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  1. 1. <ul><li>Differentiate between host-country nationals, parent- country nationals, and third-country nationals </li></ul><ul><li>Define the four dominant human resources </li></ul><ul><li>management approaches. </li></ul>FOUNDATIONS OF HUMAN RESOURCES MANAGEMENT LESSON 11-1 GOALS
  2. 2. Factors contribute to HR different in global environ. <ul><li>Worldwide labor markets </li></ul><ul><ul><li>Mix of workers, labor costs, companies </li></ul></ul><ul><li>Worker mobility </li></ul><ul><ul><li>Physical, economic, legal and cultural barriers. </li></ul></ul><ul><li>Managerial practices </li></ul><ul><ul><li>Using resources (people) in diff. ways </li></ul></ul><ul><li>National and Global Orientations </li></ul><ul><ul><li>Aspire to become global. </li></ul></ul><ul><ul><li>Yet setting aside national approaches is challenging. </li></ul></ul>
  3. 3. Who Makes Up the Labor Market? <ul><li>Review from Chapter 19… </li></ul><ul><li>Host-country nationals </li></ul><ul><li>Expatriates </li></ul><ul><li>Parent-country nationals </li></ul><ul><li>Third-country nationals </li></ul>
  4. 4. Personal Selling in International Markets <ul><li>Host-country nationals (locals) are employees based in their home country. Product knowledge must be taught. </li></ul><ul><li>Expatriates are employees living and working in a country other than their home nation. Have knowledge but not culture. </li></ul><ul><li>Parent-country or home-country – expatriates from the nation the home company is located. </li></ul><ul><li>Third-country nationals are citizens of one country employed by a company from another country who worked in a third county. Speak several languages and are culturally sensitive. </li></ul>
  5. 5. Balance advantages and disadvantages of each. <ul><li>Locals </li></ul><ul><ul><li>Adv. - usually culturally sensitive and easy to find. </li></ul></ul><ul><ul><li>Dis. – may not have knowledge and skills </li></ul></ul><ul><li>Parent-country </li></ul><ul><ul><li>Adv. – have needed knowledge and skills. </li></ul></ul><ul><ul><li>Dis. – lack appropriate local language and cultural skills. And more costly. Gov’t may also restrict hiring. </li></ul></ul><ul><li>Third-country </li></ul><ul><ul><li>Adv. – more adaptable to local conditions. Speak languages and are more culturally sensitive. </li></ul></ul><ul><ul><li>May be unqualified and may lack desired company orientation. </li></ul></ul>
  6. 6. Four Human Resources Management Approaches <ul><li>Ethnocentric approach </li></ul><ul><li>Polycentric approach </li></ul><ul><li>Regiocentric approach </li></ul><ul><li>Geocentric approach </li></ul><ul><li>Decision depends on: Gov’t regulations and the size, structure, strategy, attitudes, and staffing of the company. </li></ul>
  7. 7. Ethnocentric Approach <ul><li>Uses natives of the parent country of a business to fill key positions at home and abroad. </li></ul><ul><li>Usefulness </li></ul><ul><li>New Technology in another country </li></ul><ul><li>Prior experience is important. </li></ul><ul><li>Goal is to prepare the host country employees to manage the business. </li></ul><ul><li>Drawbacks </li></ul><ul><li>Deprives the locals of jobs, lowers morale of workers, may not be culturally sensitive to locals. </li></ul>
  8. 8. Polycentric Approach <ul><li>Uses natives of the host country to manage operations within their country and parent-country natives to manage at headquarters. </li></ul><ul><li>Usefulness </li></ul><ul><li>Locals manage the companies in their own country and are better prepared. </li></ul><ul><li>Cheaper </li></ul><ul><li>Better for political reasons. </li></ul><ul><li>Disadvantages </li></ul><ul><li>Cultural gap between subsidiary managers and headquarter managers. </li></ul><ul><li>Limited opportunities for advancement. </li></ul>
  9. 9. Regioncentric Approach <ul><li>Uses managers from various countries within the geographic regions of a business. </li></ul><ul><li>Usefulness </li></ul><ul><li>When regional expertise is needed. </li></ul><ul><li>Disadvantages </li></ul><ul><li>Communication – diversity of employees may not understand corporate headquarter’s views. </li></ul><ul><li>International experience of managers may not be considered </li></ul>
  10. 10. Geocentric Approach <ul><li>Uses the best available managers without regard for their countries of origin. </li></ul><ul><li>Usefulness </li></ul><ul><li>Should have a worldwide strategy of business integration in place. </li></ul><ul><li>Develops international managers and reduces national bias. </li></ul><ul><li>Disadvantages </li></ul><ul><li>Government regulations </li></ul><ul><li>Expensive </li></ul><ul><li>Slow to get all employees trained and located </li></ul>
  11. 11. <ul><li>Explain how staffing needs are determined. </li></ul><ul><li>Describe how potential employees are recruited. </li></ul><ul><li>Describe three factors to consider when hiring job applicants. </li></ul>SELECTING AND TRAINING STAFF LESSON 11-2 GOALS
  12. 12. Determining Staffing Needs <ul><li>Employment forecasting – estimating in advance the types and numbers of employees needed. </li></ul><ul><li>Supply analysis – determining if there are sufficient types and #’s of employees available. </li></ul><ul><li>Companies must balance the demand for and supply of employees. </li></ul>
  13. 13. Filling individual jobs <ul><li>Factors: What will the new employee be assigned to do? </li></ul><ul><li>Factors: Qualifications needed? </li></ul><ul><li>Factors: combining technical skill, personality traits, environmental factors for success? </li></ul><ul><li>All are answered by a JOB DESCRIPTION </li></ul>
  14. 14. Job description <ul><li>A document that includes the job identification, job statement, duties and responsibilities, and job specifications and requirements. </li></ul>
  15. 15. Recruiting Potential Employees <ul><li>Job announcement – Different channels </li></ul><ul><ul><li>Inside the company </li></ul></ul><ul><ul><ul><li>Someone already working for the company </li></ul></ul></ul><ul><ul><li>Outside the company </li></ul></ul><ul><ul><ul><li>Parent-company national? Host-country national? Third-country national? </li></ul></ul></ul><ul><li>Type of employee needed </li></ul><ul><ul><li>Unskilled or semiskilled – local public outlet (Job Service) </li></ul></ul><ul><ul><li>Skilled, technical, managerial – pub or private outlet used </li></ul></ul><ul><ul><li>High ranking man pos (recruitment firm – headhunters) </li></ul></ul>
  16. 16. Selecting Qualified Employees <ul><li>Finding the best applicant </li></ul><ul><li>Best applicant is the person with the highest potential to meet the job expectations. </li></ul><ul><li>3 main factors: </li></ul>
  17. 17. Competence- <ul><li>Factor that relates to the ability to perform. </li></ul><ul><li>Ex: Technical Knowledge, </li></ul><ul><li>Specialty Areas, </li></ul><ul><li>Experience, </li></ul><ul><li>leadership skills, </li></ul><ul><li>Cultural awareness and language skills, </li></ul><ul><li>Communication Skills </li></ul>
  18. 18. Adaptability- <ul><li>Relates to the ability to adjust to different conditions. </li></ul><ul><li>Seriousness about working in international business, working abroad. </li></ul><ul><li>Work with a wide variety of people. </li></ul><ul><li>Work well with divers groups. </li></ul><ul><li>Adapt to other cultures with ease. </li></ul><ul><li>Alternate managerial styles. </li></ul>
  19. 19. Personal characteristics- <ul><li>Maturity of the employee. </li></ul><ul><li>Education </li></ul><ul><li>Gender </li></ul><ul><li>Social Acceptability </li></ul><ul><li>Diplomacy </li></ul><ul><li>General Health </li></ul><ul><li>Stability of Family* </li></ul>
  20. 20. <ul><li>Understand the importance of training and development for global employees. </li></ul><ul><li>Identify the common types of training and develop-ment for international employees. </li></ul><ul><li>Explain how training and development programs reduce the chance of employee failure. </li></ul>MAXIMIZATION OF HUMAN RESOURCES LESSON 11-3 GOALS
  21. 21. Training and Development are Critical
  22. 22. Major Expense
  23. 23. Types of Training and Development <ul><li>Job-related issues </li></ul><ul><li>Language and relationship issues </li></ul><ul><li>Cross-cultural training </li></ul><ul><li>Spousal employment counseling </li></ul>
  24. 24. Table on Page 298 Make one relevant to Your Business Plan
  25. 25. Training and Development Help Prevent Failure <ul><li>Why global employees fail </li></ul>
  26. 26. Training and Development Help Prevent Failure <ul><li>Reducing the chance of employee failure </li></ul>
  27. 27. <ul><li>Understand that employee motivation is culturally based. </li></ul><ul><li>Explain the common components of compensation packages for parent-country nationals. </li></ul><ul><li>Appreciate the complexities of evaluating employee perform-ance in an international setting. </li></ul><ul><li>List strategies that help to minimize repatriation problems. </li></ul>RETAINING HUMAN RESOURCES LESSON 11-4 GOALS
  28. 28. Retaining Human Resources <ul><li>Cultural employee motivation </li></ul><ul><ul><li>What motivates employees in US? </li></ul></ul><ul><ul><li>Different values in other countries. </li></ul></ul><ul><ul><li>International managers use motivation strategies that are culturally acceptable to the employee. </li></ul></ul>
  29. 29. Compensating employees <ul><li>Cultural sensitivity </li></ul><ul><ul><li>Cash and noncash items </li></ul></ul><ul><li>Base salary </li></ul><ul><ul><li>Salary is in line with living expenses in this country </li></ul></ul><ul><li>Expatriate bonus </li></ul><ul><ul><li>Compensation for moving and adjustment problems. </li></ul></ul><ul><li>Cost-of-living adjustment </li></ul><ul><ul><li>Adjusted pay for different cost of living </li></ul></ul><ul><li>Employee benefits </li></ul><ul><ul><li>Relocation, insurance, and extras </li></ul></ul>
  30. 30. Solve $30,000 1.53 Paris 4 $50,000 1.73 Tokyo 5 $20,000 .98 Ottawa 3 $35,000 1.11 Mexico City 2 $35,000 1.65 London 1 Cost of Living Income Index Location
  31. 31. Evaluating employee performance <ul><li>Employee performance is influenced by 3 factors: </li></ul><ul><ul><li>Environment </li></ul></ul><ul><ul><li>The Task </li></ul></ul><ul><ul><li>The Individual’s Personality </li></ul></ul><ul><li>Why is evaluating the performance of international employees so challenging? </li></ul>
  32. 32. Anticipating repatriation <ul><li>REPATRIATION – the process a person goes through when returning home and settling after having worked abroad. </li></ul><ul><li>Adjustments: </li></ul><ul><ul><li>Reverse Culture Shock </li></ul></ul><ul><ul><ul><li>Work, finances, and social relationships </li></ul></ul></ul><ul><ul><li>Sense of Isolation </li></ul></ul><ul><ul><ul><li>Others have not experience the same things you have. </li></ul></ul></ul><ul><li>Smooth the transition by… </li></ul>