Global Human Resource Management

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International Management: Global Human Resource Management

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  • integrator
  • Global Human Resource Management

    1. 1. HOME COUNTRY NATIONALS HOST COUNTRY NATIONALS THIRD COUNTRY NATIONALS INPATRIATED
    2. 2. Adaptability Experience Education Leadership Age Independence SELECTION CRITERIA FOR INTERNATIONAL ASSIGNMENTS : MANAGERS Support of spouse & children Knowledge of local language Self-reliance Physical & emotional health Motivation
    3. 3. Skills MNCs Seek Within Countries
    4. 4. • Anticipatory Adjustment – Training – Previous experience • In-country Adjustment – Individual’s ability to adjust effectively – Ability to maintain a positive outlook, interact well with host nationals, and to perceive and evaluate the host country’s cultural values and norms correctly – Clarity of expatriate’s role in the host management team – Expatriate’s adjustment to the organizational culture – Non-work matters
    5. 5. The Relocation Transition Curve
    6. 6. • Compensating expatriates can be difficult because there are many variables to consider • Most compensation packages are designed around four common elements: • Allowances Taxes • Base Salary Benefits
    7. 7. • Tailoring the compensation package • Balance-sheet approach – Ensure the expatriate doesn’t lose money on the assignment • Complementary approach – Negotiate to work out an acceptable ad hoc arrangement • Localization – Pays the expatriate a salary comparable to local nationals • Lump sum method – Gives the expatriate a lump sum of money • Cafeteria approach – Gives the individual a series of options • Regional system – Sets a compensation system for all expatriates who are assigned to a particular region
    8. 8. Candidate motivations Why do individuals accept foreign assignments? Greater demand for their talents abroad than at home Host-country desires Whom would it like to see put in managerial positions? Host countries prefer a managerial style similar to that of their country
    9. 9. Ethnocentric MNC • Stresses nationalism • home-office people for key international management positions Polycentric MNC Regiocentric MNC Geocentric MNC • local nationals in key positions • allows managers to appoint and develop their own people • local managers from a particular geographic region to handle operations in and around that area • integrate diverse regions of the world through a global approach to decision making
    10. 10. Cross Cultural Training Of Expatriates (Ericcson)
    11. 11. Learning organization Teaching organization Focused on training and development Ensure that top management personnel passes the learning to others Ex: Coca-Cola, General Electric
    12. 12. Corporate Reasons for Training Personal reasons Ethnocentrism Improve ability to interact effectively with local people and with their personnel in particular programs focus on dispelling myths and stereotypes by replacing them with facts about the culture
    13. 13. Environmental Briefings Cultural Orientation Sensitivity Training Major types of cross-cultural training programs Cultural Assimilators Field Experience Language Training
    14. 14. Standardize Tailor-made
    15. 15. Expatriates and host national interact in the situation The situation is puzzling or likely to be misinterpreted by the expatriate Choice of content of the assimilators Situation can be interpreted accurately if sufficient knowledge about the culture is available The situation is relevant to the expatriate’s task or mission requirements
    16. 16. Definition •The term “Expatriation” defines the process of sending home company employees to a host company -in most cases to a foreign subsidiary, during a pre-defined period of time. •The word “Repatriation” defines as the process of returning to home country after being working in a foreign country over a defined period of time
    17. 17. Most of them are formally agreed-on tour of duty is over Some want their children educated in a home-country school Some are not happy in their overseas assignment Some return because they failed to do a good job
    18. 18. Organizational changes Technological advances Adjusting to the new job back home
    19. 19. Repatriation Agreements • Firm agrees with individual how long she or he will be posted overseas and promises to give the individual, on return, a job that is mutually acceptable Some of the main problems of repatriation include: • Adjusting to life back home • Facing a financial package that is not as good as that overseas • Having less autonomy in the stateside job than in the overseas position • Not receiving any career counseling from the company

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