Managing Human Resources 14e - Bohlander and Snell

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Managing Human Resources 14e - Bohlander and Snell
Chapter
International Human
Resources Management
Managing Human Resources
PowerPoint Presentation by Monica Belcourt, York University
and Charlie Cook, The University of West Alabama
Learning Outcomes
After studying this chapter, you should be able to:
1.
2.
3.
4.
5.
Identify the types of organizational forms used for
competing internationally.
Explain the economic, political-legal, and cultural factors
in different countries that HR managers need to
consider.
Explain how domestic and international HRM differ.
Discuss the staffing process for individuals working
internationally.
Identify the unique training needs for international
assignees and their employees.
Copyright © 2011 by Nelson Education Ltd.
15–2
Learning Outcomes (Cont’d)
6.
7.
8.
Identify the characteristics of a good international
compensation plan.
Reconcile the difficulties of home- and host-country
performance appraisals.
Explain how labour relations differ around the world.
Copyright © 2011 by Nelson Education Ltd.
15–3
Increasing Importance of Global Human Resource
Understanding
Global
Competition
Foreign
Human
Resources
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International
Mergers and
Acquisitions
15–4
Managing Across Borders
International
corporation
Domestic firm that uses its existing
capabilities to move into overseas
markets.
Multinational
corporation
(MNC)
Firm with independent business units
operating in multiple countries.
Global
corporation
Firm that has integrated worldwide
operations through a centralized
home office.
Transnational
corporation
Firm that attempts to balance local
responsiveness and global scale via a
network of specialized operating units.
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15–5
Figure 15.1
Types of Organizations
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15–6
How International Companies Affect the World
Economy
Their production and distribution extend beyond national
boundaries, making it easier to transfer technology.
They have direct investments in many countries,
affecting the balance of payments.
They have a political impact that leads to cooperation
among countries and to the breaking down of barriers of
nationalism.
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15–7
How Does the Global Environment
Influence Management?
Unified Economies
Cultural Environment
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15–8
Figure 15.2
Cultural Environment of International Business
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15–9
Domestic versus International HRM
Issues in international HRM in helping employees adapt
to a new and different environment outside their own
country:
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15–10
International Staffing
Expatriates, or • Employees from the home
country who are on international
Home-country
assignment.
Nationals
Host-country
Nationals
• Employees who are natives of
the host country.
Third-country
Nationals
• Employees who are natives of a
country other than the home
country or the host country.
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15–11
• Hiring local citizens is generally less
costly than relocating expatriates.
Advantages
of Host
Country
Nationals
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• Since local governments usually want
good jobs for their citizens, foreign
employers may be required to hire
locally.
• Most customers want to do business
with companies they perceive to be
local versus foreign.
15–12
• Talent available within the company
Advantages
of
Expatriates
• Greater control over managers
• Company experience
• Mobility
• Development opportunities for
managers
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15–13
Advantages
of
Third
Country
National
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• Broad experience
• International outlook
• Multilingual
15–14
Recruiting Internationally
Work Permit, or Visa
Guest Workers
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15–15
Selecting Global Managers
1. Begin with self-selection.
2. Create a candidate pool.
3. Assess core skills.
4. Assess augmented skills
and attributes.
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15–16
Training and Development
Essential training program content to prepare
employees for working internationally
Culture shock
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15–17
Figure 15.9
A Synthesis of Country Clusters
Source: Simcha Ronen and Oded
Shenkar, “Clustering Countries on
Attitudinal Dimensions: A Review
and Synthesis,” Academy of
Management Review 10, no. 3
(July 1985): 435–54. Copyright ©
1985 by Academy of Management
Review. Reprinted with permission
of the Academy of Management
Review via Copyright Clearance
Center.
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15–18
Returning from an Overseas Assignment
Repatriation
 The process of an employee transitioning home from an
international assignment.
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15–19
Training Methods
Reviewing available information about the host
company: books, magazines, video tapes.
Conversations with host country natives.
Sensitivity training to become familiar with the customs
and overcome prejudices.
Temporary assignments to encourage shared learning.
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15–20
Compensation
Different countries have different norms for employee
compensation.
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15–21
Compensation of Host-Country Employees
Hourly wages vary dramatically from country to country.
Pay periods are different.
Seniority may be an important factor.
High pay rates can upset local compensation practices.
Bonuses, profit-sharing, benefits and paid leave may be
more extensive and legally required.
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15–22
Compensation of Expatriate Managers
Provide an incentive to
leave Canada
Allow for maintaining a
N.A. standard of living
Provide for security in
countries that are
politically unstable or
present personal dangers
Include provisions for
good healthcare
Provide for the education
of children
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Consider foreign taxes
the employee is likely to
have to pay (in addition to
domestic taxes) and help
with tax forms and filing
Allow for maintaining
relationships with family,
friends, and business
associates
Facilitate reentry home
Have a written agreement
15–23
Expatriate Compensation Systems
 Home-Based Pay
 Balance-Sheet Approach
 Split Pay
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15–24
Performance Appraisal of International
Managers
Who Should Appraise Performance?
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15–25
Assessing Performance
Different evaluation criteria
Additional job duties
Individual learning
Organizational learning
Providing feedback
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15–26
International Organizations and Labour
Relations
International Differences in Unions
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15–27
HR approaches to Labour Relations
Hands off
Monitor
Guide and advise
Strategic planning
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15–28

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