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CHAPTER 11 INTERNATIONAL HUMAN RESOURCE MANAGEMENT
COMPONENTS OF HRM  Recruitment Selection Training & Development Performance Appraisal Compensation Labor Relations
INTERNATIONAL HRM (IHRM) Basic HRM issues remain Must choose a mixture of international employees How much to adapt to local conditions?
EMPLOYEES IN MULTINATIONAL ORGANIZATIONS Host country nationals Expatriates Home country nationals Third country nationals Inpatriates
MULTINATIONAL MANAGERS Host country or expatriate?
USING HOST COUNTRY MANAGERS Do they have the expertise for the position? Can we recruit them from outside the company?
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?
IS THE EXPATRIATE WORTH IT? High cost High failure rate
EXHIBIT 11.1  PAYING FOR THE EXPATRIATE MANAGER
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
Lack of technical proficiency No motivation for assignment Reasons for expatriate failure, continued
MOTIVATIONS TO USE EXPATS Managers acquire international skills Coordinate and control operations dispersed activities  Communication of local needs/strategic information to headquarters
KEY EXPATRIATE SUCCESS FACTORS  Professional/technical competence Relational abilities  Motivation  Family situation  Language skills  Willingness to accept position
PRIORITY OF SUCCESS FACTORS  Depends on :  assignment length cultural distance amount of required interaction with local people job complexity/responsibility
EXHIBIT 11.3 SHOWS A DECISION MATRIX USED TO SET PRIORITIES OR DIFFERENT SUCCESS FACTORS DURING SELECTION
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EXPATRIATE TRAINING
TRAINING RIGOR  The extent of effort by trainees and trainers required to prepare the trainees for expatriate positions
LOW RIGOR TRAINING  Short time period Lectures Videos on local culture Briefings on company operations company operations
HIGH RIGOR TRAINING Lasts over a month  Experiential learning Extensive language training Often includes interactions with host country nationals
EXHIBIT 11.4 SHOWS VARIOUS TRAINING TECHNIQUES AND THEIR OBJECTIVES AS THE RIGOR OF THE CROSS- CULTURAL TRAINING GROWS
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油
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CHALLENGES OF EXPATRIATE PERFORMANCE APPRAISAL Unreliable data Complex and volatile environments Time differences and distance separation Local cultural situations
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
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
THE BALANCE SHEET APPROACH  Provides a compensation package that equates purchasing power
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
THE REPATRIATION PROBLEM Difficult for many organizations  "Reverse culture shock"  Expatriates must relearn own national and organizational culture Includes whole family
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
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
SUCCESSFUL WOMEN EXPATRIATES Foreign not female  emphasize nationality not gender The woman's advantage strong in relational skills wider range of interaction options
MULTINATIONAL STRATEGY AND IHRM
IHRM ORIENTATIONS Ethnocentric  Polycentric Regiocentric Global
IHRM ORIENTATION AND MULTINATIONAL STRATEGY Early stages of internationalization =  ethnocentric IHRM Multilocal strategies = ethnocentric or regiocentric  Regional strategy = closer to the global
International strategy = ethnocentric or polycentric IHRM  Transnational strategies = a global IHRM
CONCLUSIONS HRM functions IHRM challenges Expatriate managers The role of women in multinational organizations Multinational strategies and IHRM orientations

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HRIS

  • 1. CHAPTER 11 INTERNATIONAL HUMAN RESOURCE MANAGEMENT
  • 2. COMPONENTS OF HRM Recruitment Selection Training & Development Performance Appraisal Compensation Labor Relations
  • 3. INTERNATIONAL HRM (IHRM) Basic HRM issues remain Must choose a mixture of international employees How much to adapt to local conditions?
  • 4. EMPLOYEES IN MULTINATIONAL ORGANIZATIONS Host country nationals Expatriates Home country nationals Third country nationals Inpatriates
  • 5. MULTINATIONAL MANAGERS Host country or expatriate?
  • 6. USING HOST COUNTRY MANAGERS Do they have the expertise for the position? Can we recruit them from outside the company?
  • 7. 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?
  • 8. IS THE EXPATRIATE WORTH IT? High cost High failure rate
  • 9. EXHIBIT 11.1 PAYING FOR THE EXPATRIATE MANAGER
  • 10. 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
  • 11. Lack of technical proficiency No motivation for assignment Reasons for expatriate failure, continued
  • 12. MOTIVATIONS TO USE EXPATS Managers acquire international skills Coordinate and control operations dispersed activities Communication of local needs/strategic information to headquarters
  • 13. KEY EXPATRIATE SUCCESS FACTORS Professional/technical competence Relational abilities Motivation Family situation Language skills Willingness to accept position
  • 14. PRIORITY OF SUCCESS FACTORS Depends on : assignment length cultural distance amount of required interaction with local people job complexity/responsibility
  • 15. EXHIBIT 11.3 SHOWS A DECISION MATRIX USED TO SET PRIORITIES OR DIFFERENT SUCCESS FACTORS DURING SELECTION
  • 16.
  • 18. TRAINING RIGOR The extent of effort by trainees and trainers required to prepare the trainees for expatriate positions
  • 19. LOW RIGOR TRAINING Short time period Lectures Videos on local culture Briefings on company operations company operations
  • 20. HIGH RIGOR TRAINING Lasts over a month Experiential learning Extensive language training Often includes interactions with host country nationals
  • 21. EXHIBIT 11.4 SHOWS VARIOUS TRAINING TECHNIQUES AND THEIR OBJECTIVES AS THE RIGOR OF THE CROSS- CULTURAL TRAINING GROWS
  • 22.
  • 23.
  • 24.
  • 25. CHALLENGES OF EXPATRIATE PERFORMANCE APPRAISAL Unreliable data Complex and volatile environments Time differences and distance separation Local cultural situations
  • 26. 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
  • 27. EXHIBIT 11.6 Shows several sources of information a superior or the HRM professionals may use to evaluate an expatriate managers
  • 28.
  • 30. THE BALANCE SHEET APPROACH Provides a compensation package that equates purchasing power
  • 31. BALANCE SHEET COSTS Allowances for cost of living, housing, utilities, furnishing, educational expenses, medical expenses, club memberships, and car and/or driver expenses
  • 32.
  • 33. OTHER APPROACHES Parent country wages everywhere Wean expatriates from allowances Pay based on local or regional markets Cafeteria selection of allowances Global pay systems
  • 34. THE REPATRIATION PROBLEM Difficult for many organizations "Reverse culture shock" Expatriates must relearn own national and organizational culture Includes whole family
  • 35. 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
  • 36. 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
  • 37. SUCCESSFUL WOMEN EXPATRIATES Foreign not female emphasize nationality not gender The woman's advantage strong in relational skills wider range of interaction options
  • 39. IHRM ORIENTATIONS Ethnocentric Polycentric Regiocentric Global
  • 40. IHRM ORIENTATION AND MULTINATIONAL STRATEGY Early stages of internationalization = ethnocentric IHRM Multilocal strategies = ethnocentric or regiocentric Regional strategy = closer to the global
  • 41. International strategy = ethnocentric or polycentric IHRM Transnational strategies = a global IHRM
  • 42. CONCLUSIONS HRM functions IHRM challenges Expatriate managers The role of women in multinational organizations Multinational strategies and IHRM orientations