ch18-international business

7/30/2019 ch18-International Business

1/23

HUMAN RESOURCEMANAGEMENT

CHAPTER 18

Copyright 2011 John Wiley & Sons

Visit http://wileymanagementupdates.com/ for the latest in business news stories.
http://wileymanagementupdates.com/http://wileymanagementupdates.com/


2/23

Chapter 18

Recruitment and retention of a workforce

Increase effectiveness of workforce

Activities and skills needed to meet objectives:

2 Czinkota:International Business, 8e

Human Resource Objectives

CompensationAccording toEffectiveness

Personnel Planningand Staffing

Personnel Training

Understanding ofLabor-Management

Relations


3/23

Early Stages of Internationalization

Chapter 18

Primary need is for an export manager

Marketing or sales manager of the firm typically isresponsible for beginning export activities

Will usually hire an export manager from outsiderather than promote from within

Knowledge of the product or industry is less important than

international experience



4/23

Advanced Stages of Internationalization

Chapter 18

Overseas assignment categories:

Ability to attract talent around the world can be acompetitive advantage

Company needs: A network of global specialists to work together To develop clear career paths for oversees managers

To coordinate and leverage resources across borders


Trouble-Shooters

CEOFunctional

Heads

White- orBlue-CollarWorkers


5/23

Japanese Firms Seeks

Outside Leadership

Chapter 18

Japanese firms tend to be very insular, and executives typically stickwith one company for life and bosses are promoted from within. InJune 2010, U-Shin, a mid-sized maker of car parts, began lookingoutside for a new president. The company is looking for a young,

English-speaking boss to replace its current president who has been inplace for over 30 years. U-Shin is also taking the highly unusual step ofrunning newspaper advertisements to attract candidates.

U-Shin's atypical move suggests that the need to break with traditionand internationalize management is beginning to be recognized down

at the level of medium-sized business, the heart of Japanese industry.

Source: http://www.economist.com/blogs/asiaview/2010/07/japanese_corporate_culture?fsrc=scn/fb/wl/bl/openingup

http://www.economist.com/blogs/asiaview/2010/07/japanese_corporate_culture?fsrc=scn/fb/wl/bl/openinguphttp://www.economist.com/blogs/asiaview/2010/07/japanese_corporate_culture?fsrc=scn/fb/wl/bl/openingup


6/23

Interfirm Cooperative Ventures

Chapter 18

New Management Challenge

Global competition is forging new cooperative tiesbetween firms from different countries

Tasks needed:Assign and motivate people so venture will meet goals

Strategic management of human resources



7/23

Sources for Management Recruitment

Chapter 18

Sources for recruiting include:

Criteria for deciding between expatriates andlocal managers

Availability and quality of talent pool Corporate policies

Environmental constants on the legal, cultural, and economicfronts


ExternalTalent

Withinthe

Company

OtherProduct

or Region

Group

LocalManagers

Expats


8/23

Recruitment During the

Internationalization Process

Chapter 18

During the export stage, outside expertise issought at first, but the firm then begins todevelop its own personnel for international

operations

When international operations are expanded, arecruitment dilemma may occur when dealing

with internal recruitment of young managers



9/23

Selection Criteria for Overseas

Assignments

Chapter 18

The role offactual cultural knowledge, or knowledgeobtainable from specific country studies, has been widelydebated

Area expertise includes a knowledge of the basic systems in

the region or market for which the manager will beresponsible

The oversees manager must progress from factualknowledge to interpretive cultural knowledge, which

is an acquired ability to understand and appreciate thenuances of foreign cultural traits and patterns



10/23

Criteria for Selecting Managers for

Overseas Assignment

Chapter 18 10 Czinkota:International Business, 8e

Competence

Technicalknowledge

LeadershipAbilityExperience, PastPerformanceArea ExpertiseLanguage

PersonalCharacteristics

Age

EducationSexHealthMarital RelationsSocialAcceptability

Adaptability

Interest in OverseasWork

Relational AbilitiesCultural EmpathyAppreciation of NewManagement Styles

Appreciation ofEnvironmentalConstraints

Adaptability ofFamily


11/23

Siemens has embraced diversity as a fundamental

perspective for i ts business objectives. As part of the companys four -prong diversity init iative,Siemens has launched the Global LeadershipOrganization of Women (GLOW). Created toproactively recruit and retain highly quali f ied

women, GLOW is a network dedicated to enlar gingthe contribution of women to Siemenss business.

Focus on Culture: The GLOW

Network at Siemens

11Chapter 18 Czinkota:International Business, 8e


12/23

The Selection and Orientation

Challenge

Chapter 18

Adaptability screening usually involvesinterviewing both the overseas candidate and thecandidates family to determine how well they are

likely to adapt to another culture

An orientation program facilitates new workerswith their roles and prepares them for overseas

assignments



13/23

Chapter 18

Pronounced reactions to the psychological disorientationwhen spending an extended time in a new environment

Stages include:


Culture Shock

Enjoying the novelty, largely from the perspective of a

spectator

Experiencing cultural differences

Adapting to the situation Biculturalism or cases of going native are possible

Returning home to face a possibly changed homeenvironment

InitialEuphoria

Irritation/Hostility

Adjustment

Re-Entry


14/23

Psychological and Physical

Symptoms of Culture Shock

Chapter 18

Culture shock is a condition that affects expats when they moveoverseas. Here's how to recognize the physical and psychologicalsymptoms of culture shock.

Psychosocial Symptoms: Sadness and loneliness Homesickness Idealizing the home culture

Physical Symptoms

Fatigue and malaise Generalized aches and pains Increase in illness or accidents

Source: http://workabroadtravel.suite101.com/article.cfm/psychological-and-physical-symptoms-of-culture-shock

http://workabroadtravel.suite101.com/article.cfm/psychological-and-physical-symptoms-of-culture-shockhttp://workabroadtravel.suite101.com/article.cfm/psychological-and-physical-symptoms-of-culture-shockhttp://workabroadtravel.suite101.com/article.cfm/psychological-and-physical-symptoms-of-culture-shockhttp://workabroadtravel.suite101.com/article.cfm/psychological-and-physical-symptoms-of-culture-shockhttp://workabroadtravel.suite101.com/article.cfm/psychological-and-physical-symptoms-of-culture-shockhttp://workabroadtravel.suite101.com/article.cfm/psychological-and-physical-symptoms-of-culture-shockhttp://workabroadtravel.suite101.com/article.cfm/psychological-and-physical-symptoms-of-culture-shockhttp://workabroadtravel.suite101.com/article.cfm/psychological-and-physical-symptoms-of-culture-shockhttp://workabroadtravel.suite101.com/article.cfm/psychological-and-physical-symptoms-of-culture-shockhttp://workabroadtravel.suite101.com/article.cfm/psychological-and-physical-symptoms-of-culture-shockhttp://workabroadtravel.suite101.com/article.cfm/psychological-and-physical-symptoms-of-culture-shockhttp://workabroadtravel.suite101.com/article.cfm/psychological-and-physical-symptoms-of-culture-shockhttp://workabroadtravel.suite101.com/article.cfm/psychological-and-physical-symptoms-of-culture-shockhttp://workabroadtravel.suite101.com/article.cfm/psychological-and-physical-symptoms-of-culture-shock


15/23

Repatriation

Chapter 18

Returning home may invoke mixed feelings

Reverse cultural shock may emerge

Find a place in corporate hierarchy

Family must give up their special status Four step process for repatriation planning: Assessment of foreign assignments in terms of environmental

constraints and corporate objectives

Preparation of the individual for an oversees assignment Communication during the tour on developments at

headquarters

Reorientation upon reentry



16/23

Compensation

Chapter 18

A firms expatriate compensation program has to beeffective in the following areas:

Home-country salary

Assignment-location costs

Home-country equivalent purchasing power

Compensation of the manager overseas can bedivided into two general categories: Base-salary allowances

Salary-related allowances



17/23

Base Salary Allowances Non-Salary-RelatedAllowances

Chapter 18

Depends on qualifications,responsibilities, and duties

Cost of Living Allowance(COLA)

Foreign Service Premium

Hardship Allowance

Housing Allowance

Tax-equalization Plan

Relocation allowance

Mobility allowance

Home sale or rental protection,household storage or shipment

Automobile protection

Travel expenses

Temporary living expenses

Education allowance

Medical expenses

Home leave

Base Salary and

Non-Salary-Related Allowances



18/23

Labor Participation in Decision Making

Chapter 18

Rights of information, consultation, andcodetermination develop on three levels: The shop-floor level, or direct involvement

The management level, or through representative bodies

The board level

Self management Independent decision making

Codetermination Employees are represented onsupervisory boards to facilitate communication andcollaboration

Works Council Workers and managers whoparticipate in decisions affecting them



19/23

Improvement of Quality of Work Life

Chapter 18

Efforts to improve personal and professionaldevelopment:

Team building is aimed at enhancing the cohesiveness of adepartment

Quality circles are groups of workers who meet regularly todiscuss issues related to productivity

Work scheduling involves preparing schedules of when andhow long workers are at the workplace

Flextime allows workers to determine their own starting andending times



20/23

The Role of Labor Unions

Chapter 18

Role varies from country to country Investment decisions can be guided by union

considerations

Union challenges due to internationalization:


InsufficientAttention

to LocalIssues

Power ofthe Firm to

MoveProduction

MoreDifficult to

get

FinancialData

Difficultyin being

Heard by

DecisionMakers


21/23

Labor Union Puts

GM French Factory Plan in Doubt

Chapter 18

In July 2010, a plan to maintain operations at a General Motors plantin eastern France was in doubt after a labor union refused to sign adeal to freeze salaries and cut working days.

Three other unions agreed to the deal after more than 1,000 of 1,150

workers voted to accept conditions set by the Detroit-based carmakerto keep the plant open.

General Motors had said it needed all four unions to agree for it tocomplete the repurchase of a plant it put up for sale in 2008 to helpraise cash and avoid bankruptcy at the height of the financial crisis.

Source: http://www.ibtimes.com/contents/20100723/labor-union-puts-gm-french-factory-plan-doubt.htm

http://www.ibtimes.com/contents/20100723/labor-union-puts-gm-french-factory-plan-doubt.htmhttp://www.ibtimes.com/contents/20100723/labor-union-puts-gm-french-factory-plan-doubt.htmhttp://www.ibtimes.com/contents/20100723/labor-union-puts-gm-french-factory-plan-doubt.htmhttp://www.ibtimes.com/contents/20100723/labor-union-puts-gm-french-factory-plan-doubt.htmhttp://www.ibtimes.com/contents/20100723/labor-union-puts-gm-french-factory-plan-doubt.htmhttp://www.ibtimes.com/contents/20100723/labor-union-puts-gm-french-factory-plan-doubt.htmhttp://www.ibtimes.com/contents/20100723/labor-union-puts-gm-french-factory-plan-doubt.htmhttp://www.ibtimes.com/contents/20100723/labor-union-puts-gm-french-factory-plan-doubt.htmhttp://www.ibtimes.com/contents/20100723/labor-union-puts-gm-french-factory-plan-doubt.htmhttp://www.ibtimes.com/contents/20100723/labor-union-puts-gm-french-factory-plan-doubt.htmhttp://www.ibtimes.com/contents/20100723/labor-union-puts-gm-french-factory-plan-doubt.htmhttp://www.ibtimes.com/contents/20100723/labor-union-puts-gm-french-factory-plan-doubt.htmhttp://www.ibtimes.com/contents/20100723/labor-union-puts-gm-french-factory-plan-doubt.htmhttp://www.ibtimes.com/contents/20100723/labor-union-puts-gm-french-factory-plan-doubt.htmhttp://www.ibtimes.com/contents/20100723/labor-union-puts-gm-french-factory-plan-doubt.htmhttp://www.ibtimes.com/contents/20100723/labor-union-puts-gm-french-factory-plan-doubt.htm


22/23

Workers at a Nest l factory in the Ur al ci ty of Perm

came to the Russian capital to complain aboutmanagements refusal to engage in negotiations toincrease real wages. Despite the public protests,Nestl refused to meet the workers demands,stating that wages are above the industry average

in the ci ty. In June 2008, Nestl agreed toformally recognize the unions fundamental r ight tonegotiate wages.

Focus on Ethics: Labor Unions

Attack Nestl in Russia

22Chapter 18 Czinkota:International Business, 8e


23/23

Human Resource Policies

Chapter 18

Anticipate the demand for various skills and haveprograms to ensure availability of employees whenneeded

HR Strategies: Often workers are imported when there is a shortage Sometimes the company must bring the local labor force up to a

desired level of competency

Compensation packages are shaped by:


CollectiveBargaining

Culture Legislation TaxationCharacter-istics of the

Job

ch18-international business

Documents