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HUMAN RESOURCEMANAGEMENT
CHAPTER 18
Copyright 2011 John Wiley & Sons
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Chapter 18
Recruitment and retention of a workforce
Increase effectiveness of workforce
Activities and skills needed to meet objectives:
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Human Resource Objectives
CompensationAccording toEffectiveness
Personnel Planningand Staffing
Personnel Training
Understanding ofLabor-Management
Relations
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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
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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
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Trouble-Shooters
CEOFunctional
Heads
White- orBlue-CollarWorkers
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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
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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
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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
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ExternalTalent
Withinthe
Company
OtherProduct
or Region
Group
LocalManagers
Expats
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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
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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
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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
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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
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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
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Chapter 18
Pronounced reactions to the psychological disorientationwhen spending an extended time in a new environment
Stages include:
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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
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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
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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
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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
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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
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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
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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
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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:
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InsufficientAttention
to LocalIssues
Power ofthe Firm to
MoveProduction
MoreDifficult to
get
FinancialData
Difficultyin being
Heard by
DecisionMakers
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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
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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
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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:
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CollectiveBargaining
Culture Legislation TaxationCharacter-istics of the
Job