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Transcript of © 2013 Cengage Learning. All rights reserved. CHAPTER 13 GLOBAL2 PENG © iStockphoto.com/YinYang.
© 2013 Cengage Learning. All rights reserved.
CHAPTER 13
GLOBAL2 PENG
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© 2013 Cengage Learning. All rights reserved.
CHAPTER 13 LEARNING OBJECTIVES
After studying this chapter, you should be able to:
1. Explain staffing decisions, with a focus on expatriates.
2. Identify training and development needs for expatriates and host-country nationals.
3. Identify and discuss compensation and performance appraisal issues.
© 2013 Cengage Learning. All rights reserved.
CHAPTER 13 LEARNING OBJECTIVES
After studying this chapter, you should be able to:
4. List factors that affect labor relations in both home and host countries.
5. Discuss how the institution-based and resource-based views shed additional light on human resource management.
6. Identify the five Cs of human resource management.
© 2013 Cengage Learning. All rights reserved.
LO1: EXPLAIN STAFFING DECISIONS
Terms to know: Human resources management Staffing Host country nationals
(HCNs) Expatriates
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LO1: TYPES OF EXPATRIATES
© 2013 Cengage Learning. All rights reserved.
LO1: THREE APPROACHES TO STAFFING
Ethnocentric approach:
Emphasizes norms and practices of parent company.
Relies on PCNs. Perceived lack of talent among HCNs often
necessitates this approach.
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LO1: THREE APPROACHES TO STAFFING
Polycentric approach: Focuses on norms and practices of host
country. Relies on HCNs. “When in Rome…” HCNs have no language or cultural
barriers. Placing HCNs in top roles
may send a morale-boosting signal to other HCNs.
© 2013 Cengage Learning. All rights reserved.
LO1: THREE APPROACHES TO STAFFING
Geocentric approach:
Focuses on finding most suitable managers, disregarding nationality.
For geographically dispersed MNE, this approach can help create corporate-wide culture and identity.
© 2013 Cengage Learning. All rights reserved.
LO1: STRATEGY AND STAFFING
Systematic link between strategic posture of an MNE
and its staffing approach
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LO1: THE ROLE OF EXPATRIATES
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Strategists – represent interests of the MNE’s headquarters Daily managers – run operations and build local capabilities Ambassadors – represent headquarter’s interests, build relationship with host-country stakeholders; represent subsidiary to headquarters Trainers – for their replacements
LO1: THE ROLE OF EXPATRIATES
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LO1: FACTORS IN EXPATRIATE SELECTION
Expatriate failure rates are high… premature (earlier than expected) return unmet business objectives unfulfilled career development objectives
Causes for failure: Family’s inability to adjust to culture Usually a combination of work-related and
family-related problems
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LO1: FACTORS IN EXPATRIATE SELECTION
© 2013 Cengage Learning. All rights reserved.
LO2: TRAINING FOR EXPATRIATES
Length and rigor should correspond to expected length of stay
Extensive language training Sensitivity training, with immersion
approach
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LO2: DEVELOPMENT FOR EXPATRIATES/REPATRIATES
Psychological contract Career anxiety Loss of status Cultural re-adjustment
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LO2: TRAINING AND DEVELOPMENT FOR HCNS
In China, for example, a key factor in retaining or losing talent is which employer can offer better training and development opportunities.
© 2013 Cengage Learning. All rights reserved.
LO3: COMPENSATION FOR EXPATRIATES
Going Rate versus Balance Sheet
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LO3: BALANCE SHEET APPROACH
Hypothetical Compensation Package Using Balance Sheet Approach
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LO3: COMPENSATION FOR HCNS
Low-level HCNs have relatively little bargaining power.
HCNs in management and professional positions gaining more bargaining power.
© 2013 Cengage Learning. All rights reserved.
LO3: PERFORMANCE APPRASIAL
Cultural differences may create problems in appraising HCNs.
Expatriates need to be evaluated by their own supervisors.
Compensation and performance appraisal are even more important during difficult economic times.
Performance appraisal helps managers make decisions about pay and promotion, development,
documentation, and subordinate expression.
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LO4: LABOR RELATIONS AT HOME
Firms’ key concern – cut costs, enhance competitiveness.
Unions’ concern – higher wages and more benefits.
Threat of job loss vs. threat of strike.
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LO4: LABOR RELATIONS ABROAD
MNEs prefer to deal with non-unionized labor.
In many developing countries, governments welcome MNEs and at the same time silence unions.
However, high profile strikes at plants run by Taiwan’s Foxconn and Japan’s Honda in China suggest that government stances may be changing.
© 2013 Cengage Learning. All rights reserved.
LO5: INSTITUTIONS AND HUMAN RESOURCE MANAGEMENT
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LO5: FORMAL INSTITUTIONS AND HUMAN RESOURCE MANAGEMENT
Formal institutions:Every country has
rules and regulations governing human
resource management.
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LO5: INFORMAL INSTITUTIONS AND HUMAN RESOURCE MANAGEMENT
Informal institutions: •MNEs from different countries have different norms in staffing. •Must avoid stereotyping.•Extra compensation required to attract high-caliber expats.
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LO5: RESOURCES AND HUMAN RESOURCE MANAGEMENT
Are particular HR activities rare?
Does a particular HR activity add value?
How imitable are certain HR activities?
Do HR practices support organizational capabilities?
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LO6: THE FIVE Cs OF HRM
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DEBATE: ACROSS-THE-BOARD PAY CUT vs. REDUCTION IN FORCE
Across-the-board: With US firms, results tend to be
very negative. May clash with individualistic culture.
Reduction in force: “Corporate cannibalism” Often viewed as unethical outside
the Anglo-American world. When managed correctly, impacted employees
are able to separate with dignity.