Hiring and Hiring and Managing Managing EmployeesEmployees

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International HRMInternational HRM

Culture affects

Expatriate managers

Recruitment and selection

Training and development

Compensation

Labor relations

Staffing policy

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Ethnocentric StaffingEthnocentric Staffing

Advantages

+ Locally qualified people not always available

+ Tight control over subsidiaries

+ Re-create local operations in home-office image

+ Interests of home office may be better protected

– Relocations are expensive

– Give the business a “foreign” imageDisadvantages

Individuals from home country manage operations abroad

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Polycentric StaffingPolycentric Staffing

Advantages+ Responsibility on those knowing local business

+ Avoid expensive relocations from home nation

– Resemble a collection of national entities

– Potentially harm performanceDisadvantages

Individuals from host country manage operations abroad

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Geocentric StaffingGeocentric Staffing

Advantages+ Managers who can adjust anywhere

+ Break down nationalistic barriers

– These individuals command high salariesDisadvantage

Best-qualified individuals, regardless of nationality,manage operations abroad

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Human Resource PlanningHuman Resource Planning

Phase 1 Phase 2 Phase 3

Take inventory of current human

resources

Estimate firm’s future human

resource needs

Develop plan to recruit and select people for vacant and anticipated new positions

Forecasting human resource needs and supply

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Tips for Small BusinessesTips for Small Businesses

Expanding internationally can severelystrain the resources of small firms

Expanding internationally can severelystrain the resources of small firms

Do not rely solely on home-country expatriatesDo not rely solely on home-country expatriates

Local contacts do not guarantee contractsLocal contacts do not guarantee contracts

Treat employees abroad with respectTreat employees abroad with respect

Employ the Web in your talent searchEmploy the Web in your talent search

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Recruiting Human ResourcesRecruiting Human Resources

Recent college graduates

Local managerial talent

Nonmanagerial workers

Current employees

Process of identifying and attracting a qualified pool of applicants for vacant positions

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Selecting Human ResourcesSelecting Human Resources

Ability to bridge cultural differences is key

Expatriates must adapt to new ways of life

Cultural sensitivity raises odds for success

Process of screening and hiring the best-qualified applicants with the greatest performance potential

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Stage I:

Thrilling experience

Stage II:

Downward slide

Stage III:

Recovery begins

Stage IV:

Embrace local culture

Culture ShockCulture Shock

Psychological process affecting people living abroad that is characterized by homesickness, irritability,

confusion, aggravation, and depression

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Reverse Culture ShockReverse Culture Shock

Readaptingto home culture

Reducing its effects

Once-natural thoughts andfeelings now strange

Can be more unsettling thanculture shock

Some companies reabsorbexpatriates poorly

Home-culture reorientationprograms

Career-counseling sessions Career-development program

before posting abroad

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Cultural Training MethodsCultural Training Methods

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Compiling a Cultural ProfileCompiling a Cultural Profile

CultureGramsBackground

NotesCountry

Studies AreaHandbooks

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Worker TrainingWorker Training

Emerging markets

Basic skillstraining

Apprenticeshiptraining

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Compensation of ManagersCompensation of Managers

Bonus andtax incentives

Bonus andtax incentives

Cultural andsocial factors

Cultural andsocial factors

Cost-of-livingeffects

Cost-of-livingeffects

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Compensation of WorkersCompensation of Workers

Labor mobility insome markets

Labor mobility insome markets

Greater cross-border investment

Greater cross-border investment

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Labor-Management RelationsLabor-Management Relations

Rooted in local culture

Directly influences workers’ lives

Often affected by political movements

Positive or negative relations betweena company’s management and its workers

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Selectionof a location

Selectionof a location

Performancein a market

Performancein a market

Emergingmarkets

Emergingmarkets

Codeterminationin Germany

Codeterminationin Germany

Labor UnionsLabor Unions

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But can be difficult

Events in distant lands difficult to comprehend

Workers in different nations often compete

International Labor International Labor MovementsMovements

International activities of unions are making progress in improving treatment of workers and reducing child labor