group hr international human resource management good evening – march 17 th, 2011
TRANSCRIPT
![Page 1: Group HR International Human Resource Management Good Evening – March 17 th, 2011](https://reader035.vdocuments.mx/reader035/viewer/2022062719/56649ee45503460f94bf2a89/html5/thumbnails/1.jpg)
Group HR
International Human Resource Management
Good Evening – March 17th, 2011
![Page 2: Group HR International Human Resource Management Good Evening – March 17 th, 2011](https://reader035.vdocuments.mx/reader035/viewer/2022062719/56649ee45503460f94bf2a89/html5/thumbnails/2.jpg)
Group HRHuman Resource Management (HRM)
• Refers to the activities an organization carries out to use its human resources effectively
• Four major tasks of HRM – A) Staffing policy– B) Management training and development– C) Performance appraisal – D) Compensation policy
![Page 3: Group HR International Human Resource Management Good Evening – March 17 th, 2011](https://reader035.vdocuments.mx/reader035/viewer/2022062719/56649ee45503460f94bf2a89/html5/thumbnails/3.jpg)
Group HR
International Human Resource Management(IHRM)
• Strategic role: HRM policies should be congruent with the firm’s strategy and it’s formal and informal structure and controls
• Right People, Right Place, Right Time• Task complicated by profound differences between
countries in labor markets, culture, legal and economic systems
![Page 4: Group HR International Human Resource Management Good Evening – March 17 th, 2011](https://reader035.vdocuments.mx/reader035/viewer/2022062719/56649ee45503460f94bf2a89/html5/thumbnails/4.jpg)
Group HR
What are the factors that would effect the
choice and nature of H.R. policies in an
international organization?
Implications for Managers
![Page 5: Group HR International Human Resource Management Good Evening – March 17 th, 2011](https://reader035.vdocuments.mx/reader035/viewer/2022062719/56649ee45503460f94bf2a89/html5/thumbnails/5.jpg)
Group HRMain challenges in IHRM
• High failure rates of expatriation and repatriation• Deployment – getting the right mix of skills in the organization
regardless of geographical location• Knowledge and innovation dissemination – managing critical
knowledge and speed of information flow• Talent identification and development – identify capable people who
are able to function effectively• Barriers to women in IHRM• International ethics• Language (e.g. spoken, written, body)
![Page 6: Group HR International Human Resource Management Good Evening – March 17 th, 2011](https://reader035.vdocuments.mx/reader035/viewer/2022062719/56649ee45503460f94bf2a89/html5/thumbnails/6.jpg)
Group HRMain challenges in IHRM
• Different labor laws
• Different political climate
• Different stage(s) of technological advancement
• Different values and attitudes e.g. time, achievement, risk taking
• Roles of religion e.g. sacred objects, prayer, taboos, holidays, etc
• Educational level attained
• Social organizations e.g. social institutions, authority structures,
interest groups, status systems
![Page 7: Group HR International Human Resource Management Good Evening – March 17 th, 2011](https://reader035.vdocuments.mx/reader035/viewer/2022062719/56649ee45503460f94bf2a89/html5/thumbnails/7.jpg)
Group HR Types of “International" Organizations
– International organization:Any organization that exports to/ imports from organizations in other countries with primarily domestic production –Multidomestic.
– Multinational organization: An organization with operations in different countries but each is viewed as a relatively separate enterprise.
– Global organization: An enterprise structured so that national boundaries become blurred. The best people are hired irrespective of national origin, Transnational.
![Page 8: Group HR International Human Resource Management Good Evening – March 17 th, 2011](https://reader035.vdocuments.mx/reader035/viewer/2022062719/56649ee45503460f94bf2a89/html5/thumbnails/8.jpg)
Group HR
Global Staffing Issues• Selecting candidates for overseas assignment
• Assignment terms and documentation
• Relocation processing and vendor management
• Immigration processing
• Cultural and language orientation and training
• Compensation administration and payroll processing
• Tax administration
• Career planning and development
• Handling of spouse and dependent matters
![Page 9: Group HR International Human Resource Management Good Evening – March 17 th, 2011](https://reader035.vdocuments.mx/reader035/viewer/2022062719/56649ee45503460f94bf2a89/html5/thumbnails/9.jpg)
Group HR
Expatriates
An employee sent by his/her company in one country to work in a different country.
![Page 10: Group HR International Human Resource Management Good Evening – March 17 th, 2011](https://reader035.vdocuments.mx/reader035/viewer/2022062719/56649ee45503460f94bf2a89/html5/thumbnails/10.jpg)
Group HR
Reliance on expatriates increase when:
♦ Sufficient local talent is not available.
♦ An important part of the firm’s overall business is the creation of a
corporate global vision.
♦ International units and domestic operations are highly
interdependent.
♦ The political situation is unstable.
♦ There are significant cultural differences between the host country
and the home country.
The Use of Expatriates
![Page 11: Group HR International Human Resource Management Good Evening – March 17 th, 2011](https://reader035.vdocuments.mx/reader035/viewer/2022062719/56649ee45503460f94bf2a89/html5/thumbnails/11.jpg)
Group HRUse of Expatriates
Why do International Assignments Fail?
• Career blockage (“the home office has forgotten about me”)
• Culture Shock, resulting in frustration and poor cooperation abroad.
• Family problems, due to poor adjustment and/or lack of contact if family is left behind.
• Over-emphasis on technical qualifications.
• Getting rid of a problem employee.
![Page 12: Group HR International Human Resource Management Good Evening – March 17 th, 2011](https://reader035.vdocuments.mx/reader035/viewer/2022062719/56649ee45503460f94bf2a89/html5/thumbnails/12.jpg)
Group HRUse of Expatriates
Why do International Assignments Fail? (con’t)
• Over-emphasis on technical qualifications.
• Getting rid of a problem employee.
![Page 13: Group HR International Human Resource Management Good Evening – March 17 th, 2011](https://reader035.vdocuments.mx/reader035/viewer/2022062719/56649ee45503460f94bf2a89/html5/thumbnails/13.jpg)
Group HRThe Roles of an Expatriate
Roles
• Agent of direct control
• Agent of socialization
• Network builder• Boundary spanner• Language node
Expatriate’s home
locationForeign Location
![Page 14: Group HR International Human Resource Management Good Evening – March 17 th, 2011](https://reader035.vdocuments.mx/reader035/viewer/2022062719/56649ee45503460f94bf2a89/html5/thumbnails/14.jpg)
Group HRSatisfaction
Time of Arrival Level of Satisfaction
First arrive High Few months Lower After 2 years Higher than previous
-Similar Language and religion are important factors for satisfaction
-People over 35 yrs - higher level of satisfaction after 1st year
-Men adjust faster to overseas assignments than women
![Page 15: Group HR International Human Resource Management Good Evening – March 17 th, 2011](https://reader035.vdocuments.mx/reader035/viewer/2022062719/56649ee45503460f94bf2a89/html5/thumbnails/15.jpg)
Group HRCross-Cultural Adjustment
• Expatriates must adjust to new work situation, interactions with locals, and new general environment
• Company can facilitate adjustment by providing training for expatriates and their families before and during the assignment
• Expatriates often experience cultural shock (psychological disorientation)
![Page 16: Group HR International Human Resource Management Good Evening – March 17 th, 2011](https://reader035.vdocuments.mx/reader035/viewer/2022062719/56649ee45503460f94bf2a89/html5/thumbnails/16.jpg)
Group HRFactors Important in International Assignee Success
I. Job Knowledgeand Motivation•Managerial & organizational ability
•Imagination, creativity
•Administrative skills
•Alertness
•Responsibility
•Industriousness
•Initiative and energy
•High motivation
•Frankness
•Belief in mission and job
•Perseverance
II. Relational Skills• Courtesy
• Display of respect
• Kindness
• Empathy
• Non-judgmentalness
• Integrity
• Confidence
Source: Adapted from Arthur Winfred Jr., and Winston Bennett Jr., “The International Assignee: The Relative Importance of Factors Perceived to Contribute to Success,” Personnel Psychology 18 (1995), pp. 106–107.
![Page 17: Group HR International Human Resource Management Good Evening – March 17 th, 2011](https://reader035.vdocuments.mx/reader035/viewer/2022062719/56649ee45503460f94bf2a89/html5/thumbnails/17.jpg)
Group HRIV. Extracultural Openness
• Variety of outside interests
• Interest in foreign cultures
• Openness
• Local language [s] known
• Outgoingness & extroversion
• Overseas experience
V. Family Situation
• Adaptability of spouseand family
• Spouse’s positive opinion
• Willingness of spouse to live abroad
• Stable marriage
III. Flexibility/
Adaptability
• Resourcefulness
• Ability to deal with stress
• Flexibility
• Emotional stability
• Willingness to change
• Tolerance for ambiguity
• Adaptability
• Independence
• Dependability
• Political sensitivity
• Positive self-image
Factors Important in International Assignee Success
![Page 18: Group HR International Human Resource Management Good Evening – March 17 th, 2011](https://reader035.vdocuments.mx/reader035/viewer/2022062719/56649ee45503460f94bf2a89/html5/thumbnails/18.jpg)
Group HR
Cross Cultural Training Programs
Environmental BriefingsEnvironmental Briefings
Cultural OrientationCultural Orientation
Language TrainingLanguage Training
Sensitivity TrainingSensitivity Training
Field ExperienceField Experience
![Page 19: Group HR International Human Resource Management Good Evening – March 17 th, 2011](https://reader035.vdocuments.mx/reader035/viewer/2022062719/56649ee45503460f94bf2a89/html5/thumbnails/19.jpg)
Group HR
Compensation
• Two issues:–Pay executives in different countries according to the standards in
each country?or
Equalize pay on a global basis?
–Method of payment
![Page 20: Group HR International Human Resource Management Good Evening – March 17 th, 2011](https://reader035.vdocuments.mx/reader035/viewer/2022062719/56649ee45503460f94bf2a89/html5/thumbnails/20.jpg)
Group HRComponents of Expatriate Pay
• Base Salary– Same range as a similar position in the home country
• Foreign service premium– Extra pay for work outside country of origin
• Allowances– Hardship, housing, cost-of-living and education allowances
• Taxation– Firm pays expatriate’s income tax in the host country
• Benefits– Level of medical and pension benefits identical overseas
![Page 21: Group HR International Human Resource Management Good Evening – March 17 th, 2011](https://reader035.vdocuments.mx/reader035/viewer/2022062719/56649ee45503460f94bf2a89/html5/thumbnails/21.jpg)
Group HR
Typical Expatriate Benefits & Incentives
• Overseas premium• Housing allowance• Cost of living allowance (COLA)• Moving expenses• Tuition for dependent education• Home leave• Tax reimbursement plans• Hardship allowances• Mobility premiums
![Page 22: Group HR International Human Resource Management Good Evening – March 17 th, 2011](https://reader035.vdocuments.mx/reader035/viewer/2022062719/56649ee45503460f94bf2a89/html5/thumbnails/22.jpg)
Group HRAppraising Expatriate Managers
• Challenges in appraising overseas managers
– Determining who should appraise the manager.
– Deciding on which factors to base the appraisal.
• Job abroad may include more than what it does at home
![Page 23: Group HR International Human Resource Management Good Evening – March 17 th, 2011](https://reader035.vdocuments.mx/reader035/viewer/2022062719/56649ee45503460f94bf2a89/html5/thumbnails/23.jpg)
Group HRGuidelines for Performance Appraisal
More weight given to onsitemanager’s evaluation.
Expat who worked in same location should assist home-office
manager with evaluation.
If foreign on-site manager preparing evaluation, home-office manager should
be consulted before finalization.
![Page 24: Group HR International Human Resource Management Good Evening – March 17 th, 2011](https://reader035.vdocuments.mx/reader035/viewer/2022062719/56649ee45503460f94bf2a89/html5/thumbnails/24.jpg)
Group HRA BIG THANK YOU TO ALL….