Transcript International Human Resources Management

International Human
Resources Management
Chapter 10, Part 2
Training and Development
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Cross-cultural training: increases the relational
abilities of future expatriates and their
spouses and families
Training rigor: extent of effort by both trainees
and trainers required to prepare the trainees
for expatriate positions
Training and Development (cont.)
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Low rigor training – used for short-term
assignments
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Short time period
Lectures and videos on local cultures
Briefings on company operations
High rigor training – for long-term
assignments
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Longer time period
Experiential learning
Extensive language training
Includes interactions with host country
nationals
Exhibit 10.4: Training Rigor:
Techniques and Objectives
Expatriate Performance Appraisal:
Challenges
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Fit of international operation in multinational
strategy
Different business environment
Unreliable data
Complex and volatile environments
Time difference and distance separation
Local cultural situation
Home country managers may not understand the
local situation
Steps to Improve the Expatriate
Performance Appraisal
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Fit the evaluation criteria to strategy
Fine-tune the evaluation criteria to the
situation
Get evaluations from different people
The Expatriate Manager:
Compensation
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The balance-sheet approach
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Provides a compensation package that gives the
expatriate the same standard of living he/she
would have at home
Allowances for cost of living, housing, food,
recreation, personal care, clothing, education,
home furnishing, transportation, and medical
care
Exhibit 10.7: Balance Sheet Approach To
Expatriate Compensation
Compensation Details
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Base salary: the amount of money that an
expatriate would receive for doing the same job in
the home country
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Used as a basis to establish salary in the host country
Salary may be paid in home country currency, host
country currency, or a combination of the two
Compensation Details (2)
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Benefits: a substantial portion of expatriate
compensation
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Is the home country or the host country responsible for
the expatriate's social security benefits?
Should home-country benefits programs be available to
host-country nationals?
Compensation Details (3)
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Allowances
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Relocation allowance
Cost-of-living allowances are paid when the employee
must incur extra costs that he would not pay in the home
country
 Examples: housing allowance, and the costs of private
schools for the employee's children
Hardship allowance: Often paid to employees who work
in a country with difficult living conditions
Home-leave allowances: pays the cost of periodic trips
home for the employee and family
Compensation Details (4)
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Allowances (continued)
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Foreign service premium
 In the past, a foreign-service premium was often a
monthly payment that continued as long as the
employee worked overseas
 Many firms have eliminated the ongoing foreignservice premium.
 Today, a one-time, lump sum foreign service premium
is often paid at the start of the overseas assignment to
provide cash for immediate expenses.
Compensation Details (5)
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Taxes
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An expatriate may be required to pay income
taxes to both the host country and his/her
native country
The company compensates the employee for
the extra amount of tax
Compensation Details Summary
The cost of an expatriate employee =
salary costs
+ benefit costs
+ allowance costs (goods and services +
housing)
+ tax costs
Compensation Approaches
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The compensation package must be cost-effective
and should be seen as fair
Balance-sheet approach: ensure that the
expatriate does not lose money from the foreign
assignment
Negotiation approach: Negotiate compensation
with each employee – may be used with top-level
managers
Host-based compensation: Pay the expatriate a
salary comparable to local nationals
Compensation Approaches (2)
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Lump sum method: give expatriate a predetermined amount of money. Employee decides
how to spend it.
Cafeteria approach: Offer the employee a choice
among various compensation options, with a limit
on total costs
Compensation Approaches (2)
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Regional system: Set up a compensation
system for all expatriates who are assigned
to a particular region
Global pay systems: worldwide job
evaluations, performance appraisal
methods, and salary scales are used
Repatriation Problem
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Difficulties faced coming back home
Three basic cultural problems—“reverse
culture shocks”
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Adapt to new work environment and culture of
home
Expatriates must relearn own national and
organization culture
Need to adapt to basic living environment
Strategies for Successful
Repatriation
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Provide a mentor at the home office to help the expatriate stay
in touch during the overseas assignment.
Provide a home-leave policy to encourage expatriates to make
regular visits to the home office
Provide a strategic purpose for the repatriation – the foreign
experience should help the expatriate's career
Help the expatriate make good use of the foreign assignment.
Provide information and assistance for relocation.
Provide training and preparation for the return
Provide support for the expatriate and family on return
International Assignments for
Women: Two Myths
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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
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Foreign not female—emphasize nationality not
gender
International Assignments for
Women: Advantages
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More visible
Strong in relational skills
International Assignments for
Women: Disadvantages
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Face the glass ceiling
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Isolation and loneliness
Constant proving of themselves, working harder
than male
Need to balance work and family
responsibilities
Need to worry about accompanying spouse
More Women in the Future?
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Women expatriate managers are expected
to grow
Acute shortage of high-quality managers
Increasing number of women provide role
models
What Can Companies Do To Ensure
Female Expatriate Success?
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Provide mentors and networking
opportunities
Remove sources of barriers – educate other
employees about the role of women
managers
Provide support to cope with dual-career
issues