COMPONENTS OF HRM Recruitment Selection Training & Development Performance Appraisal Compensation...
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Transcript of COMPONENTS OF HRM Recruitment Selection Training & Development Performance Appraisal Compensation...
COMPONENTS OF COMPONENTS OF HRM HRM
• Recruitment• Selection• Training & Development• Performance Appraisal• Compensation• Labor Relations
INTERNATIONAL INTERNATIONAL HRM (IHRM)HRM (IHRM)
• Basic HRM issues remain• Must choose a mixture of
international employees• How much to adapt to local
conditions?
EMPLOYEES IN EMPLOYEES IN MULTINATIONAL MULTINATIONAL ORGANIZATIONSORGANIZATIONS
• Host country nationals• Expatriates• Home country nationals• Third country nationals• Inpatriates
MULTINATIONAL MULTINATIONAL MANAGERSMANAGERS
•Host country or expatriate?
USING HOST COUNTRY USING HOST COUNTRY MANAGERSMANAGERS
• Do they have the expertise for the position?
• Can we recruit them from outside the company?
USING EXPATRIATE USING EXPATRIATE MANAGERSMANAGERS
• Do parent country managers have the appropriate skills?
• Are they willing to take expatriate assignments?
• Do any laws affect the assignment of expatriate managers?
IS THE EXPATRIATE IS THE EXPATRIATE WORTH IT?WORTH IT?
• High cost• High failure rate
EXHIBIT 11.1 PAYING FOR THE EXPATRIATE MANAGER
0
50000100000
150000
200000
250000300000
350000
400000
$
Hom
eSa
lary
Toky
o
Hon
gK
ong
Lond
on
Taip
ei
Sing
apor
e
REASONS FOR U.S. REASONS FOR U.S. EXPATRIATE FAILUREEXPATRIATE FAILURE
• Spouse fails to adapt • Manager fails to adapt • Other problems within the
family• Personality of the manager• Level of responsibilities
• Lack of technical proficiency• No motivation for assignment
Reasons for expatriate Reasons for expatriate failure, continuedfailure, continued
MOTIVATIONS TO USE MOTIVATIONS TO USE EXPATSEXPATS
• Managers acquire international skills
• Coordinate and control operations dispersed activities
• Communication of local needs/strategic information to headquarters
KEY EXPATRIATE SUCCESS KEY EXPATRIATE SUCCESS FACTORS FACTORS
• Professional/technical competence• Relational abilities • Motivation • Family situation • Language skills
• Willingness to accept position
PRIORITY OF PRIORITY OF SUCCESS SUCCESS
FACTORS FACTORS
• Depends on : –assignment length–cultural distance–amount of required interaction with local people
– job complexity/responsibility
EXHIBIT 11.3 SHOWS A EXHIBIT 11.3 SHOWS A DECISION MATRIX USED DECISION MATRIX USED TO SET PRIORITIES OR TO SET PRIORITIES OR DIFFERENT SUCCESS DIFFERENT SUCCESS FACTORS DURING FACTORS DURING SELECTIONSELECTION
Assignment Characteristics
ExpatriateSuccessFactors
LongerDuration
MoreCulturalDis-similarity
GreaterInteractionandCommunica-tionRequirementswith Locals
MoreComplex orRespon-sible Job
Professional/TechnicalSkills
High Neutral Moderate High
Relational Abilities
Moderate High High Moderate
InternationalMotivation
High High High High
FamilySituation
High High Neutral Moderate
LanguageSkills
Moderate High High Neutral
EXPATRIATE TRAININGEXPATRIATE TRAINING
TRAINING RIGOR TRAINING RIGOR
The extent of effort by trainees and trainers required to prepare the trainees for expatriate positions
LOW RIGOR LOW RIGOR TRAINING TRAINING
• Short time period• Lectures• Videos on local culture• Briefings on company
operations company operations
HIGH RIGOR HIGH RIGOR TRAININGTRAINING
• Lasts over a month • Experiential learning• Extensive language training• Often includes interactions
with host country nationals
EXHIBIT 11.4 SHOWS EXHIBIT 11.4 SHOWS VARIOUS TRAINING VARIOUS TRAINING TECHNIQUES AND THEIR TECHNIQUES AND THEIR OBJECTIVES AS THE RIGOR OBJECTIVES AS THE RIGOR OF THE CROSS- CULTURAL OF THE CROSS- CULTURAL TRAINING GROWS TRAINING GROWS
Techniques: Field trips tohost country, meetingswith managers experiencedin host country, meetingswith host countrynationals, intensivelanguage training.
Objectives: Developcomfort with host countrynational culture, businessculture, and socialinstitutions.
HighTraining
Rigor
Techniques:Experiential learningexercises, role playing,simulations, casestudies, survivallanguage training.
Objectives: General andspecific knowledge ofhost country culture,reduce ethnocentrism.
Mid-level
TrainingRigor
Techniques: Lectures,videotapes, readingbackground material.
Objectives: Providebackground information onhost country business andnational cultures, basicinformation on companyoperations.
LowTraining
Rigor
CHALLENGES OF EXPATRIATE CHALLENGES OF EXPATRIATE PERFORMANCE APPRAISALPERFORMANCE APPRAISAL
• Unreliable data• Complex and volatile
environments• Time differences and distance
separation• Local cultural situations
STEPS TO IMPROVE STEPS TO IMPROVE THE PROCESS THE PROCESS
1. Fit the evaluation criteria to strategy.
2. Fine tune the evaluation criteria
3. Use multiple evaluators with varying periods of evaluation
EXHIBIT 11.6 Shows EXHIBIT 11.6 Shows several sources of several sources of information a superior or information a superior or the HRM professionals the HRM professionals may use to evaluate an may use to evaluate an expatriate managers expatriate managers
EvaluationSources
Criteria Periods
Self evaluation Meeting objectivesManagement skillsProject successes
Six months and atthe completion ofa major project
Subordinates Leadership skillsCommunication skillsSubordinatedevelopment
After completionof major project
Peer expatriate andhost countrymanages
Team buildingInterpersonal skillsCross-culturalinteraction skills
Six months
On-site supervisor Management skillsLeadership skillsMeeting objectives
At the completionof significantprojects
Customers andclients
Service quality andtimelinessNegotiation skillsCross-culturalinteraction skills
Yearly
EXPATRIATE EXPATRIATE COMPENSATION COMPENSATION
THE BALANCE THE BALANCE SHEET SHEET
APPROACH APPROACH
• Provides a compensation package that equates purchasing power
BALANCE SHEET BALANCE SHEET COSTSCOSTS
• Allowances for cost of living, housing, utilities, furnishing, educational expenses, medical expenses, club memberships, and car and/or driver expenses
DomesticAssignmentExpenses andSpendableIncome
Expatriate Assignment Expenses and BalancedSpendable Income + Allowances
Base Salary = Base Salary
+Allowances as an incentive to take position,foreign service premium, hardship pay, R&R
Taxes = Taxes+ Allowances to balance extra tax payments
Goods andServices
= Goods and Services
+Allowances to cover cost of living differences,housing, children’s education, medical costs,automobile, recreation, home leave travel
Housing = Housing
+Allowances for moving expenses, settling inexpenses, initial housing costs, and furnishingallowances
SpendableIncome
= Spendable Income
OTHER OTHER APPROACHESAPPROACHES
• Parent country wages everywhere • Wean expatriates from allowances• Pay based on local or regional
markets• Cafeteria selection of allowances• Global pay systems
THE REPATRIATION THE REPATRIATION PROBLEMPROBLEM
• Difficult for many organizations • "Reverse culture shock" • Expatriates must relearn own
national and organizational culture
• Includes whole family
STRATEGIES FOR SUCCESSFUL STRATEGIES FOR SUCCESSFUL REPATRIATION PROVIDE: REPATRIATION PROVIDE:
• A strategic purpose for repatriation• A team to aid the expatriate• Home country information sources• Training and preparation for the
return• Support for expatriate and family
WOMEN EXPATRIATES: WOMEN EXPATRIATES: TWO IMPORTANT "MYTHS"TWO IMPORTANT "MYTHS"
• 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 SUCCESSFUL WOMEN EXPATRIATESEXPATRIATES
• Foreign not female –emphasize nationality not gender
• The woman's advantage–strong in relational skills–wider range of interaction options
MULTINATIONAL MULTINATIONAL STRATEGY AND IHRMSTRATEGY AND IHRM
IHRM ORIENTATIONSIHRM ORIENTATIONS
•Ethnocentric •Polycentric•Regiocentric•Global
IHRM ORIENTATION AND IHRM ORIENTATION AND MULTINATIONAL MULTINATIONAL
STRATEGYSTRATEGY
• Early stages of internationalization = ethnocentric IHRM
• Multilocal strategies = ethnocentric or regiocentric
• Regional strategy = closer to the global
• International strategy = ethnocentric or polycentric IHRM
• Transnational strategies = a global IHRM
CONCLUSIONSCONCLUSIONS
• HRM functions• IHRM challenges• Expatriate managers• The role of women in
multinational organizations• Multinational strategies and
IHRM orientations