Chapter 12 Global Human Resource Management

1. Chapter 12 Global Human Resource Management

2. The international HRM wheel Local personnel International personnel Corporate

4. The changing features of international managers To From • Recruitment essentially HQ in home country • Expat package • Local recruits stay local • Strong ‘corporate style’ diffused in the subsidiaries • ‘Foreign office’ type of career • Dual career system • Performance appraisal focuses on local performances • Recruitment from all over the world • Increasingly ‘local’ contracts • Possibilities for locals to become part of the core • A lot of job rotation: regional; global • A lot of international management development programmes • Performance appraisals include local plus global or regional achievement

5. The international manager The international manager

6. The dual allegiance of international managers Allegiance to parent firm Low High International managers who see themselves as free agents International managers who leave their hearts at home Low Allegiance to local firm International managers who see themselves as dual citizens International managers who “go native” High

7. The dual allegiance of international managers

8. Adjustment in an international assignment: the “U-curve hypothesis” Honeymoon Mastery Adjustment/ Satisfaction Adjustment Culture shock Months 0 2 4 6 8 10 12

9. The country assignment Optimum tenure C Total benefits A Benefits for the company Local impact B Global integration X Time Acculturation Productive tenure

10. The impact of international cultural differences for management Interpersonal relationships - Communication - Etiquette - Decoding attitudes and behaviour - Understanding ‘silent’ language Hierarchical/managerial interactions (boss/colleagues/subordinates) - Feedback - Control - Reward/punishments - Personal space - Motivations Multicultural teams - International managers vs locals - Group building/working/relationships - Conflict resolutions Partnerships/transactions - Contract negotiations -Joint ventures/partnerships - Official meetings -Community events/social events

11. Strongly disagree Strongly agree Hong Kong Japan Korea China Malaysia Thailand Indonesia Philippines Singapore Taiwan “Local employees avoid telling their boss they think they are wrong” – agree or disagree?

12. Strongly disagree Strongly agree Korea China Malaysia Indonesia Hong Kong Taiwan Philippines Thailand Japan Singapore “Employees and managers prefer to tell stories than admit they made a mistake” – agree or disagree?

13. Strongly disagree Strongly agree MALAYSIA HONGKONG INDONESIA CHINA PHILIPPINES KOREA TAIWAN SINGAPORE THAILAND JAPAN “Telling an employee in front of others that he/she made a mistake is not acceptable” – agree or disagree?

14. International managers: culture shock LEVEL OF DISORIENTATION STRESS UNEASE CULTURAL DIFFERENCES PHYSICAL DIFFERENCES REACTIONS FLIGHT FIGHT ACCEPT GOES NATIVE • interested • looks for contacts • learns about culture • rejects • retreats • insulates • hostility • disgust • disapproval • enthusiastic • adopts local practices: • food; dress; style • local ‘companion’ THE “COLONY” THE COSMOPOLITAN EXPAT THE LOCALIZED EXPAT

15. Problems on repatriation • The majority of international managers experience some degree of culture shock during repatriation • More than halfof returning international managers feel their overseas assignment had a negative impact on their careers • 1 out of every 5 managers who finish an international assignment want to leave the company when they return • The majority of international managers feel their re-entry position is less challenging and satisfying than their overseas assignment • Most returning international managers feel there are limited opportunities for using their newly acquired knowledge and skills, and feel their international expertise is not appreciated by their firms

16. HRM practices which support effective expatriation Staffing and selection • Communicate the value of international assignments for the company’s global mission • Recruit employees who see international assignments as a challenging opportunity • Recruit employees who demonstrate cultural openness • Provide a realistic job and career preview Training and career development • Make international assignments a part of the career development process • Encourage early international experience • Provide ongoing mentoring and coaching • Create learning opportunities during the assignment • Use international assignments as a leadership development tool

17. HRM practices which support effective expatriation cont. Performance appraisal and compensation • Differentiate performance management based on international manager roles • Align incentives with expatriation objectives • Tailor benefits to the international manager’s needs • Focus on equality of opportunities, not cash • Emphasize rewarding careers rather than short-term outcomes Expatriation and repatriation activities • Involve the family in the orientation and repatriation program • Establish mentor relationships between international managers and executives from the home location • Provide support for dual careers. • Secure opportunities for the returning manager to use knowledge and skills learned while on the international assignment

18. Different types of international managers according to the stage of subsidiary development CONSOLIDATE GROW BUILD PIONEER DEVELOPER ORGANIZER

19. Individual skills for international managers in emerging countries CULTURAL SKILLS RELATIONSHIP SKILLS LEADERSHIP SKILLS POLITICAL SKILLS PROFESSIONAL SKILLS Ability to build and maintain a network of contacts Ability to negotiate Ability to learn Ability to motivate Understanding of and sensitivity to etiquette, social norms, religions, ethnical characteristics Knowledge and reference to arts and literature Language skills can help Ability to understand the local political context and subtleties Ability to communicate with opinion leaders and key decision-makers Ability to integrate local national priorities into business strategies and practices Knowledge and expertise in product and services Performance demonstration Ability to inspire Ability to teach and coach Ability to lead teams Ability to communicate without arrogance Ability to respect Role model Paternalistic Ethics

20. More pressure to localize staff From host country government • To accelerate transfer of technology • To develop human resources • To create employment From head office • To cut costs • To build competences • To keep staff From local staff itself • To satisfy ambition • To develop career • To improve conditions

21. Integrating local staff • Career development and the ‘glass ceiling’ • Fairness • Feedback • Rewards • Discipline and education • Long-term policies

22. Skills that Chinese employees consider to be important for international managers • Cultural sensitivity • Guidance • Clarity • Teaching orientation • Expertise (to be tested) • Short-term Presence (commitment?) • Adaptability • Fairness • Morality • Personal touch (paternalism)

23. Skills that international managers consider to be important for Chinese employees • Hard work and productivity • Knowledge • Language • Desire to learn • Loyalty • Honesty and morality • Initiative • Leadership