International Business

1. International Business Delivered in: Islamia University Bahawalpur Presented By: Tasawar Javed

2. IHRM • A Process • Selecting • Training • Developing • & compensating personnel in overseas positions Types • Home nationals • Expatriates • Host country nationals • Third country Nationals

3. IHRM Strategy • Selection and Repatriation • Selecting qualified people for overseas assignments and then effectively repatriating them into workforce when they return • Example • If NADRA or any other multinational business send their employees to work in any other country • When they come back from any assignment then repatriating them into the country

4. IHRM Strategy • International Screening Criteria and Selection Procedures • Adaptability • Cultural change adaptation; if no then it results in decline in job satisfaction • MNE examine a number of characteristics • Work experience with culture • Pervious overseas travel • Knowledge of foreign language • The ability to solve problems • Overall sensitivity to the environment • Self-reliance • Managers must be self-reliance because they need to make decisions on the spot • Age, experience, and education • Young managers are eager for international assignments • Older are more experienced and mature as well • Graduated? Are their degree is related to the assignment; logical thinking

5. IHRM Strategy • Health and family status • Good physical and emotional health • Physical problem will limit their activities • Emotionally problem may let them to take wrong decision • Family situation as well for expatriates • Examples::???? • Motivation and leadership • Unhappy with their position; desire for adventure; promotions; reward system • Factors associated with employee willingness to work overseas • Unmarried employee are more willing to accept expat assignments • Married couples with out children or non-teenage are willing to move as well • Prior international experience appears associated with willingness to work as an expatriate • Individuals most committed to their professional career • Careers and attitude of spouses will likely have a significant impact on employee willingness to move overseas

6. IHRM Strategy • Selection procedure • Interview • Could be both manager and spouse • Candidate alone • Knowledge about assignment or experience • Selection procedure depends on the MNE; every employer introduces their own selection procedure

7. IHRM Strategy • Repatriation of Expatriates • A process of returning home at the end of an overseas assignment • Usually assignments are two or three years • Some of them gets very good benefits in terms of allowances and wages; so they adapt the culture and don’t come back • Some of them prefer to come back after particular assignment and then companies give them space in home country operations • Reasons of repatriation • Assignment is completed • Desire to have their children in home country for education • May be un happy overseas • May be more gain when they come back • Manager performed poorly so its better to take him/her down

8. IHRM Strategy • Training and Development • The process of altering employee behavior and attitudes the probability of goal attainment • Mangers obtain necessary skills • Experiences • Attitude they need to be successful • Training programs • Could be anywhere in the world • Types of Training • Environmental briefing used to provide information about climate, housing • Cultural institutions and value systems of the host country • Learning approaches designed to provide the participants with intercultural encounters • Language training • Sensitivity training designed to develop attitudinal flexibility • Field experience; emotional stress of living and working with different people

9. IHRM Strategy • Strategic management and IHRM strategy • Number of strategies currently getting attention from MNE • Language Training • English is primary language but it is preferred to learn more or local language to interact with operational core or workers more effectively • Allow the manager to monitor the competition more effectively • MNE if setup their business in China, Japan, they give training about languages • Recruiting local talent • Good relation with local organization • Supplier • New development, local news papers or News channels • It also helps to lean culture of that particular country

10. Strategic Management & IHRM Strategy • Cultural adaptation • MNEs use three basic approaches • Design program that provides cultural orientation • Provide training; if time any money allows then visit the country • Fairly expensive but has received high marks for its value is the use of cultural assimilators • Programmed learning technique designed to expose members of one culture to some of the basic concepts, attitudes, role perceptions, customs, and values of another culture • Developed countries UK, Germany, US designed this techniques • Three critical issues why training is necessary: • The expatriate will be interacting with a host nation • May be misinterpreted or mishandled if manager don’t understand properly • Event is relevant to the expatriate’s task or mission requirements

11. Strategic Management & IHRM Strategy • Competitive Compensation • MNEs are much more careful the cost of sending people overseas because of cost • They want to keep their cost low to gain more profit • But at the same time they want to hire competent staff; some times it is not compatible • Compensation cost are widely because goods and services in some countries of the world are sharply higher than other • Food, cloth & entertainment in US are inexpensive rather than Japan, Hong kong Or GB • Other major area is to hire and retain top management Talent

12. Strategic Management & IHRM Strategy • Specially designed programs • Five factors • Structural empowerment • Accelerated resource development • Employee welfare emphasis • Efficient emphasis (encourage and monitor) • Long termism (long term results)

13. Thank You!!!! • Q&A