Title: international%20human%20resource%20management%20%20%20%20%20%20%20%20and%20labor%20relations
1 chapter 20
- international human resource management
and labor relations
2Chapter Objectives 1
- Describe the nature of human resource management
in international business - Detail how firms recruit and select managers for
international assignments - Explain how international businesses train and
develop expatriate managers - Describe labor relations in international business
3Chapter Objectives 2
- Discuss how international firms conduct
performance appraisals and determine compensation
for their expatriate managers - Analyze retention and turnover issues in
international business - Explain basic human resource issues involving
nonmanagerial employees
4Human Resource Management
- Human resource management is the set of
activities directed at attracting, developing,
and maintaining the effective workforce necessary
to achieve a firms
objectives.
5Figure 20.1 The International Human Resource
Management Process
6International Staffing Needs
Managerial/Executive employees
Nonmanagerial employees
7Scope of Internationalization
Export department
International division
Global organization
8Expertise Needs in Global Organizations
Product line
Functional skills
Individual country markets
Global strategy
9Centralization versus Decentralization of Control
- Centralized firms
- Favor home country managers
- Most common amongst international division form
- Decentralized firms
- Favor host country managers
- Most common amongst multidomestic firms
10Staffing Philosophy
Parent country nationals
Third country nationals
Host country nationals
11Strategies for Staffing
- Ethnocentric staffing model
- Polycentric staffing model
- Geocentric staffing model
12Figure 20.2 Necessary Skills and Abilities for
International Managers
- Skills and Abilities
- Necessary to Do
- the Job
- Technical
- Functional
- Managerial
- Skills and Abilities
- Necessary to Work
- in a Foreign Location
- Adaptability
- Location-specific skills
- Personal characteristics
Improved Chances of Succeeding in an
International Job Assignment
13Recruitment of Managers
Experienced managers
Younger managers
14Selecting expatriates is an important element in
international HRM.
15Selection of Managers
Managerial competence
Appropriate training
Adaptability to new situations
16Table 20.1 Questions from ATTs Questionnaire
for Screening Overseas Transferees 1
- Would your spouse be interrupting a career to
accompany you on an international assignment? If
so, how do you think this will affect your spouse
and your relationship with each other? - Do you enjoy the challenge of making your own way
in new situations? - Securing a job upon reentry will be primarily
your responsibility. How do you feel about
networking and being your own advocate? - How able are you in initiating new social
contacts? - Can you imagine living without a television?
17Table 20.1 Questions from ATTs Questionnaire
for Screening Overseas Transferees 2
- How important is it for you to spend significant
amounts of time with people of your own ethnic,
racial, religious, and national background? - As you look at your personal history, can you
isolate any episodes that indicate a real
interest in learning about other peoples and
cultures? - Has it been your habit to vacation in foreign
countries? - Do you enjoy sampling foreign cuisine?
- What is your tolerance for waiting for repairs?
18Culture Shock
- Culture shock is a psychological phenomenon that
may lead to feelings of fear, helplessness,
irritability, and disorientation, which is
commonly experienced by new expatriates who may
experience a sense of loss regarding their old
cultural environment as well as confusion,
rejection, self-doubt, and decreased self-esteem
from working in a new and unfamiliar cultural
setting.
19Figure 20.3 Phases in Acculturation
Honeymoon
Disillusionment
Adaptation
Biculturalism
20Honeymoon Phase
- New culture seems exotic and stimulating
- Excitement of working in new environment makes
employee overestimate ease of adjusting - Lasts for first few days or months
21Disillusionment Phase
- Differences between new and old environments are
blown out of proportion - Challenges of everyday living
- Many stay stuck in this phase
22Adaptation Phase
- Employee begins to understand patterns of new
culture - Gains language competence
- Adjusts to everyday living
23Biculturalism
- Anxiety has ended
- Employee gains confidence in ability to function
productively in new culture - Repatriation may be difficult
24Overseas Success
- Likelihood of managers being successful at
overseas assignment increases if the managers - Can freely choose whether to accept or reject the
assignment - Have been given a realistic preview of the job
and assignment - Have been given a realistic expectation of what
their repatriation assignment will be - Have a mentor back home who will guard their
interests and provide support - See a clear link between the expatriate
assignment and their long-term career path
25Training and Development
- Assessing training needs
- Basic training methods
- Standardized
- Customized
- Developing younger managers
26Performance Appraisal
- Performance appraisal is the
process of assessing how
effectively people are performing their jobs.
27Functions of Performance Appraisals
To provide feedback to individuals about how
well they are doing
To provide a basis for rewarding top performers
To identify areas in which additional training
and development may be needed
To identify problem areas that may call for a
change in assignment
28Compensation Packages
Cost-of-living allowance
Hardship premium
Tax equalization system
29Figure 20.5 Global Cost of Living Survey
30Components of Compensation Packages
Labor market forces
Tax codes
Occupational status
Government regulations
Professional licensing requirements
Standards of living
31Figure 20.6 An Expatriate Balance Sheet
Foreign and Excess U.S. Taxes Paid by Company
Excess Foreign Costs Paid by Company
Foreign Service Premium/ Hardship Added by Company
U.S. Domestic Base Salary
Taxes
Consumption
Savings
U.S. Spendable Income U.S. Hypothetical Housing
and Utilities U.S. Auto Purchase
U.S. Hypothetical Tax and Social Security
U.S. Levels
32Labor Relations
Comparative Labor Relations
Collective Bargaining
Union Influence and Codetermination