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Transcript of Global Staffng
8/3/2019 Global Staffng
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Human Resource Management and
FunctionsHuman resource management (HRM): dealswith the entire relationship of the employeewith the organizationRecruitment: process of identifying andattracting qualified people to apply for vacantpositionsSelection: process of filling vacant positions inthe organization
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B asic HRM Functions
Training and development: giving employeesthe knowledge, skills, and abilities to performsuccessfullyPerformance appraisal: system to measureand assess employees work performance
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B asic HRM Functions
Compensation: organization s entire rewardpackage, including financial rewards, benefits,and job securityLabor relations: ongoing relationship betweenan employer and those employeesrepresented by labor organizations
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International Human ResourceManagement ( IHRM)
All HRM functions, adapted to theinternational setting
Two added complexities compared todomestic HRM- Must choose a mixture of international employees- Must decide the extent of adaptation to local
conditions
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Types of Employees in MultinationalOrganizations
Expatriate: employee from a different countryHome country nationals: expatriate
employees from the parent firm s homecountryThird country nationals: expatriate workerswho come from neither the host nor homecountry
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Types of Employees in MultinationalOrganizations
Host country nationals: local workers whocome from the host country where the unit islocatedInpatriate: employees from foreign countrieswho work in the country where the parentcompany is located
Flexpatriates: employees who are sent onfrequent but short-term internationalassignments
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The Expatriate or the Host CountryManager
Multinationals must decide whether to useexpatriates or home country nationals
Need to look at some questions- Given the firm s strategy, what is the preference for
the position?
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Is the Expatriate Worth It?
Decisions must take into account costs of suchassignments- High cost- High failure rate
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Strategic Role of ExpatriateAssignments
Helps managers acquire international skillsHelps coordinate and control operations
dispersed activitiesCommunication of local needs/strategicinformation to headquartersIn-depth knowledge of local markets
Provide important network knowledge
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International Cadre
International cadre (or Globals): Separategroup of expatriate managers who specializein a career of international assignments- Have permanent international assignments- Move from international assignments to
international assignments- Recruited from any country- Sent to worldwide locations to develop cross-
cultural skills
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Flexpatriates
The frequent flyers who travel on short noticefor shorter time durations while maintainingtheir family and personal lives at the home-country locationKey functions- Sent to explore markets
- Consider problem areas in the foreign subsidiary- Manage projects- Help with transfer of technology
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Flexpatriates
Advantages- Do not experience many of the family and personal
difficulties and stress associated with expatriateassignments
- Much less expensive than expatriate norelocation or repatriation costs
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Flexpatriate
Disadvantages- Taxation issues can become complicated if the
assignment exceeds six months he companymay end up paying the tax
- Does not fully integrate into the local workenvironment and does not learn low to adapt
locally- May be resented for neglecting the host-country
culture
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Exhibit 11.2: Expatriate Success Factorsand Selection Methods
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Priority of Success Factors
Assignment length- Technical and professionals skills are key for short
assignments
Cultural similarityRequired interaction with local peopleJob complexity and responsibility
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Exhibit 11.3: Selecting Expatriates: Priorities for SuccessFactors by Assignment Characteristics
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Training and Development
Cross-cultural training: increases the relationalabilities of future expatriates and theirspouses and familiesTraining rigor: extent of effort by both traineesand trainers required to prepare the traineesfor expatriate positions
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Training and Development (cont.)
Low rigor training- Short time period- Lectures and videos on local cultures
- B riefings on company operationsHigh rigor training- Last over a month- Experiential learning- Extensive language training- Includes interactions with host country nationals
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Exhibit 11.4: Training Rigor: Techniquesand Objectives
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Exhibit 11.5: How the Rigor of Training Relates to theB asic Expatriate Assignment Conditions
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Expatriate Performance Appraisal
Conducting reliable performance appraisal forthe expatriate is very challengingChallenges
± Fit of international operation in multinationalstrategy
± Unreliable date ±
Complex and volatile environments ± Time difference and distance separation ± Local cultural situation
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Steps to Improve the ExpatriatePerformance Appraisal
1.Fit the evaluation criteria to strategy2.Fine-tune the evaluation criteria
3.Use multiple sources of evaluation withvarying periods of evaluation
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Exhibit 11.6: Evaluation Sources, Criteria, and TimePeriods for Expatriate Performance Appraisals
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Expatriate Compensation
Compensation packages tend to include manycommon factors includes:- Local market cost of living- Housing- Taxes- B enefits
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Exhibit 11.7: Average Rent of Two- B edroom,Unfurnished Apartments in Selected European Cities
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The B alance-Sheet Approach
Provides a compensation package thatequates purchasing power
Allowances for cost of living, housing, food,recreation, personal care, clothing, education,home furnishing, transportation, and medicalcare
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Additional Allowances and Perquisites
Foreign service premiumsHardship allowance
Relocation allowancesHome-leave allowances
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Expatriate ManagerCompensation: Other Approaches
Headquarters-based compensation: payinghome country wages regardless of location
Host-based compensation system: adjustingwages to local lifestyles and costs of livingGlobal pay systems: worldwide jobevaluations, performance appraisal methods,and salary scales are used
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Repatriation Problem
Difficulties faced coming back homeThree basic cultural problems reverse
culture shocks- Adapt to new work environment and culture of home
- Expatriates must relearn own national and
organization culture- Need to adapt to basic living environment
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Strategies for Successful Repatriation
Provide a strategic purpose for the repatriationEstablish a team to aid the expatriateProvide parent country information sourcesProvide training and preparation for the returnProvide a home-leave policy to encourageexpatriates to make regular visits to the home
officeProvide support for the expatriate and family onreturn
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International Assignments for Women:Two Myths
Myth 1: Women do not wish to takeinternational assignments.
Myth 2: Women will fail in internationalassignments because of the foreign culture sprejudices against local women.Successful women expatriates- Foreign not female emphasize nationality not
gender
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International Assignments for Women:Advantages
More visibleStrong in relational skills
Wider range of interaction options
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International Assignments for Women:Disadvantages
Face the glass ceiling- Isolation and loneliness- Constant proving of themselves, working harder
than male
Need to balance work and familyresponsibilities
Need to worry about accompanying spouse
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More Women in the Future?
Women expatriate managers are expected togrow
Acute shortage of high-quality managersIncreasing number of women provide rolemodels
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What Can Companies Do To EnsureFemale Expatriate Success?
Provide mentorsProvide opportunities for interpersonal
networks as a form of organizational supportRemove sources of barriersProvide support to cope with dual-careerissues
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Multinationals and ElectronicHuman Resource Management
Electronic human resources (e.HR):automation of various aspects of the humanresources system of a company
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Strategic B enefits of e.HR Systems
Reduce HR and administrative system costImprove HR services to employees
Employees take control of their own dataRepository of the wealth of knowledge andskills of expatriates
Employee tracking for career managementand other HR purposes
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Proper Steps to e.HRImplementation
Develop business case to justify using e.HR orupgrade to e.HRMake the system customer-focusedB e proactiveOrganize collected data in ways that is usefulto the organization
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Multinational Strategy and IHRM
IHRM orientation: company s basic tactics andphilosophy for coordinating IHRM activities formanagerial and technical workers
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Exhibit 11.9: IHRM Orientation and IHRMPractices for Managers and Technical Workers
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Exhibit 11.9: IHRM Orientation and IHRMPractices for Managers and Technical Workers
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Exhibit 11.9: IHRM Orientation and IHRMPractices for Managers and Technical Workers
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Multinational Strategy and IHRM
Ethnocentric IHRM: all aspects of HRM formanagers and technical workers tend tofollow the parent organization s home-countryHRM practices
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Costs of Ethnocentric IHRM
May limit career development for hostcountry nationalsHost country nationals may never identifywith the home companyExpatriate managers are often poorly trainedfor international assignments and makemistakesExpatriates may have limited careerdevelopment
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Regiocentric and Polycentric IHRM
Regiocentric IHRM: region-wide HRM policiesare adoptedPolycentric IHRM: firm treats each country-level organization separately for HRMpurposesGreater responsiveness to host countrydifferences
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B enefits of Polycentric andRegiocentric HRM Policies
Reduces costs for training of expatriatemanagers from headquartersNo investment in language trainingFewer problems with adjustments to localcultures
Less expensive
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Global IHRM Orientations
Recruiting and selecting worldwideAssigning the best managers to internationalassignments regardless of nationality
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IHRM Orientation andMultinational Strategy
Early stages of internationalizationethnocentric IHRMMultilocal strategies ethnocentric orregiocentricRegional strategy regiocentric, polycentric orglobal
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Exhibit 11.10: IHRM Orientationsand Multinational Strategies
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Conclusion
When basic HRM practices are applied to acompany s international operations, theybecome International HRM
Chapter focused on HRM practices as appliedto the expatriate employeesExpatriates present special challenges formultinationalsIt is important for multinationals to find waysto properly manage expatriates to benefitfrom their experiences