managers
Skills and Abilities
Necessary to Do
The Job
Skills and Abilities
Necessary to Work
In a Foreign Location
•Technical
•Functional
•Managerial
•Adaptability
•Location-specific skills
•Personal characteristics
Improved Chances of Succeeding in
An International Job Assignment
Recruitment
 Experienced Managers – hired from
within or via specialized headhunters.
 Younger Managers – perhaps with
specialized technical training or
language skills. Can be “groomed” for
foreign assignments.
Managerial Selection
 Good candidates have:
–Managerial competence
–Appropriate training
–Ability to adapt to new situations
 Expatriate failure has a high cost!
Questions from AT&T’s Questionnaire for
Screening Overseas Transferees_1
 Would your spouse be interrupting a career to
accompany you on an international assignment? If
so, how do you think this will affect your spouse
and your relationship with each other?
 Do you enjoy the challenge of making your own
way in new situations?
 Securing a job upon reentry will be primarily your
responsibility. How do you feel about networking
and being your own advocate?
 How able are you in initiating new social contacts
 Can you imagine living without a television?
Questions from AT&T’s Questionnaire for
Screening Overseas Transferees_2
 How important is it for you to spend significant
amounts of time with people of your own ethnic,
racial, religious, and national background?
 As you look at your personal history, can you
isolate any episodes that indicate a real interest in
learning about other peoples and cultures?
 Has it been your habit to vacation in foreign
countries?
 Do you enjoy sampling foreign cuisine?
 What is your tolerance for waiting for repairs?
Culture Shock
Psychological phenomenon
that may lead to feelings
of fear, helplessness,
irritability, and disorientation
Phases in Acculturation
Honeymoon
Disillusionment
Adaptation
Biculturalism
Honeymoon Phase
 New culture seems exotic and
stimulating
 Excitement of working in new
environment makes employee
overestimate ease of adjusting
 Lasts for first few days or months
Disillusionment Phase
 Differences between new and old
environments are blown out of
proportion
 Challenges of everyday living
 Many stay stuck in this phase
Adaptation Phase
 Employee begins to understand
patterns of new culture
 Gains language competence
 Adjusts to everyday living
Biculturalism
 Anxiety has ended
 Employee gains confidence in ability
to function productively in new culture
 Repatriation may be difficult
Overseas Success
 Likelihood of managers being successful at
overseas assignment increases if the managers
– Can freely choose whether to accept or reject the
assignment
– Have been given a realistic preview of the job and
assignment
– Have been given a realistic expectation of what their
repatriation assignment will be
– Have a mentor back home who will guard their interests
and provide support
– See a clear link between the expatriate assignment and
their long-term career path
Training and Development
 Assessing training needs
 Basic training methods
– Standardized
– Customized
 Developing younger managers
Performance Appraisal
 Process of assessing how effectively people
are performing their jobs
 Purpose
– To provide feedback to individuals about how
well they are doing
– To provide a basis for rewarding top performers
– To identify areas in which additional training
and development may be needed
– To identify problem areas that may call for a
change in assignment
Compensation Packages
 Include salary and nonsalary items
 Determined by
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–
–
–
–
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Labor market forces
Occupational status
Professional licensing requirements
Standards of living
Government regulations
Tax codes
Annual Cost of Living in Selected Locations
Worldwide, 2003
Rank
City
Index
Rank
City
Index
1
Tokyo, Japan
126.1
11
Shanghai, China
98.4
2
Moscow, Russia
114.5
12
St. Petersburg, Russia
97.3
3
Osaka, Japan
112.2
13
Oslo, Norway
92.7
4
Hong Kong
111.6
14
Hanoi, Vietnam
89.5
5
Beijing, China
105.1
15
Copenhagen, Denmark
89.4
6
Geneva, Switzerland
101.8
16
Ho Chi Minh City,
Vietnam
88.5
7
London, UK
101.3
17
Milan, Italy
87.2
8
Seoul, South Korea
101.0
18
Shenzhen, China
86.7
9
Zurich, Switzerland
100.3
19
Guangzhou, China
86.7
10
New York City, USA
100.0
20
White Plains, NY, USA
86.2
Differential Compensation
 Cost-of-living allowance
 Hardship premium or foreign-service
premium
 Tax equalization system
Labor Relations
 Labor relations in a host country often
reflects laws, culture, social structure,
and economic conditions
 Union membership may be high