1 / 38

Resourcing and Rewarding

Resourcing and Rewarding. Staffing. Technical and social skills Finding the right person to do a job Find someone who understands the culture Language skill. Where to source a manager for an international assignment. Home country nationals  citizens of a country where the

analise
Download Presentation

Resourcing and Rewarding

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Resourcing and Rewarding Copyright 2003-2006, Chris Chan

  2. Staffing • Technical and social skills • Finding the right person to do a job • Find someone who understands the culture • Language skill Copyright 2003-2006, Chris Chan

  3. Where to source a manager for an international assignment Home country nationals  citizens of a country where the company is headquartered.  used when host country national is not available  used to prime home country national for future assignments in host country  headquarter policy of sending home country national Copyright 2003-2006, Chris Chan

  4. Where to source a manager for an international assignment Host country nationals  citizens of the host country  used for their familiarity of local language, customs & culture.  host country’s government requirement  may be used because they are cheaper Copyright 2003-2006, Chris Chan

  5. Where to source a manager for an international assignment Third country nationals  citizens of a country other than the home and host countries  used when home/host country nationals are not available  may be used for cost savings Copyright 2003-2006, Chris Chan

  6. Staffing policies & practices • Ethnocentric – top level management positions are staffed with home nationals in subsidiaries (in host countries) • Polycentric – top level management positions are staffed with host nationals in subsidiaries • Geocentric – top level management positions are staffed with home and host nationals, and positions are filled based on individuals’ abilities Copyright 2003-2006, Chris Chan

  7. Benefits & challenges of using home country nationals (Ethnocentric staffing) BENEFITS • Understand home country organization’s agenda and look out for the organization’s interests • Qualified people may not be available locally (in host country) • Headquarter is able to replicate structure, policies, practices etc • Expat could develop leadership skills Copyright 2003-2006, Chris Chan

  8. Benefits & challenges of using home country nationals (Ethnocentric staffing) CHALLENGES • Invest in language and cultural training • Family members of the expatriate might not want to relocate • Expensive to relocate expatriate and family members • Steep learning curve for expat Copyright 2003-2006, Chris Chan

  9. Benefits & challenges of using home country nationals (Polycentric staffing) BENEFITS • Host country managers are more familiar with local business terrain/environment • Relatively cheaper than hiring a home country national (paying for expatriate and family members) Copyright 2003-2006, Chris Chan

  10. Benefits & challenges of using home country nationals (Polycentric staffing) CHALLENGES • Might need to train host country nationals • Losing control of operation • May be a host government requirement to have a certain percentage of host country nationals Copyright 2003-2006, Chris Chan

  11. Benefits & challenges of using 3rd country nationals (Geocentric staffing) BENEFITS • May come from a culture similar to host country • May be willing to accept lower salary and benefits than home & host nationals • Could get the best person for the job Copyright 2003-2006, Chris Chan

  12. Benefits & challenges of using 3rd country nationals (Geocentric staffing) CHALLENGES • Difficulties in obtaining work visas • Expensive • May not be familiar with organization’s culture Copyright 2003-2006, Chris Chan

  13. Alternative • Use an international staffing consultant e.g. International Staffing Consultants, Inc or the SearchLogix Group Copyright 2003-2006, Chris Chan

  14. Factors influencing staffing decisions • Business strategy adopted by the organization (e.g. cost leadership, differentiation, niche) e.g. cost leadership  ethnocentric staffing differentiation  polycentric niche  geocentric • Level of sophistication in the host country (e.g. technological, production, marketing etc) e.g. if level of sophistication is low, more home nationals will be assigned • Economic and political stability e.g. withdrawal of American embassy officials from several countries after Sept 11 Copyright 2003-2006, Chris Chan

  15. Factors influencing staffing decisions • Where can qualified managers be obtained? Locally? Home country? Elsewhere? • Job knowledge and motivation of candidates • Cultural distance – difference between home and host country nationals (the greater the distance the greater the number of home country nationals placed in subsidiaries) • Competition e.g. if competition is high, fewer home country nationals Copyright 2003-2006, Chris Chan

  16. Factors influencing staffing decisions • Interdependence – if subsidiary is dependent upon HQ for directions, more home country nationals employed in subsidiary • Complexity – if operation is complex, HQ might want tighter control, which leads to more home nationals employed in subsidiaries • Use of socialization as a control mechanism – introduce host country nationals HQ’s ways of doing things Copyright 2003-2006, Chris Chan

  17. Compensation and benefits considerations • Knowledge about tax laws, customs, environment & employment practices • Currency fluctuations • Effects of inflation • Special allowance e.g. medical, housing, flights home, schooling for children, recreation, etc Copyright 2003-2006, Chris Chan

  18. Effective compensation • Compensation must be strategic i.e. linked to mission, overall strategies, business strategies, structure and business needs • Attract and retain staff • Provide for tax equalization and cost reimbursement • Cost effect transfer of expatriate • Equitable and easy administration Copyright 2003-2006, Chris Chan

  19. Components of Compensation • Base Salary • Foreign Service Inducement/Hardship Premium • Allowances • Benefits Copyright 2003-2006, Chris Chan

  20. Some reasons for expat failure • Expat unfamiliar with local culture • Well-established practices not applicable in foreign countries • Language barriers • Ability of expats to deal with local partners, trade unions, bankers and key customers • Expat’s unfamiliar with local political, economic, legal and social environments • Lack of adaptation from expat’s family members (i.e. partner and children) Copyright 2003-2006, Chris Chan

  21. Some reasons for expat failure • Selection of expats based on HQ’s needs rather than based on the assignment • Lack of support from HQ • Expat’s personality/emotional immaturity • Insufficient remuneration Copyright 2003-2006, Chris Chan

  22. Training • Process of altering behavior and attitudes to increase goal attainment • E.g. preparing a candidate for overseas assignment • E.g. Cultural training in social etiquette, customs, economics, politics, history and business etiquettes Copyright 2003-2006, Chris Chan

  23. Where is training used? • Recruitment and selection • Pre-departure • Continuous professional development Copyright 2003-2006, Chris Chan

  24. Organizational reasons for training • Manage overseas operations more effectively • Overcome ethnocentrism • Help expats understand the validity and importance of values, customs and practices overseas • Improve communication between home office and subsidiaries in host countries • Aligning business strategies with HR strategies to maximize productivity Copyright 2003-2006, Chris Chan

  25. Individual’s reasons for training • Improve expats ability to interact with locals • Help with language skills • Minimize perception of arrogance • Understand local customs, values and business etiquettes Copyright 2003-2006, Chris Chan

  26. Effects of Learning Styles on Training • Learning • Acquisition of skills, knowledge and abilities that results in a permanent change in behavior • People with different learning styles prefer different learning environments • Learning style-learning environment mismatch  diminished satisfaction and poor performance Copyright 2003-2006, Chris Chan

  27. Visual Learning through seeing Auditory Learning through hearing Kinesthetic Learning through moving, doing and touching How people learn Copyright 2003-2006, Chris Chan

  28. Do you doodle when you talk on the phone? Do you speak quickly? Would you rather read a map than hear directions? DePorter, B. and Hernacki, M. (1992). Quantum Learning: Unleashing the Genius Within You. London, Piatkus. Visual Copyright 2003-2006, Chris Chan

  29. Auditory • Do you talk to yourself? • Do you prefer a lecture or seminar to reading a book? • Do you like talking more than writing? DePorter, B. and Hernacki, M. (1992). Quantum Learning: Unleashing the Genius Within You. London, Piatkus. Copyright 2003-2006, Chris Chan

  30. Kinesthetic • Do you think better when you are moving and walking around? • Do you gesture a lot while speaking? • Do you find it hard to sit still? DePorter, B. and Hernacki, M. (1992). Quantum Learning: Unleashing the Genius Within You. London, Piatkus. Copyright 2003-2006, Chris Chan

  31. Which training program to use? • Know who you are training? • Assess their preferences/styles • Choose appropriate training programs • Assess effectiveness Copyright 2003-2006, Chris Chan

  32. Components of effective training • Cultural awareness • Preliminary visits • Language instruction • Assistance with practical matters • Job related training • Career development Copyright 2003-2006, Chris Chan

  33. A model for training expats and repats (1) Overall objective – increase the effectiveness of expats and repats (2) Problem recognition – internal relations, external relations, family relations, relations with host govt, relations with home govt, HQ relations (3) Development objectives – review terms and conditions of assignment, increase cultural awareness, increase knowledge of host country, impart working knowledge of the foreign language, increase conflict management skills, minimize reentry problems Copyright 2003-2006, Chris Chan

  34. A model for training expats and repats (4) Development methods • Pre-departure training • Orientation • Area study/Field experiences • Sensitivity training • Language instruction • Cross cultural training • Behavioral simulation • Case method • Post-arrival training • Orientation and training • Inter-group problem solving Copyright 2003-2006, Chris Chan

  35. A model for training expats and repats (5) Intermediate results • Knowledge about cultural, political, economic, business, legal and social factors of the host country • Awareness of the needs and expectations of the different parties interested in international operation • Awareness of the problems of family relations in the host country Copyright 2003-2006, Chris Chan

  36. A model for training expats and repats (6) Desired Results • Effectiveness of the expats (7) Development Method • Re-entry training (8) Desired Results • Effectiveness of repats Based on Rahim, A. (1983). A model for developing key expatriate executives. Personnel Journal, April, 312-317. Copyright 2003-2006, Chris Chan

  37. Dealing with cultural and reverse cultural shock • CULTURAL SHOCK • Have a thorough selection process to screen out inappropriate candidates • Successful candidates tend to have high self-esteem/self confidence, get along with people, willing to communicate in a foreign language, and empathize with people from other cultures • Pre-departure briefings • Cultural orientations/assimilation program • Sensitivity training • Cultural training • Linguistic training • Field training Copyright 2003-2006, Chris Chan

  38. Dealing with cultural and reverse cultural shock • REVERSE CULTURAL SHOCK • Home country cultural briefings prior to departure from host country • Provide career counseling sessions • Arrange for housing and schooling for children Copyright 2003-2006, Chris Chan

More Related