IAF 605 - International Business Management




Human Resource Management


                                       Week 13
Agenda




            review Chapter 15

         Tel-Comm-Tek (TCT) Case

            Chapter 20 – HR
             Manag...
TCT – Case Questions




 Which candidate should the committee
 nominate for the assignment? Why?

 What challenges might ...
TCT – Case Questions




 Should TCT offer all candidates the same compensation package?
 If not, what factors should infl...
Chapter Objectives




                 To discuss the   To profile the
                 importance of        staffing
   ...
Human Resource Management (HRM) - activities necessary to staff
the organization…more difficult for the international comp...
Definitions


                     Expatriate - an employee
                     who leaves her or his native
            ...
The strategic function of international HRM – creates superior value


MNE whose HRM policies support its
chosen strategy ...
The Perspective of Expatriates


                                 Trends in Expatriate
                               Assi...
Three perspectives describe how companies set about staffing their
international operations:



                          ...
Discussion and Debate




ethnocentric            polycentric   geocentric
Managing Expatriates




 Selecting Expatriates

 Expatriate Failure

 Preparing Expatriates

 Compensating Expatriates

 ...
Selecting Expatriates – objective measures are
rough estimators!



                     technical competence
            ...
Expatriate Failure



        operationally costly and
        professionally detrimental



        a leading cause of
  ...
Preparing Expatriates
                        Focusing on Adaptiveness and
                        Related Characteristics...
Compensating Expatriates


                            The Pay-Performance
                                    Link



   ...
In designing compensation packages for expatriates, HRM
       considers the following topics



         Base Salary


  ...
Complications posed by National Differences – pay based on
standards in the host country or on a global basis? Legal, cult...
Repatriating Expatriates - act of returning home from a foreign
assignment




Repatriation stress: financial | work | soc...
International Labor Relations




  Labor union -
  association of workers
  who have united to
  represent their collecti...
Labor claims it is disadvantaged in dealing with MNEs because:




                                         It is hard to ...
How Labor Responds To The MNE:



   tries to strengthen its bargaining
             power through
       cross-national c...
Future: Which Countries Will Have the Jobs of the Future?




                                                            ...
IAF605 Week 13 Chapter 20 Hr Management
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IAF605 Week 13 Chapter 20 Hr Management

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IAF605 Week 13 Chapter 20 Hr Management

  1. 1. IAF 605 - International Business Management Human Resource Management Week 13
  2. 2. Agenda review Chapter 15 Tel-Comm-Tek (TCT) Case Chapter 20 – HR Management
  3. 3. TCT – Case Questions Which candidate should the committee nominate for the assignment? Why? What challenges might each candidate encounter in the position? How might TCT go about minimizing the challenges facing each candidate?
  4. 4. TCT – Case Questions Should TCT offer all candidates the same compensation package? If not, what factors should influence the features of each package? Returning to material covered in Chapter 15, specifically that dealing with the idea of a matrix organization, do you see any benefit to appointing two of the individuals described here to the post? Operationally, one individual would be in charge of internal affairs, and the other would manage external affairs. What might be the benefits and problems with this arrangement?
  5. 5. Chapter Objectives To discuss the To profile the importance of staffing human resource frameworks management used by MNEs To examine how To explain the MNEs select, types and prepare, competencies compensate, of expatriates and retain expatriates
  6. 6. Human Resource Management (HRM) - activities necessary to staff the organization…more difficult for the international company than it’s domestic counterpart due to: environmental differences and organizational challenges due to leadership styles and management practices.
  7. 7. Definitions Expatriate - an employee who leaves her or his native country to live and work in another. Third-country national - an employee who is a citizen of neither the home nor the host country. Source: zimbio.com
  8. 8. The strategic function of international HRM – creates superior value MNE whose HRM policies support its chosen strategy creates superior value but many MNEs struggle to develop effective HRM policies
  9. 9. The Perspective of Expatriates Trends in Expatriate Assignment – demand in developing countries; short- term more common The Young, The Old, and The Impact of Market The Restless – more Disruption – trying to females; more developing reduce expenses / less to richer countries vs “permanent assignments” sending expats to a host nation
  10. 10. Three perspectives describe how companies set about staffing their international operations: • fills management ethnocentric positions with home- country nationals • uses host-country polycentric nationals to manage local subsidiaries • seeks the best people for key jobs throughout geocentric the organization, approaches regardless of their nationality
  11. 11. Discussion and Debate ethnocentric polycentric geocentric
  12. 12. Managing Expatriates Selecting Expatriates Expatriate Failure Preparing Expatriates Compensating Expatriates Repatriating Expatriates
  13. 13. Selecting Expatriates – objective measures are rough estimators! technical competence • often the strongest determinant of who is selected for an international assignment adaptiveness leadership ability • self-maintenance & • top managers in personal resourcefulness subsidiaries usually • developing satisfactory assume a greater range relationships of leadership roles and broader duties • sensitivity to host environment
  14. 14. Expatriate Failure operationally costly and professionally detrimental a leading cause of expatriate failure is the inability of a spouse to adapt to the host country (NOT their technical skills) see more short-term assignments, “commuter” assignments and young or old expats Image source: http://www.flickr.com/photos/carbonnyc/
  15. 15. Preparing Expatriates Focusing on Adaptiveness and Related Characteristics General Country Understanding Cultural Sensitivity Practical Skills – schooling, socializing and shopping culture shock
  16. 16. Compensating Expatriates The Pay-Performance Link Types of Compensation Plans – • Home Based • Headquarter Based • Host Based Methods
  17. 17. In designing compensation packages for expatriates, HRM considers the following topics Base Salary Foreign Service Premium Allowances – COL; Housing; Spouse; Hardship Fringe Benefits Tax Differentials Image source: http://www.flickr.com/photos/symic/
  18. 18. Complications posed by National Differences – pay based on standards in the host country or on a global basis? Legal, cultural and regulatory factors. • may pay someone more polycentric than necessary and ethnocentric to persuade them to go abroad • manager performs the geocentric same job but in different locations – paid the same salary?
  19. 19. Repatriating Expatriates - act of returning home from a foreign assignment Repatriation stress: financial | work | social The principal cause of repatriation frustrations is finding the right job for someone to return to!
  20. 20. International Labor Relations Labor union - association of workers who have united to represent their collective views for wages, hours, and working conditions. Collective bargaining - negotiations between labor union representatives and employers to reach agreement on a work contract. Source: http://www.flickr.com/photos/ellafunnt/
  21. 21. Labor claims it is disadvantaged in dealing with MNEs because: It is hard to get full data on MNEs’ global operations. MNEs can manipulate investment incentives. They can easily move value activities to other countries. Ultimate decision making occurs in another country.
  22. 22. How Labor Responds To The MNE: tries to strengthen its bargaining power through cross-national cooperation
  23. 23. Future: Which Countries Will Have the Jobs of the Future? Worker populations will grow faster in developing countries. Wealthier countries will continue to grow in the number of retirees Adjustments for developed economies: Nationalism | Men vs. Machines | Brains: Drains, Recycle, or Halt Image sources: http://www.flickr.com/photos/aheram/; http://www.flickr.com/photos/ngoaengaf/

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