IHRM

INTERNATIONAL HUMAN RESOURCE MANAGEMENT : 

INTERNATIONAL HUMAN RESOURCE MANAGEMENT

Emerging problems: 

Emerging problems Company going in the right direction, however, a set of reservations Still a family run business, conservative & tightly controlled Slow decision process w/overlapping responsibilities & authority Interference by top management that undermined sound practice Lack of transparency Confusion about goals & direction of the firm Lack of tie between performance & rewards Increasing workload

PowerPoint Presentation: 

The management of human resources in global corporations The management of expatriate employees The comparison of human resource management (HRM) practices in a variety of different countries

Employee selection practices: 

Employee selection practices Classifying employees Parent country national (PCNs) Host country national (HCNs) Third country national (TCNs) Implications of classification—compensation, benefits, promotion

HRM staffing, managing & strategy approaches: 

HRM staffing, managing & strategy approaches Ethnocentric—centralized in home country Polycentric Decentralized to regional or local units Few transfers or promotion of locals to headquarters Regiocentric Centralized on a regional basis Promotion within region, but seldom between region & headquarters Geocentric Global integration Global staffing and promotion Integrated strategies based upon interaction with regional units

Factors influencing HRM strategy: 

Factors influencing HRM strategy Corporate International Strategy Level of Development in Foreign Locations Diversity of product or service Organizational life cycle & experience

Factors influencing HRM strategy: 

Factors influencing HRM strategy Local political & legal constraints on staffing & tax provisions Judgments on quality of local personnel Level of technology and quality issues Organizational life cycle & age/ history of the subsidiary Culture parochialism of the organization & nation Costs of localized vs. common approach

HRM functions in a global setting: 

HRM functions in a global setting Recruitment methods-headquarters vs. local practices Selection criteria: Ability, education, experience, . . . (achievement focus) Age, gender, religion, sex, . . . (ascriptive focus) Performance evaluation Centralized or decentralized policies & practices Compensation & benefits Local market conditions vs. common compensation Labor relation strategies Centralized or decentralized

Training and Development: 

Training and Development Training & development practices Delivery—centralized or decentralized Range of assignments—Limited or extensive global experience Planned Individual Learning, Organization Development, and Career Development Delivery of Programs Worldwide Developing Globally Minded Managers

Managing expatriates: 

Managing expatriates The demands: Job competency (managerial & technical), adjustment to the culture, & adjustment of spouse /children Problem of “failures” & “brownouts” Failure rates vary among sponsoring countries-US, 10 to 40%; European, 5-15%;Japan, around 5%.

Managing expatriates: 

Managing expatriates Selection criteria Technical skills Ability to handle a new environment Organizational personnel adaptability Spouse & family members considerations Training Cross cultural training Job novelty orientation

Selection criteria: 

Selection criteria Managerial & technical skill Success in home settings is problematical Ability to acclimate rapidly Previous international experience is problematical Nature & degree of cross cultural training Candidate training Family orientation Orientation to “live within the box” or expand it systematically

Cross-Cultural Training Methods: 

. Cross-Cultural Training Methods Explain the major aspects of the host country culture, including customs, traditions, every day behaviors. Explain the history, geography, economy, politics, and other general information about the host country and region. Portray a real-life situation in business or personal life to illustrate some aspect of living or working in the host culture. Cultural Briefings Area Briefings Cases

PowerPoint Presentation: 

Cross-Cultural Training Methods (cont.) Role Playing Culture Assimilator Field Experiences Allows the trainee to act out a situation that he or she might face in living or working in the host country. Provides a written set of situations that the trainee might encounter in living or working in the host country. Trainee selects one from a set of responses to the situation and is given feedback as to whether it is appropriate and why. Provide an opportunity for the trainee to go to the host country or another unfamiliar culture to experience living and working for a short time.

How Situational Factors Influence the Selection of a CCT Method: 

How Situational Factors Influence the Selection of a CCT Method Degree of Training Rigor High Low High Low Low High Classroom Language Training Films FACTUAL Books Lectures Area Briefings Case Studies Culture Assimilators Sensitivity Training ANALYTICAL Interactive Language Training Role Plays Field Trips Simulations EXPERIENTIAL Degree of Job Novelty Degree of Culture Novelty Training Methods Degree of Interaction with HCNs

Cultural shock: 

Cultural shock Moving to the foreign country-- Culture shock and assimilation process— Degree of novelty & strangeness of the new setting Degree of acceptance by expatriate & family & its reciprocal--acceptance by locals Movement into ethnic “enclaves” Home & country cultural values of integration vs. sustaining separation e.g. French vs. British patterns Infrastructural support—housing arrangements, assistance in dealing with governmental requirements, local sponsors,. . .

Culture Shock Cycle: 

Culture Shock Cycle Low High 1 2 3 4 5 6 Months in a New Culture Mood

Cultural shock: 

Cultural shock Moving back to the home country Shifting status, authority & power Shifting roles for spouses, & extended family & social structures Different infrastructures-education, health, standard of living, language, bureaucracy Problem of children & peer groups

Other IHRM Functions: 

Other IHRM Functions Performance Evaluation Problematic practices in recognizing the special conditions Compensation and Benefits Home, host, or regional based policy Labor Relations

Typical Expatriate Benefits: 

. Typical Expatriate Benefits Overseas Premium Housing Allowance Cost of Living Allowance (COLA) Moving Expenses Tuition for Dependent Education Home Leave Tax Reimbursement Plans

Best International Practices Study: 

Best International Practices Study Identified three types of practices Context free—can be applied everywhere E.g. Compensation should be related to performance except benefits should be an important part of the package Criteria for selection—Getting along w/others & fit w/organizational culture Content specific—applicable to similar countries & firms E.g. seniority & group pay valued in Asian & Latin countries Hire for the job—experience, technical skill-- in Anglo countries Context dependent—practices limited to specific country settings, or companies Hire for their potential in Japan

Implications for HRM: 

Implications for HRM Western training programs are unlikely to have a positive impact when: Appraisal systems violate cultural norms Performance standards give way to interpersonal relationships If high power conditions exist, delegation & participation are likely to be rejected If job designs that emphasize higher level needs don’t fit with the culture The efficiency focus of HRM programs is inconsistent with social purposes of organizations

Convergence or Divergence?: 

Convergence or Divergence? Large corporations’ preference for consistent worldwide systems Smaller companies’ desire for more professional systems Need to follow local HRM laws Development of unique techniques and practices to suit local cultural and legal requirements