11internationalhrm-1

8/19/2019 11InternationalHRM-1

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INTERNATIONALHRM


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International HRMDiferences

• Greater Number ofServices

• Special Services toUnique Group

• CompensationComplexity

• Foreign Exchange Ratettention

• !anguage an" Cultural

#i$erences


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InternationalMergers andAcquisitions

GlobalCometition

Imortance o!Global Human

ResourcesManagement

"oreignHuman

Resources

Mar#etAccess

Oortunities

Increasing Imortance o! GlobalHuman Resources $nderstanding


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Comosition o! t%e CulturalEn&ironment o! International 'usiness

Religionsacre" ob%ectsphilosophicalsystemsbeliefs & normsprayertaboosholi"aysrituals

'echnology an"(aterial Culturetransportationenergy systemstools & ob%ectscommunications

urbani)ationscienceinvention

*alues an" ttitu"es 'o+ar",timeachievement+or-+ealthchangescienti.c metho"ris-/ta-ing

E"ucationformal e"ucationvocational trainingprimary e"ucationsecon"ary e"ucationhigher e"ucationliteracy level

human resourcesplanning

Social 0rgani)ation-inshipsocial institutionsauthority structuresinterest groupssocial mobilitysocial strati.cationstatus systems

!anguagespo-en+ritten languageo1cial languagelinguistic pluralismlanguage hierarchyinternationallanguagesmass me"ia

!a+common la+co"e la+foreign la+home country la+antitrust policyinternational la+

regulation

2oliticsnationalismsovereigntyimperialismpo+ernational interestsi"eologiespolitical ris-


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(e) Issues in InternationalHRM34 5orl"+i"e 6uman Resources

2lanning7 Recruiting an" Selection

7 Expatriate orientation an"training

7 Repatriation7 2erformance appraisal

84 Compensation7 #ealing +ith in9ation an"

unexpecte" changes in exchangerates

7 2rovi"ing su1cient pay to -eepin"ivi"uals

7 Shoul" company pay har"shipallo+ance:

7 #issatisfaction +ith cost of livingallo+ances

;4 6ousing


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(e) Issues in InternationalHRM34 >ene.ts 2lanning

7 #eveloping equity amongemployees

7 Several plans necessary for"i$erent categories of personnel

84 'axation e sensitive to nee"s of receiver

7 Sen" regular +ritten explanations

of policy changes7 2erio"ic rotation of overseas 6R

mana ers "esirable


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Global Manu!acturing


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International Cororation

#omestic .rm thatuses its existingcapabilities to move

into overseas mar-ets4


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Multinational Cororation*MNC+

Firm +hichin"epen"ent businessunits operating in

multiple countries4


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Global Cororation

Firm that ha"integrate" +orl"+i"eoperations through a

centrali)e" homeo1ce4


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Transnational Cororation

Firm that attempts tobalance localresponsiveness an"

global scale via anet+or- of speciali)e"operating units4


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'ypes of 0rgani)ations

GlobalE1ciency

High Global

*ie+s the +orl" as asingle mar-et?operations arecontrolle" centrally fromthe corporate o1ce4

'ransnational

Speciali)e" facilitiespermit localresponsiveness?complex coor"inationmechanisms provi"eglobal integration4

Low @nternational

Uses existing

capabilities to expan"into foreign mar-ets4

(ultinational

Several subsi"iaries

operating as stan"/alone business units inmultiple countries4

Low High

!ocal Responsiveness


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T%e Multi,National

Cororation *MNC+

• 6ome Country

Employment• External Country

Employment


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Managing in a "oreign

En&ironment

• ttitu"es *ary

• (otivational 'oolsare #istinctly#i$erent


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Cultural En&ironmento! International 'usiness


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Clustering NationsAroac%

• Geography

• !anguages

• Religion

• Aob ttitu"es

• 5or-Goals

• *alues

• Nee"s


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Managerial -alues

• Role of Competition

• Role of >lame

• Role of Shame

• Role of 2articipation, Aapan


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.ources o! ManagerialTalent

• 6ome CountryNationals


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Ad&antages o! Diferent .ources

!or O&erseas Managers

HostCountr)

HomeCountr)

T%irdCountr)

•!ess cost

•2reference ofhost countrygovernment

•no+le"ge ofenvironment

•!anguagefacility

• 'alent

available+ithincompany

•Greatercontrol

•Companyexperience

•(obility

•Experienceprovi"e" to

•>roa"

experience

•@nternationaloutloo-

•(ulti/lingualism


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.OME O" THE LARGE.T $/./M$LTINATIONAL.

'&' General Electric (icrosoft

Cisco General (otors 2rocter an"Gamble

Citicorp4 6e+lett/2ac-ar" RAR Nabisco

Coca/Cola @>( 'exaco

#u2ont @ntel Unite" 'echnologies

ExxonB(obil 0il A424 (organ 5al/mart

For" (otor Aohnson & Aohnson Derox

(otorola


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0 Ma1or Reasons !or AmericanE2atriate "ailures in "oreign

En&ironment• @nability of the managers spouse

to a"%ust to a "i$erent culturalenvironment4

• 'he managers inability to a"apt

to a "i$erent physical or culturalenvironment4 0ther family/relate" problems4

• 'he managers personality oremotional immaturity4

• 'he managers inability to cope+ith the responsibilities pose" bythe overseas +or-4

• 'he managers lac- of technicalcompetence4

• 'he managers lac- of motivationto +or- overseas4


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.election Met%ods

• @ntervie+s


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" o3c art o t e .e ect on,Dec s on4rocess

.tart t%e .election 4rocess

Can the position be .lle" by a local national:

@"entify "egree of interaction require" +ithlocal community 7 using a / or / point scaleH

ranging from lo+ to highH in"icate the "egree of

interaction +ith local community require" forsuccessful performance on the %ob4

Select local national an" sub%ect himBher totraining basically aime" at improving technical

an" managerial s-ills4

EmphasisI on tas-s variables4

Secon" but by no means unimportant question

is to as- +hether the in"ivi"ual is +illing toserve abroa"4

@s can"i"ate +illing:

4robabl) not suitable !orosition

EmphasisI on tas- variables

@"entify "egree of similarity B"issimilarity bet+een cultures 7

using a / or /point scaleHranging from similar to highly

"iverseH in"icate the magnitu"eof "i$erences bet+een the t+oculturesH

EmphasisI on JrelationalabilitiesK factor4

JFamily situationK factor mustalso be ta-en into consi"eration4

.tart orientation *mostrigorous+

.tart orientation*moderate to %ig% rigor+

.tart orientation*moderate to %ig% rigor+

4robabl) not suitable !orosition

5E.

NO

5E.

5E. NO

NO

HIGH

LO6

HIGHL5 DI-ER.E

-ER5 .IMILAR


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4rearing !or an InternationalAssignment

Stu"y the follo+ing sub%ects,• Social an" business etiquette4

• 6istory an" fol-lore4

• Current a$airsH inclu"ing relations

bet+een the country an" the Unite"States4

• 'he cultures values an" priorities4

• GeographyH especially the cities4

• Sources of pri"e, artistsH musiciansH

novelistsH sportsH great achievements ofthe cultureH inclu"ing things to see an""o4

• Religion an" the role of religion in "ailylife4

• 2olitical structure an" current players4

• 2ractical matters such as currencyHtransportationH time )onesH hours of


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Cultural .%oc#

• L #isorientation thatCauses 2erpetual

StressL

7 #isorienting @nci"ents

7 @mpossible

Communication

7 'elephone #i1culties

7 Family Frustrations


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.ecial Considerations

• Career #evelopmentRis-s

• Reentry 2roblems

• (anaging Family !ife

• 'errorism


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Recruitment

• GovernmentRegulations

• 5or- 2ermits

Universally Require"

• Recruitment of !ocals*aries

• Guest 5or-ers• Role of ChurchH FamilyH

2olitics


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.election

• (erit *ersus >estFamily

• Family 'ies

• Social Stan"ing• 0rigin

• @n"ustriali)e" versus

!ess #evelope"


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Training Issues

• !ocal Resources

• !ess 'echnicalCapabilities

• pprenticeshipStrengths in Europe

• (anagement

#evelopment


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Comensation

• 6ost CountryEmployees

7 2ro"uction Stan"ar" or

'ime or Combination7 >ene.ts


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E2atriate Comensation

• >ase 2ay

• #i$erentials

• @ncentives

• Company ssistance

• Cost, ;/M times USRate

C ti ! E t i t


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Comensation o! E2atriateManagers

34 2rovi"e an incentive to leavethe unite" states4

84 (aintain an mericanstan"ar" of living4

;4 Facilitate reentry into theunite" states4

M4 2rovi"e for the e"ucation ofchil"ren4

4 (aintain relationships +ithfamilyH frien"sH an" business

associates4

To be efecti&e7 a comensation

rogram must8

C ti El t !


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Comensation Elements o! anE2atriate

• 2rograms use" by most U4S4>ase" (NCs have four elements,

• >ase pay 7 equal to pay of"omestic counterparts incomparably evaluate" %obs4

• #i$erentials 7 to o$set the highercosts of overseas goo"sH servicesHan" housing4

• @ncentives 7 to compensate theperson for separation from familyH

frien"sH an" "omestic supportsystems4

• Company assistance programs 7to cover a""e" costs such asmoving an" storage costsHautomobileH an" e"ucation

expenses4


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T%e 4rice o! an E2atriate

An employer’s typical frst-year expenseso sending a U.S. executive aroad.

Direct Comensation Costs

>ase Salary 3OOP

Foreign/service premium 3P

Goo"s an" services "i$erential 8OP

6ousing costs 8O/MOP

Trans!er Costs

Relocation allo+ance P

ir fare 8P

(oving househol" goo"s 8P

Ot%er Costs

Company Car 3P

Schooling

11internationalhrm-1

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