hiring and managing employees copyright © 2010 pearson education, inc. publishing as prentice hall

Chapter 16 - 1International Business 5eCopyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Hiring and Hiring and Managing Managing EmployeesEmployees

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall


International Business 5e Chapter 16 - 2

• List the pros and cons of each staffing policy

• Identify the key international recruitment and selection issues

• Explain international training and development programs

• Discuss the international compensation of managers and workers

• Describe labor-management relations globally

Chapter PreviewChapter Preview



International HRMInternational HRM

Often modifiedOften modified

ExpatriatesCitizens of one country who are living

and working in another country

ExpatriatesCitizens of one country who are living

and working in another country

Recruitment and selectionRecruitment and selection

Training and developmentTraining and development

Compensation Compensation

Labor relations Labor relations



Ethnocentric StaffingEthnocentric Staffing

AdvantagesAdvantages

+ 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 businessDisadvantagesDisadvantages

Individuals from home country manage operations abroadIndividuals from home country manage operations abroad



Polycentric StaffingPolycentric Staffing

AdvantagesAdvantages+ Responsibility on those knowing local business+ Avoid expensive relocations from home nation

– Potentially lose control of subsidiaryDisadvantagesDisadvantages

Individuals from host country manage operations abroadIndividuals from host country manage operations abroad



Geocentric StaffingGeocentric Staffing

AdvantagesAdvantages+ Develop global managers who can adjust easily to any business environment

– These individuals command high salariesDisadvantagesDisadvantages

Best-qualified individuals, regardless of nationality,Best-qualified individuals, regardless of nationality,manage operations abroadmanage operations abroad



Tips for Small BusinessesTips for Small BusinessesTips for Small BusinessesTips for Small Businesses

Expanding internationally can severelyExpanding internationally can severelystrain the resources of small firms:strain the resources of small firms:

Expanding internationally can severelyExpanding internationally can severelystrain the resources of small firms:strain the resources of small firms:

Don’t entrust local operations solely to U.S. expatriatesDon’t entrust local operations solely to U.S. expatriatesDon’t entrust local operations solely to U.S. expatriatesDon’t entrust local operations solely to U.S. expatriates

Local contacts don’t guarantee contractsLocal contacts don’t guarantee contractsLocal contacts don’t guarantee contractsLocal contacts don’t guarantee contracts

Treat employees abroad as you want to be treatedTreat employees abroad as you want to be treatedTreat employees abroad as you want to be treatedTreat employees abroad as you want to be treated

Employ the Web in your talent searchEmploy the Web in your talent searchEmploy the Web in your talent searchEmploy the Web in your talent search



Human Resource PlanningHuman 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 supplyForecasting human resource needs and supply



Recruiting Human ResourcesRecruiting Human Resources

• Recent college graduatesRecent college graduates

• Local managerial talentLocal managerial talent

• Nonmanagerial workersNonmanagerial workers

• Current employeesCurrent employees

Process of identifying and attracting a qualified pool of applicants for vacant positions



Selecting Human ResourcesSelecting Human Resources

Ability to bridge cultural differences is key

Expatriates must adapt to new ways of life

Cultural sensitivity raises odds for success

Process of screening and hiring the best-qualified applicantswith the greatest performance potential



Stage I:

Thrilling experience

Stage II:

Downward slide

Stage III:

Recovery begins

Stage IV:

Embrace local culture

Culture ShockCulture Shock

Psychological process affecting people living abroad that is characterized by homesickness, irritability,

confusion, aggravation, and depression



Reverse Culture ShockReverse Culture Shock

Psychological processof readapting to one’s

home culture

Methods ofreducing its effects

• Once-natural thoughts andfeelings now strange

• Can be more unsettling thanculture shock

• Many companies reabsorbexpatriates poorly

• Once-natural thoughts andfeelings now strange

• Can be more unsettling thanculture shock

• Many companies reabsorbexpatriates poorly

• Home-culture reorientationprograms

• Career-counseling sessions• Career-development program

before posting abroad

• Home-culture reorientationprograms

• Career-counseling sessions• Career-development program

before posting abroad



Cultural Training MethodsCultural Training Methods



Compiling a Cultural ProfileCompiling a Cultural Profile

CultureGramsBackground

NotesCountry

Studies AreaHandbooks



Nonmanagerial workersNonmanagerial workersNonmanagerial workersNonmanagerial workersManagerial employeesManagerial employeesManagerial employeesManagerial employees

Employee CompensationEmployee Compensation

Bonus andBonus andtax incentivestax incentives

Bonus andBonus andtax incentivestax incentives

Cultural andCultural andsocial factorssocial factors

Cultural andCultural andsocial factorssocial factors

Greater labor mobilityGreater labor mobilityin some marketsin some markets

Greater labor mobilityGreater labor mobilityin some marketsin some markets

Cost-of-livingCost-of-livingeffectseffects

Cost-of-livingCost-of-livingeffectseffects Greater cross-borderGreater cross-border

investmentinvestment

Greater cross-borderGreater cross-borderinvestmentinvestment



Labor-Management RelationsLabor-Management Relations

• Rooted in local culture

• Often affected by political movements

• Directly influences workers’ lives

Positive or negative condition of relations betweena company’s management and its workers



Can affectCan affectselectionselection

of a locationof a location

Can affectCan affectselectionselection

of a locationof a location

Can affect companyCan affect companyperformanceperformancein a marketin a market

Can affect companyCan affect companyperformanceperformancein a marketin a market

Popularity ofPopularity ofemerging marketsemerging markets

in Asiain Asia

Popularity ofPopularity ofemerging marketsemerging markets

in Asiain Asia

Union powerUnion powerdeclining acrossdeclining acrossmuch of Europemuch of Europe

Union powerUnion powerdeclining acrossdeclining acrossmuch of Europemuch of Europe

Importance of Labor UnionsImportance of Labor Unions



But generating support

can be difficult because:

• Events in distant lands difficult to comprehend

• Workers in different nations often compete

International Labor International Labor MovementsMovements

International activities of unions are making progress in improving treatment of workers and reducing child labor



• List the pros and cons of each staffing policy

• Identify the key international recruitment and selection issues

• Explain international training and development programs

• Discuss the international compensation of managers and workers

• Describe labor-management relations globally

Chapter ReviewChapter Review

Hiring and Hiring and Managing Managing EmployeesEmployees


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