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.
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.
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
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.
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
International human resource management ihrmkoshyligo
International human resource management-IHRM, Introduction, Differences between Domestic and IHRM, Stages of Internationalization , Organisation structures of MNEs
Strategic human resource management at COCA COLA BEVERAGES PAKISTAN LIMITED saad ali
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An increasingly dynamic market in the GCC requires companies to plan for and minimize the movement of their top talent. Also, they must effectively address the increasing emphasis on "nationalization". This presentation offers help in these areas where needed.
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 ...
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Key takeaways:
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Regulations are a major hurdle: Safety concerns around drone collisions with airplanes and people have led to restrictions on flight height and location.
Other challenges exist: Who will use drone delivery the most? Is it cost-effective compared to traditional delivery trucks?
Discussion questions:
Managerial challenges: Integrating drones requires planning for new infrastructure, training staff, and navigating regulations. There are also marketing and recruitment considerations specific to this technology.
External forces vary by country: Regulations, consumer acceptance, and infrastructure all differ between countries.
Demographics matter: Younger generations might be more receptive to drone delivery, while older populations might have concerns.
Stakeholders for Amazon: Customers, regulators, aviation authorities, and competitors are all stakeholders. Regulators likely hold the greatest influence as they determine the feasibility of drone delivery.
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2. Overview
• Expatriate Selection
• Expatriate Training &Development
• Expatriate Compensation
•Repatriates retention
• Case study: P&G Expatriate Program
3. Selection
With the expanding global
competition and the growing number
of international assignees, managing
expatriates has been a major problem
that relates to the success or failure of
an organization’s implementation of
international strategies.
4. Three dimensions of expatriate managers:
• The self dimension: The skills that enable a manager to
maintain a positive self-image and psychological well-being
• The relationship dimensions: The skills required to
foster relationships with the host-country nationals
• The perception dimension: Those skills that enable a
manager to accurately perceive and evaluate the host
environment
5. Six important factors of expatriated managers:
• Cultural intelligence (CQ) : ability to adapt across
cultures through sensing the different cues regarding
appropriate behavior across cultural settings or in
multicultural settings
• Family situation: ability to keep in touch with families
collaboratively and continuously
• Flexibility and adaptability: ability to fit changed
circumstance
• Job knowledge and motivation: ability to transfer
knowledge smoothly and transfer international assignment
into career advancement
• Relational skills: ability to build up relationships more
actively
• Extra cultural openness: ability to communicate
with others more openly
6. “Big Five” – the predictors of expatriate selection
a. Reliability: the consistency of a performance measure; the
degree to which a performance measure is free from random
error
b. Validity: the extent to which a performance measure assesses
all relevant-and only the relevant-aspects if job performance
c. Generalizability: the degree to which the validity of a
selection method established in one context extends to other
contexts
d. Utility: the degree to which the information provided by
selection methods enhances the effectiveness of selecting
personnel in real organizations
e. Legality: describe the government’s role in personnel
selection decisions, particularly in the areas of constitutional law,
federal laws, executive orders, and judicial precedent
7. The significance of implementing a successful
selection of Expatriate Management strategy
• Expatriate are used to transfer technologies, in joint
ventures, to transmit organizational culture, to enter new
markets, and to develop the international skills of
employees. (Bennett, Aston & Colquhoun, 2000)
• Effective expatriate selection has been identified as a major
mechanism to enhance expatriate success. (Bolino
&Feldman,2000; Kealey, 1996; Solomon, 1996).
• As We move into 21st century, the pressure of managing
expatriate managers well will not diminish-it will
accelerate.
8. Cross-Cultural Training (CCT)
figures
• 2 in 5 managers fail when sent abroad due
to insufficient preparation
• 18% of American companies vs. 33% of
European, African & Middle
Eastern companies provide some training
• 22% of American companies do virtually
nothing in terms of training
9. The importance of CCT
• Cross-cultural adjustment is found to be the most
significant factor determining the success of
international assignments
• Training facilitates effective cross-cultural
interactions
• Training was found to be effective for reducing
uncertainty and increasing self-efficacy -> cross-cultural
adjustment
10. Types of CCT
• Most common: language training & overview of
cultural differences
• Two main categories: didactic & experiential
learning
• Additional categories: attribution, cultural
awareness, cognitive-behavior modification and
interaction training
11. CCT – Emerging Issues
• Need for in-country, real-time training - CCT
is likely to be more effective when delivered
upon arrival in the host country than prior to
the foreign assignment
• Developing a global mindset – companies
operate in global context; all employees need to
think globally even if they act locally
• Self-training (Internet; specific software) –
free resources, flexible timing, alternative to
professional consulting and academic
community
15. Common approaches to developing expatriate compensation packages
Approaches Advantages Disadvantages
Balance Sheet
• Goods and
services
• Housing
• Income taxes
• Reserve
• Can keep the expatriate
whole from a
compensation
perspective with respect
to incumbents in the
same or similar positions
in their home country.
• It allows for ease of
movement between
foreign assignments and
back to the home country.
• It complexes to
administer and intrudes
into the expatriate’s
finances.
Localization
It involves basing
the expatriate’s
salary on the local
(host country’s)
salaries.
• The ease of
administration and
equity with local
nationals.
It usual needs for negotiated
supplements and pay based
on host country economics
versus performance and job
responsibilities.
16. Common approaches to developing expatriate compensation packages
Approaches Advantages Disadvantages
Lumpsum
It uses the home
country’s system for
determining base salary.
• It does not intrude into
the expatriate’s finances
• Employer does not pay
for things the expatriate
does not want
• the calculation of the
lumpsum, it involves a
complex and time-consuming
analysis.
Negotiation
To determine the
package through mutual
negotiation between
the employee and
employer.
• it is conceptually simple;
employer and each
individual expatriate
simply find a mutually
agreeable package.
• Tends to be costly
• It will creates
comparability problems
when an increasing
number of expatriates
are compensated
Cafeteria
The total salary level is
determined by the
organization and the
employee
• It is a more cost-effective
method, expatriate is
offered a selection of
options to choose from
• It has a limit to choices
and amounts
17. Compensation Strategies For Expatriates
To develop clear and defined
business goals similar to those
of home-based executives. The
executive has to look at the
assignment as a step in career
progression, allowing the
company to reduce the
excessive assignment-related
allowances and present the
executive with a clearly defined
path.
To validate the performance of
the expatriate against clearly
defined goals: Did the executive
meet these goals, and if the
answer is no, the company has to
think about 3 things: whether the
goals are achievable, is this the
right person for the role, a local
hire could better understand the
market, is there enough local
talent available to meet the
expectations.
18. Repatriate Retention
Up to 25 percent of repatriates wish to leave the
company after their return to a “normal post”
19. When it occurs and why it is a problem
• An expatriate of a multinational corporation returns
to the country of his/her origin from an overseas
assignment.
• Reasons:
a. culture shock (changes happen in expatriation
period).
b. work-dissatisfaction: high-status position with
high autonomy –a less highly profiled role; career
opportunities diminished; ‘let-down’, no longer
“special” or different.
c. problems for all family members (lower income,
housing, schooling).
20. Influences of bad repatriate
retention management
• Cost ($1.5 million/loss of a repatriate )
a. Extensive direct costs are incurred when firms must
replace departing executives who posses valuable
international and corporate experience.
b. Indirect costs also occur when repatriates withdraw
crucial market knowledge, host-country client
relationships, and international skills upon their
departure to other employers.
• Loss of high-potential employees to accept overseas
positions.
21. Possible Solutions
• Evidence-based executive coaching
a. Definition: ‘the intelligent and conscientious use of best
current knowledge integrated with practitioner expertise in
making decisions about how to deliver coaching to individual
coaching clients and in designing and teaching coach training
programs’.
b. Methods: Provide invaluable support for expatriate
executives through what is usually a time of high pressure of
rapid change; Engage in creative dialogue relevant to the
emotional, cognitive and behavioral aspects of issues that are
of great importance in complex overseas assignments.
c. Benefits: operate interactively in-the-moment across the
individual’s affective, behavioral and cognitive domains,
facilitating contextually appropriate and creative change
processes through all points of the expatriate experience.
22. Possible solutions
• A model of Repatriation practice
a. Benefits: provide a sense of career continuity; demonstrate the value
the company places on expatriate assignments; reduce repatriation
turnover.
b. Four stages of the strategy
* Planning for Repatriation: developing principles and philosophy;
providing stability and fairness to repatriate.
* The Repatriate agreement: including the assignment period, details
of return, incentive payment, a guarantee of a job equal to or better than
the one before leaving, provision for re-entry training, and a repatriation
program to support the person and help the family readjust upon return.
* Repatriation program: ensure positions, give repatriates challenging
assignments, and take use of their experience; a repatriation manager is
responsible for tracking, supporting, and assessing.
* Evaluation of the Repatriation Strategy: outcome measures (the
impact of the programs on repatriate retention, satisfaction and job
commitment), process evaluation (assessment of the effectiveness of
different strategies), deficit audit (the identification of gaps in support),
and quality assessment (continuous benchmarking of the overall strategy
against other similar businesses) .
23. Case Study: Procter & Gamble
• American multinational consumer goods
company
• 300 brands, 80 countries of operations and
138,000 employees in total
• Expatriate Employee Assistant Program
24. P&GExpatriate Employee Assistant Program
• For expatriate employees and their immediate
family members
• Aims to help employee adjust to the new culture
• Provides helpful solutions for typical concerns
faced by expatriates on assignment
• Addresses the personal and family impact of the
relocation
• Provides useful tips on parenting or address
concerns with family left behind in home
country
• Insight about intercultural differences found in
host location
25. P&G Expatriate compensation & Policy
• Provide Home Country Based Package +
benefit
• Minimizes shortfalls
• Eases transition back to home country
• Uninterrupted long term benefit plans
• Keeps decisions based career development vs.
financial attractiveness
26. P&G Expatriate compensation & Policy
• Expatriates
Receive home country salary and long term
benefits
Contribution to tax, goods and services,
housing and utilities at same levels as home
country peers
Receive incremental allowances to maintain
home country goods & service purchasing power
and live in appropriate housing at host location
27. References
• Abueva, J. E. (2000, May 17). Many Repatriation Fail at Huge Cost to Companies. New York Times.
• Chew, J. & Debowski, S. (2008). Developing an Effective Repatriation Strategy for MNC: A Model and Tools for
International Human Resources Management. Journal of Comparative International Management, 11 (2).
Management Futures
• Forgas, M. (March, 2010). Expatriates at P&G. Retrieved from
https://www.iom.int/jahia/webdav/shared/shared/mainsite/microsites/IDM/workshops/migration_and_tr
ansnationalis m_030910/Session4-Forgas.pdf
• Graf, A. (October 25, 2004). Expatriate Selection: An Empirical Study Identifying Significant Skill Profiles.
Thunderbird International Business Review Volume 46, Issue 6, pages 667–685,November/December 2004
Retrieved from http://onlinelibrary.wiley.com/doi/10.1002/tie.20030/abstract
• Hodgetts, R. M. & Luthans, F. (1997). International Management. New York, The McGraw-Hill Companies.
• Littrell, L. N. & Sallas, E. (2005). A Review of Cross-Cultural Training: Best Practices, Guidelines, and Research
Needs. Human Resource Development Review Vol. 4, No. 3, September 2005, 305-334. Retrieved from
http://hrd.sagepub.com/content/4/3/305
• Maurer, R. (July 8, 2013). Survey: Companies Fail to Train Managers for Overseas Assignments. SHRM.
Retrieved from http://www.shrm.org/hrdisciplines/global/articles/pages/fail-train-managers-overseas-assignments.
aspx
• McCallum, B. & Olson,D. (2004). Advising potential expatriate clients: a case study. Journal of Financial
Planning, Vol. 17 No. 11, pp. 72-79. Retrieved from
http://connection.ebscohost.com/c/articles/15013701/advising-potential-expatriate-clients-case- Study
• Mendenhall, M.E. & Stahl, G.K. (2000). Expatriate training and development: Where do we go from here?.
Human Resource Management Volume 39, Issue 2-3, pages 251–265, Summer - Autumn (Fall) 2000.
Retrieved from http://onlinelibrary.wiley.com/doi/10.1002/1099-050X(200022/23)39:2/3%3C251::AID-HRM13%
3E3.0.CO;2-I/abstract
28. References
• Moral, M. & Abbott, G. (2009). The Routledge Companion to International Business Coaching. Oxon, OX:
Routledge.
• Osman-Gani, A. M. & Rockstuhl, T. (2009). Cross-cultural training, expatriate self-efficacy, and adjustments to
overseas assignments: An empirical investigation of managers in Asia. International Journal of Intercultural
Relations 33 (2009), 277– 290. Retrieved from
http://www.sciencedirect.com/science/article/pii/S0147176709000091
• Porter, G. & Tansky, J. W. (March 8, 1999). Expatriate Success May Depend on “Learning Orientation”:
Considerations for Selection and Training. Human Resource Management Volume 38, Issue 1, pages 47–60,
Spring 1999 Retrieved from www.docin.com/p-87307911.html
• SHRM.org.(December, 11 2012). Global: Expatriate: How should we compensate an employee on a foreign
assignment?. SHRM. Retrieved from
• http://www.shrm.org/templatestools/hrqa/pages/howshouldwecompensateanemployeeonaforeignassignm
ent.aspx
• Templer, K. J. (September 8, 2010). Personal attributes of expatriate managers, subordinate ethnocentrism,
and expatriate success: a host-country perspective. The International Journal of Human Resource
Management Volume 21, Issue 10, 2010 Retrieved from
http://www.tandfonline.com/doi/abs/10.1080/09585192.2010.500493#.VDq60vldWCI
• Robert H. Sims and Mike Schraeder 2004 Expatriate compensation: An exploratory review of salient
contextual factors and common practices http://people.math.sfu.ca/~van/diverse/bellut-papers/test-8.pdf