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Hiring and Hiring and Managing Managing EmployeesEmployees
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Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
16 - 2Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
International HRMInternational HRM
Culture affects
Expatriate managers
Recruitment and selection
Training and development
Compensation
Labor relations
Staffing policy
16 - 3Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
Ethnocentric StaffingEthnocentric Staffing
Advantages
+ Locally qualified people not always available
+ Tight control over subsidiaries
+ Re-create local operations in home-office image
+ Interests of home office may be better protected
– Relocations are expensive
– Give the business a “foreign” imageDisadvantages
Individuals from home country manage operations abroad
16 - 4Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
Polycentric StaffingPolycentric Staffing
Advantages+ Responsibility on those knowing local business
+ Avoid expensive relocations from home nation
– Resemble a collection of national entities
– Potentially harm performanceDisadvantages
Individuals from host country manage operations abroad
16 - 5Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
Geocentric StaffingGeocentric Staffing
Advantages+ Managers who can adjust anywhere
+ Break down nationalistic barriers
– These individuals command high salariesDisadvantage
Best-qualified individuals, regardless of nationality,manage operations abroad
16 - 6Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
Human Resource PlanningHuman Resource Planning
Phase 1 Phase 2 Phase 3
Take inventory of current human
resources
Estimate firm’s future human
resource needs
Develop plan to recruit and select people for vacant and anticipated new positions
Forecasting human resource needs and supply
16 - 7Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
Tips for Small BusinessesTips for Small Businesses
Expanding internationally can severelystrain the resources of small firms
Expanding internationally can severelystrain the resources of small firms
Do not rely solely on home-country expatriatesDo not rely solely on home-country expatriates
Local contacts do not guarantee contractsLocal contacts do not guarantee contracts
Treat employees abroad with respectTreat employees abroad with respect
Employ the Web in your talent searchEmploy the Web in your talent search
16 - 8Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
Recruiting Human ResourcesRecruiting Human Resources
Recent college graduates
Local managerial talent
Nonmanagerial workers
Current employees
Process of identifying and attracting a qualified pool of applicants for vacant positions
16 - 9Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
Selecting Human ResourcesSelecting Human Resources
Ability to bridge cultural differences is key
Expatriates must adapt to new ways of life
Cultural sensitivity raises odds for success
Process of screening and hiring the best-qualified applicants with the greatest performance potential
16 - 10Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
Stage I:
Thrilling experience
Stage II:
Downward slide
Stage III:
Recovery begins
Stage IV:
Embrace local culture
Culture ShockCulture Shock
Psychological process affecting people living abroad that is characterized by homesickness, irritability,
confusion, aggravation, and depression
16 - 11Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
Reverse Culture ShockReverse Culture Shock
Readaptingto home culture
Reducing its effects
Once-natural thoughts andfeelings now strange
Can be more unsettling thanculture shock
Some companies reabsorbexpatriates poorly
Home-culture reorientationprograms
Career-counseling sessions Career-development program
before posting abroad
16 - 12Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
Cultural Training MethodsCultural Training Methods
16 - 13Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
Compiling a Cultural ProfileCompiling a Cultural Profile
CultureGramsBackground
NotesCountry
Studies AreaHandbooks
16 - 14Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
Worker TrainingWorker Training
Emerging markets
Basic skillstraining
Apprenticeshiptraining
16 - 15Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
Compensation of ManagersCompensation of Managers
Bonus andtax incentives
Bonus andtax incentives
Cultural andsocial factors
Cultural andsocial factors
Cost-of-livingeffects
Cost-of-livingeffects
16 - 16Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
Compensation of WorkersCompensation of Workers
Labor mobility insome markets
Labor mobility insome markets
Greater cross-border investment
Greater cross-border investment
16 - 17Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
Labor-Management RelationsLabor-Management Relations
Rooted in local culture
Directly influences workers’ lives
Often affected by political movements
Positive or negative relations betweena company’s management and its workers
16 - 18Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
Selectionof a location
Selectionof a location
Performancein a market
Performancein a market
Emergingmarkets
Emergingmarkets
Codeterminationin Germany
Codeterminationin Germany
Labor UnionsLabor Unions
16 - 19Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
But can be difficult
Events in distant lands difficult to comprehend
Workers in different nations often compete
International Labor International Labor MovementsMovements
International activities of unions are making progress in improving treatment of workers and reducing child labor