Download - (c) 2007 by Prentice Hall17-1 International International HRM Challenge HRM Challenge Chapter 17.

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(c) 2007 by Prentice Hall 17-1

International International

HRM ChallengeHRM Challenge

Chapter 17Chapter 17

(c) 2007 by Prentice Hall 17-2

• Specify the HRM strategies that are most Specify the HRM strategies that are most appropriate for firms at different stages of appropriate for firms at different stages of internationalizationinternationalization

• Identify the best mix of host-country and Identify the best mix of host-country and expatriate employees given the conditions expatriate employees given the conditions facing the firmfacing the firm

• Explain why international assignments often Explain why international assignments often fail and the steps a firm can take to ensure fail and the steps a firm can take to ensure success in this areasuccess in this area

Chapter 17 OverviewChapter 17 Overview

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• Understand reintegrating returning Understand reintegrating returning employees into the firm after they have employees into the firm after they have completed an international assignment completed an international assignment

• Develop HRM policies and procedures that Develop HRM policies and procedures that match the needs and values of different match the needs and values of different culturescultures

• Consider ethical implications of HRM Consider ethical implications of HRM policies and procedures on a global basispolicies and procedures on a global basis

Chapter 17 Overview Chapter 17 Overview (cont’d)(cont’d)

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The Stages of The Stages of International InvolvementInternational Involvement

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• ExpatriateExpatriate – A citizen of one country living – A citizen of one country living and working in another country.and working in another country.

• Multinational corporationMultinational corporation (MNC) – A firm with (MNC) – A firm with assembly and production facilities in several assembly and production facilities in several countries and regions of the world.countries and regions of the world.

• Transnational corporationTransnational corporation – A firm with – A firm with operations in many countries and highly operations in many countries and highly decentralized operations. The firm owes little decentralized operations. The firm owes little allegiance to its country of origin and has allegiance to its country of origin and has weak ties to any given country. weak ties to any given country.

The Stages of The Stages of International InvolvementInternational Involvement

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• Wholly owned subsidiaryWholly owned subsidiary

• Joint ventureJoint venture

• Ethnocentric approachEthnocentric approach

• Polycentric approachPolycentric approach

• Geocentric approachGeocentric approach

Determining the Mix of Determining the Mix of Host-Country and Host-Country and

Expatriate EmployeesExpatriate Employees

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• Sufficient local talent is not availableSufficient local talent is not available• An important part of the firm’s overall business An important part of the firm’s overall business

strategy is the creation of a corporatewide global strategy is the creation of a corporatewide global visionvision

• International units and domestic operations are International units and domestic operations are highly interdependenthighly interdependent

• The political situation is unstableThe political situation is unstable• There are significant cultural differences There are significant cultural differences

between the host country and the home countrybetween the host country and the home country

Determining the Mix of Determining the Mix of Host-Country and Host-Country and

Expatriate EmployeesExpatriate Employees

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Why International Assignments End in FailureWhy International Assignments End in Failure

• Career blockageCareer blockage

• Culture shockCulture shock

• Lack of pre-departure cross-culture trainingLack of pre-departure cross-culture training

• Overemphasis on technical qualificationsOveremphasis on technical qualifications

• Getting rid of a troublesome employeeGetting rid of a troublesome employee

• Family problems Family problems

The Challenges of Expatriate The Challenges of Expatriate AssignmentsAssignments

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The Challenges of Expatriate The Challenges of Expatriate AssignmentsAssignments

Difficulties on ReturnDifficulties on Return

• Lack of respect of Lack of respect of acquired skillsacquired skills

• Loss of statusLoss of status

• Poor planning for Poor planning for return positionreturn position

• Reverse culture Reverse culture shockshock

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SelectionSelection• Emphasize cultural sensitivity as a Emphasize cultural sensitivity as a

selection criterionselection criterion• Establish a selection board of expatriatesEstablish a selection board of expatriates• Require previous international experienceRequire previous international experience

• Explore the possibility of hiring foreign-Explore the possibility of hiring foreign-born employees who can serve as born employees who can serve as

“expatriates” at a future date“expatriates” at a future date• Screen candidates’ spouses and familiesScreen candidates’ spouses and families

Effectively Managing Expatriate Assignments Effectively Managing Expatriate Assignments with HRM Policies and Practiceswith HRM Policies and Practices

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TrainingTraining

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Career DevelopmentCareer Development

• Position the Position the international international assignment as a step assignment as a step toward advancement toward advancement within the firmwithin the firm

• Provide support for Provide support for expatriatesexpatriates

• Provide career Provide career support for spousesupport for spouse

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CompensationCompensation

• Provide the expatriate Provide the expatriate with a disposable income with a disposable income that is equivalent to what that is equivalent to what he or she would receive he or she would receive at homeat home

• Provide an explicit “add-Provide an explicit “add-on” incentive for on” incentive for accepting an international accepting an international assignmentassignment

• Avoid having expatriates Avoid having expatriates fill the same jobs held by fill the same jobs held by locals or lower-ranking locals or lower-ranking jobsjobs

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Effectively Managing Expatriate Assignments Effectively Managing Expatriate Assignments with HRM Policies and Practiceswith HRM Policies and Practices

• Role of HR Role of HR DepartmentDepartment

• Women and Women and International International AssignmentsAssignments

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National Culture, Organizational National Culture, Organizational Characteristics, and HRM Characteristics, and HRM PracticesPractices

1.1. Power distancePower distance

2.2. IndividualismIndividualism

3.3. Uncertainty avoidanceUncertainty avoidance

4.4. Masculinity/femininityMasculinity/femininity

5.5. Long-term/short-term orientationLong-term/short-term orientation

Developing HRM Policies in a Developing HRM Policies in a Global ContextGlobal Context

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• EEO in the International ContextEEO in the International Context• Important CaveatsImportant Caveats

• ““National culture” may be an elusive conceptNational culture” may be an elusive concept• Corporate headquarters sometimes blame international Corporate headquarters sometimes blame international

personnel problems on cultural factors without careful personnel problems on cultural factors without careful studystudy

• Hard data on the success and failure of different HRM Hard data on the success and failure of different HRM practices as a function of national culture are practically practices as a function of national culture are practically nonexistentnonexistent

• Different cultures often have very different notions of Different cultures often have very different notions of right and wrongright and wrong

• The business laws of other countries often force The business laws of other countries often force companies to change their practicescompanies to change their practices

Developing HRM Policies in a Developing HRM Policies in a Global ContextGlobal Context

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Key impediments to exporting:Key impediments to exporting:

• Lack of knowledge of international Lack of knowledge of international markets, business practices, and markets, business practices, and

competition competition

• Lack of management commitment to Lack of management commitment to generating international salesgenerating international sales

Human Resource Management Human Resource Management and Exporting Firmsand Exporting Firms

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• The stages of international involvementThe stages of international involvement

• Determining the mix of host-country and Determining the mix of host-country and expatriate employeesexpatriate employees

• The challenges of expatriate assignmentsThe challenges of expatriate assignments

• Developing HRM policies in a global Developing HRM policies in a global contextcontext

• Human resource management and Human resource management and exporting firmsexporting firms

Summary and ConclusionsSummary and Conclusions