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Describe the nature of human resource management in international business ... Have a mentor back home who will guard their interests and provide support ... – PowerPoint PPT presentation

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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

2
Chapter 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

3
Chapter 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

4
Human 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.

5
Figure 20.1 The International Human Resource
Management Process
6
International Staffing Needs
Managerial/Executive employees
Nonmanagerial employees
7
Scope of Internationalization
Export department
International division
Global organization
8
Expertise Needs in Global Organizations
Product line
Functional skills
Individual country markets
Global strategy
9
Centralization 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

10
Staffing Philosophy
Parent country nationals
Third country nationals
Host country nationals
11
Strategies for Staffing
  • Ethnocentric staffing model
  • Polycentric staffing model
  • Geocentric staffing model

12
Figure 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
13
Recruitment of Managers
Experienced managers
Younger managers
14
Selecting expatriates is an important element in
international HRM.
15
Selection of Managers
Managerial competence
Appropriate training
Adaptability to new situations
16
Table 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?

17
Table 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?

18
Culture 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.

19
Figure 20.3 Phases in Acculturation
Honeymoon
Disillusionment
Adaptation
Biculturalism
20
Honeymoon 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

21
Disillusionment Phase
  • Differences between new and old environments are
    blown out of proportion
  • Challenges of everyday living
  • Many stay stuck in this phase

22
Adaptation Phase
  • Employee begins to understand patterns of new
    culture
  • Gains language competence
  • Adjusts to everyday living

23
Biculturalism
  • Anxiety has ended
  • Employee gains confidence in ability to function
    productively in new culture
  • Repatriation may be difficult

24
Overseas 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

25
Training and Development
  • Assessing training needs
  • Basic training methods
  • Standardized
  • Customized
  • Developing younger managers

26
Performance Appraisal
  • Performance appraisal is the
    process of assessing how
    effectively people are performing their jobs.

27
Functions 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
28
Compensation Packages
Cost-of-living allowance
Hardship premium
Tax equalization system
29
Figure 20.5 Global Cost of Living Survey
30
Components of Compensation Packages
Labor market forces
Tax codes
Occupational status
Government regulations
Professional licensing requirements
Standards of living
31
Figure 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
32
Labor Relations
Comparative Labor Relations
Collective Bargaining
Union Influence and Codetermination
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