Strategic Human Resource Management

Transcript Strategic Human Resource Management

CHAPTER 14: INTERNATIONAL/ GLOBAL HUMAN RESOURCE MANAGEMENT

International Imperative

• Why organizations expand internationally – To capture enhanced market opportunities that foreign countries may present – To achieve economies of scale in production and administration by expanding scope and volume of operations to international markets – Keeping up with industry leaders may require organization to enter foreign markets – Acquiring ownership of foreign-based organization or subsidiary

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How International & Domestic HRM Differ • International HRM requires

– Managing broader range of functional areas – Becoming more involved in employees’ personal lives – Setting up several different HRM systems for different geographic locations – Dealing with more complex external constituencies – Participating in international assignments that have heightened exposure to personal risk

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International Expansion • Strategies for expanding internationally

– Exporting locally produced goods to host country – Subcontracting or licensing production of certain goods or services to foreign partner – Entering into joint venture with foreign partner – Setting up operations (making a direct investment) in form of foreign branch or subsidiary

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Assessing Culture: Hofstede’s Cultural Differences Dimensions • Individualism or collectivism – Individualistic societies value development of, and focus on individual – Collective societies value group relationships • Power distance – Extent to which society is hierarchical, and how power is distributed among its members • Uncertainty avoidance – Extent to which society feels comfortable with ambiguity, and values and encourages risk-taking • Quantity versus quality of life (masculinity/femininity) – Emphasis on assertiveness and achievement, as compared to interpersonal relationships

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Exhibit 14-1

Assessing Culture

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Hall’s Model of Cultural Differences

• Time – Importance or sense of time in daily activities • Space (distance) – Amount of physical distance individuals attempt to maintain between themselves & others • Material goods – Emphasis or inferences on possession of goods to signify power, success and status • Friendships – Importance of friendships in conferring status • Agreements – Considers how agreements are reached

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Strategic HR Issues in Global Assignments

• Approaches to sending employees abroad – Administrative approach • Assisting employee destined for international assignment with paperwork and minor logistics – Tactical approach • Managing “risk or failure” factor of overseas assignment by providing paperwork assistance and modest amount of training – Strategic approach • Extensive support and coordination of international assignment, and strategized repatriation program at the end of the assignment

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Strategic HR Issues in Global Assignments

Strategic management of global assignments 1. Establish specific purpose for assignment 2. Select appropriate employee for assignment 3. Organizational and individual purposes for assignment must be identified and matched 4. Assess adaptability to host culture of both employee and any family members who will be accompanying employee 5. Provide appropriate training for employee and family members 6. Simultaneous training should be conducted for headquarters staff

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Exhibit 14-2 Strategic Issues

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Exhibit 14-3 Strategic HR Issues

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Determining Expatriate Compensation

• Balance sheet method – Expatriate salary based on home country pay – Additional expenses associated with relocation and assignment – Hardship and incentives to determine overall reimbursement and compensation level • Higher-of-home-or host method – Employee’s salary at home adjusted upward to account for higher cost of living (localization approach) – Salary converted to host country’s equivalent when employee is on permanent assignment

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Four Approaches to IHRM

Make strategic decision as to level of standardization desired across locations – Ethnocentric approach • Exporting organization’s home country practices and policies to foreign locations – Polycentric approach • Allowing each location to develop own practices and policies – Regiocentric approach • Developing standardized practices and policies by geographic region – Geocentric approach • Developing one set of global practices and policies applied at all locations

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Exhibit 14-4

Setting Strategic HR Standards

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Exhibit 14-5

Repatriation

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Reading 14.1 (Roberts et al.) Managing Global Workforce: Challenges and Strategies

• Challenges:

– Deployment in getting right skills to right place in organization, regardless of geographic location – Knowledge and innovation dissemination and transfer, where all business units concurrently receive and provide information – Talent identification and development of those employees with abilities and skills to function effectively in global organization

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Reading 14.1

Managing Global Workforce: Challenges and Strategies • Strategies for managing global workforce – Develop aspatial careers for employees to provide rich contextual knowledge of environments and cultures. Provide specific awareness building assignments that develop cross sensitivity in high potential employees in short time – Utilize expert SWAT teams deployed on short-term basis for operational problems technical projects – Adopt virtual solutions by using electronic communication technologies to connect local employees to distant problems

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Reading 14.1

Diagnosing Challenges • Deployment challenge – Contact time required – Extent to which skills can be applied out of cultural context • Knowledge and innovation dissemination challenge – Choosing among four strategies depends on technical complexity of information to be shared, and extent to which it must be culturally embedded • Talent identification and development challenge – Organizations should select well, then develop

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Reading 14.2 (Hallowell et al.)

Four Seasons Goes to Paris

• Model of corporate culture consists of four components

– Underlying assumptions, such as subordinates should fulfill job requirements – Values • “Espoused values” • “Enacted values”

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Reading 14.2

Four Seasons Goes to Paris

– Employee perceptions of management practices – culture is what employees perceive management believes – Cultural artifacts • If espoused values are enacted, culture may emerge in which senior management and employees share similar service-relevant thoughts, feelings, and patterns of behavior • Potential to enhance customer value and contribute to competitive advantage – Flexibility versus consistency

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Reading 14.3 (Sanchez et al.) Adapting to a Boundaryless World • 90% of companies base international selections on technical expertise, downplaying other areas • Openness to profound personal transformation is most fundamental sign of expatriate readiness • Personality aspects that impede adaptation – Authoritarianism – Rigidity – Ethnocentrism • Clarification of expectancies beforehand

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Reading 14.3

Adapting to a Boundaryless World • Need to provide on-going, hands-on training, rather than just pre-departure awareness training • Training is opportunity to provide social support • Executives should learn to view identification with host as compatible with identification with parent culture • Expatriates need to become aware of consequences that old repertoire of coping responses has in host culture

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Reading 14.3

Adapting to a Boundaryless World • Employer should facilitate integration into a local or regional network of other expatriates • Delicate equilibrium among multiple stakeholders calls for skills similar to those possessed by political diplomats • Parent organization should not create additional role conflict for the expatriate with policies that are insensitive to cultural differences

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Reading 14.3

Adapting to a Boundaryless World

• Repatriation

– Feeling that others do not share multicultural identification can create sense of isolation – Frequent loss of autonomy – Unrealistic expectations about being promoted upon return

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Strategic Human Resource Management

Transcript Strategic Human Resource Management

CHAPTER 14: INTERNATIONAL/ GLOBAL HUMAN RESOURCE MANAGEMENT

International Imperative

How International & Domestic HRM Differ • International HRM requires

International Expansion • Strategies for expanding internationally

Assessing Culture

Hall’s Model of Cultural Differences

Strategic HR Issues in Global Assignments

Strategic HR Issues in Global Assignments

Determining Expatriate Compensation

Four Approaches to IHRM

Setting Strategic HR Standards

Repatriation

• Challenges:

Four Seasons Goes to Paris

• Model of corporate culture consists of four components

Four Seasons Goes to Paris

• Repatriation

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