FACTORS EFFECTING CONVERGENCE AND DIVERGENCE
Factors affecting the choice between convergence and divergence, Harris and Brewster (1999)
The extent to which there are well-defined local norms. •
The degree to which an operating unit is embedded in the local • environment.
The strength of the flow of resources – finance, information and people • – between the parent and the subsidiary.
The orientation of the parent to control. •
The nature of the industry – the extent to which it is primarily a domestic industry at local level.
The specific organizational competencies, including HRM, that are critical for achieving competitive advantage in a global environment.
This document discusses international human resource management. It covers topics such as the characteristics of IHRM, the need for a broader perspective when working internationally, different types of expatriate employees, the expatriate assignment life cycle, challenges of expatriate assignments like culture shock and failure, training programs, compensation packages, repatriation processes, and managing a multicultural workforce. The overall purpose seems to be to provide an overview of the key aspects and considerations of international HRM.
Role of Information Technology in International Human Resource ManagementSundar B N
This document discusses the role of information technology in international human resource management. It defines international human resource management as procuring, allocating, and utilizing human resources in multinational corporations while balancing integration and differentiation of activities abroad. Information technology plays a vital role by allowing for online recruitment, training, data storage and sharing between local and overseas HR departments. It has helped make HR activities less demanding and easier to manage both locally and internationally.
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 RESOURCES MANAGEMENT- soft models and hard models of HRM such as Harward Model, Michigan Model etc.International human resource management is the process of managing people across international boundaries by multinational companies. It involves the worldwide management of people, not just the management of expatriates.
This document provides an overview of key topics in international human resource management (IHRM) including approaches to staffing foreign operations, reasons for international assignments, types of international assignments, and the roles of expatriates and non-expatriates in supporting international business activities. It also discusses calculating return on investment for international assignments and the various roles of the corporate HR function in managing international operations.
International human resource managementrhimycrajan
This document discusses international human resource management. It begins by defining IHRM and explaining why global organizations develop international HR strategies due to factors like global competition and differences in business environments across countries. It then describes four types of international organizations and discusses some key aspects of IHRM like differences between domestic and international HRM, external factors that influence IHRM, and common IHRM practices such as international staffing, training for international assignments, repatriation, and compensation considerations. The document concludes that understanding cultural differences and workforce issues is important for HR managers and success in global business situations.
This document provides an introduction to international human resource management (IHRM). It defines IHRM as procuring, allocating, and utilizing human resources across a multinational corporation while balancing integration and differentiation of activities in foreign locations. The document outlines some key differences between domestic HRM and IHRM, such as IHRM involving more HR activities like taxation and cultural orientation, as well as a broader perspective and greater risks. It also lists some common challenges for IHRM like high expatriate failure rates, managing talent globally, and addressing different labor laws and cultural values in foreign locations.
This document discusses international human resource management. It covers topics such as the characteristics of IHRM, the need for a broader perspective when working internationally, different types of expatriate employees, the expatriate assignment life cycle, challenges of expatriate assignments like culture shock and failure, training programs, compensation packages, repatriation processes, and managing a multicultural workforce. The overall purpose seems to be to provide an overview of the key aspects and considerations of international HRM.
Role of Information Technology in International Human Resource ManagementSundar B N
This document discusses the role of information technology in international human resource management. It defines international human resource management as procuring, allocating, and utilizing human resources in multinational corporations while balancing integration and differentiation of activities abroad. Information technology plays a vital role by allowing for online recruitment, training, data storage and sharing between local and overseas HR departments. It has helped make HR activities less demanding and easier to manage both locally and internationally.
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 RESOURCES MANAGEMENT- soft models and hard models of HRM such as Harward Model, Michigan Model etc.International human resource management is the process of managing people across international boundaries by multinational companies. It involves the worldwide management of people, not just the management of expatriates.
This document provides an overview of key topics in international human resource management (IHRM) including approaches to staffing foreign operations, reasons for international assignments, types of international assignments, and the roles of expatriates and non-expatriates in supporting international business activities. It also discusses calculating return on investment for international assignments and the various roles of the corporate HR function in managing international operations.
International human resource managementrhimycrajan
This document discusses international human resource management. It begins by defining IHRM and explaining why global organizations develop international HR strategies due to factors like global competition and differences in business environments across countries. It then describes four types of international organizations and discusses some key aspects of IHRM like differences between domestic and international HRM, external factors that influence IHRM, and common IHRM practices such as international staffing, training for international assignments, repatriation, and compensation considerations. The document concludes that understanding cultural differences and workforce issues is important for HR managers and success in global business situations.
This document provides an introduction to international human resource management (IHRM). It defines IHRM as procuring, allocating, and utilizing human resources across a multinational corporation while balancing integration and differentiation of activities in foreign locations. The document outlines some key differences between domestic HRM and IHRM, such as IHRM involving more HR activities like taxation and cultural orientation, as well as a broader perspective and greater risks. It also lists some common challenges for IHRM like high expatriate failure rates, managing talent globally, and addressing different labor laws and cultural values in foreign locations.
Performance management in international contextkoshyligo
Performance management in multinational companies faces several challenges, including differing expectations between headquarters and subsidiaries, the need for both standardized and customized evaluation formats, and ensuring uniformity of data despite varying subsidiary functions. Additionally, factors like cultural adjustment, geographical distance, and rater bias must be considered when appraising expatriate performance. Effective performance management requires specifying criteria appropriate to the local context, obtaining input from various appraisers, and conducting evaluations periodically to continuously improve performance.
The document discusses several key challenges in international performance management:
1) There are challenges in measuring performance across different subsidiaries and countries due to variations in environments, criteria validity, data uniformity, and cultural adjustments.
2) When appraising expatriates, it is important to consider their organizational role expectations, as well as the expectations of the parent company and host subsidiary, which can conflict.
3) Effective performance appraisal of foreign employees should consider their role beyond just tasks, and look at leadership, interpersonal skills, cultural adaptation, and how they meet the needs of multiple organizations.
International human resource management ihrmkoshyligo
International human resource management-IHRM, Introduction, Differences between Domestic and IHRM, Stages of Internationalization , Organisation structures of MNEs
Concept and role of culture in International human resource managementSundar B N
Culture plays a major role in international human resource management (IHRM). There are different cultural predispositions that multinational companies take when operating internationally, including ethnocentrism, policentricism, geocentricism, and regiocentricism. It is important for IHRM managers to be aware of cultural differences between countries and adapt practices accordingly to avoid issues like cultural shock. Proper cultural awareness can help companies avoid failures when expanding internationally.
Developing international staff and multinational teamsRamrao Ranadive
This document discusses developing international staff and multinational teams. It identifies four categories of global assignments: technical, functional/tactical, developmental/high potential, and strategic/executive. Training and development in international human resource management is important for acquiring and transferring knowledge, managing foreign subsidiaries, filling staffing needs, maintaining communication and coordination between subsidiaries and headquarters, and developing global leadership competence. The training requirements for an assignment depend on the roles and responsibilities, tenure, staffing trends and orientations, and the extent of control and coordination by the parent company. Effective training focuses on cross-cultural training, orientation to the unit's approach, and preparatory or post-assignment training.
The document discusses various components of international compensation packages. It begins by defining compensation and its objectives. It then covers principles of compensation, approaches in different countries, factors influencing compensation amounts, and theories of compensation. The document also discusses base salary, incentives, allowances, taxes, retirement benefits, and other typical components of an international compensation package. It notes challenges around managing compensation globally due to exchange rates, cost of living differences, and other complexities.
Prof. Preeti Bhaskar's presentation discusses key aspects of international staffing and expatriate management. It covers approaches to staffing multinational corporations, including ethnocentric, polycentric, geocentric, and regiocentric policies. It also examines factors for expatriate success and failure, selection techniques for expatriates, and ways to reduce expatriate failure rates such as improving selection procedures.
The document discusses international organizational behavior from a cultural perspective. It notes that culture determines behaviors and there are both similarities and differences across cultures. While behaviors vary across countries due to factors like remuneration, leave policies, and performance appraisals, there are also cultural clusters where countries show similarities. Managing diversity and communicating across cultures are important for organizations operating globally.
This document discusses expatriation and repatriation. Expatriation is sending an employee abroad for an international assignment, and repatriation is returning home after an international assignment. Successful repatriation requires managing re-entry shock and unclear roles/career progression upon returning home, as many repatriates leave their companies within a year due to poor repatriation processes. Strategies for managing repatriation include consulting on repatriation processes, custom repatriation programs, and personal development profiling upon return.
This document provides an overview of cross-cultural management concepts including:
- Culture is learned behavior shared among members of a society that influences norms, values, and practices.
- Elements of culture include language, values, norms, attitudes, customs, and more.
- Cultural determinants include religion, language, education, and social structure.
- Cross-cultural theories like Hofstede analyze cultural dimensions like power distance, uncertainty avoidance, and individualism vs collectivism that influence behaviors.
- Understanding cultural differences is important for effective cross-cultural communication and management.
The document discusses international human resource management (IHRM), which involves managing human resources across national borders. IHRM differs from domestic HRM in several ways, such as requiring more HR activities to deal with taxation, culture, and legal issues in multiple countries. It also requires a broader perspective to meet diverse needs. Managing employees across cultures and countries presents various challenges for IHRM, such as high expatriate failure rates, developing a globally dispersed workforce, and overcoming cultural and legal differences between locations. Globalization and pressures of competitiveness have increased the importance of effective IHRM for international organizations.
The document discusses five approaches to staffing international subsidiaries: ethnocentric, polycentric, regiocentric, and geocentric. The ethnocentric approach involves headquarters making all decisions and staffing key roles with parent country nationals. Polycentric treats each subsidiary as a distinct national entity staffed by locals. Regiocentric reflects the organization's geographic structure with talent drawn from regions. Geocentric takes a global approach where each subsidiary contributes unique competencies. The approaches differ in costs, control, adaptation challenges and opportunities for career progression.
This document discusses international staffing strategies used by multinational corporations. It describes the types of international managers as parent country nationals (PCNs), third country nationals (TCNs), and host country nationals (HCNs). The advantages and disadvantages of using each type are provided. The document also examines the ethnocentric, polycentric, geocentric, and regiocentric approaches to international staffing and the factors that influence staffing decisions. Finally, it discusses the different types of international assignments and roles of expatriates.
This document discusses issues related to managing human resources internationally. It begins by outlining challenges such as cultural differences, legal compliance, and managing expatriates. It then examines topics like selecting international staff, providing cross-cultural training, establishing global compensation, ensuring safety abroad, and facilitating successful repatriation. Key recommendations include selecting candidates based on cultural skills over just technical skills, ongoing support for expatriates and families, and standardizing goals while allowing flexibility in practices to suit different country contexts.
MODELS OF INTERNATIONAL HUMAN RESOURCE MANAGEMENTSundar B N
The document discusses several models of international human resource management. It describes the Harvard model which emphasizes line managers taking responsibility for aligning competitive strategy with personnel policies. It also outlines the contextual model, the 5P's model, and the matching model proposed by Fombrun, Tichy, and Devanna which emphasizes a tight fit between HR and business strategies. Additionally, the document explains Guest's model which sees HR strategies leading to specific practices and outcomes that impact behavioral, performance, and financial results.
The document discusses performance management in an international context. It covers key topics such as performance appraisal versus performance management, setting individual performance goals, identifying variables that affect expatriate performance like compensation, task, and cultural adjustment, appraising performance using different criteria, providing feedback and opportunities for improvement, and linking rewards to results. Challenges in managing performance globally include cultural impacts on processes and assessing subsidiary performance given external forces and the international environment.
Variable that moderate difference bw dhrm and ihrmStudsPlanet.com
This document discusses factors that influence differences in domestic and international human resource management, including the host country's culture, industry type, reliance on home market, and senior management attitudes. It also outlines forces driving change in the global work environment like competition, mergers and acquisitions, restructuring, and technology advances. These impacts require multinational companies to be flexible, responsive to local needs, share knowledge, and transfer competencies. In response, managers must develop a global mindset, use control mechanisms, facilitate cross-border communication, leverage virtual teams, and offer international assignments.
This document provides an overview of international human resource management. It discusses different strategic perspectives companies can take when operating internationally, including international, multinational, global, and transnational. It also covers topics such as motivations for international expansion, recruiting and selecting expatriates, cross-cultural training, compensating international employees, and repatriating employees back to their home country. The document aims to introduce some of the key considerations and challenges for managing human resources across national borders.
The document discusses the strategic role of human resources in global environments. It examines how global corporations manage human resources and social responsibility across different countries and cultures. Some key challenges for international human resource management include variations in laws, economies, and cultures between locations. The document recommends that companies develop centralized reporting relationships, standardized practices, and consistent corporate cultures while also giving regional autonomy. It emphasizes the importance of cultural awareness and developing global leaders.
This document discusses international human resource management (IHRM). IHRM involves managing a company's human resources at an international level to achieve global objectives and gain competitive advantages. Key functions of IHRM include recruitment, selection, training, and managing expatriates across borders. IHRM is more complex than domestic HRM due to factors like cultural and regulatory differences between countries, currency exchange issues, and managing employees from various nationalities. Common challenges in IHRM include selecting the right employees for international assignments, ensuring cultural adaptation, and addressing language barriers.
Performance management in international contextkoshyligo
Performance management in multinational companies faces several challenges, including differing expectations between headquarters and subsidiaries, the need for both standardized and customized evaluation formats, and ensuring uniformity of data despite varying subsidiary functions. Additionally, factors like cultural adjustment, geographical distance, and rater bias must be considered when appraising expatriate performance. Effective performance management requires specifying criteria appropriate to the local context, obtaining input from various appraisers, and conducting evaluations periodically to continuously improve performance.
The document discusses several key challenges in international performance management:
1) There are challenges in measuring performance across different subsidiaries and countries due to variations in environments, criteria validity, data uniformity, and cultural adjustments.
2) When appraising expatriates, it is important to consider their organizational role expectations, as well as the expectations of the parent company and host subsidiary, which can conflict.
3) Effective performance appraisal of foreign employees should consider their role beyond just tasks, and look at leadership, interpersonal skills, cultural adaptation, and how they meet the needs of multiple organizations.
International human resource management ihrmkoshyligo
International human resource management-IHRM, Introduction, Differences between Domestic and IHRM, Stages of Internationalization , Organisation structures of MNEs
Concept and role of culture in International human resource managementSundar B N
Culture plays a major role in international human resource management (IHRM). There are different cultural predispositions that multinational companies take when operating internationally, including ethnocentrism, policentricism, geocentricism, and regiocentricism. It is important for IHRM managers to be aware of cultural differences between countries and adapt practices accordingly to avoid issues like cultural shock. Proper cultural awareness can help companies avoid failures when expanding internationally.
Developing international staff and multinational teamsRamrao Ranadive
This document discusses developing international staff and multinational teams. It identifies four categories of global assignments: technical, functional/tactical, developmental/high potential, and strategic/executive. Training and development in international human resource management is important for acquiring and transferring knowledge, managing foreign subsidiaries, filling staffing needs, maintaining communication and coordination between subsidiaries and headquarters, and developing global leadership competence. The training requirements for an assignment depend on the roles and responsibilities, tenure, staffing trends and orientations, and the extent of control and coordination by the parent company. Effective training focuses on cross-cultural training, orientation to the unit's approach, and preparatory or post-assignment training.
The document discusses various components of international compensation packages. It begins by defining compensation and its objectives. It then covers principles of compensation, approaches in different countries, factors influencing compensation amounts, and theories of compensation. The document also discusses base salary, incentives, allowances, taxes, retirement benefits, and other typical components of an international compensation package. It notes challenges around managing compensation globally due to exchange rates, cost of living differences, and other complexities.
Prof. Preeti Bhaskar's presentation discusses key aspects of international staffing and expatriate management. It covers approaches to staffing multinational corporations, including ethnocentric, polycentric, geocentric, and regiocentric policies. It also examines factors for expatriate success and failure, selection techniques for expatriates, and ways to reduce expatriate failure rates such as improving selection procedures.
The document discusses international organizational behavior from a cultural perspective. It notes that culture determines behaviors and there are both similarities and differences across cultures. While behaviors vary across countries due to factors like remuneration, leave policies, and performance appraisals, there are also cultural clusters where countries show similarities. Managing diversity and communicating across cultures are important for organizations operating globally.
This document discusses expatriation and repatriation. Expatriation is sending an employee abroad for an international assignment, and repatriation is returning home after an international assignment. Successful repatriation requires managing re-entry shock and unclear roles/career progression upon returning home, as many repatriates leave their companies within a year due to poor repatriation processes. Strategies for managing repatriation include consulting on repatriation processes, custom repatriation programs, and personal development profiling upon return.
This document provides an overview of cross-cultural management concepts including:
- Culture is learned behavior shared among members of a society that influences norms, values, and practices.
- Elements of culture include language, values, norms, attitudes, customs, and more.
- Cultural determinants include religion, language, education, and social structure.
- Cross-cultural theories like Hofstede analyze cultural dimensions like power distance, uncertainty avoidance, and individualism vs collectivism that influence behaviors.
- Understanding cultural differences is important for effective cross-cultural communication and management.
The document discusses international human resource management (IHRM), which involves managing human resources across national borders. IHRM differs from domestic HRM in several ways, such as requiring more HR activities to deal with taxation, culture, and legal issues in multiple countries. It also requires a broader perspective to meet diverse needs. Managing employees across cultures and countries presents various challenges for IHRM, such as high expatriate failure rates, developing a globally dispersed workforce, and overcoming cultural and legal differences between locations. Globalization and pressures of competitiveness have increased the importance of effective IHRM for international organizations.
The document discusses five approaches to staffing international subsidiaries: ethnocentric, polycentric, regiocentric, and geocentric. The ethnocentric approach involves headquarters making all decisions and staffing key roles with parent country nationals. Polycentric treats each subsidiary as a distinct national entity staffed by locals. Regiocentric reflects the organization's geographic structure with talent drawn from regions. Geocentric takes a global approach where each subsidiary contributes unique competencies. The approaches differ in costs, control, adaptation challenges and opportunities for career progression.
This document discusses international staffing strategies used by multinational corporations. It describes the types of international managers as parent country nationals (PCNs), third country nationals (TCNs), and host country nationals (HCNs). The advantages and disadvantages of using each type are provided. The document also examines the ethnocentric, polycentric, geocentric, and regiocentric approaches to international staffing and the factors that influence staffing decisions. Finally, it discusses the different types of international assignments and roles of expatriates.
This document discusses issues related to managing human resources internationally. It begins by outlining challenges such as cultural differences, legal compliance, and managing expatriates. It then examines topics like selecting international staff, providing cross-cultural training, establishing global compensation, ensuring safety abroad, and facilitating successful repatriation. Key recommendations include selecting candidates based on cultural skills over just technical skills, ongoing support for expatriates and families, and standardizing goals while allowing flexibility in practices to suit different country contexts.
MODELS OF INTERNATIONAL HUMAN RESOURCE MANAGEMENTSundar B N
The document discusses several models of international human resource management. It describes the Harvard model which emphasizes line managers taking responsibility for aligning competitive strategy with personnel policies. It also outlines the contextual model, the 5P's model, and the matching model proposed by Fombrun, Tichy, and Devanna which emphasizes a tight fit between HR and business strategies. Additionally, the document explains Guest's model which sees HR strategies leading to specific practices and outcomes that impact behavioral, performance, and financial results.
The document discusses performance management in an international context. It covers key topics such as performance appraisal versus performance management, setting individual performance goals, identifying variables that affect expatriate performance like compensation, task, and cultural adjustment, appraising performance using different criteria, providing feedback and opportunities for improvement, and linking rewards to results. Challenges in managing performance globally include cultural impacts on processes and assessing subsidiary performance given external forces and the international environment.
Variable that moderate difference bw dhrm and ihrmStudsPlanet.com
This document discusses factors that influence differences in domestic and international human resource management, including the host country's culture, industry type, reliance on home market, and senior management attitudes. It also outlines forces driving change in the global work environment like competition, mergers and acquisitions, restructuring, and technology advances. These impacts require multinational companies to be flexible, responsive to local needs, share knowledge, and transfer competencies. In response, managers must develop a global mindset, use control mechanisms, facilitate cross-border communication, leverage virtual teams, and offer international assignments.
This document provides an overview of international human resource management. It discusses different strategic perspectives companies can take when operating internationally, including international, multinational, global, and transnational. It also covers topics such as motivations for international expansion, recruiting and selecting expatriates, cross-cultural training, compensating international employees, and repatriating employees back to their home country. The document aims to introduce some of the key considerations and challenges for managing human resources across national borders.
The document discusses the strategic role of human resources in global environments. It examines how global corporations manage human resources and social responsibility across different countries and cultures. Some key challenges for international human resource management include variations in laws, economies, and cultures between locations. The document recommends that companies develop centralized reporting relationships, standardized practices, and consistent corporate cultures while also giving regional autonomy. It emphasizes the importance of cultural awareness and developing global leaders.
This document discusses international human resource management (IHRM). IHRM involves managing a company's human resources at an international level to achieve global objectives and gain competitive advantages. Key functions of IHRM include recruitment, selection, training, and managing expatriates across borders. IHRM is more complex than domestic HRM due to factors like cultural and regulatory differences between countries, currency exchange issues, and managing employees from various nationalities. Common challenges in IHRM include selecting the right employees for international assignments, ensuring cultural adaptation, and addressing language barriers.
This chapter provides an overview of global human resource management. It discusses recruiting, selecting, training, compensating, and repatriating global employees. The chapter addresses strategy and global HRM fit, global assignments, cross-cultural training, adjustment challenges, and improving repatriation. It introduces key terms and concepts in global HRM and suggests review questions to enhance understanding.
This chapter provides an overview of global human resource management. It discusses recruiting, selecting, training, compensating, and repatriating global employees. The chapter addresses strategy and global HRM fit, global assignments, cross-cultural training, adjustment challenges, and improving repatriation. It introduces key terms and concepts in global HRM and suggests review questions to enhance understanding.
The document discusses international human resource management (IHRM). It defines IHRM as managing organizational human resources at an international level to achieve objectives and competitive advantage globally. IHRM includes typical HR functions like recruitment, selection, training etc. at an international scale along with activities like global skills management and expatriate management. The objectives, needs and functions of IHRM are explained. Key activities involved in IHRM are discussed along with issues like managing international assignments and culture. Effective IHRM implementation requires determining international operations strategy and ensuring standardized or localized HR policies. Staffing policies in IHRM like ethnocentric, polycentric and geocentric approaches are also summarized.
International human resource management deals with procuring, allocating, and motivating human resources across international businesses. HR managers in global organizations face the challenge of balancing the integration of HR policies across subsidiaries with allowing flexibility for different business and cultural settings. IHRM considers three dimensions: human resource activities in different countries, types of employees from host, home, or third countries, and reconciling HR practices between these countries. Theoretical models of IHRM include the matching, Harvard, contextual, 5P, and European models which approach IHRM from different perspectives like resources, stakeholders, external context, and constraints.
International human resource management deals with procuring, allocating, and motivating human resources across international businesses. HR managers in global organizations face the challenge of balancing the integration of HR policies across subsidiaries with allowing flexibility for different business and cultural settings. There are three dimensions to consider: 1) HR activities in international contexts, 2) reconciling the interests of home, host, and third-party nations, and 3) treating employees from home, host, and third countries. Effective international HRM requires cultural awareness and adapting to different stages of internationalization. Theoretical models provide frameworks for matching HR to strategy, considering multiple stakeholder interests, contextual factors, and integrating HR activities with strategic needs.
This document provides an overview of key topics in international human resource management (IHRM). It defines IHRM and discusses the differences between domestic and global HRM. Some of the main challenges of IHRM include complying with different countries' labor laws, acquiring and retaining talent internationally, developing leaders who can adapt to different cultural contexts, and balancing local and corporate priorities. The document also outlines different strategic approaches companies can take to IHRM, such as ethnocentric, polycentric, and geocentric policies, and discusses some common barriers to effective global human resources management.
Chapter 15 MANAGING HUMAN RESOURCES GLOBALLYFeliciaaaaa18
The document discusses managing human resources globally. It identifies recent changes as companies expand internationally and factors that influence human resource management in international markets. It describes different categories of international employees and levels of global participation that companies engage in. It also discusses how companies select, train, and reintegrate expatriate managers for foreign assignments.
Running head Week 8 Assignment 2 International Assignments.docxagnesdcarey33086
Running head: Week 8 Assignment 2: International Assignments
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Week 8 Assignment 2: International Assignments
Week 8 Assignment 2: International Assignments
Schwanna Weston
Professor Tara McNealy
Global Human Resources Management
May 27, 2015
International Assignments
Introduction
The multinational firm in which I am HR director is called Real International Boutique, Inc. or for short RIB. The organization is a US based boutique with thirty retail store in the northeast is of the US, and are looking to expand retail locations globally to Italy. My goal as HR director will see to it that RIB hires three business developers as expatriates to implement, launch and open ten new retail stores and establish global markets in Italy, with an five year project deadline. My paper will include four to six components that the pre-departure training will need to cover and a rationale for the use of using the training components in question, the proposal of three criteria that management will use to assess the performance of expatriates working abroad. In addition, an implemented proposal, along with examples of the fundamental ways in which these performance requirements have improved performance is included.
The recommendation of a recruiting and selection strategies that I believe the firm should use when offering international assignments with rationale are addressed. The international assignment paper will also cover the comparison and contrast of two staffing alternatives for foreign operations at RIB. The selection of the staffing alternative that I believe to be the best fit and analyzing the importance of providing a high-quality mentoring system for international assignees are outlined. Lastly, generation of an example, of a high-quality mentoring system for international assignees to support my analysis and suggestion of the manner in which I plan to measure return on investment (ROI) for international assignments.
Components of Pre-Departure Training
Given the primary selection criterion for most MNEs is technical ability of existing employee, it is not surprising to find that most of the literature on expatriate training is devoted to expatriate departure training activates that are mainly concerned with developing cultural awareness. There for once an employee has been selected for expatriate position, pre-departure training is consider to be the next critical step in attempting to ensure the expatriate’s effectiveness and success abroad, particularly where the destination country is considered culturally tough. Effective cultural training, its advocate, assists individuals to adjust more rapidly to the new culture. The limited, predominately US-based, research into this area reveals that a large number of US multinational s have been reluctant to provide even a basic level of pre-departure training, though this is now changing. Particular inters in the area began with Tung’s study on expatriation practices, including.
Cultural consequences of IHRM on company’s values, behavior, institutions, or...Masum Hussain
The objective of the study is to investigate and analyze the influence of culture on human resource management practices. The research is expected to answer the importance question: Are HRM practices influenced by national culture or not? It is generally accepted that the practices of management is considered to be universal until Hofstede (1980:42) published the seminal work: Culture’s Consequences: International Differences in Work Related Value in 1980. Hofstede’s work is the most popular in cross culture management studies so that his framework in national culture will be used in this research. Structural equation model (SEM) with Two Step Model Building Approach is used to test structural theory. It is used to test the hypotheses model statistically to determine the extent to which the proposed model is consistent with the sample data. SEM incorporates both confirmatory factor analysis and multiple regressions to estimate a series of interdependent relationship simultaneously. The results of descriptive analysis indicate that the national culture dimensions tend high for collectivism, power distance, masculinity and uncertainty avoidance, quite different from Hofstede (1980) findings that Indonesia has high collectivism, high power distance, and moderate in masculinity and low in uncertainty avoidance. While in Second Order Confirmatory Factor Analysis, collectivism, power distance and uncertainty avoidance are confirmed as a dimension of national culture but masculinity are not.
In structural testing, it indicates that two hypotheses i.e. the influence of national culture on career development and compensation are supported but the influence of national culture on staffing and participative management are not supported. Organizational culture also shows influence on staffing and participative management. One of human resource management practices i.e. career development influence on organizational performance but others such as staffing, participative management, and compensation does not. This study shows that national culture and organizational culture influence on some of human resource management practices. Therefore, this research supports the divergence theory that human resource management practices are culture-bound.
This document discusses key trends in global human resource management, including the rise of virtual teams, managing talent across borders, and balancing cultural differences in multinational companies. It provides expected changes in these areas and recommendations for how HR can help organizations prepare, such as providing cultural training, evaluating flexible work policies, and understanding employment laws in different countries.
This document provides an overview of international human resource management (IHRM). It defines IHRM and discusses its key functions such as recruitment, selection, training, and performance appraisal at the international level. It also describes the types of employees managed under IHRM - home country, host country, and third country nationals. The document further discusses important IHRM concepts like expatriates, different IHRM strategies (ethnocentric, polycentric, geocentric), risks associated with IHRM, and the relationship between organizational structure and HRM.
This document discusses international human resource management (IHRM). IHRM involves managing human resources across national borders and includes typical HR functions like recruitment, selection, and training, as well as expatriate management. The objectives of IHRM are to create a local appeal while maintaining a global identity, increase cultural awareness among global managers, and provide country-specific training. IHRM is needed to manage expatriates, address globalization, and effectively utilize talent across offices. Common IHRM strategies include ethnocentric, polycentric, and geocentric staffing policies. IHRM differs from domestic HR in its international scope and additional complexities from external cultural and institutional factors.
- When a multinational organization is in the multinational stage of internationalization, the selection of overseas subsidiary managers depends on the level of effort/outcome symmetry and cultural symmetry between the parent and subsidiary. Selection should come from an inpatriate, expatriate, or third country national pool depending on these symmetry levels.
- When a global organization is in the global stage of internationalization, the selection of overseas subsidiary managers also depends on effort/outcome symmetry and cultural symmetry between the parent and subsidiary. Selection should come from an inpatriate, expatriate, or local national pool depending on the specific symmetry levels.
- The article provides steps for assessing inpatriate orientation, external community support, establishing a monitoring process
The document discusses strategic international human resource staffing for foreign subsidiaries. It proposes that as organizations internationalize, their staffing strategies should evolve from relying primarily on expatriates, to also utilizing inpatriates, third country nationals, and local nationals based on the level of goal congruence and knowledge symmetry between the parent company and subsidiary. It outlines eight propositions regarding optimal staffing choices at the multinational and global stages of internationalization depending on effort/outcome and cultural symmetry. It also provides recommendations for selecting and supporting inpatriate managers to address their unique adjustment needs.
There are several key issues to consider in international compensation management:
1. Compensation packages typically include a base salary, allowances, benefits, and consideration of taxes.
2. Packages aim to maintain an expatriate's home country standard of living through the balance sheet approach or match local pay through the going rate approach.
3. Social security systems differ globally and must address issues like benefit portability and which country is responsible for payments.
This document provides an overview of global human resource management practices. It discusses three approaches that multinational companies use to staff their subsidiaries: ethnocentrism, polycentrism, and geocentrism. It also outlines several key functions of international human resource management, including conducting job analysis, planning labor needs, recruitment and selection, providing incentives and benefits, and managing wages and salaries abroad. The document concludes that to remain competitive globally, multinational enterprises must understand the various environmental factors that could inhibit their success and develop strategies to overcome potential challenges in different country settings.
Human resource issues in trans cultural organisationAakash Khandelwal
The document explores various HR issues within an organization (MNC) due to cultural diversity.
Hofstede framework is used and example of Merill Lynch, Bank of America and Google haven been discussed.
Similar to International Human Resource Management policy convergence and divergence (20)
what is culture?
Culture is a word for the 'way of life' of groups of people, meaning the way they do things. Different groups may have different cultures. A culture is passed on to the next generation by learning, whereas genetics are passed on by heredity
International financing options access to capital markets and financing optionsAparrajithaAriyadasa
This document discusses various topics related to international finance including:
1. Sources of corporate funding such as internally generated cash, short-term external funds, and long-term external funds.
2. Types of debt instruments such as commercial bank loans and bonds.
3. International financial centers and their role in transferring funds between savers and borrowers.
4. Eurocurrency markets and how they have grown due to restrictive banking policies in the US.
5. Interest rate and currency swaps which allow parties to exchange interest rate and currency payments.
6. Development banks which finance large infrastructure projects.
The Key factor that has resulted policy issues in equity and debt of international Finance due to the “International finance liberalization”
There are certain factors that could result policy issues in equity and debt of international finances which has furnished below.
Covering the sequence and order of financial liberalisation,
Capital controls,
exchange rate policy
asymmetric information
Introduction to international finance and International economyAparrajithaAriyadasa
International economics is a field of study that assesses the implications of international trade, international investment, and international borrowing and lending.
There are two broad sub-fields within the discipline: international trade and international finance
International financing options access to capital markets and financing optionsAparrajithaAriyadasa
CORPORATE SOURCES AND USES OF FUNDS IN INTERNATIONAL FINANCE
Internally generated cash
Funds that are generated via retained earnings and working capital of the company.
Short term external funds
These are the type of short term financial option used by corporates or individual to raise the finance for their business operations within a shorter period of time. Such as bank overdrafts, cash in hand and interest income generated on savings accounts etc.
Long Term External Funds
These are the Long Term Finance Options utilized by Corporates or individuals to to raise the finance for their business operations in longer period of time .Such as Borrowing debts, raising IPO(Initial Public offers), Stocks and capital markets.
According to Brewster et al (2002) the effectiveness of global IHRM depends on ‘the ability to judge the extent to which an organization should implement similar practices across the world (convergence) or adapt them to suit local conditions (divergence)’. The dilemma facing all multinational corporations is that of achieving a balance between international consistency and local autonomy. They have to decide on the extent to which their HR policies should either ‘converge’ worldwide to be basically the same in each location, or ‘diverge’ to be differentiated in response to local requirements.
Aparrajitha Ariyadasa
(LLM in Commercial Law (Colombo), Post. Grad. Dip.in. IP Law (Wales)B.Sc (J.pura), B.Sc. (OUSL),
Legal Consultant, Senior Lecturer in Commercial Law, International Commercial Arbitration, Cyber Law, International Human Resources Management, Company Law, Criminal Law ( NSBM, ICBT, SLIIT, ,Plymouth (UK), London Metropolitan University (UK)
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International Human Resource Management policy convergence and divergence
1. INTERNATIONAL HUMAN
RESOURCES
MANAGEMENT(IHRM)
Aparrajitha Ariyadasa
( B.Sc (J’pura), B.Sc. (OUSL), Post. Grad. Dip. In IP Law(wales), LLM (Colombo)
Lecturer in University of Plymouth (UK), Lymkokwin (Malaysia), SLIIT, ICBT
Attorney-at-Law, Senior Partner ATD Legal Associates (www.atdlegalassociates.com),
atdlegalassociates@gmail.com
2. FACTORS EFFECTING CONVERGENCE AND
DIVERGENCE
Factors affecting the choice between convergence and divergence, Harris and
Brewster (1999)
The extent to which there are well-defined local norms. •
The degree to which an operating unit is embedded in the local •
environment.
The strength of the flow of resources – finance, information and people • –
between the parent and the subsidiary.
The orientation of the parent to control. •
The nature of the industry – the extent to which it is primarily a domestic
industry at local level.
The specific organizational competencies, including HRM, that are critical for
achieving competitive advantage in a global environment.
3. COVERGENCE AND DIVERGENCE
According to Brewster et al (2002) the
effectiveness of global HRM depends on ‘the
ability to judge the extent to which an
organization should implement similar practices
across the world (convergence) or adapt them to
suit local conditions (divergence)’. The dilemma
facing all multinational corporations is that of
achieving a balance between international
consistency and local autonomy. They have to
decide on the extent to which their HR policies
should either ‘converge’ worldwide to be basically
the same in each location, or ‘diverge’ to be
differentiated in response to local requirements.
4. TRADITIONS MANAGEMENT
There is a natural tendency for managerial
traditions in the parent company to shape the
nature of key decisions, but there are strong
arguments for giving as much local autonomy as
possible in order to ensure that local
requirements are sufficiently taken into account.
Hence the mantra ‘Think globally but act
nationally.’ This leads to the fundamental
assumption made
5. balancing the needs
by Bartlett and Ghoshal (1991) that: ‘Balancing the needs of coordination, control and autonomy and
maintaining the appropriate balance are critical to the success of the multinational company.’ As
Brewster et al (2005) point out:
Where global integration and coordination are important, subsidiaries need to be globally integrated
with other parts of the organization and/or strategically coordinated by the parent. In contrast, where
local responsiveness is important, subsidiaries will have far greater autonomy and there is less need for
integration.
Brewster (2004) believes that convergence may be increasing as a result of the power of the markets,
the importance of cost, quality and productivity pressures, the emergence of transaction cost
economies, the development of like-minded international cadres and benchmarking ‘best practice’.
Stiles (2007) notes that common practices across borders may be appropriate: ‘Organizations seek what
works and for HR in multinational companies, the range of options is limited to a few common
practices that are believed to secure high performance.’ Brewster et al (2005) think that it is quite
possible for some parts of an HR system to converge while other parts may diverge. But there is choice
and they have listed the following factors affecting it
6. convergence
Dickmann, as reported by Welfare (2006), instanced
organizations such as IBM and Oxfam that operate a
model based on universal principles or values across
the organization that are then implemented
differently at regional or national level. He
suggested that the extent of integration or
convergence depends on the business model of the
organization
7. Mac donalds
If the company is basically a McDonald’s, where
there are only limited local variations but the
product is essentially the same all over the world,
then the approach is likely to be different to a
company like Unilever, whose products and
processes tend to be much more responsive to the
local market
8. Global HR policies and practices
The research conducted by Brewster et al (2005) identified three processes that constitute
global HRM: talent management/employee branding, international assignments
management, and managing an international workforce. They found that organizations such
as Rolls Royce had set up centers of excellence operating on a global basis. They observed
that global HR professionals are acting as the guardians of culture, operating global values
and systems.
It was established by the Global HR Research Alliance study (Stiles, 2007) that global HR
policies and practices were widespread in the areas of maintaining global performance
standards, the use of common evaluation processes, common approaches to rewards, the
development of senior managers, the application of competency frameworks and the use of
common performance management criteria.
Generally the research has indicated that while global HR policies in such areas as talent
management, performance management and reward may be developed, communicated and
supported by centers of excellence, often through global networking, a fair degree of
freedom has frequently been allowed to local management to adopt their own practices in
accordance with the local context as long as in principle these are consistent with global
policies.
9. Managing expatriates
Expatriates are people working overseas on long- or short-term contracts
who can be nationals of the parent company or ‘third country nationals’
(TCNs) – nationals of countries other than the parent company who work
abroad in subsidiaries of that company.
The management of expatriates is a major factor determining success or
failure in an international business. Expatriates are expensive; they can
cost three or four times as much as the employment of the same individual
at home. They can be diffi cult to manage because of the problems
associated with adapting to and working in unfamiliar environments,
concerns about their development and careers, diffi culties encountered
when they re-enter their parent company after an overseas assignment, and
how they should be remunerated. Policies to address all these issues are
required, as described below.
10. Resourcing policies
The challenge is that of resourcing international operations with people of the right calibre. As Perkins
(1997) observes, it is necessary for businesses to ‘remain competitive with their employment offering in
the market place, to attract and retain high quality staff with worldwide capabilities’.
Policies are required on the employment of local nationals and the use of expatriates for long periods or
shorter assignments. The advantages of employing local nationals are that they:
are familiar with local markets, the local communities, the cultural setting and the local • economy;
speak the local language and are culturally assimilated; •
can take a long-term view and contribute for a long period (as distinct from expatriates • who are likely
to take a short-term perspective);
do not take the patronizing (neo-colonial) attitude that expatriates sometimes adopt. •
Expatriates may be required to provide the experience and expertise that local nationals lack, at least
for the time being. But there is much to be said for a long-term resourcing policy that states that the aim
is to fi ll all or the great majority of posts with local people. Parent companies that staff their overseas
subsidiaries with local nationals always have the scope to ‘parachute in’ specialist staff to deal with
particular issues such as the start-up of a new product or service.
11. Recruitment and selection policies
Policies for recruitment and selection
should deal with specifying
requirements, providing realistic
previews and preparation for overseas
assignments
12. Role specifications
Role specifications should take note of the behaviors required for those
who work internationally. Leblanc (2001) suggested that they should be
able to:
recognize the diversity of overseas countries; •
accept differences between countries as a fact and adjust to these
differences effectively; •
tolerate and adjust to local conditions; •
cope in the long term with a large variety of foreign contexts; •
manage local operations and personnel abroad effectively
13. gain acceptance as a representative of one’s company abroad; •
obtain and interpret information about foreign national contexts (institutions,
legislations, practices, market specifics, etc);
inform and communicate effectively with a foreign environment about the home com-
• pany’s policies;
take into account the foreign environment when negotiating contracts and
partnerships; •
identify and accept adjustments to basic product specifications in order to meet the •
needs of the foreign market;
develop elements of a common framework for company strategies, policies and •
operations;
accept that the practices that will operate best in an overseas environment will not
necessarily be the same as the company’s ‘home’ practices
14. Realistic previews
At interviews for candidates from outside the organization, and
when talking to internal staff about the possibility of an
overseas assignment, it is advisable to have a policy of
providing a realistic preview of the job. The preview should
provide information on the overseas operation, any special
features of the work, what will need to be done to adjust to
local conditions, career progression overseas, re-entry policy
on completion of the assignment, pay, and special benefits
such as home leave and children’s education.
15. Preparation policy
The preparation policy for overseas
assignments should include the provision of
cultural familiarization for the country/ies
in which the expatriate will work
(sometimes called ‘acculturization’), the
preferred approach to leading and working
in international teams, and the business
and HR policies that will apply.
16. Training policy
Tarique and Caligiri (1995) propose that the following steps should be
taken to design a training programme for expatriates:
1. Identify the type of global assignment, eg technical, functional,
tactical, developmental or strategic/executive.
2. Conduct a cross-cultural training needs analysis covering organizational
analysis and requirements, assignment analysis of key tasks and individual
analysis of skills
Establish training goals and measures – cognitive (eg understanding the
role of cultural values and norms) and affective (modifying perception
about culture and increasing confidence in dealing with individual
behaviors to form adaptive behaviors such as interpersonal skills).
4. Develop the programme – the content should cover both general and
specific cultural orientation; a variety of methods should be used.
5. Evaluate training given.
17. Career management policy
Special attention has to be paid to managing the careers
of expatriates as part of their experience overseas, or on
return permanently or for a period to their home country.
18. Assimilation and review policies
Assimilation policies will provide for the adaptation of
expatriates to overseas posts and their progress in them to be
monitored and reviewed. This may take the form of
conventional performance management processes but additional
information may be provided on potential and the ability of
individuals to cope with overseas conditions. Where a number of
expatriates are employed it is customary for someone at
headquarters to have the responsibility of looking after them.
19. Re-entry policies
Re-entry policies should be designed to minimize the
problems that can arise when expatriates return to
their parent company after an overseas posting. They
want to be assured that they will be given positions
appropriate to their qualifications, and they will be
concerned about their careers, suspecting that their
overseas experience will not be taken into account.
Policies should allow time for expatriates to adjust.
The provision of mentors or counsellors is desirable.
20. Pay and allowances policies
The factors that are likely to impact on the design of reward systems, as suggested by Bradley et
al (1999) are the corporate culture of the multinational enterprise, expatriate and local labour
markets, local cultural sensitivities and legal and institutional factors. They refer to the choice
that has to be made between seeking internal consistency by developing common reward policies
to facilitate the movement of employees across borders and preserve internal equity, and
responding to pressures to conform to local practices. But they point out that: ‘Studies of cultural
differences suggest that reward system design and management need to be tailored to local
values to enhance the performance of overseas operations.’ Although, as Sparrow (1999) asserts:
‘Differences in international reward are not just a consequence of cultural differences, but also
of differences in international infl uences, national business systems and the role and competence
of managers in the sphere of HRM.’
The policy of most organizations is to ensure that expatriates are no worse off because they have
been posted abroad. In practice, various additional allowances or payments, such as hardship
allowances, mean that they are usually better off fi nancially than if they had stayed at home.
The basic choice for expatriates is whether to adopt a home-based or host-based policy.
21. Home-based pay
The home-based pay approach aims to ensure that the value of the remuneration (pay, benefi ts and
allowances) of expatriates is the same as in their home country. The home-base salary may be a
notional one for long-term assignments (ie the salary that it is assumed would be paid to expatriates
were they employed in a job of equivalent level at the parent company). For shorterterm
assignments it may be the actual salary of the individual. The notional or actual homebase salary is
used as the foundation upon which the total remuneration package is built. This is sometimes called
the ‘build-up’ or ‘balance sheet’ approach.
The salary ‘build-up’ starts with the actual or notional home-base salary. To it is added a cost of
living adjustment that is applied to ‘spendable income’ – the portion of salary that would be used at
home for everyday living. It usually excludes income tax, social security, pensions and insurance and
can exclude discretionary expenditure on major purchases or holidays on the grounds that these do
not constitute day-to-day living expenses.
The expatriate’s salary would then consist of the actual or notional home-base salary plus the cost of
living adjustment. In addition, it may be necessary to adjust salaries to take account of the host
country’s tax regime to achieve tax equalization. Moves of less than a year that might give rise to
double taxation require particular attention.
22. Some or all of the following allowances may
be added to this salary:
‘incentive to work abroad’ premium; •
hardship and location; •
housing and utilities; •
school fees; •
‘rest and recuperation’ leave
23. Host-based pay
The host-based pay approach provides expatriates with salaries and benefits
such as company cars and holidays that are in line with those given to
nationals of the host country in similar jobs. This method ensures equity
between expatriates and host country nationals. It is adopted by companies
using the so-called ‘market rate’ system, which ensures that the salaries of
expatriates match the market levels of pay in the host country.
Companies using the host-based approach commonly pay additional
allowances such as school fees, accommodation and medical insurance.
They may also fund long-term benefits like social security, life assurance and
pensions from home.
The host-based method is certainly equitable from the viewpoint of local
nationals, and it can be less expensive than home-based pay. But it may be
much less attractive as an inducement for employees to work abroad,
especially in unpleasant locations, and it can be difficult to collect market
rate data locally to provide a basis for setting pay levels.
24. “
”
THANK YOU!
APARRAJITHA ARIYADASA
( B.Sc (J’pura), B.Sc. (OUSL), Post. Grad. Dip. In IP Law(wales), LLM (Colombo)
Lecturer in University of Plymouth (UK), LImkokwin (Malaysia), SLIIT, ICBT
Attorney-at-Law, Senior Partner ATD Legal Associates
(www.atdlegalassociates.com), atdlegalassociates@gmail.com
4/18/2019APARRAJITHA ARIYADASA 24