31
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 20-1 International Business Environments & Operations 14e Daniels ● Radebaugh ● Sullivan
| Date post: | 22-Dec-2015 |
| Category: |
Documents |
| Upload: | melvyn-matthews |
| View: | 252 times |
| Download: | 11 times |
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-1
International Business
Environments & Operations
14e
Daniels ● Radebaugh ● Sullivan
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-2
Chapter 20
International Human Resources
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-3
Learning Objectives To discuss the importance of human
resource management To explain the types of expatriates To profile the staffing frameworks used by
MNEs To assess how MNEs select, prepare,
compensate, and retain expatriates
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-4
IntroductionLearning Objective 1: To discuss the importance of human resource management
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-5
Introduction In addition to insightful strategies, great
supply chains, sharp financial systems, and so on, successful MNEs have great people
It is important to get the right person in the right job in the right place at the right time for the right compensation
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-6
What is HRM? Human resource management (HRM)
the activities that staff the MNE HRM is more difficult in international
companies because of Environmental differences Strategic contingencies Organizational challenges
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-7
What is HRM?Factors Influencing HRM in International Business
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-8
Strategizing HRM Superior human resources are essential to
high productivity competitive advantage value creation
MNEs need to integrate strategy and HRM
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-9
The Perspective of the Expatriate
Learning Objective 2: To explain the types of expatriates
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-10
The Perspective of the Expatriate
MNE executives can be locals expatriates
leave their own country to live and work in another
Home country nationals Third-country nationals
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-11
The Perspective of the Expatriate
Trends in expatriate assignments most expatriate assignments are short term
lasting less than a year more assignments are going to younger and
older workers than in the past the number of female expatriates, third-
country nationals, and reverse expatriates is rising
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-12
Staffing Frameworks in the MNE
Learning Objective 3: To profile the staffing frameworks used by MNEs
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-13
Staffing Frameworks in the MNE
There are three approaches to staffing policy Ethnocentric
fill key management positions with home-country nationals
Polycentric use host-country nationals to manage local
subsidiaries Geocentric
seek the best people for key jobs throughout the organization, regardless of nationality
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-14
Staffing Frameworks in the MNE
The Ethnocentric Framework: Key Benefits
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-15
Staffing Frameworks in the MNE
The Polycentric Framework: Key Benefits
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-16
Staffing Frameworks in the MNE
The key advantage of the geocentric approach is that managers can move between countries and cultures without losing their personal effectiveness
But, this approach is difficult to develop and maintain
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-17
Staffing Frameworks in the MNE
Comparing Approaches to Staffing Foreign Operations
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-18
Managing ExpatriatesLearning Objective 4: To assess how MNEs select, prepare, compensate, and retain expatriates
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-19
Managing Expatriates Expatriate selection
screening executives to find those with the greatest inclination and highest potential for a foreign assignment
Candidates are screened according to Technical competence Adaptiveness
self-maintenance satisfactory relationships with host nationals sensitivity to host environments
Leadership
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-20
Managing ExpatriatesKey Competencies of Expatriates
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-21
Managing Expatriates Expatriate failure
a manager’s premature return home due to poor performance
The rate of failure is dropping in general, but is higher in emerging economies China and India
The cost of failure can easily reach $1 million
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-22
Managing ExpatriatesConcerns of Expatriates Ahead of Moving to Foreign Assignments
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-23
Managing Expatriates Common reasons for expatriate failure
inability of the spouse and family to adapt to the host country
To prevent expatriate failure, companies may provide preparation programs to provide General country understanding Cultural sensitivity Practical skills
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-24
Managing Expatriates Compensation packages should
Motivate employees Allow employees to maintain their standard of
living Reflect the responsibilities of the position Ensure that after-tax income will not fall Maintain pay equity among peers Compete with industry packages Be easily administered
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-25
Managing Expatriates Types of compensation plans Balance sheet approach
equalizes purchasing power across countries so expatriates have the same living standard in their foreign posting that they had at home
Home-based method Headquarters-based method Host-based method
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-26
Managing Expatriates A typical compensation package includes
Base salary Foreign service allowance Fringe benefits Tax differentials
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-27
Managing ExpatriatesWhat Does an Expatriate Cost?
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-28
Managing ExpatriatesTop Five Most Expensive Cities for Expatriates by Region
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-29
Managing Expatriates Repatriation
the process of reintegrating the expatriate into the home country upon completion of the foreign assignment
Can pose problems Work Financial Social
The challenge is to find the right job for the returning manager
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-30
Brainpower: Drains, Circulation, or Returns?
Trends worker populations will grow faster in
developing countries wealthier countries will continue to grow in the
number of retirees MNEs must adapt
Brain drain Labor-saving threats Brain circulation
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
20-31
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
