CHAPTER 11 INTERNATIONAL HUMAN RESOURCE MANAGEMENT
COMPONENTS OF HRM • Recruitment • Selection • Training & Development • Performance Appraisal • Compensation • Labor Relations
INTERNATIONAL HRM (IHRM) • Basic HRM issues remain • Must choose a mixture of international employees • How much to adapt to local conditions?
EMPLOYEES IN MULTINATIONAL ORGANIZATIONS • Host country nationals • Expatriates • Home country nationals • Third country nationals • Inpatriates
MULTINATIONAL MANAGERS • Host country or expatriate?
USING HOST COUNTRY MANAGERS • Do they have the expertise for the position? • Can we recruit them from outside the company?
USING EXPATRIATE MANAGERS • Do parent country managers have the appropriate skills? • Are they willing to take expatriate assignments? • Do any laws affect the assignment of expatriate managers?
IS THE EXPATRIATE WORTH IT? • High cost • High failure rate
REASONS FOR U.S. EXPATRIATE FAILURE • Spouse fails to adapt • Manager fails to adapt • Other problems within the family • Personality of the manager • Level of responsibilities
Reasons for expatriate failure, continued • Lack of technical proficiency • No motivation for assignment
MOTIVATIONS TO USE EXPATS • Managers acquire international skills • Coordinate and control operations dispersed activities • Communication of local needs/strategic information to headquarters
KEY EXPATRIATE SUCCESS FACTORS • Professional/technical competence • Relational abilities • Motivation • Family situation • Language skills • Willingness to accept position
PRIORITY OF SUCCESS FACTORS • Depends on : • assignment length • cultural distance • amount of required interaction with local people • job complexity/responsibility
EXHIBIT 11.3 SHOWS A DECISION MATRIX USED TO SET PRIORITIES OR DIFFERENT SUCCESS FACTORS DURING SELECTION
TRAINING RIGOR • The extent of effort by trainees and trainers required to prepare the trainees for expatriate positions
LOW RIGOR TRAINING • Short time period • Lectures • Videos on local culture • Briefings on company operations company operations
HIGH RIGOR TRAINING • Lasts over a month • Experiential learning • Extensive language training • Often includes interactions with host country nationals
EXHIBIT 11.4 SHOWS VARIOUS TRAINING TECHNIQUES AND THEIR OBJECTIVES AS THE RIGOR OF THE CROSS- CULTURAL TRAINING GROWS
CHALLENGES OF EXPATRIATE PERFORMANCE APPRAISAL • Unreliable data • Complex and volatile environments • Time differences and distance separation • Local cultural situations
STEPS TO IMPROVE THE PROCESS • 1. Fit the evaluation criteria to strategy. • 2. Fine tune the evaluation criteria • 3. Use multiple evaluators with varying periods of evaluation
EXHIBIT 11.6 Shows several sources of information a superior or the HRM professionals may use to evaluate an expatriate managers
THE BALANCE SHEET APPROACH • Provides a compensation package that equates purchasing power
BALANCE SHEET COSTS • Allowances for cost of living, housing, utilities, furnishing, educational expenses, medical expenses, club memberships, and car and/or driver expenses
OTHER APPROACHES • Parent country wages everywhere • Wean expatriates from allowances • Pay based on local or regional markets • Cafeteria selection of allowances • Global pay systems
THE REPATRIATION PROBLEM • Difficult for many organizations • "Reverse culture shock" • Expatriates must relearn own national and organizational culture • Includes whole family
STRATEGIES FOR SUCCESSFUL REPATRIATION PROVIDE: • A strategic purpose for repatriation • A team to aid the expatriate • Home country information sources • Training and preparation for the return • Support for expatriate and family
WOMEN EXPATRIATES: TWO IMPORTANT "MYTHS" • Myth 1: women do not wish to take international assignments • Myth 2: women will fail in international assignments because of the foreign culture's prejudices against local women
SUCCESSFUL WOMEN EXPATRIATES • Foreign not female • emphasize nationality not gender • The woman's advantage • strong in relational skills • wider range of interaction options
IHRM ORIENTATIONS • Ethnocentric • Polycentric • Regiocentric • Global
IHRM ORIENTATION AND MULTINATIONAL STRATEGY • Early stages of internationalization = ethnocentric IHRM • Multilocal strategies = ethnocentric or regiocentric • Regional strategy = closer to the global
International strategy = ethnocentric or polycentric IHRM • Transnational strategies = a global IHRM
CONCLUSIONS • HRM functions • IHRM challenges • Expatriate managers • The role of women in multinational organizations • Multinational strategies and IHRM orientations