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    International Human Resource Management: © 2005 Prentice-Hall, Inc

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    Palani Arunachalam
    Learning Objectives define International Human Resource Management (ihrm) explain the major IHRM functions: recruitment and selection, training and development, performance evaluation, compensation and benefits. Discuss additional special concerns of managing expatriate employees.

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    International Human Resource Management: © 2005 Prentice-Hall, Inc

    Uploaded by

    Palani Arunachalam
    97 views32 pages
    Learning Objectives define International Human Resource Management (ihrm) explain the major IHRM functions: recruitment and selection, training and development, performance evaluation, compensation and benefits. Discuss additional special concerns of managing expatriate employees.

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    Learning Objectives define International Human Resource Management (ihrm) explain the major IHRM functions: recruitment and selection, training and development, performance evaluation, compensation and benefits. Discuss additional special concerns of managing expatriate employees.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    97 views32 pages

    International Human Resource Management: © 2005 Prentice-Hall, Inc

    Uploaded by

    Palani Arunachalam
    Learning Objectives define International Human Resource Management (ihrm) explain the major IHRM functions: recruitment and selection, training and development, performance evaluation, compensation and benefits. Discuss additional special concerns of managing expatriate employees.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    You are on page 1of 32

    International Human Resource Management

    2005 Prentice-Hall, Inc.

    8-1

    Learning Objectives

    Define international human resource management (IHRM) Understand how corporate strategy influences IHRM Explain the major IHRM functions: recruitment and selection, training and development, performance evaluation, compensation and benefits, and labor relations Discuss additional special concerns of managing expatriate employees
    8-2

    2005 Prentice-Hall, Inc.

    International Human Resource Management (IHRM)

    The management of human resources in global corporations


    The management of expatriate employees The comparison of human resource management (HRM) practices in a variety of different countries
    8-3

    2005 Prentice-Hall, Inc.

    Approaches to Managing and Staffing Subsidiaries

    Ethnocentric
    Home country approach

    Polycentric
    Local approach

    Regiocentric
    Regional approach

    Geocentric/Global
    Global approach

    2005 Prentice-Hall, Inc.

    8-4

    Choosing an Approach to IHRM


    Corporate international strategy Political and legal concerns Level of development in foreign locations Technology and the nature of the product Organizational life cycle Age and history of the subsidiary Organizational and national cultural differences
    8-5

    2005 Prentice-Hall, Inc.

    Recruitment and Selection

    Processes through which an organization takes in new members Recruitment


    Attracting a pool of qualified applicants for the positions available

    Selection
    Choosing the candidate whose qualifications most closely match the job requirements

    2005 Prentice-Hall, Inc.

    8-6

    Classifying Employees

    Parent Country National (PCN)

    Host Country National (HCN)


    Third Country National (TCN)

    2005 Prentice-Hall, Inc.

    8-7

    The Influence of Managing and Staffing Approaches

    Ethnocentric approach

    PCNs usually staff important positions at headquarters and subsidiaries

    Polycentric approach
    HCNs generally work in foreign subsidiaries PCNs manage headquarters positions

    2005 Prentice-Hall, Inc.

    8-8

    The Influence of Managing and Staffing Approaches

    Regiocentric approach
    PCNs and managers from the regioneither HCNs or TCNs staff regional headquarters positions HCN's primarily staff local subsidiaries

    Geocentric approach

    Chooses the most suitable person for a position


    8-9

    2005 Prentice-Hall, Inc.

    Selecting the Right Candidate


    Need a balance between internal corporate consistency and sensitivity to local labor practices Consider cultural values Must comply with local labor laws

    2005 Prentice-Hall, Inc.

    8-10

    Training and Development

    Planned individual learning, organization development, and career development

    2005 Prentice-Hall, Inc.

    8-11

    Delivery of Programs Worldwide

    Centralized
    Ethnocentric training originates at headquarters and corporate trainers travel to subsidiaries Geocentric - training develops through input from both headquarters and subsidiary staff and trainers could be from any location

    2005 Prentice-Hall, Inc.

    8-12

    Delivery of Programs Worldwide

    Decentralized
    Training on a local or regional basis Local people develop training materials and techniques for use in their own area

    Effective training considers cultural background of trainees


    8-13

    2005 Prentice-Hall, Inc.

    Developing Globally Minded Managers


    Companies whose CEO's have international assignment experience are better performers Companies must identify managers with global potential and provide them various training and development opportunities

    2005 Prentice-Hall, Inc.

    8-14

    Performance Evaluation

    Systematic appraisal of employees performance within the organization Depends on overall HRM strategy
    Should consider cultural influences

    2005 Prentice-Hall, Inc.

    8-15

    Compensation and Benefits

    Develops and administers the salary system and other forms of remuneration Compensation and benefit levels reflect local labor market conditions Company usually develops policy to offer salaries and benefits representing a specific market level Culture influences value put on various compensation and benefit practices
    8-16

    2005 Prentice-Hall, Inc.

    Labor Relations

    Identifies and defines the roles of management and workers in the workplace In many countries, government regulated Unions organized at the local, company, regional (within country), or national level Number of workers within a country who are union members varies
    8-17

    2005 Prentice-Hall, Inc.

    Managing Expatriates
    Must deal with the complexities of employing and moving people outside of their home countries Cost a major factor

    2005 Prentice-Hall, Inc.

    8-18

    Expatriate Failure Rates


    Number who do not remain abroad for the duration of their assignment Varies by country and gender Failure rate correlated with the rigor of selection and training procedures

    2005 Prentice-Hall, Inc.

    8-19

    Expatriate Selection

    Western European, Japanese multinationals emphasize technical competence and ability to acclimate North American corporations select mainly on technical competence Behaviors successful at home may not work abroad Previous experience abroad may or may not predict future success
    8-20

    2005 Prentice-Hall, Inc.

    Cross-Cultural Training Methods


    Cultural Briefings
    Explain the major aspects of the host country culture, including customs, traditions, every day behaviors.

    Area Briefings

    Explain the history, geography, economy, politics, and other general information about the host country and region.
    Portray a real-life situation in business or personal life to illustrate some aspect of living or working in the host culture.

    Cases

    2005 Prentice-Hall, Inc.

    8-21

    Cross-Cultural Training Methods


    Role Playing
    Allows the trainee to act out a situation that he or she might face in living or working in the host country.

    Culture Assimilator

    Provides a written set of situations that the trainee might encounter in living or working in the host country. Trainee selects one from a set of responses to the situation and is given feedback as to whether it is appropriate and why.
    Provide an opportunity for the trainee to go to the host country or another unfamiliar culture to experience living and working for a short time.
    8-22

    Field Experiences

    2005 Prentice-Hall, Inc.

    How Situational Factors Influence the Selection of a CCT Method


    Degree of Culture Novelty High

    EXPERIENTIAL Simulations Field Trips Role Plays Degree of Interactive Language Training Training ANALYTICAL Rigor Degree of Sensitivity Training Job Novelty Culture Assimilators Case Studies Classroom Language Training Films FACTUAL Books Lectures Low Area Briefings High Low
    Degree of Interaction with HCNs

    Low High

    Cross-Cultural Adjustment

    Expatriates must adjust to new work situation, interactions with locals, and new general environment Company can facilitate adjustment by providing training for expatriates and their families before and during the assignment Expatriates often experience cultural shock
    8-24

    2005 Prentice-Hall, Inc.

    Culture Shock Cycle


    High

    Mood
    Low

    Months in a New Culture


    2005 Prentice-Hall, Inc.

    8-25

    Expatriate Evaluation
    Job abroad may include more than what it does at home Senior expat managers often evaluated on financial performance of subsidiary

    2005 Prentice-Hall, Inc.

    8-26

    Expatriate Compensation
    Influenced by general corporate compensation policy Expats usually receive extra compensation and benefits Different packages offered in different locations

    2005 Prentice-Hall, Inc.

    8-27

    Typical Expatriate Benefits


    Overseas premium Housing allowance Cost of living allowance (COLA) Moving expenses Tuition for dependent education Home leave Tax reimbursement plans

    2005 Prentice-Hall, Inc.

    8-28

    Expatriate Reentry
    Reverse culture shock common Many organizations fail to successfully manage expatriate reentry Individuals may pursue boundaryless career Organizations can help to ease reentry

    2005 Prentice-Hall, Inc.

    8-29

    Changes in Global Mobility


    New types of cross-border employee transfers becoming popular Most important objectives for cross-border transfers to transfer skills and knowledge and to develop and manage global competencies

    2005 Prentice-Hall, Inc.

    8-30

    Convergence or Divergence?

    Large corporations preference for consistent worldwide systems Smaller companies desire for more professional systems

    Need to follow local HRM laws Development of unique techniques and practices to suit local cultural and legal requirements

    2005 Prentice-Hall, Inc.

    8-31

    Implications for Managers


    Every international manager has responsibility for effectively managing human resources, therefore must understand IHRM functions Helpful to understand IHRM because of potential career impact

    2005 Prentice-Hall, Inc.

    8-32

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