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CHAPTER 11 INTERNATIONAL HUMAN RESOURCE MANAGEMENT

CHAPTER 11 INTERNATIONAL HUMAN RESOURCE MANAGEMENT. COMPONENTS OF HRM . Recruitment Selection Training & Development Performance Appraisal Compensation Labor Relations. INTERNATIONAL HRM (IHRM). Basic HRM issues remain Must choose a mixture of international employees

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CHAPTER 11 INTERNATIONAL HUMAN RESOURCE MANAGEMENT

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  1. CHAPTER 11 INTERNATIONAL HUMAN RESOURCE MANAGEMENT

  2. COMPONENTS OF HRM • Recruitment • Selection • Training & Development • Performance Appraisal • Compensation • Labor Relations

  3. INTERNATIONAL HRM (IHRM) • Basic HRM issues remain • Must choose a mixture of international employees • How much to adapt to local conditions?

  4. EMPLOYEES IN MULTINATIONAL ORGANIZATIONS • Host country nationals • Expatriates • Home country nationals • Third country nationals • Inpatriates

  5. MULTINATIONAL MANAGERS • Host country or expatriate?

  6. USING HOST COUNTRY MANAGERS • Do they have the expertise for the position? • Can we recruit them from outside the company?

  7. USING EXPATRIATE MANAGERS • Do parent country managers have the appropriate skills? • Are they willing to take expatriate assignments? • Do any laws affect the assignment of expatriate managers?

  8. IS THE EXPATRIATE WORTH IT? • High cost • High failure rate

  9. EXHIBIT 11.1 PAYING FOR THE EXPATRIATE MANAGER

  10. REASONS FOR U.S. EXPATRIATE FAILURE • Spouse fails to adapt • Manager fails to adapt • Other problems within the family • Personality of the manager • Level of responsibilities

  11. Reasons for expatriate failure, continued • Lack of technical proficiency • No motivation for assignment

  12. MOTIVATIONS TO USE EXPATS • Managers acquire international skills • Coordinate and control operations dispersed activities • Communication of local needs/strategic information to headquarters

  13. KEY EXPATRIATE SUCCESS FACTORS • Professional/technical competence • Relational abilities • Motivation • Family situation • Language skills • Willingness to accept position

  14. PRIORITY OF SUCCESS FACTORS • Depends on : • assignment length • cultural distance • amount of required interaction with local people • job complexity/responsibility

  15. EXHIBIT 11.3 SHOWS A DECISION MATRIX USED TO SET PRIORITIES OR DIFFERENT SUCCESS FACTORS DURING SELECTION

  16. EXPATRIATE TRAINING

  17. TRAINING RIGOR • The extent of effort by trainees and trainers required to prepare the trainees for expatriate positions

  18. LOW RIGOR TRAINING • Short time period • Lectures • Videos on local culture • Briefings on company operations company operations

  19. HIGH RIGOR TRAINING • Lasts over a month • Experiential learning • Extensive language training • Often includes interactions with host country nationals

  20. EXHIBIT 11.4 SHOWS VARIOUS TRAINING TECHNIQUES AND THEIR OBJECTIVES AS THE RIGOR OF THE CROSS- CULTURAL TRAINING GROWS

  21. CHALLENGES OF EXPATRIATE PERFORMANCE APPRAISAL • Unreliable data • Complex and volatile environments • Time differences and distance separation • Local cultural situations

  22. STEPS TO IMPROVE THE PROCESS • 1. Fit the evaluation criteria to strategy. • 2. Fine tune the evaluation criteria • 3. Use multiple evaluators with varying periods of evaluation

  23. EXHIBIT 11.6 Shows several sources of information a superior or the HRM professionals may use to evaluate an expatriate managers

  24. EXPATRIATE COMPENSATION

  25. THE BALANCE SHEET APPROACH • Provides a compensation package that equates purchasing power

  26. BALANCE SHEET COSTS • Allowances for cost of living, housing, utilities, furnishing, educational expenses, medical expenses, club memberships, and car and/or driver expenses

  27. OTHER APPROACHES • Parent country wages everywhere • Wean expatriates from allowances • Pay based on local or regional markets • Cafeteria selection of allowances • Global pay systems

  28. THE REPATRIATION PROBLEM • Difficult for many organizations • "Reverse culture shock" • Expatriates must relearn own national and organizational culture • Includes whole family

  29. STRATEGIES FOR SUCCESSFUL 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

  30. WOMEN EXPATRIATES: 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

  31. SUCCESSFUL WOMEN EXPATRIATES • Foreign not female • emphasize nationality not gender • The woman's advantage • strong in relational skills • wider range of interaction options

  32. MULTINATIONAL STRATEGY AND IHRM

  33. IHRM ORIENTATIONS • Ethnocentric • Polycentric • Regiocentric • Global

  34. IHRM ORIENTATION AND MULTINATIONAL STRATEGY • Early stages of internationalization = ethnocentric IHRM • Multilocal strategies = ethnocentric or regiocentric • Regional strategy = closer to the global

  35. International strategy = ethnocentric or polycentric IHRM • Transnational strategies = a global IHRM

  36. CONCLUSIONS • HRM functions • IHRM challenges • Expatriate managers • The role of women in multinational organizations • Multinational strategies and IHRM orientations

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