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Chapter 12 Global Human Resource Management. The international HRM wheel. Local personnel. International personnel. Corporate. The changing features of international managers. To. From. Recruitment essentially HQ in home country Expat package Local recruits stay local

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slide2

The international HRM wheel

Local

personnel

International

personnel

Corporate

slide4

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

slide5

The international manager

The international manager

slide6

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

adjustment in an international assignment the u curve hypothesis
Adjustment in an international assignment: the “U-curve hypothesis”

Honeymoon

Mastery

Adjustment/ Satisfaction

Adjustment

Culture shock

Months

0 2 4 6 8 10 12

slide9

The country assignment

Optimum tenure

C

Total benefits

A

Benefits

for the

company

Local impact

B

Global integration

X

Time

Acculturation

Productive tenure

slide10

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

slide11

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?

slide12

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?

slide13

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?

international managers culture shock
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

problems on repatriation
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
hrm practices which support effective expatriation
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
slide17

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
slide18

Different types of international managers according to the stage of subsidiary development

CONSOLIDATE

GROW

BUILD

PIONEER

DEVELOPER

ORGANIZER

slide19

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

slide20

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
slide21

Integrating local staff

  • Career development and the ‘glass ceiling’
  • Fairness
  • Feedback
  • Rewards
  • Discipline and education
  • Long-term policies
slide22

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)
slide23

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