19-1 chapter 19 international human resource management and labor relations international business,...
Post on 16-Jan-2016
215 Views
Preview:
TRANSCRIPT
19-1
chapter 19
International Human Resource Management and Labor Relations
International Business, 6th E
dition
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
Griffin & Pustay
19-2
Chapter Objectives
• Describe the nature of human resource management in international business
• Detail how firms recruit and select managers for international assignments
• Explain how international businesses train and develop expatriate managers
• Describe labor relations in international business
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-3
Chapter Objectives (continued)
• Discuss how international firms conduct performance appraisals and determine compensation for their expatriate managers
• Analyze retention and turnover issues in international business
• Explain basic human resource issues involving nonmanagerial employees
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-4
Human Resource Management
Human Resource Management is
the set of activities directed at attracting,
developing, and maintaining the effective
workforce necessary to achieve a
firm’s objectives.
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-5
Figure 19.1 The International Human Resource Management Process
HRM’s Strategic Content
Recruitment and Selection
Training and Development
Performance Appraisal
Compensation and Benefits
Labor Relations
Contribution to Organizational Effectiveness
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-6
International Staffing Needs
Managerial/ExecutiveEmployees
Nonmanagerial Employees
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-7
Scope of Internationalization
Export Department
Global Organization
International Division
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-8
Expertise Needs in Global Organizations
Product line
Functional skills
Individual country markets
Global strategy
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-9
Centralization versus Decentralization of Control
• Centralized firms
– Favor home country managers
– Most common amongst international division form
• Decentralized firms
– Favor host country managers
– Most common amongst multidomestic firms
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-10
Staffing Philosophy
Parent Country Nationals
(PCNs)
Third CountryNationals(TCNs)
Host CountryNationals(HCNs)
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-11
Strategies for Staffing
• Ethnocentric staffing model
• Polycentric staffing model
• Geocentric staffing model
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-12
Figure 19.2 Necessary Skills and Abilities for International Managers
Skills and AbilitiesNecessary to Do
the Job
•Technical•Functional•Managerial
Skills and AbilitiesNecessary to Work
in a Foreign Location
•Adaptability•Location-specific skills
•Personal characteristics
Improved Chances of Succeeding inan International Job Assignment
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-13
Recruitment of Managers
ExperiencedManagers
Younger Managers
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-14
Selecting expatriates is an important element in international HRM.
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-15
Selection of Managers
Managerial competence
Appropriate training
Adaptability to new situations
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-16
Table 19.1 Questions from AT&T’s Questionnaire for Screening Overseas Transferees 1
• Would your spouse be interrupting a career to accompany you on an international assignment? If so, how do you think this will affect your spouse and your relationship with each other?
• Do you enjoy the challenge of making your own way in new situations?
• Securing a job upon reentry will be primarily your responsibility. How do you feel about networking and being your own advocate?
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-17
Table 19.1 Questions from AT&T’s Questionnaire for Screening Overseas Transferees 2
• How important is it for you to spend significant amounts of time with people of your own ethnic, racial, religious, and national background?
• As you look at your personal history, can you isolate any episodes that indicate a real interest in learning about other peoples and cultures?
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-18
Table 19.1 Questions from AT&T’s Questionnaire for Screening Overseas Transferees 3
• How able are you in initiating new social contacts?
• Can you imagine living without a television?
• Has it been your habit to vacation in foreign countries?
• Do you enjoy sampling foreign cuisine?
• What is your tolerance for waiting for repairs?
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-19
Culture Shock
Culture shock is a psychological phenomenon that may lead to feelings of
fear, helplessness, irritability, and disorientation, which is commonly
experienced by new expatriates who may experience a sense of loss regarding their
old cultural environment as well as confusion, rejection, self-doubt, and
decreased self-esteem from working in a new and unfamiliar cultural setting.
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-20
Figure 19.3 Phases in Acculturation
Honeymoon
Disillusionment
Adaptation
Biculturalism
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-21
Honeymoon Phase
• New culture seems exotic and stimulating
• Excitement of working in new environment makes employee overestimate ease of adjusting
• Lasts for first few days or months
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-22
Disillusionment Phase
• Differences between new and old environments are blown out of proportion
• Challenges of everyday living
• Many stay stuck in this phase
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-23
Adaptation Phase
• Employee begins to understand patterns of new culture
• Gains language competence
• Adjusts to everyday living
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-24
Biculturalism
• Anxiety has ended
• Employee gains confidence in ability to function productively in new culture
• Repatriation may be difficult
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-25
Overseas Success
• Likelihood of managers being successful at overseas assignment increases if the managers:– Can freely choose whether to accept or reject the
assignment
– Have been given a realistic preview of the job and assignment
– Have been given a realistic expectation of what their repatriation assignment will be
– Have a mentor back home who will guard their interests and provide support
– See a clear link between the expatriate assignment and their long-term career path
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-26
Overseas Success
The U.S. military makes sure that its members have “reminders” from home on foreign deployments
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-27
Training and Development
• Assessing training needs
• Basic training methods
– Standardized
– Customized
• Developing younger managers
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-28
Figure 19.4 Barriers to Entering Foreign Markets
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-29
Performance Appraisal
Performance Appraisal
is the process of assessing
how effectively people are performing their
jobs.
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-30
Functions of Performance Appraisals
To provide feedback to individuals about how well they are doing
To provide a basis for rewarding top performers
To identify areas in which additional training and development may be needed
To identify problem areas that may call for a change in assignment
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-31
Compensation Packages
Cost-of-living allowance
Hardship premium
Tax equalization system
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-32
Figure 19.5 Global Cost of Living Survey 2008
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-33
Components of Compensation Packages
OccupationalStatus
ProfessionalLicensing
Requirements
Standards ofLiving
Labor Market Forces
GovernmentRegulations
Tax Codes
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-34
Figure 19.6 An Expatriate Balance Sheet
U.S. Domestic Base Salary
Taxes Consumption Savings
Foreign andExcess U.S. TaxesPaid by Company
Excess Foreign CostsPaid by Company
Foreign ServicePremium/ HardshipAdded by Company
U.S. Levels
U.S. Spendable Income
U.S. Hypothetical Housing and UtilitiesU.S. Auto Purchase
U.S. Hypothetical Tax and
Social Security
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
19-35
Labor Relations
Comparative Labor Relations
Collective Bargaining
Union Influence and Codetermination
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in
any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United
States of America.
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
top related