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CHAPTER 18CHAPTER 18

International Human Resource International Human Resource ManagementManagement

Text by Profs. M. Czinkota, I. Ronkainen, Text by Profs. M. Czinkota, I. Ronkainen, and M. Moffettand M. MoffettMultimedia Presentation byMultimedia Presentation byProf. Milton PressleyProf. Milton PressleyThe University of New OrleansThe University of New Orleans

milton.pressley@uno.edumilton.pressley@uno.edu

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• To describe the challenges of managing To describe the challenges of managing managers and labor personnel both in managers and labor personnel both in individual international markets and in individual international markets and in worldwide operationsworldwide operations

• To examine the sources, qualifications, and To examine the sources, qualifications, and compensation of international managerscompensation of international managers

• To assess the effects of culture on managers To assess the effects of culture on managers and management policiesand management policies

• To illustrate the different roles of labor in To illustrate the different roles of labor in international markets, especially that of labor international markets, especially that of labor participation in managementparticipation in management

LEARNING OBJECTIVESLEARNING OBJECTIVESLEARNING OBJECTIVESLEARNING OBJECTIVES

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Managing ManagersManaging ManagersManaging ManagersManaging Managers• Early Stages of Early Stages of

InternationalizationInternationalization• Advanced Stages of Advanced Stages of

InternationalizationInternationalization

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Figure 18.1 – An Example of an International Figure 18.1 – An Example of an International Management Development SystemManagement Development System

Figure 18.1 – An Example of an International Figure 18.1 – An Example of an International Management Development SystemManagement Development System

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Managing ManagersManaging ManagersManaging ManagersManaging Managers• Interfirm Cooperative VenturesInterfirm Cooperative Ventures• Sources for Management Sources for Management

RecruitmentRecruitment• ExpatriatesExpatriates

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Managing ManagersManaging ManagersManaging ManagersManaging Managers• Lingua FrancaLingua Franca

• Selection Criteria for Selection Criteria for Overseas AssignmentsOverseas Assignments

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© 2002 Thomson Learning, Inc.

Managing ManagersManaging ManagersManaging ManagersManaging Managers• Competence FactorsCompetence Factors

• Factual Cultural KnowledgeFactual Cultural Knowledge• Area ExpertiseArea Expertise

• Adaptability FactorsAdaptability Factors• Interpretive KnowledgeInterpretive Knowledge

• Personal CharacteristicsPersonal Characteristics• The Selection and Orientation The Selection and Orientation

ChallengeChallenge• Adaptability ScreeningAdaptability Screening• Orientation ProgramOrientation Program

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Figure 18.2 – Companies Offering Cultural TrainingFigure 18.2 – Companies Offering Cultural TrainingFigure 18.2 – Companies Offering Cultural TrainingFigure 18.2 – Companies Offering Cultural Training

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Managing ManagersManaging ManagersManaging ManagersManaging Managers• Culture ShockCulture Shock

• Causes and RemediesCauses and Remedies

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Figure 18.3 – Culture Shock Cycle for an Figure 18.3 – Culture Shock Cycle for an Overseas AssignmentOverseas Assignment

Figure 18.3 – Culture Shock Cycle for an Figure 18.3 – Culture Shock Cycle for an Overseas AssignmentOverseas Assignment

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Managing ManagersManaging ManagersManaging ManagersManaging Managers• Initial EuphoriaInitial Euphoria• Irritation and HostilityIrritation and Hostility• AdjustmentAdjustment• ReentryReentry

• Terrorism: Tangible Culture ShockTerrorism: Tangible Culture Shock

• RepatriationRepatriation

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Managing ManagersManaging ManagersManaging ManagersManaging Managers• CompensationCompensation

• Base Salary and Salary-Related Base Salary and Salary-Related AllowancesAllowances• Cost of living allowance (COLA)Cost of living allowance (COLA)• Foreign service premiumForeign service premium• Hardship allowancesHardship allowances• Housing allowancesHousing allowances• Tax-equalizationTax-equalization

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Managing ManagersManaging ManagersManaging ManagersManaging Managers• Nonsalary-Related AllowancesNonsalary-Related Allowances

• Education AllowanceEducation Allowance

• Method of PaymentMethod of Payment• Compensation of Host-Country Compensation of Host-Country

NationalsNationals

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Managing Labor PersonnelManaging Labor PersonnelManaging Labor PersonnelManaging Labor Personnel• Labor Participation in ManagementLabor Participation in Management

• Labor Participation in Decision MakingLabor Participation in Decision Making

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© 2002 Thomson Learning, Inc.

Managing Labor PersonnelManaging Labor PersonnelManaging Labor PersonnelManaging Labor Personnel• Self-managementSelf-management• CodeterminationCodetermination• Minority participationMinority participation• Works councilsWorks councils

• Improvement of Quality of Work LifeImprovement of Quality of Work Life• Work redesign programsWork redesign programs• Team buildingTeam building• Quality circlesQuality circles• Work schedulingWork scheduling• FlextimeFlextime

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Managing Labor PersonnelManaging Labor PersonnelManaging Labor PersonnelManaging Labor Personnel• The Role of Labor UnionsThe Role of Labor Unions• Human Resource PoliciesHuman Resource Policies

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