Download - Wild IB5e PPT Instructor 16
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
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
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
International Business 5e Chapter 16 - 3
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
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International Business 5e Chapter 16 - 4
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
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International Business 5e Chapter 16 - 5
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
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International Business 5e Chapter 16 - 6
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
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International Business 5e Chapter 16 - 7
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
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International Business 5e Chapter 16 - 8
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
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
International Business 5e Chapter 16 - 9
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
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International Business 5e Chapter 16 - 10
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
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International Business 5e Chapter 16 - 11
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
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International Business 5e Chapter 16 - 12
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
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International Business 5e Chapter 16 - 13
Cultural Training MethodsCultural Training Methods
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International Business 5e Chapter 16 - 14
Compiling a Cultural ProfileCompiling a Cultural Profile
CultureGramsBackground
NotesCountry
Studies AreaHandbooks
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International Business 5e Chapter 16 - 15
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
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International Business 5e Chapter 16 - 16
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
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International Business 5e Chapter 16 - 17
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
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International Business 5e Chapter 16 - 18
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
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
International Business 5e Chapter 16 - 19
• 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
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
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