Hiring and Managing Employees - International Business - Lecture Slides, Slides of International Business

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Hiring and Managing Employees Docsity.com Human Resource Management (HRM) • Refers to the activities an organization carries out to use its human resources effectively • Four major tasks of HRM – Staffing policy – Management training and development – Performance appraisal – Compensation policy Docsity.com Factors Making International HR Difficult • Different labor markets – Mix of available workers – Mix of labor costs • International worker mobility problems • National management styles and practices • National orientations • Strategy and control 21-1 Docsity.com International Managerial Terms • Locals – citizens of the countries in which they are working • Expatriates – non-citizen – Home-country national – Third-country national 21-1 Docsity.com Ethnocentric Staffing Advantages + Tight control over subsidiaries + Locally qualified people not always available + Re-create local operations in home-office image + Interests of home office may be better protected – Relocations are expensive – Create “foreign” image for the business Disadvantages Individuals from home country manage operations abroad Docsity.com Filling Foreign Managerial Positions • Typically more difficult to fill than domestic positions because: – People don’t like to move – There are legal impediments to using expatriates – Many are apprehensive about language issues – Many assignments are open-ended – Perception that assignment abroad will negatively affect family lifestyle – Living is more expensive abroad 21-1 Docsity.com Reasons to Use Expatriates • Lack of locally qualified candidates • Broaden the companies understanding of the overall corporate system • Gain professional/foreign experience • Can control operations according to headquarters’ preferences • Need to transfer technology abroad • Gain valuable educational experience 21-1 Docsity.com Human Resource Planning Phase 1 Phase 2 Phase 3 Take inventory of current human resources Estimate firm’s future human resource needs Develop plan to recruit and select people for vacant and anticipated new positions Forecasting human resource needs and supply Docsity.com Selecting the Proper Expatriate • Technical competence • Adaptiveness – Those needed for self-maintenance – Those related to development of satisfactory relationships • Flexibility • Tolerance – Cognitive skills • Local acceptance • Most common reason for failure is inability of the expatriate’s family to adjust 21-1 Docsity.com Allegiance of Expatriate Managers FIGURE 21.5 Allegiance of Expatriate Managers ager type: reserved The “cual citizen” type of man- Low 5 mast effective at balanc- ing global and local needs However, each of the other types = oe ° o Go “ 3 fF “Going ive” can be very effective for specific a Free agent Going native of foreign operations a ree: Reprinted fram “Serving Two 2 sters: Managing the Dual Allegiance o xpatriate Employees,” by |. Stewart co Black and Hal B. Gregersen, MIT Sloan e ment Review, Summer 1992, py = yermission of the publisher. eI right © 1992 by Massachusetts c Institute of Technology. All rights = 7 50 “Heart at home “Dual citizen =< High Low High Allegiance to local operation 21-1 Docsity.com The Expatriate Problem • Expatriate failure: premature return of the expatriate manager to his/her home country • Cost of failure is high: estimate = 3X the expatriate’s annual salary plus the cost of relocation (impacted by currency exchange rates and assignment location) Docsity.com Training and Management Development • Training: Obtaining skills for a particular foreign posting – Cultural training: Seeks to foster an appreciation of the host country’s culture – Language training: Can improve expatriate’s effectiveness, aids in relating more easily to foreign culture, and fosters a better firm image – Practical training: Ease into day-to-day life of the host country Docsity.com Cultural Training Methods Field Experience Language Training Sensitivity Training Cultural Assimilation Cultural Orientations Environmental Briefings Docsity.com Compiling a Cultural Profile CultureGrams Background Notes Country Studies Area Handbooks Docsity.com Repatriation of Expatriates • A critical issue in the training and development of expatriate managers is preparing them for reentry into their home country • Repatriation should be seen as the final link in an integrated, circular process that selects, trains, sends, and brings home expatriate managers • Research shows that there is a problem with the repatriation process Docsity.com Reverse Culture Shock Psychological process of readapting to one’s home culture  Methods of reducing its effects  • Once-natural thoughts and feelings now strange • Can be more unsettling than culture shock • Many companies reabsorb expatriates poorly • Home-culture reorientation programs • Career-counseling sessions • Career-development program before posting abroad Docsity.com Repatriation of Expatriates Didn’t know what position they hold upon return. Firm vague about return, role and career progression. Took lower level job. Leave firm within one year. Leave firm within three years 10 20 30 40 50 60 70 percent Docsity.com