tenth edition
Chapter 17
Gary
Dessler
Part 5 Employee Relations
Managing Global Human Resources
2005 Prentice Hall Inc.
All rights reserved.
PowerPoint Presentation by Charlie Cook
The University of West Alabama
After studying this chapter,
you should be able to:
1.
List the HR challenges of international business.
2.
Illustrate how intercountry differences affect HRM.
3.
Discuss the global differences and similarities in
HR practices.
4.
Explain five ways to improve international
assignments through selection.
5.
Discuss how to train and maintain international
employees.
2005 Prentice Hall Inc. All rights reserved.
172
172
The Management Challenges
of International Business
Coordinating market, product, and production
plans on a worldwide basis
Creating organization structures capable of
balancing centralized home-office control with
adequate local autonomy.
Extending its HR policies and systems to
service its staffing needs abroad:
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173
The HR Challenges of
International Business
Deployment
Easily getting the right skills to where we need them,
regardless of geographic location.
Knowledge and innovation dissemination
Spreading state-of-the-art knowledge and practices
throughout the organization regardless of where they
originate.
Identifying and developing talent on a global basis
Identifying can function effectively in a global
organization and developing his or her abilities.
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174
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
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175
Intercountry Differences Affecting
HRM
Cultural Factors
Perceptions of US managers vs. other countries
Economic Systems
Difference in labor costs are substantial
Legal and Industrial Relations Factors
Employment at will does not exist (works councils)
The European Union
Must consult workers about certain corporate
actions such as mass layoffs
More directives will greatly expand this
requirement
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176
Global Differences and Similarities
in HR Practices
Personnel Selection Procedure
US values the interview, Mexico values
networking, Japan values getting along with
others
The Purpose of the Performance Appraisal
US uses it to determine pay, Japan and
Mexico uses it to recognize the subordinate
Training and Development Practices
The Use of Pay Incentives
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177
A Global HR System
Making the global HR system more
acceptable
Remember that global systems are more
accepted in truly global organizations.
Investigate pressures to differentiate and
determine their legitimacy.
Try to work within the context of a strong
corporate culture.
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178
A Global HR System (contd)
Developing a more effective global HR
system
Form global HR networks.
Remember that its more important to
standardize ends and competencies than
specific methods.
Implementing the global HR system
Remember, You cant communicate
enough.
Dedicate adequate resources for the global
HR effort.
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179
Summary of Best Practices
2005 Prentice Hall Inc.
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Source: Ann Marie Ryan et al., Designing and Implementing
Global Staffing Systems: Part 2Best Practices, Human
Resource Management 42, no. 1 (Spring 2003), p. 93.
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Table 171
Summary of Best Practices
2005 Prentice Hall Inc.
All rights reserved.
Source: Ann Marie Ryan et al., Designing and Implementing Global Staffing Systems:
Part 2Best Practices, Human Resource Management 42, no. 1 (Spring 2003), p. 93.
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Table 171 (contd)
Staffing the Global Organization
International staffing: Home or local?
Expatriates (expats): Noncitizens of the
countries in which they are working.
Technical competence, mgmt devlopmnt, control
Home-country nationals: Citizens of the
country in which the multinational company has
its headquarters.
Third-country nationals: Citizens of a country
other than the parent or the host country.
Offshoring (or outsourcing)
Having local employees abroad do jobs that the
firms domestic employees previously did inhouse.
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Staffing the Global Organization
(contd)
Offshoring
Having local employees abroad do jobs that
the firms domestic employees previously
did in-house.
Issues in offshoring
Having an effective supervisory and
management structure in place to manage
the workers.
All employees must receive the screening
and training that they require
Ensuring that compensation policies and
working
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13
Why Expatriate Assignments Fail
Personality
Personal intentions
Family pressures
Inability of the spouse to adjust
Inability to cope with larger overseas
responsibility.
Lack of cultural skills
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Helping Expatriate Assignment
Succeed
Providing realistic previews of what to expect
Careful screening
Improved orientation
Cultural and language training
Improved benefits packages
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Selecting Expatriate Managers
Adaptability screening
Assessing the assignees (and spouses)
probable success in handling the foreign
transfer.
Overseas Assignment Inventory
A test that identifies the characteristics and attitudes
international assignment candidates should have.
Realistic previews
The problems to expect in the new job as
well as about the cultural benefits,
problems, and idiosyncrasies of the country.
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I. Job Knowledge
and Motivation
Managerial ability
Organizational ability
Imagination
Creativity
Administrative skills
Alertness
Responsibility
Industriousness
Initiative and energy
High motivation
Frankness
Belief in mission and
job
Perseverance
II. Relational Skills
Respect
Courtesy and fact
Display of respect
Kindness
Empathy
Non-judgmentalness
Integrity
Confidence
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
IV. Extracultural Openness
Variety of outside interests
Interest in foreign cultures
Openness
Knowledge of local language[s]
Outgoingness and extroversion
Overseas experience
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V. Family Situation
Adaptability of spouse
and family
Spouses positive opinion
Willingness of spouse to
live abroad
Stable marriage
Five Factors
Important in
International
Assignee
Success,
and Their
Components
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. 106107.
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Figure 171
Orienting and Training for
International Assignment
There is little or no systematic selection and
training for assignments overseas.
Experience is usually the best indicator of
success
Training is needed on:
The impact of cultural differences on business
outcomes.
How attitudes (both negative and positive) are
formed and how they influence behavior.
Factual knowledge about the target country.
Language and adjustment and adaptation skills.
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Trends in Expatriate Training
Rotating assignments that permit overseas managers
to grow professionally.
Management development centers around the world
where executives hone their skills.
Classroom programs provide overseas executives
with educational opportunities similar to stateside
programs.
Continuing, in-country cross-cultural training
Use of returning managers as resources to cultivate
the global mind-sets of their home-office staff.
Use of software and the Internet for cross-cultural
training.
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Compensating Expatriates
The Balance Sheet Approach
Equalize purchasing power across countries
Home-country groups of expensesincome
taxes, housing, goods and services, and
discretionary expensesare the focus of
attention.
The employer estimates what each of these four
expenses is in the expatriates home country,
and what each will be in the host country.
The employer then pays any differences such as
additional income taxes or housing expenses.
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Incentives
Foreign service premiums
Financial payments over and above regular
base pay, and typically range between 10%
and 30% of base pay.
Hardship allowances
Payments to compensate expatriates for
exceptionally hard living and working
conditions at certain foreign locations.
Mobility premiums
Lump-sum payments to reward employees
for moving from one assignment to another.
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Appraising Expatriate Managers
Challenges in appraising oversea managers
Determining who should appraise the manager.
Deciding on which factors to base the appraisal.
Improving the expatriate appraisal process
Stipulate the assignments difficulty level, and
adapt the performance criteria to the situation.
Weigh the evaluation more toward the on-site
managers appraisal than toward the home-site
managers.
If the home-office manager does the actual
written appraisal, use a former expatriate from
the same overseas location for advice.
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Differences in International Labor
Relations
Centralization
Union structure
Content and scope of
bargaining
Employer organization
Grievance handling
Union recognition
Strikes
Union security
Worker participation
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Terrorism, Safety, and Global HR
Taking protective measures
Crisis management teams
Kidnapping and ransom (K&R) insurance
Crisis situations
Kidnapping: the employee is a hostage until the
employer pays a ransom.
Extortion: threatening bodily harm.
Detention: holding an employee without any ransom
demand.
Threats to property or products unless the employer
makes a payment.
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Repatriation: Problems and
Solutions
Problem
Making sure that the expatriate and his or
her family dont feel that the company has
left them adrift.
Solutions
Match the expat and his or her family with a
psychologist trained in repatriation issues.
Make sure that the employee always feels
that he or she is still in the loop with
whats happening back at the home office.
Assign a mentor
Provide formal repatriation services.
Discuss employees next move, update the resume,
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Auditing the HR Function
1. What should HRs functions be?
2. Participants then rate each of these functions to
answer the question, How important are each of
these functions?
3. Next, they answer the question, How well are each
of the functions performed?
4. Next, compare (2) and (3) to focus on What needs
improvement?
5. Then, top management needs to answer the
question, Overall, how effectively does the HR
function allocate its resources?
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Key Terms
codetermination
expatriates (expats)
home-country nationals
third-country nationals
offshoring
ethnocentric
polycentric
geocentric
adaptability screening
foreign service premiums
hardship allowances
mobility premiums
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