Chapter 14 Human Resource Selection and Development across Cultures 19-1.
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Transcript of Chapter 14 Human Resource Selection and Development across Cultures 19-1.
Chapter 14
Human Resource Selection and Development across Cultures
19-1
Objectives
• Describe the nature of human resource management in international business• Detail how firms recruit and select managers for international
assignments• Explain how international businesses train and develop expatriate
managers• Describe labor relations in international business
19-2
Objectives (continued)
• Discuss how international firms conduct performance appraisals and determine compensation for their expatriate managers• Analyze retention and turnover issues in international business • Explain basic human resource issues involving nonmanagerial
employees
19-3
Human Resource Management
Human Resource Management is the set of activities directed at attracting, developing, and maintaining the effective
workforce necessary to achieve a firm’s objectives.
19-4
Figure 19.1 The International Human Resource Management Process
19-5
HRM’s Strategic Content
Recruitment and Selection
Training and Development
Performance Appraisal
Compensation and Benefits
Labor Relations
Contribution to Organizational Effectiveness
International Staffing Needs
19-6
Managerial/ExecutiveEmployees
Nonmanagerial Employees
Scope of Internationalization
19-7
Export Department
Global Organization
International Division
Expertise Needs in Global Organizations
19-8
Product line
Functional skills
Individual country markets
Global strategy
Centralization versus Decentralization of Control
• Centralized firms• Favor home country managers• Most common amongst international division
form
• Decentralized firms• Favor host country managers• Most common amongst multidomestic firms
19-9
Staffing Philosophy
19-10
Parent Country Nationals
(PCNs)
Third CountryNationals
(TCNs)
Host CountryNationals
(HCNs)
Strategies for Staffing
• Ethnocentric staffing model• Polycentric staffing model• Geocentric staffing model
19-11
Figure 19.2 Necessary Skills and Abilities for International Managers
19-12
Skills and AbilitiesNecessary to Do
the Job
• Technical• Functional• Managerial
Skills and AbilitiesNecessary to Work
in a Foreign Location
• Adaptability• Location-specific skills• Personal characteristics
Improved Chances of Succeeding inan International Job Assignment
Recruitment of Managers
19-13
ExperiencedManagers
Younger Managers
Selecting expatriates is an important element in international HRM.
19-14
Selection of Managers
19-15
Managerial competence
Appropriate training
Adaptability to new situations
Table 19.1 Questions from AT&T’s Questionnaire for Screening Overseas Transferees 1
• Would your spouse be interrupting a career to accompany you on an international assignment? If so, how do you think this will affect your spouse and your relationship with each other?• Do you enjoy the challenge of making your
own way in new situations?• Securing a job upon reentry will be primarily
your responsibility. How do you feel about networking and being your own advocate?
19-16
Table 19.1 Questions from AT&T’s Questionnaire for Screening Overseas Transferees 2
• How important is it for you to spend significant amounts of time with people of your own ethnic, racial, religious, and national background?• As you look at your personal history, can you
isolate any episodes that indicate a real interest in learning about other peoples and cultures?
19-17
Table 19.1 Questions from AT&T’s Questionnaire for Screening Overseas Transferees 3
• How able are you in initiating new social contacts?• Can you imagine living without a television?• Has it been your habit to vacation in foreign countries?• Do you enjoy sampling foreign cuisine?• What is your tolerance for waiting for repairs?
19-18
Culture Shock
Culture shock is a psychological phenomenon that may lead to feelings of fear, helplessness,
irritability, and disorientation, which is commonly experienced by new expatriates
who may experience a sense of loss regarding their old cultural environment as well as
confusion, rejection, self-doubt, and decreased self-esteem from working in a new
and unfamiliar cultural setting.
19-19
Figure 19.3 Phases in Acculturation
19-20
Honeymoon
Disillusionment
Adaptation
Biculturalism
Honeymoon Phase
• New culture seems exotic and stimulating• Excitement of working in new environment makes employee
overestimate ease of adjusting• Lasts for first few days or months
19-21
Disillusionment Phase
• Differences between new and old environments are blown out of proportion• Challenges of everyday living• Many stay stuck in this phase
19-22
Adaptation Phase
• Employee begins to understand patterns of new culture• Gains language competence• Adjusts to everyday living
19-23
Biculturalism
• Anxiety has ended • Employee gains confidence in ability to function productively in new
culture• Repatriation may be difficult
19-24
Overseas Success• Likelihood of managers being successful at
overseas assignment increases if the managers:• Can freely choose whether to accept or reject the
assignment• Have been given a realistic preview of the job and
assignment• Have been given a realistic expectation of what their
repatriation assignment will be• Have a mentor back home who will guard their interests
and provide support• See a clear link between the expatriate assignment and
their long-term career path
19-25
Overseas Success
19-26
The U.S. military makes sure that its members have “reminders” from home on foreign deployments
Training and Development
• Assessing training needs• Basic training methods• Standardized• Customized
• Developing younger managers
19-27
Figure 19.4 Barriers to Entering Foreign Markets
19-28
Performance Appraisal
Performance Appraisal is the process of assessing
how effectively people are performing their jobs.
19-29
Functions of Performance Appraisals
19-30
To provide feedback to individuals about how well they are doing
To provide a basis for rewarding top performers
To identify areas in which additional training and development may be needed
To identify problem areas that may call for a change in assignment
Compensation Packages
19-31
Cost-of-living allowance
Hardship premium
Tax equalization system
Figure 19.5 Global Cost of Living Survey 2008
19-32
Components of Compensation Packages
19-33
OccupationalStatus
ProfessionalLicensing
RequirementsStandards of
Living
Labor Market Forces
GovernmentRegulations
Tax Codes
Figure 19.6 An Expatriate Balance Sheet
19-34
U.S. Domestic Base Salary
Taxes Consumption Savings
Foreign andExcess U.S. TaxesPaid by Company
Excess Foreign CostsPaid by Company
Foreign ServicePremium/ HardshipAdded by Company
U.S. Levels
U.S. Spendable Income
U.S. Hypothetical Housing and UtilitiesU.S. Auto Purchase
U.S. Hypothetical Tax and
Social Security
Labor Relations
19-35
Comparative Labor Relations
Collective Bargaining
Union Influence and Codetermination