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HRIS

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HRIS

  1. 1. CHAPTER 11 INTERNATIONAL HUMAN RESOURCE MANAGEMENT
  2. 2. COMPONENTS OF HRM <ul><li>Recruitment </li></ul><ul><li>Selection </li></ul><ul><li>Training & Development </li></ul><ul><li>Performance Appraisal </li></ul><ul><li>Compensation </li></ul><ul><li>Labor Relations </li></ul>
  3. 3. INTERNATIONAL HRM (IHRM) <ul><li>Basic HRM issues remain </li></ul><ul><li>Must choose a mixture of international employees </li></ul><ul><li>How much to adapt to local conditions? </li></ul>
  4. 4. EMPLOYEES IN MULTINATIONAL ORGANIZATIONS <ul><li>Host country nationals </li></ul><ul><li>Expatriates </li></ul><ul><li>Home country nationals </li></ul><ul><li>Third country nationals </li></ul><ul><li>Inpatriates </li></ul>
  5. 5. MULTINATIONAL MANAGERS <ul><li>Host country or expatriate? </li></ul>
  6. 6. USING HOST COUNTRY MANAGERS <ul><li>Do they have the expertise for the position? </li></ul><ul><li>Can we recruit them from outside the company? </li></ul>
  7. 7. USING EXPATRIATE MANAGERS <ul><li>Do parent country managers have the appropriate skills? </li></ul><ul><li>Are they willing to take expatriate assignments? </li></ul><ul><li>Do any laws affect the assignment of expatriate managers? </li></ul>
  8. 8. <ul><li>IS THE EXPATRIATE WORTH IT? </li></ul><ul><li>High cost </li></ul><ul><li>High failure rate </li></ul>
  9. 9. <ul><li>EXHIBIT 11.1 PAYING FOR THE EXPATRIATE MANAGER </li></ul>
  10. 10. <ul><li>REASONS FOR U.S. EXPATRIATE FAILURE </li></ul><ul><li>Spouse fails to adapt </li></ul><ul><li>Manager fails to adapt </li></ul><ul><li>Other problems within the family </li></ul><ul><li>Personality of the manager </li></ul><ul><li>Level of responsibilities </li></ul>
  11. 11. <ul><li>Lack of technical proficiency </li></ul><ul><li>No motivation for assignment </li></ul><ul><li>Reasons for expatriate failure, continued </li></ul>
  12. 12. <ul><li>MOTIVATIONS TO USE EXPATS </li></ul><ul><li>Managers acquire international skills </li></ul><ul><li>Coordinate and control operations dispersed activities </li></ul><ul><li>Communication of local needs/strategic information to headquarters </li></ul>
  13. 13. <ul><li>KEY EXPATRIATE SUCCESS FACTORS </li></ul><ul><li>Professional/technical competence </li></ul><ul><li>Relational abilities </li></ul><ul><li>Motivation </li></ul><ul><li>Family situation </li></ul><ul><li>Language skills </li></ul><ul><li>Willingness to accept position </li></ul>
  14. 14. <ul><li>PRIORITY OF SUCCESS FACTORS </li></ul><ul><li>Depends on : </li></ul><ul><ul><li>assignment length </li></ul></ul><ul><ul><li>cultural distance </li></ul></ul><ul><ul><li>amount of required interaction with local people </li></ul></ul><ul><ul><li>job complexity/responsibility </li></ul></ul>
  15. 15. <ul><li>EXHIBIT 11.3 SHOWS A DECISION MATRIX USED TO SET PRIORITIES OR DIFFERENT SUCCESS FACTORS DURING SELECTION </li></ul>
  16. 17. <ul><li>EXPATRIATE TRAINING </li></ul>
  17. 18. <ul><li>TRAINING RIGOR </li></ul><ul><li>The extent of effort by trainees and trainers required to prepare the trainees for expatriate positions </li></ul>
  18. 19. <ul><li>LOW RIGOR TRAINING </li></ul><ul><li>Short time period </li></ul><ul><li>Lectures </li></ul><ul><li>Videos on local culture </li></ul><ul><li>Briefings on company operations company operations </li></ul>
  19. 20. <ul><li>HIGH RIGOR TRAINING </li></ul><ul><li>Lasts over a month </li></ul><ul><li>Experiential learning </li></ul><ul><li>Extensive language training </li></ul><ul><li>Often includes interactions with host country nationals </li></ul>
  20. 21. <ul><li>EXHIBIT 11.4 SHOWS VARIOUS TRAINING TECHNIQUES AND THEIR OBJECTIVES AS THE RIGOR OF THE CROSS- CULTURAL TRAINING GROWS </li></ul>
  21. 25. <ul><li>CHALLENGES OF EXPATRIATE PERFORMANCE APPRAISAL </li></ul><ul><li>Unreliable data </li></ul><ul><li>Complex and volatile environments </li></ul><ul><li>Time differences and distance separation </li></ul><ul><li>Local cultural situations </li></ul>
  22. 26. <ul><li>STEPS TO IMPROVE THE PROCESS </li></ul><ul><li>1. Fit the evaluation criteria to strategy. </li></ul><ul><li>2. Fine tune the evaluation criteria </li></ul><ul><li>3. Use multiple evaluators with varying periods of evaluation </li></ul>
  23. 27. <ul><li>EXHIBIT 11.6 Shows several sources of information a superior or the HRM professionals may use to evaluate an expatriate managers </li></ul>
  24. 29. <ul><li>EXPATRIATE COMPENSATION </li></ul>
  25. 30. <ul><li>THE BALANCE SHEET APPROACH </li></ul><ul><li>Provides a compensation package that equates purchasing power </li></ul>
  26. 31. <ul><li>BALANCE SHEET COSTS </li></ul><ul><li>Allowances for cost of living, housing, utilities, furnishing, educational expenses, medical expenses, club memberships, and car and/or driver expenses </li></ul>
  27. 33. <ul><li>OTHER APPROACHES </li></ul><ul><li>Parent country wages everywhere </li></ul><ul><li>Wean expatriates from allowances </li></ul><ul><li>Pay based on local or regional markets </li></ul><ul><li>Cafeteria selection of allowances </li></ul><ul><li>Global pay systems </li></ul>
  28. 34. <ul><li>THE REPATRIATION PROBLEM </li></ul><ul><li>Difficult for many organizations </li></ul><ul><li>&quot;Reverse culture shock&quot; </li></ul><ul><li>Expatriates must relearn own national and organizational culture </li></ul><ul><li>Includes whole family </li></ul>
  29. 35. <ul><li>STRATEGIES FOR SUCCESSFUL REPATRIATION PROVIDE: </li></ul><ul><li>A strategic purpose for repatriation </li></ul><ul><li>A team to aid the expatriate </li></ul><ul><li>Home country information sources </li></ul><ul><li>Training and preparation for the return </li></ul><ul><li>Support for expatriate and family </li></ul>
  30. 36. <ul><li>WOMEN EXPATRIATES: TWO IMPORTANT &quot;MYTHS&quot; </li></ul><ul><li>Myth 1: women do not wish to take international assignments </li></ul><ul><li>Myth 2: women will fail in international assignments because of the foreign culture's prejudices against local women </li></ul>
  31. 37. <ul><li>SUCCESSFUL WOMEN EXPATRIATES </li></ul><ul><li>Foreign not female </li></ul><ul><ul><li>emphasize nationality not gender </li></ul></ul><ul><li>The woman's advantage </li></ul><ul><ul><li>strong in relational skills </li></ul></ul><ul><ul><li>wider range of interaction options </li></ul></ul>
  32. 38. <ul><li>MULTINATIONAL STRATEGY AND IHRM </li></ul>
  33. 39. <ul><li>IHRM ORIENTATIONS </li></ul><ul><li>Ethnocentric </li></ul><ul><li>Polycentric </li></ul><ul><li>Regiocentric </li></ul><ul><li>Global </li></ul>
  34. 40. <ul><li>IHRM ORIENTATION AND MULTINATIONAL STRATEGY </li></ul><ul><li>Early stages of internationalization = ethnocentric IHRM </li></ul><ul><li>Multilocal strategies = ethnocentric or regiocentric </li></ul><ul><li>Regional strategy = closer to the global </li></ul>
  35. 41. <ul><li>International strategy = ethnocentric or polycentric IHRM </li></ul><ul><li>Transnational strategies = a global IHRM </li></ul>
  36. 42. <ul><li>CONCLUSIONS </li></ul><ul><li>HRM functions </li></ul><ul><li>IHRM challenges </li></ul><ul><li>Expatriate managers </li></ul><ul><li>The role of women in multinational organizations </li></ul><ul><li>Multinational strategies and IHRM orientations </li></ul>

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