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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.
    • Lack of technical proficiency
    • No motivation for assignment
    • Reasons for expatriate failure, continued
  • 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.  
  • 17.
    • EXPATRIATE TRAINING
  • 18.
    • TRAINING RIGOR
    • The extent of effort by trainees and trainers required to prepare the trainees for expatriate positions
  • 19.
    • LOW RIGOR TRAINING
    • Short time period
    • Lectures
    • Videos on local culture
    • Briefings on company operations company operations
  • 20.
    • HIGH RIGOR TRAINING
    • Lasts over a month
    • Experiential learning
    • Extensive language training
    • Often includes interactions with host country nationals
  • 21.
    • EXHIBIT 11.4 SHOWS VARIOUS TRAINING TECHNIQUES AND THEIR OBJECTIVES AS THE RIGOR OF THE CROSS- CULTURAL TRAINING GROWS
  • 22.  
  • 23.  
  • 24.  
  • 25.
    • CHALLENGES OF EXPATRIATE PERFORMANCE APPRAISAL
    • Unreliable data
    • Complex and volatile environments
    • Time differences and distance separation
    • Local cultural situations
  • 26.
    • 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
  • 27.
    • EXHIBIT 11.6 Shows several sources of information a superior or the HRM professionals may use to evaluate an expatriate managers
  • 28.  
  • 29.
    • EXPATRIATE COMPENSATION
  • 30.
    • THE BALANCE SHEET APPROACH
    • Provides a compensation package that equates purchasing power
  • 31.
    • BALANCE SHEET COSTS
    • Allowances for cost of living, housing, utilities, furnishing, educational expenses, medical expenses, club memberships, and car and/or driver expenses
  • 32.  
  • 33.
    • OTHER APPROACHES
    • Parent country wages everywhere
    • Wean expatriates from allowances
    • Pay based on local or regional markets
    • Cafeteria selection of allowances
    • Global pay systems
  • 34.
    • THE REPATRIATION PROBLEM
    • Difficult for many organizations
    • "Reverse culture shock"
    • Expatriates must relearn own national and organizational culture
    • Includes whole family
  • 35.
    • 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
  • 36.
    • 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
  • 37.
    • SUCCESSFUL WOMEN EXPATRIATES
    • Foreign not female
      • emphasize nationality not gender
    • The woman's advantage
      • strong in relational skills
      • wider range of interaction options
  • 38.
    • MULTINATIONAL STRATEGY AND IHRM
  • 39.
    • IHRM ORIENTATIONS
    • Ethnocentric
    • Polycentric
    • Regiocentric
    • Global
  • 40.
    • IHRM ORIENTATION AND MULTINATIONAL STRATEGY
    • Early stages of internationalization = ethnocentric IHRM
    • Multilocal strategies = ethnocentric or regiocentric
    • Regional strategy = closer to the global
  • 41.
    • International strategy = ethnocentric or polycentric IHRM
    • Transnational strategies = a global IHRM
  • 42.
    • CONCLUSIONS
    • HRM functions
    • IHRM challenges
    • Expatriate managers
    • The role of women in multinational organizations
    • Multinational strategies and IHRM orientations