Ch 16 International HRM

8/9/2019 Ch 16 International HRM

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Human Resource Management in South Africa 3/eby Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

Chapter 16 ±

InternationalHRM (IHRM)





Chapter outcomesIdentify key forces driving the globalisation of organisationsIdentify the types of organisational forms used forcompeting internationally

Understand the different types of cultures foundExplain how domestic and international HRM differDiscuss the staffing process for individuals workinginternationallyList and define four types of international employeesList the different types of international assignmentsfoundDiscuss issues relating to the induction of international employees





Chapter outcomes (continued)Identify the unique training needs for internationalassigneesReconcile the difficulties of home country and host-country performance appraisals

Identify the characteristics of a good internationalcompensation planExplain the activities needed to increase expatriatecompletion ratesDiscuss the key issues in industrial relations of

multinationalsDescribe several international health, safety andsecurity concernsDiscuss the importance of a global human resourcemanagement information system





Main dimensions of IHRMSelection and recruitment of qualified individualscapable of furthering organisational goalsTraining and development of personnel at all levels to

maximise organisational performanceAssessment of employee performance to ensure that organisational goals are met Retention of competent corporate personnel, whocan continue to facilitate the attainment of organisational goalsManagement of the interface between labour andmanagement to ensure smooth organisationalfunctioning





W hy do companies decide to dobusiness abroad?

Desire to reduce costsLess government regulations pertainingespecially to pollution controls and safetyrequirementsAccess to growth opportunities that are not available at homeTake advantage of labour force availabilityeg. quantity as well as quality





O rganisational firms usedinternationally

ExportingLicensingManagement contractsSole ownershipTypes: Multinationals Global International Transnational





W hat types of cultures are foundaround the world?

W hat is culture? The shaping of the mind that distinguishes

the members of one group/category fromthose of another

Identifying international cultures





W hat impact does going abroad haveon the activities of HR professionals?

More functionsMore heterogeneous functions

More involvement in employees personal livesChange in emphasis as the workforce

mix variesMore external influences





Environmental forces

Legal forces

Political forces

La our traditio s

Eco omicforces

Natio al forces

HR systemsPolicies/proceduresR ecruitment

SelectionTraining

Motivation/reward

systemsManagement stylesCareer paths

C orporatec lt re

C orporatec lt re







Recruitment ExpatriatesEthnocentric approach

Polycentric approachRegiocentric approachHCNTCNGeocentric approachInpatriate





Reasons for expatriate failureInability of the manager's spouse to adjust to a different physical or cultural environment The manager's inability to adapt to a different physical orcultural environment O ther family-related problemsThe manager's personality of emotional immaturityThe manager's inability to cope with the responsibilitiesposed by overseas work

The manager's lack of technical competence andThe manager's lack of motivation to work overseas





International assignments

Length and duration: Short-term Extended Long-termTypes: Commuter

Rotational Contractual Virtual





Selection

4 different types of employees are normallyappointed to overseas positions: The chief executive officer (CE O ), whose

responsibility is to oversee and direct the entireforeign operation; The functional head, whose job is to establish

functional departments in a foreign subsidiary;

The troubleshooter whose function is to analyseand solve specific operational problems; and The operative, or rank and file





Induction

Traditional people involved still remainsvalidNeed for additional backgroundinformation (eg. cultural practices,language etc.)For longer projects local induction is

also important



Human Resource Management in South Africa 3/e

by Grobler, Wärnich et al ISBN 1-84480-328-7© 2006 Thomson Learning

Training & Development Preparation of expatriates: Training of expatriates before, during and

after foreign assignments O rientation and training of expatriate

families before, during and after foreignassignments

Development of the headquarters staff responsible for the planning, organisationand control of overseas operations





Training & Development (continued)

Techniques are categorised into 5groups: Area studies or documentary programmes Cultural assimilation Language preparation Sensitivity training Field experiences





Training & Development (continued)Many companies neglect T&D of expatriates forthe following reasons: Training is not thought to be effective The period of time between selection & expatriate's

departure is short, leaving little time to expose him orher to in-depth training prior to departure

The temporary nature of most assignments does not warrant budget expenditures for training

The individual dimensions needed for successful

acculturation are not well enough known to devisesound training programmes There is a belief that technical skills are the main

success factors for assignments abroad





Performance appraisalPerformance appraisal (PA) is a fundamentalmanagement tool that can be useful as abasis for functions such as:

Making administrative decisions regardingpersonnel actions (eg. promotions and transfersand support for taking disciplinary actions orterminations);

Providing feedback to employees regarding theirperformance;

Coaching employees in improving areas of weakness and building upon their areas of strength





Performance appraisal (continued)Value of PA can be increased by planning,ongoing performance monitoring andemployee development Cultural issues

Choice of evaluatorEvaluator s amount of contact with theexpatriateHost country s management perception of performanceLong-distance communicationInadequate establishment of performanceobjectives





Retention of personnelCompensationRepatriation





Labour relationsApproaches to follow: Hands-off

Monitor Guide and advise Strategic planning Set limits and approve exceptions Managed totally from headquarters Interface of headquarters, international human

resource and line management in the field





Discipline & dismissalsDiffer in countriesCompensationCompanies should be well acquaintedwith the legal implications of international staff





Transfers, lay-offs and retirement Movement of people as part of development Cultural differences and languageLegal implications





Health, safety & security issuesEnsure that the employees have a record of theirvaccinations against infectious diseasesInclude on over-the-counter first aid kit - this is verypopular with South African executives travelling into

AfricaArrange emergency plans in cases where employeeshave no local medical facilities, for example, flying themout by private planIf employees are staying in countries that are not verysafe, companies should provide floodlights around theoffices and homes, as well as electronic safety systems





Global HRISsDevelopment Labour unionsStaffing flowReward systems





SummaryGlobalisation of business continues to grow after 1994when South Africa became a full member of theinternational community again.O rganisations doing business internationally may evolvefrom organisations engaged in exporting activities tomultinational enterprises, global and transnationalorganisations.Legal, political, economic and cultural factors influenceglobal HR management.O ne scheme for classifying national cultures considerspower distance, individualism masculinity/feminity,uncertainty avoidance and long-term orientation.







SummaryStaffing global jobs can be done using expatriates,host-country nationals and third country nationals.Global assignments can be used for a number of reasons and for varying durations.The selection of employees should consider culturaladjustment, organisational requirements, personalcharacteristics, communication skills andpersonal/family factors.O nce selected, the assignments of global employees

must be managed through both effective expatriationand repatriation.







SummaryTraining and development for employees focus onpre-departure orientation and training, continuedemployee development and readjustment training forrepatriates.Compensation practices for employees are much

more complex than those for domestic employeesbecause of the numerous factors to be considered.To balance the pros and cons of home-country andhost-country evaluations, performance evaluationsshould combine the two sources of appraisalinformation.Labour-management relations vary from country tocountry.Global organisations must be concerned about thehealth, safety and security of their employees.



Ch 16 International HRM

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