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Mine topics : Gander roles in family
The annotated bibliography should include the following: *Each
entry should be ~1 page.
a. Citation in APA at the top
b. Summary of article
c. Critique of article
d. Any meaningful quotation for your project
e. Keywords
1. The Relationship Between Perceived Family Support
and Depressive Symptoms in Adolescence: What
is the Moderating Role of Coping Strategies and Gender?
https://link.springer.com/article/10.1007%2Fs10597-017-0087-x
Hickey, E., Fitzgerald, A., & Dooley, B. (2017). The
Relationship Between Perceived Family Support and Depressive
Symptoms in Adolescence: What is the Moderating Role of
Coping Strategies and Gender?. 53(4), 474-481.
doi:10.1007/s10597-017-0087-x
2. Work-Family Conflict and Self-Rated Health: the Role of
Gender and Educational Level.
Baseline Data from the Brazilian Longitudinal Study of Adult
Health (ELSA-Brasil).
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4863030/
Griep, R., Toivanen, S., Diepen, C., Guimarães, J., Camelo, L.,
Juvanhol, L., & ... Chor, D. (2016). Work-Family Conflict and
Self-Rated Health: the Role of Gender and Educational Level.
Baseline Data from the Brazilian Longitudinal Study of Adult
Health (ELSA-Brasil). International Journal Of Behavioral
Medicine, 23(3), 372-382. doi:10.1007/s12529-015-9523-x
3. Farming, identity and well-being: managing changing gender
roles within Western European farm families.
Shortall, S. (2014). Farming, identity and well-being: managing
changing gender roles within Western European farm families.
Anthropological Notebooks, 20(3), 67-81.
http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=we
b&cd=1&ved=0ahUKEwjYmvuXw8PWAhVmImMKHfoGCTUQ
FggoMAA&url=http%3A%2F%2Fpure.qub.ac.uk%2Fportal%2Ff
iles%2F14422038%2FAnthropological_Notebooks_XX_3_Short
all.pdf&usg=AFQjCNG4VL5qGCbHtwrG3D5Fs-y6cxFSYw
4. Contextual Influences on Work and Family Roles: Gender,
Culture, and Socioeconomic Factors.
Perrone-McGovern, K. M., Wright, S. L., Howell, D. S., &
Barnum, E. L. (2014). Contextual Influences on Work and
Family Roles: Gender, Culture, and Socioeconomic Factors.
Career Development Quarterly, 62(1), 21-28.
doi:10.1002/j.2161-0045.2014.00067.x
https://www.researchgate.net/publication/260604716_Contextua
l_Influences_on_Work_and_Family_Roles_Gender_Culture_and
_Socioeconomic_Factors
5. Attachment and sensitivity in family context: the roles of
parent and infant gender.
Schoppe-Sullivan, S. J., Diener, M. L., Mangelsdorf, S. C.,
Brown, G. L., McHale, J. L., & Frosch, C. A. (2006).
Attachment and sensitivity in family context: the roles of parent
and infant gender. Infant & Child Development, 15(4), 367-385.
doi:10.1002/icd.449
https://www.researchgate.net/publication/229612287_Attachme
nt_and_sensitivity_in_family_context_The_roles_of_parent_and
_infant_gender
12
HRM in the Local Context:
Knowing When and How to Adapt
Chapter
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Learning Objectives (1 of 3)
Have a basic understanding how the national context affects
HRM practices.
Describe how recruitment and selection practices differ among
national contexts.
Identify possible host adaptations in recruitment and selection
practices for a multinational company.
Explain how training and development techniques are used in
different countries.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Learning Objectives (2 of 3)
Name sources of high-quality workers in different nations.
Understand how training must be adapted to host country
workers.
Identify how performance evaluation and compensation
practices differ in various national contexts.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Learning Objectives (3 of 3)
Discuss possible host country adaptations in performance
evaluation and compensation practices for a multinational
company.
Understand how labor costs vary among nations.
Appreciate how the national context and historical conditions
affect the relationship between management and labor in
different countries.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Key Questions
Regarding Local Employees
How can we identify talented local employees?
How can we attract these employees to apply for jobs?
Can we use our home country’s training methods with local
employees?
What types of appraisal methods are customary?
What types of rewards do local people value?
Do any local laws affect staffing, compensation, and training
decisions?
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Why Do Nations Differ in HRM? (1 of 2)
Because of the national context:
National culture and social institutions influence how managers
make decisions regarding strategies
Countries vary widely with regards to social institutions and
national culture
Multinationals must select and implement practices that meet
national context.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 12.1:
How the National Context Leads to National Differences in
Local HRM Practices
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Why Do Nations Differ in HRM? (2 of 2)
Because of the resource pool: all the human and physical
resources available in a country
Includes quality of labor, availability of scientific laboratories,
and sources of fuel
Arises from both from natural and induced factor conditions
Unique to each country
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Key Factors that Influence
the Resource Pool
The quality, quantity, and accessibility of raw material
The quantity, quality, and cost of personnel available
The scientific, technical, and market-related knowledge
available to firms
The cost and amount of capital available to firms for operations
and expansion
The type, quality, and costs of supporting institutions such as
the systems of communication, education, and transportation
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
National Factor Conditions: Natural and Induced
Natural Factor Conditions: national resources that occur
naturally . E.g., abundant water supply
Induced-Factor Conditions: national resources created by a
nation. E.g., superior educational system
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Characteristics of the National Context That Affect HRM
Education and training of the labor pool
Laws and cultural expectations of selection practices
Types of jobs favored by applicants
Laws and cultural expectations regarding fair wages and
promotion criteria
Laws and traditions regarding labor practices
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Recruitment
The major steps in recruitment
Managers determine that jobs are available
Employers determine the types of people and skills that are
necessary for the job
Employers generate a pool of applicants for the job
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 12.2:
Steps in the Recruiting Process
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Recruitment Strategies
Walk-ins or unsolicited applications
Advertisements placed in newspaper or on the Internet
Company Web site job postings
Internal job postings
Public and private personnel agencies
Placement services of educational institutions
Current employee recommendations
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Recruitment in the U.S.
U.S. managers:
Tend to see online or print advertising as one of the most
effective recruitment methods.
Fear employee referrals result in the recruitment of people with
similar backgrounds
Fear that recruitment by personal contacts may result in biases
against some groups.
Open and public advertisements are the most effective,
reflective of individualistic U.S. culture.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 12.3:
Most Effective Recruiting Sources for U.S. Companies
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Recruitment in
Collectivist Countries
While the U.S. favors open forms of recruitment, recruitment in
collectivist societies tends to focus on the in-group, such as the
family and friends of current employees.
Backdoor Recruitment: prospective employees are friends or
relatives of those already employed
Managers are recruited from prestigious universities.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Recruitment Around the World (1 of 2)
Not only companies but individuals have recruitment
preferences based on national culture & social institutions.
Looking for jobs through public vs. private agencies:
Individuals in former communist and socialist societies were
more likely to rely on public agencies.
Individuals in more individualistic societies used private
agencies.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Recruitment Around the World (2 of 2)
Posting ads and responding to ads:
Both are very public forms of recruitment.
Individualistic societies and egalitarian (low-masculinity)
societies prefer such forms.
Applicants apply directly.
Individuals in Socialist societies and former communist
countries prefer to talk to friends, relatives and other
connections to find a job.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 12.4:
Preferred Ways to Look for a New Job: Public vs. Private
Agency
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 12.5:
Preferred Ways to Look for a New Job: Answered Ads vs.
Advertised
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 12.6:
Preferred Ways to Look for a New Job: Apply vs. Friends &
Family
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Selection in the U.S.
Gather information on a candidate’s job qualifications
Find a match between the candidate’s skills and the job
requirements.
The focus is on the individual’s achievements rather than group
affiliations.
Many firms prohibit Nepotism, the hiring of relatives.
Many also prohibit managers from supervising family members.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 12.7:
Steps in U.S. Personnel Selection
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Selection in
Collectivist Cultures
Hiring always takes the in-group into account.
Preference is given to hiring relatives of first, the employer,
then relatives of employees.
This selection values potential trustworthiness, reliability, and
loyalty over performance-related background.
High school and university ties may substitute for family
membership.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Implications for the Multinational: Recruitment and Selection
Recruitment and selection of host country workers requires that
managers of MNCs understand and adapt to local practices.
If local norms are not followed, the MNC may not get the best
employees, and may offend cultural norms or break host country
laws.
Many firms now using Electronic Human Resources (eHR).
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Training and Development
Within a country, the need for training and development varies
widely industry, technology, etc., but broad national differences
exist.
Differences in training and development are due to:
Differences in educational systems
Emphasis on training placed by national governments
Cultural values regarding other personnel practices
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 12.8:
Training Systems around the World
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 12.9:
Training & Development
in Selected Countries
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Training and Development
in the U.S.
Companies with over 100 employees invest more than $60
billion in training costs.
Management development and computer skills are the most
popular.
There is growing pressure on U. S. businesses to supplement
basic educational training.
The transition to a service sector economy means the need for
specialized skills training will increase.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 12.10:
Skills Taught by U.S. Organization
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Training and Vocational Education in Germany
A sophisticated and standardized national system provides two
major forms of vocational education:
General and specialized vocational schools and professional and
technical colleges
Dual system: A combination of in-house apprenticeship training
with part-time vocational-school training leads to a skilled
worker certificate.
With advanced training, one can achieve the status of Meister: a
master technician.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
The German Dual System
Stems from collaboration among employers, unions, and the
state
Costs are shared between companies and the state.
Employers have an obligation to release employees for training.
Produces a well-trained national labor force with skills that are
not company specific
Dual System under stress due to economic downturn
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 12.11:
Germany’s Apprenticeship Program under Pressure
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Implications for the Multinational: Training and Development
Before operating in a host foreign country, multinational
managers must:
Consider the quality of workers and managers there
Examine the feasibility of exporting training to them
Adaptation of management-development to different national
contexts depends on intended use of host country managers.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Performance Appraisal
Performance Appraisal: Identifying people to reward, promote,
demote, develop & improve, or terminate
Not everyone can move up the corporate ladder.
Assumption in individualistic cultures is that performance
appraisal systems provide rational and fair solutions to these
HR problems.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Performance Appraisal
in the U.S.
U.S. system values links among individual rights, duties and
rewards, and equal opportunity.
The ideal U.S. system is rational, logical and legal.
Such systems have four elements:
Performance standards
Performance measures
Performance feedback
Human resource decisions
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Performance Appraisal Around the World (1 of 3)
Australia, Canada and the United States
These 3 are among the top five countries for all performance-
appraisal purposes.
Very high on individualism, with heavy emphasis on the
individual development of the employee
Performance appraisals are seen as the most effective method to
gauge how well an employee is doing and how their
performance can be improved.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 12.12:
Cross-National Differences in Purposes of Performance
Appraisals
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Performance Appraisal Around the World (2 of 3)
Taiwan and Latin America
Also figure prominently on the list
Possible effects of social institutions such as government and
trade agreements
May be emulating Western-based systems because of a desire to
satisfy trade agreements and other competitiveness requirements
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Performance Appraisal Around the World (3 of 3)
In Collectivist Societies, performance appraisals may not be as
important:
Age and in-group memberships provide a large component of
the psychological contract with the organization.
Human resource decisions take into account personal
background characteristics more than achievement.
Managers indirectly sanction poor performance, and often avoid
direct performance appraisal feedback.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Compensation
Compensation: includes wages and salaries, incentives such as
bonuses, and benefits such as retirement contributions.
There are wide variations among countries and organizations on
how to compensate workers.
A country’s economic development, cultural traditions, labor
unions, and legal institutions all affect compensation.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Compensation in the U.S.
In the U.S., wages and salaries differ based on two major
factors:
External: includes local and national wage rates, government
legislation, and collective bargaining
Internal: includes the importance of the job to the organization,
its affluence and its ability to pay, and the employee’s relative
worth to the business
94% of firms use comparative wage data to determine
compensation.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Compensation Around the World: A Study of 10 Countries
Managers of all countries and regions believed:
Pay incentives should be important.
Pay should be contingent on group performance.
Pay should be contingent on company performance.
Incentives should be a significant amount of pay.
Job performances should be the basis of pay raises.
Benefits should be important.
Benefits should be more generous.
Pay should be based on long-term results.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Compensation in Japan (1 of 2)
Like U.S. firms, Japanese firms determine base salaries largely
by classification of positions.
Seniority has two effects:
Each position has minimum age requirements in addition to
educational requirements. As the employee gains seniority,
eligible to move up.
Seniority factors into pay decisions, but at a declining rate,
diminishing after age 45.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Compensation in Japan (2 of 2)
More recently, the Japanese view of merit affects pay, a major
shift.
Economic pressures have led to adoption of the Nenpo System,
an evaluation based on yearly performance evaluations that
emphasize goals.
Bonus system: Workers often receive as much as 30% of base
salary, usually given twice a year, during traditional gift giving
seasons.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 12.13:
The Japanese Pay Raise Formula: Changing the Balance
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Implications for the Multinational: Performance Evaluation and
Compensation
Multinational companies must match their performance
evaluation system to their multinational strategies.
If a multinational is located in many nations, it may need
several different compensation packages for host country
nationals.
Multinationals seeking location advantages in wages may
consider Eastern Europe and India.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
A Comparative View of
Labor Relations
Variations of labor relations arise from cultural differences, but
also:
Historical factors
Ideological reasons
Management views of unions
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Union-Membership Density
Union-Member Density is the proportion of workers in a
country who belong to unions.
In the U.S., union membership has declined considerably over
the past 30 years.
Union membership in industrialized countries generally
averages over 50%.
In South Africa with the opening of unions to the formerly
barred black population, membership has more than doubled in
size.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 12.14:
Union Density, Selected Countries
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Historical and
Institutional Differences
Britain
Unions developed without government interference.
Lack of government intervention led management and workers
to develop strong adversarial relationships that remain in
existence today.
Germany
Labor relations are formalized, legalistic, and low-conflict with
centralized bargaining among unions and corporations;
government is an intermediary.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Historical and
Institutional Differences
French
Unions began late, and developed slowly.
The lack of legal protection of French workers and difficulties
of unionization led to highly militant unions, some with
ideological orientations.
U.S.
Legal protection for unions passed in 1935.
Unions focused on “Bread and butter” issues: wages, benefits,
and working conditions
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Union Structures (1 of 2)
Several types of unions exist:
Enterprise Union: represents all people in one organization,
regardless of occupation or location
Craft Union: represents people from one occupational group,
such as plumbers
Industrial Union: represents all people in a particular industry,
regardless of occupational type
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Union Structures (2 of 2)
Several types of unions exist: (cont’d)
Local Union: represents one occupational group in one company
Ideological Union: represents all types of workers based on
some particular ideology or religious orientation
White collar or professional Union: represents particular
occupational group, similar to craft union
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 12.15:
Popular Form of Unions in Selected Countries
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Implications for the Multinational: The Search for Harmony
When they use local workers, multinational companies must
deal with local labor practices, traditions and laws.
These must be considered in any strategic decision regarding
locating in another country.
Example: In the U.S., Japanese companies have avoided
locations in the more union-friendly Northern states, favoring
instead Southern locations with less union activism.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Summary
Chapter 12 highlighted fundamental national differences in the
various HRM functions.
Chapter 12 discussed how national context affects HRM.
The Chapter compared the U.S. with many other countries on
recruitment, selection, training, performance appraisal and
compensation.
Chapter 12 also dealt with differences in labor relations.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
11
International Human Resource Management
Chapter
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Learning Objectives (1 of 3)
Know the basic functions of human resource management.
Define international human resource management.
Understand how international human resource management
differs from domestic human resource management.
Know the types of workers that multinational companies use.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Learning Objectives (2 of 3)
Explain how and when multinational companies decide to use
expatriate managers.
Know the skills necessary for a successful expatriate
assignment.
Understand how expatriate managers are compensated and
evaluated.
Appreciate the issues regarding expatriate assignments for
female managers.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Learning Objectives (3 of 3)
Know what companies can do to make the expatriate assignment
easier for their female expatriates.
Understand the relationship between choice of a multinational
strategy and international human resource management.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Human Resource Management (HRM)
Human Resource Management (HRM): deals with the overall
relationship of the employee with the organization
Major goals of HRM are managing and developing human
assets.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Basic HRM Functions (1 of 2)
Basic HRM functions are:
Recruitment: identification of qualified individuals for a vacant
position
Selection: process of filling vacant positions in the organization
Training: providing opportunities to help the individual to
perform
Performance Appraisal: assessing the individual’s performance
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Basic HRM Functions (2 of 2)
Basic HRM functions are: (cont’d)
Compensation: providing the adequate reward package
Labor Relations: the relationship between the individual and the
company
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
International Human
Resource Management (IHRM)
When applied to the international setting, the HRM functions
make up International Human Resource Management.
In the international arena, the basic HRM activities take on an
added complexity, for two reasons:
Employees of MNCs include a mixture of workers of different
nationalities.
HR Managers must decide the necessary extent of adaptation to
local business & national cultures.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Types of Employees in Multinational Organizations (1 of 2)
Expatriate: Employees who come from a country that is
different from the one in which they are working
Home Country Nationals: Expatriate employees who come from
the parent firm’s home country
Third Country Nationals: Expatriate workers who come from
neither the host nor the home country.
Host Country Nationals: Local workers who come from the host
country where the MNC unit is located.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Types of Employees in Multinational Organizations (2 of 2)
Inpatriate: Employees from foreign countries who work in the
country where the parent company is located.
Flexpatriates: Employees who are sent on frequent but short-
term international assignments.
International Cadre (Globals): Managers who specialize in
international assignments.
Commuter Assignments Employees: Employees who live in one
country, but spend part of the work week in another country.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Multinational Managers:
Expatriate or Host Country (1 of 2)
Deciding whether to use expatriate or local mangers depends
mostly on a firm’s multinational strategy.
Transnational strategists see their managerial recruits as
employable anywhere in the world.
Multidomestic strategists tend to favor local managers.
For a particular position, the firm should ask:
Given our strategy, what is our preference for this position
(host, home, or third country national)?
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Multinational Managers:
Expatriate or Host Country (2 of 2)
For expatriate managers (parent or third country):
Is there an available pool of managers with appropriate skills
for the position?
Are they willing to take expatriate assignments?
Do any laws affect the assignment of expatriate managers?
For host country managers:
Do they have the expertise for the position?
Can we recruit them from outside our firm?
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Is the Expatriate Worth It?
IHRM decisions regarding use of expatriate managers must
take into account the costs of such assignments.
The total compensation of expatriate managers is often 3-4
times higher than home-based salaries.
In addition to high costs of relocating expatriates, more
multinationals are now concerned with expatriate safety
worldwide.
Also, the failure rate of U.S. expatriates is higher than those
from Europe and Japan.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 11.1:
Percent of Millenials Who Want to Work Outside of their Home
Country
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 11.2:
The Ten Most Expensive
and Least Expensive Cities
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Reasons for
U.S. Expatriate Failure (1 of 3)
Individual:
Personality of the manager
Lack of technical proficiency
No motivation for international assignment
Family:
Spouse or family members fail to adapt to local culture.
Spouse or family members do not want to be there.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Reasons for
U.S. Expatriate Failure (2 of 3)
Cultural:
The Manager fails to adapt to local culture or environment.
The Manager fails to develop relationships with key people in
the new country because of the complexity of cultivating
networks with diverse people.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Reasons for
U.S. Expatriate Failure (3 of 3)
Organizational:
Excess of difficult responsibilities in the assignment
Failure to provide cultural and other important pre-assignment
training, like language and culture
Failure of company to pick the right person
Company’s failure to provide the level of technical support that
domestic managers are used to
Failure of the company to consider gender equity
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
The Strategic Role of
Expatriate Assignments
Help managers acquire skills necessary to develop successful
strategies in a global context
Help the company coordinate and control operations that are
dispersed geographically and culturally
Provide important strategic information.
Provide crucial information about local markets
Provide opportunities for management development
Provide important network knowledge
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Selecting Expatriate Managers
Selecting the wrong person for the job leads to failure.
Selecting the wrong person can be a major expense, costing
more than $1 million per expatriate failure.
Improperly selected employees who cannot perform but who
remain on assignment can be more damaging to the firm than
those who leave prematurely.
Domestic performance does not predict expatriate performance.
Selection criteria may differ.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Key Success Factors for Expatriate Assignments
Technical and managerial skills
Personality traits (flexible, willing to learn)
Relational abilities (ability to adapt to other cultures)
Family situation (spouse & family willingness to go)
Stress tolerance (ability to maintain composure)
Language ability (speak, read & write the language)
Emotional intelligence (empathize, relate to others)
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 11.3:
Expatriate Success Factors
and Selection Methods
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
The Priority of Success Factors for Expatriate Assignments
The importance of success factors for a particular assignment
depends on four assignment conditions:
Assignment length
Short assignments focus on technical and professionals skills
Cultural similarity
Required interaction and communication with locals
Job complexity and responsibility
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 11.4:
What Percentage of Companies are Using More Short Term
Assignments?
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 11.5:
Selecting Expatriates: Priorities for Success Factors by
Assignment
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Training and Development (1 of 2)
Predeparture cross-cultural training reduces expatriate failure
rates and increases job performance.
The main objective of Cross-Cultural Training is to increase
the relational abilities of the future expatriate and the spouse
and family.
The training rigor depends on the assignment.
Training Rigor: The extent of effort by both trainees and
trainers to prepare the expatriate for work abroad
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Training and Development (2 of 2)
Low rigor training
Short time period
Consists of lectures and videos on local cultures
Briefings on company operations
High rigor training
Lasts over a month
More experiential learning
Extensive language training
Includes interactions with host country nationals
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 11.6:
Building Cross-Cultural Training Rigor: Techniques and
Objectives
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 11.7:
Training Needs and
Expatriate Assignment Characteristics
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Performance Appraisal
for the Expatriate
Conducting reliable performance appraisal for the expatriate is
very challenging.
Seldom can the firm use same performance criteria.
Challenges:
Fit of international operation in multinational strategy
Unreliable data
Complex and volatile environments
Time differences and distance separation
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Steps to Improve the Expatriate Performance Appraisal
Without intensive and direct contact, performance appraisals
can fail to demonstrate a comprehensive understanding of the
expatriate manager’s situation.
To overcome these difficulties:
Fit the evaluation criteria to the strategy.
Fine-tune the evaluation criteria.
Use multiple sources of evaluation with varying periods of
evaluation.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 11.8:
Evaluation Sources, Criteria, and Time Periods for Expatriate
Evaluation
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Expatriate Compensation
Compensation packages must be attractive to skilled managers,
but also consider the increasing costs.
Compensation packages have many common factors:
Local market cost of living
Housing
Taxes
Benefits
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
The Balance-Sheet Approach
(1 of 2)
Provides a compensation package that attempts to balance
purchasing power in the host country with that in the home
country.
The expatriate should not be in a better or worse position
financially because of the assignment.
The firm provides allowances for adjustments for differences in
taxes, cost of living, housing, food, recreation, personal care,
clothing, education, home furnishing, transportation, and
medical care.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
The Balance-Sheet Approach
(2 of 2)
In addition to matching purchasing power, firms may provide
additional allowances:
Foreign service premiums (often 10-20% of base pay)
Hardship allowance (extra money for difficult postings)
Relocation allowances (miscellaneous costs of move)
Home-leave allowances (transportation costs to return home
once or twice per year)
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 11.9:
The Balance Sheet Approach
To Expatriate Compensation
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Other Approaches
to Expatriate Compensation
The high cost of expatriate compensation and the trend toward
worldwide workers has resulted in modifications of the balance
sheet approach. Some variations:
Headquarters-based Compensation: paying home country wages
regardless of location
Host-based Compensation: adjusting wages to local lifestyles
and costs of living
Global pay systems: worldwide job evaluations, performance
appraisal methods, and salary scales
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
The Repatriation Problem
Repatriation Problem: the difficulties that mangers face coming
back to their home countries and reconnecting with their old
jobs.
Three basic cultural problems “reverse culture shocks:”
Adapting to new work environment and culture of home office
Relearning to communicate with others in home and
organizational cultures
Adapting to their basic living environment
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Strategies for
Successful Repatriation
These strategies may help firms to successfully repatriate their
managers:
Provide a strategic purpose for the repatriation.
Establish a team to aid the expatriate.
Provide parent country information sources.
Provide training and preparation for the return.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
International Assignments
for Women (1 of 2)
Women in international assignments are strikingly rare.
Estimates are that women represent only 12% of expatriate
managers, but 45% of management.
Women face a glass ceiling at home, and an expatriate glass
ceiling worldwide, because of 2 myths:
Myth 1: Women do not wish to take international assignments.
Myth 2: Women will fail because of the foreign culture’s
prejudices against local women.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
International Assignments
for Women (2 of 2)
Don’t assume that people from foreign cultures apply the same
gender role expectations to foreign workers that they do to local
women.
Successful women expatriates emphasize nationality, not
gender.
The issues that arise in cross-cultural interactions depend more
on how foreigners react to those of a different nationality.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
International Assignments
for Women: Advantages
Women may have advantages in expatriate positions:
Being unique means she becomes more visible.
Local business people from traditional cultures assume that she
is the best person for the job.
Women are more likely to excel in relational skills, a major
factor in expatriate success.
Local men speak at ease with a woman about more topics than
men, leading to more interaction.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
International Assignments
for Women: Disadvantages
Women also suffer disadvantages worse than males:
Face the glass ceiling, isolation and loneliness; need to work
harder to prove themselves.
Seldom given an international assignment until later in their
careers.
Need to balance work and family responsibilities
Need to worry about accompanying spouse
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
What Can Companies Do
to Ensure
Female Expatriate Success?
Despite the disadvantages they face, opportunities for women as
expatriate managers are expected to grow:
Shortage of high-quality multinational managers.
Fewer men are willing to take the assignments.
What firms can do to ensure the success of women:
Provide mentors, networking with other women
Identify and remove sources of barriers to international
assignment.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Multinational Strategy
and IHRM (1 of 2)
Multinational companies have several options for developing
the appropriate IHRM policies for the implementation of their
multinational strategies.
One way is to examine its IHRM orientation, or philosophy.
IHRM Orientation: A company’s basic tactics and philosophy
for coordinating IHRM activities for managerial and technical
workers.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Multinational Strategy
and IHRM (2 of 2)
There are four basic IHRM orientations:
Ethnocentric: All aspects of HRM tend to follow the parent
organization’s home country HRM practices.
Regiocentric & Polycentric: HRM is more responsive to the host
country differences in HRM practices.
Global: The firm assigns its best managers to international
assignments, recruiting worldwide.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 11.10:
IHRM Orientation and Practices for Managers & Technical
Workers
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Ethnocentric IHRM Benefits
Benefits:
Little need to recruit qualified host country nationals for higher
management
Greater control and loyalty of home country nationals
Little need to train home country nationals
Key decisions centralized
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Ethnocentric IHRM Costs
Costs:
May limit career development for host country nationals
Host country nationals may never identify with the home
company
Expatriate managers are often poorly trained for international
assignments and make mistakes
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Regiocentric & Polycentric IHRM Benefits
Benefits:
Reduces training expenses
Fewer language and adjustment issues
Lessened hiring and relocation costs
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Regiocentric & Polycentric IHRM Costs
Costs:
Coordination problems with headquarters based on cultural,
language, and loyalty differences
Limited career-path opportunities for host country and regional
managers
Limited international experiences for home country managers
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Global IHRM Benefits & Costs
Benefits
Bigger talent pool
High international expertise
Development of transnational organizational cultures
Costs
Difficulty in importing managerial and technical employees
Added expense
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Summary
When basic HRM practices are applied to a company’s
international operations, they become IHRM.
Chapter 11 focused on HRM practices for expatriates.
Expatriates present special challenges for MNCs.
Successful IHRM is a 21st century challenge.
Globalization allows MNCs to hire from a worldwide pool of
talent.
It is important for multinationals to find ways to properly
manage expatriates successfully.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Management 66
1.) Describe the types of employees in multinational firms. How
does IHRM select and prepare them for international
assignments?
2.) Explain the role of the female expatriate. Investigate reasons
why they may not be selected for international assignments.
What can multinational companies do to help them succeed?
3.) Compare and contrast the four IHRM orientations. How can
each support a multinational strategy?
4.) Expatriates who return home from international assignments
may experience post-assignment adjustment problems. What
kinds of problems may they experience? What recommendations
can you provide on how multinational companies can address
these problems?

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  • 1. Mine topics : Gander roles in family The annotated bibliography should include the following: *Each entry should be ~1 page. a. Citation in APA at the top b. Summary of article c. Critique of article d. Any meaningful quotation for your project e. Keywords 1. The Relationship Between Perceived Family Support and Depressive Symptoms in Adolescence: What is the Moderating Role of Coping Strategies and Gender? https://link.springer.com/article/10.1007%2Fs10597-017-0087-x Hickey, E., Fitzgerald, A., & Dooley, B. (2017). The Relationship Between Perceived Family Support and Depressive Symptoms in Adolescence: What is the Moderating Role of Coping Strategies and Gender?. 53(4), 474-481. doi:10.1007/s10597-017-0087-x 2. Work-Family Conflict and Self-Rated Health: the Role of Gender and Educational Level. Baseline Data from the Brazilian Longitudinal Study of Adult Health (ELSA-Brasil). https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4863030/ Griep, R., Toivanen, S., Diepen, C., Guimarães, J., Camelo, L., Juvanhol, L., & ... Chor, D. (2016). Work-Family Conflict and Self-Rated Health: the Role of Gender and Educational Level. Baseline Data from the Brazilian Longitudinal Study of Adult Health (ELSA-Brasil). International Journal Of Behavioral Medicine, 23(3), 372-382. doi:10.1007/s12529-015-9523-x 3. Farming, identity and well-being: managing changing gender roles within Western European farm families.
  • 2. Shortall, S. (2014). Farming, identity and well-being: managing changing gender roles within Western European farm families. Anthropological Notebooks, 20(3), 67-81. http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=we b&cd=1&ved=0ahUKEwjYmvuXw8PWAhVmImMKHfoGCTUQ FggoMAA&url=http%3A%2F%2Fpure.qub.ac.uk%2Fportal%2Ff iles%2F14422038%2FAnthropological_Notebooks_XX_3_Short all.pdf&usg=AFQjCNG4VL5qGCbHtwrG3D5Fs-y6cxFSYw 4. Contextual Influences on Work and Family Roles: Gender, Culture, and Socioeconomic Factors. Perrone-McGovern, K. M., Wright, S. L., Howell, D. S., & Barnum, E. L. (2014). Contextual Influences on Work and Family Roles: Gender, Culture, and Socioeconomic Factors. Career Development Quarterly, 62(1), 21-28. doi:10.1002/j.2161-0045.2014.00067.x https://www.researchgate.net/publication/260604716_Contextua l_Influences_on_Work_and_Family_Roles_Gender_Culture_and _Socioeconomic_Factors 5. Attachment and sensitivity in family context: the roles of parent and infant gender. Schoppe-Sullivan, S. J., Diener, M. L., Mangelsdorf, S. C., Brown, G. L., McHale, J. L., & Frosch, C. A. (2006). Attachment and sensitivity in family context: the roles of parent and infant gender. Infant & Child Development, 15(4), 367-385. doi:10.1002/icd.449 https://www.researchgate.net/publication/229612287_Attachme nt_and_sensitivity_in_family_context_The_roles_of_parent_and _infant_gender 12 HRM in the Local Context:
  • 3. Knowing When and How to Adapt Chapter © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives (1 of 3) Have a basic understanding how the national context affects HRM practices. Describe how recruitment and selection practices differ among national contexts. Identify possible host adaptations in recruitment and selection practices for a multinational company. Explain how training and development techniques are used in different countries. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives (2 of 3) Name sources of high-quality workers in different nations. Understand how training must be adapted to host country workers. Identify how performance evaluation and compensation practices differ in various national contexts.
  • 4. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives (3 of 3) Discuss possible host country adaptations in performance evaluation and compensation practices for a multinational company. Understand how labor costs vary among nations. Appreciate how the national context and historical conditions affect the relationship between management and labor in different countries. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Key Questions Regarding Local Employees How can we identify talented local employees? How can we attract these employees to apply for jobs? Can we use our home country’s training methods with local employees? What types of appraisal methods are customary? What types of rewards do local people value? Do any local laws affect staffing, compensation, and training decisions?
  • 5. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Why Do Nations Differ in HRM? (1 of 2) Because of the national context: National culture and social institutions influence how managers make decisions regarding strategies Countries vary widely with regards to social institutions and national culture Multinationals must select and implement practices that meet national context. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 12.1: How the National Context Leads to National Differences in Local HRM Practices © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Why Do Nations Differ in HRM? (2 of 2) Because of the resource pool: all the human and physical resources available in a country Includes quality of labor, availability of scientific laboratories, and sources of fuel
  • 6. Arises from both from natural and induced factor conditions Unique to each country © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Key Factors that Influence the Resource Pool The quality, quantity, and accessibility of raw material The quantity, quality, and cost of personnel available The scientific, technical, and market-related knowledge available to firms The cost and amount of capital available to firms for operations and expansion The type, quality, and costs of supporting institutions such as the systems of communication, education, and transportation © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. National Factor Conditions: Natural and Induced Natural Factor Conditions: national resources that occur naturally . E.g., abundant water supply Induced-Factor Conditions: national resources created by a nation. E.g., superior educational system © 2013 Cengage Learning. All Rights Reserved. May not be
  • 7. scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Characteristics of the National Context That Affect HRM Education and training of the labor pool Laws and cultural expectations of selection practices Types of jobs favored by applicants Laws and cultural expectations regarding fair wages and promotion criteria Laws and traditions regarding labor practices © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Recruitment The major steps in recruitment Managers determine that jobs are available Employers determine the types of people and skills that are necessary for the job Employers generate a pool of applicants for the job © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 12.2: Steps in the Recruiting Process
  • 8. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Recruitment Strategies Walk-ins or unsolicited applications Advertisements placed in newspaper or on the Internet Company Web site job postings Internal job postings Public and private personnel agencies Placement services of educational institutions Current employee recommendations © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Recruitment in the U.S. U.S. managers: Tend to see online or print advertising as one of the most effective recruitment methods. Fear employee referrals result in the recruitment of people with similar backgrounds Fear that recruitment by personal contacts may result in biases against some groups. Open and public advertisements are the most effective, reflective of individualistic U.S. culture. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 9. Exhibit 12.3: Most Effective Recruiting Sources for U.S. Companies © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Recruitment in Collectivist Countries While the U.S. favors open forms of recruitment, recruitment in collectivist societies tends to focus on the in-group, such as the family and friends of current employees. Backdoor Recruitment: prospective employees are friends or relatives of those already employed Managers are recruited from prestigious universities. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Recruitment Around the World (1 of 2) Not only companies but individuals have recruitment preferences based on national culture & social institutions. Looking for jobs through public vs. private agencies: Individuals in former communist and socialist societies were more likely to rely on public agencies. Individuals in more individualistic societies used private agencies.
  • 10. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Recruitment Around the World (2 of 2) Posting ads and responding to ads: Both are very public forms of recruitment. Individualistic societies and egalitarian (low-masculinity) societies prefer such forms. Applicants apply directly. Individuals in Socialist societies and former communist countries prefer to talk to friends, relatives and other connections to find a job. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 12.4: Preferred Ways to Look for a New Job: Public vs. Private Agency © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 12.5: Preferred Ways to Look for a New Job: Answered Ads vs.
  • 11. Advertised © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 12.6: Preferred Ways to Look for a New Job: Apply vs. Friends & Family © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Selection in the U.S. Gather information on a candidate’s job qualifications Find a match between the candidate’s skills and the job requirements. The focus is on the individual’s achievements rather than group affiliations. Many firms prohibit Nepotism, the hiring of relatives. Many also prohibit managers from supervising family members. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 12.7:
  • 12. Steps in U.S. Personnel Selection © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Selection in Collectivist Cultures Hiring always takes the in-group into account. Preference is given to hiring relatives of first, the employer, then relatives of employees. This selection values potential trustworthiness, reliability, and loyalty over performance-related background. High school and university ties may substitute for family membership. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Implications for the Multinational: Recruitment and Selection Recruitment and selection of host country workers requires that managers of MNCs understand and adapt to local practices. If local norms are not followed, the MNC may not get the best employees, and may offend cultural norms or break host country laws. Many firms now using Electronic Human Resources (eHR). © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
  • 13. website, in whole or in part. Training and Development Within a country, the need for training and development varies widely industry, technology, etc., but broad national differences exist. Differences in training and development are due to: Differences in educational systems Emphasis on training placed by national governments Cultural values regarding other personnel practices © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 12.8: Training Systems around the World © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 12.9: Training & Development in Selected Countries © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
  • 14. website, in whole or in part. Training and Development in the U.S. Companies with over 100 employees invest more than $60 billion in training costs. Management development and computer skills are the most popular. There is growing pressure on U. S. businesses to supplement basic educational training. The transition to a service sector economy means the need for specialized skills training will increase. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 12.10: Skills Taught by U.S. Organization © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Training and Vocational Education in Germany A sophisticated and standardized national system provides two major forms of vocational education: General and specialized vocational schools and professional and
  • 15. technical colleges Dual system: A combination of in-house apprenticeship training with part-time vocational-school training leads to a skilled worker certificate. With advanced training, one can achieve the status of Meister: a master technician. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The German Dual System Stems from collaboration among employers, unions, and the state Costs are shared between companies and the state. Employers have an obligation to release employees for training. Produces a well-trained national labor force with skills that are not company specific Dual System under stress due to economic downturn © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 12.11: Germany’s Apprenticeship Program under Pressure © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
  • 16. website, in whole or in part. Implications for the Multinational: Training and Development Before operating in a host foreign country, multinational managers must: Consider the quality of workers and managers there Examine the feasibility of exporting training to them Adaptation of management-development to different national contexts depends on intended use of host country managers. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Performance Appraisal Performance Appraisal: Identifying people to reward, promote, demote, develop & improve, or terminate Not everyone can move up the corporate ladder. Assumption in individualistic cultures is that performance appraisal systems provide rational and fair solutions to these HR problems. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Performance Appraisal in the U.S. U.S. system values links among individual rights, duties and rewards, and equal opportunity. The ideal U.S. system is rational, logical and legal.
  • 17. Such systems have four elements: Performance standards Performance measures Performance feedback Human resource decisions © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Performance Appraisal Around the World (1 of 3) Australia, Canada and the United States These 3 are among the top five countries for all performance- appraisal purposes. Very high on individualism, with heavy emphasis on the individual development of the employee Performance appraisals are seen as the most effective method to gauge how well an employee is doing and how their performance can be improved. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 12.12: Cross-National Differences in Purposes of Performance Appraisals © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
  • 18. website, in whole or in part. Performance Appraisal Around the World (2 of 3) Taiwan and Latin America Also figure prominently on the list Possible effects of social institutions such as government and trade agreements May be emulating Western-based systems because of a desire to satisfy trade agreements and other competitiveness requirements © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Performance Appraisal Around the World (3 of 3) In Collectivist Societies, performance appraisals may not be as important: Age and in-group memberships provide a large component of the psychological contract with the organization. Human resource decisions take into account personal background characteristics more than achievement. Managers indirectly sanction poor performance, and often avoid direct performance appraisal feedback. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Compensation Compensation: includes wages and salaries, incentives such as bonuses, and benefits such as retirement contributions.
  • 19. There are wide variations among countries and organizations on how to compensate workers. A country’s economic development, cultural traditions, labor unions, and legal institutions all affect compensation. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Compensation in the U.S. In the U.S., wages and salaries differ based on two major factors: External: includes local and national wage rates, government legislation, and collective bargaining Internal: includes the importance of the job to the organization, its affluence and its ability to pay, and the employee’s relative worth to the business 94% of firms use comparative wage data to determine compensation. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Compensation Around the World: A Study of 10 Countries Managers of all countries and regions believed: Pay incentives should be important. Pay should be contingent on group performance. Pay should be contingent on company performance. Incentives should be a significant amount of pay. Job performances should be the basis of pay raises. Benefits should be important.
  • 20. Benefits should be more generous. Pay should be based on long-term results. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Compensation in Japan (1 of 2) Like U.S. firms, Japanese firms determine base salaries largely by classification of positions. Seniority has two effects: Each position has minimum age requirements in addition to educational requirements. As the employee gains seniority, eligible to move up. Seniority factors into pay decisions, but at a declining rate, diminishing after age 45. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Compensation in Japan (2 of 2) More recently, the Japanese view of merit affects pay, a major shift. Economic pressures have led to adoption of the Nenpo System, an evaluation based on yearly performance evaluations that emphasize goals. Bonus system: Workers often receive as much as 30% of base salary, usually given twice a year, during traditional gift giving seasons.
  • 21. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 12.13: The Japanese Pay Raise Formula: Changing the Balance © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Implications for the Multinational: Performance Evaluation and Compensation Multinational companies must match their performance evaluation system to their multinational strategies. If a multinational is located in many nations, it may need several different compensation packages for host country nationals. Multinationals seeking location advantages in wages may consider Eastern Europe and India. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. A Comparative View of Labor Relations Variations of labor relations arise from cultural differences, but also: Historical factors
  • 22. Ideological reasons Management views of unions © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Union-Membership Density Union-Member Density is the proportion of workers in a country who belong to unions. In the U.S., union membership has declined considerably over the past 30 years. Union membership in industrialized countries generally averages over 50%. In South Africa with the opening of unions to the formerly barred black population, membership has more than doubled in size. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 12.14: Union Density, Selected Countries © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 23. Historical and Institutional Differences Britain Unions developed without government interference. Lack of government intervention led management and workers to develop strong adversarial relationships that remain in existence today. Germany Labor relations are formalized, legalistic, and low-conflict with centralized bargaining among unions and corporations; government is an intermediary. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Historical and Institutional Differences French Unions began late, and developed slowly. The lack of legal protection of French workers and difficulties of unionization led to highly militant unions, some with ideological orientations. U.S. Legal protection for unions passed in 1935. Unions focused on “Bread and butter” issues: wages, benefits, and working conditions © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 24. Union Structures (1 of 2) Several types of unions exist: Enterprise Union: represents all people in one organization, regardless of occupation or location Craft Union: represents people from one occupational group, such as plumbers Industrial Union: represents all people in a particular industry, regardless of occupational type © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Union Structures (2 of 2) Several types of unions exist: (cont’d) Local Union: represents one occupational group in one company Ideological Union: represents all types of workers based on some particular ideology or religious orientation White collar or professional Union: represents particular occupational group, similar to craft union © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 12.15: Popular Form of Unions in Selected Countries © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
  • 25. website, in whole or in part. Implications for the Multinational: The Search for Harmony When they use local workers, multinational companies must deal with local labor practices, traditions and laws. These must be considered in any strategic decision regarding locating in another country. Example: In the U.S., Japanese companies have avoided locations in the more union-friendly Northern states, favoring instead Southern locations with less union activism. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Summary Chapter 12 highlighted fundamental national differences in the various HRM functions. Chapter 12 discussed how national context affects HRM. The Chapter compared the U.S. with many other countries on recruitment, selection, training, performance appraisal and compensation. Chapter 12 also dealt with differences in labor relations. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11
  • 26. International Human Resource Management Chapter © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives (1 of 3) Know the basic functions of human resource management. Define international human resource management. Understand how international human resource management differs from domestic human resource management. Know the types of workers that multinational companies use. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives (2 of 3) Explain how and when multinational companies decide to use expatriate managers. Know the skills necessary for a successful expatriate assignment. Understand how expatriate managers are compensated and evaluated. Appreciate the issues regarding expatriate assignments for female managers.
  • 27. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives (3 of 3) Know what companies can do to make the expatriate assignment easier for their female expatriates. Understand the relationship between choice of a multinational strategy and international human resource management. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Human Resource Management (HRM) Human Resource Management (HRM): deals with the overall relationship of the employee with the organization Major goals of HRM are managing and developing human assets. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Basic HRM Functions (1 of 2) Basic HRM functions are: Recruitment: identification of qualified individuals for a vacant position Selection: process of filling vacant positions in the organization
  • 28. Training: providing opportunities to help the individual to perform Performance Appraisal: assessing the individual’s performance © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Basic HRM Functions (2 of 2) Basic HRM functions are: (cont’d) Compensation: providing the adequate reward package Labor Relations: the relationship between the individual and the company © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. International Human Resource Management (IHRM) When applied to the international setting, the HRM functions make up International Human Resource Management. In the international arena, the basic HRM activities take on an added complexity, for two reasons: Employees of MNCs include a mixture of workers of different nationalities. HR Managers must decide the necessary extent of adaptation to local business & national cultures.
  • 29. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Types of Employees in Multinational Organizations (1 of 2) Expatriate: Employees who come from a country that is different from the one in which they are working Home Country Nationals: Expatriate employees who come from the parent firm’s home country Third Country Nationals: Expatriate workers who come from neither the host nor the home country. Host Country Nationals: Local workers who come from the host country where the MNC unit is located. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Types of Employees in Multinational Organizations (2 of 2) Inpatriate: Employees from foreign countries who work in the country where the parent company is located. Flexpatriates: Employees who are sent on frequent but short- term international assignments. International Cadre (Globals): Managers who specialize in international assignments. Commuter Assignments Employees: Employees who live in one country, but spend part of the work week in another country. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 30. Multinational Managers: Expatriate or Host Country (1 of 2) Deciding whether to use expatriate or local mangers depends mostly on a firm’s multinational strategy. Transnational strategists see their managerial recruits as employable anywhere in the world. Multidomestic strategists tend to favor local managers. For a particular position, the firm should ask: Given our strategy, what is our preference for this position (host, home, or third country national)? © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Multinational Managers: Expatriate or Host Country (2 of 2) For expatriate managers (parent or third country): Is there an available pool of managers with appropriate skills for the position? Are they willing to take expatriate assignments? Do any laws affect the assignment of expatriate managers? For host country managers: Do they have the expertise for the position? Can we recruit them from outside our firm? © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 31. Is the Expatriate Worth It? IHRM decisions regarding use of expatriate managers must take into account the costs of such assignments. The total compensation of expatriate managers is often 3-4 times higher than home-based salaries. In addition to high costs of relocating expatriates, more multinationals are now concerned with expatriate safety worldwide. Also, the failure rate of U.S. expatriates is higher than those from Europe and Japan. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 11.1: Percent of Millenials Who Want to Work Outside of their Home Country © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 11.2: The Ten Most Expensive and Least Expensive Cities © 2013 Cengage Learning. All Rights Reserved. May not be
  • 32. scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Reasons for U.S. Expatriate Failure (1 of 3) Individual: Personality of the manager Lack of technical proficiency No motivation for international assignment Family: Spouse or family members fail to adapt to local culture. Spouse or family members do not want to be there. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Reasons for U.S. Expatriate Failure (2 of 3) Cultural: The Manager fails to adapt to local culture or environment. The Manager fails to develop relationships with key people in the new country because of the complexity of cultivating networks with diverse people. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Reasons for
  • 33. U.S. Expatriate Failure (3 of 3) Organizational: Excess of difficult responsibilities in the assignment Failure to provide cultural and other important pre-assignment training, like language and culture Failure of company to pick the right person Company’s failure to provide the level of technical support that domestic managers are used to Failure of the company to consider gender equity © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Strategic Role of Expatriate Assignments Help managers acquire skills necessary to develop successful strategies in a global context Help the company coordinate and control operations that are dispersed geographically and culturally Provide important strategic information. Provide crucial information about local markets Provide opportunities for management development Provide important network knowledge © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Selecting Expatriate Managers Selecting the wrong person for the job leads to failure. Selecting the wrong person can be a major expense, costing
  • 34. more than $1 million per expatriate failure. Improperly selected employees who cannot perform but who remain on assignment can be more damaging to the firm than those who leave prematurely. Domestic performance does not predict expatriate performance. Selection criteria may differ. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Key Success Factors for Expatriate Assignments Technical and managerial skills Personality traits (flexible, willing to learn) Relational abilities (ability to adapt to other cultures) Family situation (spouse & family willingness to go) Stress tolerance (ability to maintain composure) Language ability (speak, read & write the language) Emotional intelligence (empathize, relate to others) © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 11.3: Expatriate Success Factors and Selection Methods © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
  • 35. website, in whole or in part. The Priority of Success Factors for Expatriate Assignments The importance of success factors for a particular assignment depends on four assignment conditions: Assignment length Short assignments focus on technical and professionals skills Cultural similarity Required interaction and communication with locals Job complexity and responsibility © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 11.4: What Percentage of Companies are Using More Short Term Assignments? © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 11.5: Selecting Expatriates: Priorities for Success Factors by Assignment © 2013 Cengage Learning. All Rights Reserved. May not be
  • 36. scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Training and Development (1 of 2) Predeparture cross-cultural training reduces expatriate failure rates and increases job performance. The main objective of Cross-Cultural Training is to increase the relational abilities of the future expatriate and the spouse and family. The training rigor depends on the assignment. Training Rigor: The extent of effort by both trainees and trainers to prepare the expatriate for work abroad © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Training and Development (2 of 2) Low rigor training Short time period Consists of lectures and videos on local cultures Briefings on company operations High rigor training Lasts over a month More experiential learning Extensive language training Includes interactions with host country nationals © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 37. Exhibit 11.6: Building Cross-Cultural Training Rigor: Techniques and Objectives © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 11.7: Training Needs and Expatriate Assignment Characteristics © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Performance Appraisal for the Expatriate Conducting reliable performance appraisal for the expatriate is very challenging. Seldom can the firm use same performance criteria. Challenges: Fit of international operation in multinational strategy Unreliable data Complex and volatile environments Time differences and distance separation
  • 38. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Steps to Improve the Expatriate Performance Appraisal Without intensive and direct contact, performance appraisals can fail to demonstrate a comprehensive understanding of the expatriate manager’s situation. To overcome these difficulties: Fit the evaluation criteria to the strategy. Fine-tune the evaluation criteria. Use multiple sources of evaluation with varying periods of evaluation. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 11.8: Evaluation Sources, Criteria, and Time Periods for Expatriate Evaluation © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Expatriate Compensation
  • 39. Compensation packages must be attractive to skilled managers, but also consider the increasing costs. Compensation packages have many common factors: Local market cost of living Housing Taxes Benefits © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Balance-Sheet Approach (1 of 2) Provides a compensation package that attempts to balance purchasing power in the host country with that in the home country. The expatriate should not be in a better or worse position financially because of the assignment. The firm provides allowances for adjustments for differences in taxes, cost of living, housing, food, recreation, personal care, clothing, education, home furnishing, transportation, and medical care. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Balance-Sheet Approach (2 of 2) In addition to matching purchasing power, firms may provide additional allowances:
  • 40. Foreign service premiums (often 10-20% of base pay) Hardship allowance (extra money for difficult postings) Relocation allowances (miscellaneous costs of move) Home-leave allowances (transportation costs to return home once or twice per year) © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 11.9: The Balance Sheet Approach To Expatriate Compensation © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Other Approaches to Expatriate Compensation The high cost of expatriate compensation and the trend toward worldwide workers has resulted in modifications of the balance sheet approach. Some variations: Headquarters-based Compensation: paying home country wages regardless of location Host-based Compensation: adjusting wages to local lifestyles and costs of living Global pay systems: worldwide job evaluations, performance appraisal methods, and salary scales
  • 41. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Repatriation Problem Repatriation Problem: the difficulties that mangers face coming back to their home countries and reconnecting with their old jobs. Three basic cultural problems “reverse culture shocks:” Adapting to new work environment and culture of home office Relearning to communicate with others in home and organizational cultures Adapting to their basic living environment © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Strategies for Successful Repatriation These strategies may help firms to successfully repatriate their managers: Provide a strategic purpose for the repatriation. Establish a team to aid the expatriate. Provide parent country information sources. Provide training and preparation for the return. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 42. International Assignments for Women (1 of 2) Women in international assignments are strikingly rare. Estimates are that women represent only 12% of expatriate managers, but 45% of management. Women face a glass ceiling at home, and an expatriate glass ceiling worldwide, because of 2 myths: Myth 1: Women do not wish to take international assignments. Myth 2: Women will fail because of the foreign culture’s prejudices against local women. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. International Assignments for Women (2 of 2) Don’t assume that people from foreign cultures apply the same gender role expectations to foreign workers that they do to local women. Successful women expatriates emphasize nationality, not gender. The issues that arise in cross-cultural interactions depend more on how foreigners react to those of a different nationality. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. International Assignments
  • 43. for Women: Advantages Women may have advantages in expatriate positions: Being unique means she becomes more visible. Local business people from traditional cultures assume that she is the best person for the job. Women are more likely to excel in relational skills, a major factor in expatriate success. Local men speak at ease with a woman about more topics than men, leading to more interaction. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. International Assignments for Women: Disadvantages Women also suffer disadvantages worse than males: Face the glass ceiling, isolation and loneliness; need to work harder to prove themselves. Seldom given an international assignment until later in their careers. Need to balance work and family responsibilities Need to worry about accompanying spouse © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. What Can Companies Do to Ensure Female Expatriate Success?
  • 44. Despite the disadvantages they face, opportunities for women as expatriate managers are expected to grow: Shortage of high-quality multinational managers. Fewer men are willing to take the assignments. What firms can do to ensure the success of women: Provide mentors, networking with other women Identify and remove sources of barriers to international assignment. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Multinational Strategy and IHRM (1 of 2) Multinational companies have several options for developing the appropriate IHRM policies for the implementation of their multinational strategies. One way is to examine its IHRM orientation, or philosophy. IHRM Orientation: A company’s basic tactics and philosophy for coordinating IHRM activities for managerial and technical workers. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Multinational Strategy and IHRM (2 of 2) There are four basic IHRM orientations: Ethnocentric: All aspects of HRM tend to follow the parent
  • 45. organization’s home country HRM practices. Regiocentric & Polycentric: HRM is more responsive to the host country differences in HRM practices. Global: The firm assigns its best managers to international assignments, recruiting worldwide. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 11.10: IHRM Orientation and Practices for Managers & Technical Workers © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ethnocentric IHRM Benefits Benefits: Little need to recruit qualified host country nationals for higher management Greater control and loyalty of home country nationals Little need to train home country nationals Key decisions centralized © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 46. Ethnocentric IHRM Costs Costs: May limit career development for host country nationals Host country nationals may never identify with the home company Expatriate managers are often poorly trained for international assignments and make mistakes © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Regiocentric & Polycentric IHRM Benefits Benefits: Reduces training expenses Fewer language and adjustment issues Lessened hiring and relocation costs © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Regiocentric & Polycentric IHRM Costs Costs: Coordination problems with headquarters based on cultural, language, and loyalty differences Limited career-path opportunities for host country and regional managers
  • 47. Limited international experiences for home country managers © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Global IHRM Benefits & Costs Benefits Bigger talent pool High international expertise Development of transnational organizational cultures Costs Difficulty in importing managerial and technical employees Added expense © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Summary When basic HRM practices are applied to a company’s international operations, they become IHRM. Chapter 11 focused on HRM practices for expatriates. Expatriates present special challenges for MNCs. Successful IHRM is a 21st century challenge. Globalization allows MNCs to hire from a worldwide pool of talent. It is important for multinationals to find ways to properly manage expatriates successfully.
  • 48. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Management 66 1.) Describe the types of employees in multinational firms. How does IHRM select and prepare them for international assignments? 2.) Explain the role of the female expatriate. Investigate reasons why they may not be selected for international assignments. What can multinational companies do to help them succeed? 3.) Compare and contrast the four IHRM orientations. How can each support a multinational strategy? 4.) Expatriates who return home from international assignments may experience post-assignment adjustment problems. What kinds of problems may they experience? What recommendations can you provide on how multinational companies can address these problems?