Staffing recruitment and selection of INTERNATIONAL HUMAN RESOURCES MANAGEMENTAparrajithaAriyadasa
In staffing in international business, HR managers must determine when or where to expatriation. Expatriate workers are frequently assigned to key positions in overseas operations. Human resource managers must also decide on the issue of compensation. The compensation of expatriate workers must be examined along with compensation of local workers and the compensation of workers in the home country. Differences in compensation packages have significant implications on staffing success, expatriate performance and business performance. HR managers must also address the issue of repatriation. Repatriation happens when the worker needs to come back to the home country, usually to continue working for the company. Repatriation also happens when the expatriate worker retires. These issues have significant effects on the perspectives and performance of expatriate workers and local workers, and the effectiveness of IHRM in staffing.
Staffing recruitment and selection of INTERNATIONAL HUMAN RESOURCES MANAGEMENTAparrajithaAriyadasa
In staffing in international business, HR managers must determine when or where to expatriation. Expatriate workers are frequently assigned to key positions in overseas operations. Human resource managers must also decide on the issue of compensation. The compensation of expatriate workers must be examined along with compensation of local workers and the compensation of workers in the home country. Differences in compensation packages have significant implications on staffing success, expatriate performance and business performance. HR managers must also address the issue of repatriation. Repatriation happens when the worker needs to come back to the home country, usually to continue working for the company. Repatriation also happens when the expatriate worker retires. These issues have significant effects on the perspectives and performance of expatriate workers and local workers, and the effectiveness of IHRM in staffing.
International human resource management ihrmkoshyligo
International human resource management-IHRM, Introduction, Differences between Domestic and IHRM, Stages of Internationalization , Organisation structures of MNEs
In this presentation, we will understand the meaning and factors of industrial relations, analyze the three aspects of industrial relations, meaning and functions of trade unions and discuss the influence of trade unios on business and human resource management.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
Interventions are necessary for an organization to apply for effectiveness in functioning of an organization. this presentation is about part of interventions known as structural intervention.
This slideshow focus on the challenges associated with expatriate management. It divided into five parts: expatriate selection, expatriate Training &development,expatriate compensation,repatriates retention and a case study about P&G Expatriate Program.
In this presentation, we will understand the challenges of international performance management, analyze the areas in terms of skill and other traits, understanding the conflicting role expectation and analyze the variety of appraisers in international performance appraisal.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
International human resource management ihrmkoshyligo
International human resource management-IHRM, Introduction, Differences between Domestic and IHRM, Stages of Internationalization , Organisation structures of MNEs
In this presentation, we will understand the meaning and factors of industrial relations, analyze the three aspects of industrial relations, meaning and functions of trade unions and discuss the influence of trade unios on business and human resource management.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
Interventions are necessary for an organization to apply for effectiveness in functioning of an organization. this presentation is about part of interventions known as structural intervention.
This slideshow focus on the challenges associated with expatriate management. It divided into five parts: expatriate selection, expatriate Training &development,expatriate compensation,repatriates retention and a case study about P&G Expatriate Program.
In this presentation, we will understand the challenges of international performance management, analyze the areas in terms of skill and other traits, understanding the conflicting role expectation and analyze the variety of appraisers in international performance appraisal.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
Objectives of international compensationWhen developing internat.docxhopeaustin33688
Objectives of international compensation
When developing international compensation policies, an MNE seeks to satisfy several objectives. First, the policy should be consistent with the overall strategy, structure and business needs of the multinational. Second, the policy must work to attract and retain staff in the areas where the MNE has the greatest needs and opportunities. Thus, the policy must be competitive and recognize factors such as incentive for foreign service, tax equalization and reimbursement for reasonable costs. Third, the policy should facilitate the transfer of international employees in the most cost-effective manner for the firm. Fourth, the policy must give due consideration to equity and ease of administration.
The international employee will also have a number of objectives that need to be achieved from the firm's compensation policy. First, the employee will expect the policy to offer financial protection in terms of benefits, social security and living costs in the foreign location. Second, the employee will expect a foreign assignment to offer opportunities for financial advancement through income and/or savings. Third, the employee will expect issues such as the cost of housing, education of children, and home leave to be addressed in the policy.
If we contrast the objectives of the MNE and the employee, we of course see the potential for many complexities and possible problems, as some of these objectives cannot be maximized on both sides. The 'war stories' about problems in international compensation that we see in HR practitioner magazines is testimony to these complexities and problems. McNulty et al. also allude to these problems in their studies of expatriation, particularly in the Asia Pacific region.16
However, if we take away the specialist jargon and allow for the international context, are the competing objectives of the firm and the employee fundamentally different from that which exists in a domestic environment? We think not. We agree with the broad thrust of an influential article by Milkovich and Bloom17 which argues that firms must rethink the traditional view that local conditions dominate international compensation strategy. This is again another application of the ongoing balancing act between global standardization and local customization. We will return to these issues at the end of the chapter after we have covered some of the technical aspects and complexities of compensation in an international context.
KEY COMPONENTS OF AN INTERNATIONAL COMPENSATION PROGRAM FOR EXPATRIATES
The area of international compensation is complex primarily because multinationals must cater to three categories of employees: PCNs, TCNs and HCNs. In this section, we discuss key components of international compensation as follows.
Base salary
The term base salary acquires a somewhat different meaning when employees go abroad. In a domestic context, base salary denotes the amount of cash compensation serving as a b.
MGMK 4710INTERNATIONAL BUSINESSChapter 20. INTERNATIONAL Human RDioneWang844
MGMK 4710
INTERNATIONAL BUSINESS
Chapter 20. INTERNATIONAL Human Resource MANAGEMENT
I. INTRODUCTION
Human resource management (HRM) refers to the activities that a company takes to staff its organization. International human resource management is more complex and poses challenges to MNEs because of environmental differences among countries. This chapter discusses various aspects of human resource management as they apply to MNEs’ managers.II.
STAFFING FRAMEWORKS
https://www.youtube.com/watch?v=BjSX3FVAkgw
There is a powerful relationship between HRM processes, management productivity, and firm performance. Thus, an effective HRM can be a source of competitive advantage. The function of HRM is to hire the right person in the right job in the right place for the right salary.
International HRM involves hiring the right person who can be either a local (from the host country) or an expatriate (from the home country or a third country). The decision of the country of origin of managers will depend on the staffing policy (or framework) adopted. MNEs can adopt either the ethnocentric policy, the polycentric policy, or the geocentric policy.
A. Ethnocentric policy:
An ethnocentric policy is a staffing framework adopted by MNEs that fill management positions with home-country nationals. This policy has advantages and disadvantages:
1. Advantages: MNEs use the ethnocentric policy:
- To maintain command and control consistent with headquarters’ policy
- To fill local talent shortcomings by transferring best practices from headquarters
- If the MNE has adopted the home replication strategy
- Safeguard intellectual property in joint ventures
- Counteract high turnover among local employees
- Help managers develop a global outlook.
2. Disadvantages: Filling key management position with home-country nationals can:
- Lead the company to adopt a narrow perspective in foreign markets
- Limit MNEs’ exposure to different and possibly better ways of doing things
- Leave local managers and workers unmotivated and demoralized.
B. Polycentric policy:
A polycentric policy is a staffing framework adopted by MNEs that fill management positions with host-country nationals (locals). This policy has advantages and disadvantages:
1. Advantages: MNEs use the polycentric policy:
- To control costs (compared to sending someone to work abroad)
- To better deal with host-country nationalism and be seen as better citizen
- To develop local management talent and therefore boost employee morale
- If the MNE has adopted the multidomestic strategy
- Benefit from host-country nationals’ understanding of local stakeholders and environments
2. Disadvantages: Drawbacks of the polycentric policy include:
- Potential disengagement of local staff from the parent company
- Problems of accountability and allegiance to parent company
- Development of gaps between headquarters and local operations
C. Geocentric policy:
A geocentric ...
AEGON takes a closer look at one important reason for providing pensions – to incentivize employees to perform better and to raise employee commitment.
Components Of International Compensation program For assignmentBiswasbusiness.com
Components Of International Compensation program
this is the basic knowledge for peoples.......................Improve organizational and employee productivity without increasing base pay fixed costs using incentive programs that organize improvements in employees, work unit, and organizational performance.
Increasing organizational productivity is one of the hottest current topics in executive suites. Managers know that simply paying employees more will not result in increased output and improved quality.
All employees now recognize the importance of cooperative effort and the need to improve quantity and quality of organizational output.
2. 1. Going rate approach
2. Balance sheet approach
3. International citizen’s approach
4. Lump sum approach
APPROACHES TO INTERNATIONAL
COMPENSATION
3. The going rate approach is also known as
‘localization’, ‘destination’ or ‘host country based
approach’. The core of this approach lies in linking the
expatriate compensation to the salary structure of the
host country, taking into account local market and
compensation levels of local employees. The going rate
method aims to treat the expatriate employee as a
citizen of host country.
GOING RATE APPROACH
4. ADVANTAGES
o Equality with local
nationals
o Simplicity
o Identification with host
country
o Equity amongst deferent
nationalities
DISADVANTAGES
o Variation between
assignment for same
employee.
o Variation between
expatriates of same
nationality in deferent
countries
o Potential re-entry
problems
5. The balance sheet approach provides
international employees with a compensation package
that equalizes cost differences between the
international assignment and the same assignment in
the home country of the individual or the organization.
The balance sheet approach is based on some key
assumptions and is designed to protect expatriations
from cost differences between their home and host
countries.
BALANCE SHEET APPROACH
6.
7. ADVANTAGES
o Equity between deferent
assignments and
between assignees of the
same nationality.
o Facilitates assignee re-
entry.
o Easy to communicate to
employees.
DISADVANTAGES
o Can lead to disparities
between assignees of the
deferent nationalities in
the same host country,
and between assignees
and local nationals.
o Administration can be
complex.
8. In this approach to expatriate compensation, an
international basket of goods is used for all expatriates,
regardless of country of origin. The basket of goods includes
food, clothing, housing. However, expatriates are not provided
salary adjustments that would allow them to purchase exactly
the same items in the host country as in the home country.
Rather, they receive adjustments that would allow them to
purchase a comparable local product of the same nature.
INTERNATIONAL CITIZEN’S
APPROACH
9. This involves giving expatriate a predetermined
salary and letting the individual decide about how to spend it.
Finally, there is the regional system, under which the MNC sets
a compensation system for all expatriates who are assigned to
a particular region.
LUMPSUM APPROACH