INTERNATIONAL HUMAN RESOURCES MANAGEMENT

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CHAPTER 11 INTERNATIONAL HUMAN RESOURCE MANAGEMENT
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COMPONENTS OF HRM

• Recruitment
• Selection
• Training Development
• Performance Appraisal
• Compensation
• Labor Relations

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INTERNATIONAL HRM (IHRM)

• Basic HRM issues remain
• Must choose a mixture of international employees
• How much to adapt to local conditions?

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EMPLOYEES IN MULTINATIONAL ORGANIZATIONS

• Host country nationals
• Expatriates
• Home country nationals
• Third country nationals
• Inpatriates

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MULTINATIONAL MANAGERS

• Host country or expatriate?

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USING HOST COUNTRY MANAGERS

• Do they have the expertise for the position?
• Can we recruit them from outside the company?

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USING EXPATRIATE MANAGERS

• Do parent country managers have the appropriate
  skills?
• Are they willing to take expatriate assignments?
• Do any laws affect the assignment of expatriate
  managers?

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IS THE EXPATRIATE WORTH IT?

• High cost
• High failure rate

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EXHIBIT 11.1 PAYING FOR THE EXPATRIATE MANAGER
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REASONS FOR U.S. EXPATRIATE FAILURE

• Spouse fails to adapt
• Manager fails to adapt
• Other problems within the family
• Personality of the manager
• Level of responsibilities

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Reasons for expatriate failure, continued

• Lack of technical proficiency
• No motivation for assignment

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MOTIVATIONS TO USE EXPATS

• Managers acquire international skills
• Coordinate and control operations dispersed
  activities
• Communication of local needs/strategic
  information to headquarters

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KEY EXPATRIATE SUCCESS FACTORS

• Professional/technical competence
• Relational abilities
• Motivation
• Family situation
• Language skills
• Willingness to accept position

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PRIORITY OF SUCCESS FACTORS

• Depends on
• assignment length
• cultural distance
• amount of required interaction with local people
• job complexity/responsibility

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EXHIBIT 11.3 SHOWS A DECISION MATRIX USED TO SET
PRIORITIES OR DIFFERENT SUCCESS FACTORS DURING
SELECTION
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EXPATRIATE TRAINING
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TRAINING RIGOR

• The extent of effort by trainees and trainers
  required to prepare the trainees for expatriate
  positions

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LOW RIGOR TRAINING

• Short time period
• Lectures
• Videos on local culture
• Briefings on company operations company
  operations

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HIGH RIGOR TRAINING

• Lasts over a month
• Experiential learning
• Extensive language training
• Often includes interactions with host country
  nationals

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EXHIBIT 11.4 SHOWS VARIOUS TRAINING TECHNIQUES
AND THEIR OBJECTIVES AS THE RIGOR OF THE CROSS-
CULTURAL TRAINING GROWS
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CHALLENGES OF EXPATRIATE PERFORMANCE APPRAISAL

• Unreliable data
• Complex and volatile environments
• Time differences and distance separation
• Local cultural situations

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STEPS TO IMPROVE THE PROCESS

• 1. Fit the evaluation criteria to strategy.
• 2. Fine tune the evaluation criteria
• 3. Use multiple evaluators with varying periods
  of evaluation

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EXHIBIT 11.6 Shows several sources of information
a superior or the HRM professionals may use to
evaluate an expatriate managers
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EXPATRIATE COMPENSATION
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THE BALANCE SHEET APPROACH

• Provides a compensation package that equates
  purchasing power

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BALANCE SHEET COSTS

• Allowances for cost of living, housing,
  utilities, furnishing, educational expenses,
  medical expenses, club memberships, and car
  and/or driver expenses

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OTHER APPROACHES

• Parent country wages everywhere
• Wean expatriates from allowances
• Pay based on local or regional markets
• Cafeteria selection of allowances
• Global pay systems

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THE REPATRIATION PROBLEM

• Difficult for many organizations
• "Reverse culture shock"
• Expatriates must relearn own national and
  organizational culture
• Includes whole family

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STRATEGIES FOR SUCCESSFUL REPATRIATION PROVIDE

• A strategic purpose for repatriation
• A team to aid the expatriate
• Home country information sources
• Training and preparation for the return
• Support for expatriate and family

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WOMEN EXPATRIATES TWO IMPORTANT "MYTHS"

• Myth 1 women do not wish to take international
  assignments
• Myth 2 women will fail in international
  assignments because of the foreign culture's
  prejudices against local women

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SUCCESSFUL WOMEN EXPATRIATES

• Foreign not female
• emphasize nationality not gender
• The woman's advantage
• strong in relational skills
• wider range of interaction options

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MULTINATIONAL STRATEGY AND IHRM
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IHRM ORIENTATIONS

• Ethnocentric
• Polycentric
• Regiocentric
• Global

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IHRM ORIENTATION AND MULTINATIONAL STRATEGY

• Early stages of internationalization
  ethnocentric IHRM
• Multilocal strategies ethnocentric or
  regiocentric
• Regional strategy closer to the global

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• International strategy ethnocentric or
  polycentric IHRM
• Transnational strategies a global IHRM

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CONCLUSIONS

• HRM functions
• IHRM challenges
• Expatriate managers
• The role of women in multinational organizations
• Multinational strategies and IHRM orientations