HRM Lec 44 Usman Bhatti

7/31/2019 HRM Lec 44 Usman Bhatti

1/59

Human ResourceManagement

Lecture-44


2/59

Managing Human

Resources in anInternational

Business


3/59

Stages of aGlobal

Organization


4/59

Domestic

International

Multinational

Global or Trans-

national


5/59

Why?


6/59

The Evolution of

Global Business


7/59

Exporting - Selling abroad

Licensing - Organization grantsa foreign firm the right to use

intellectual propertiesFranchising - Parent company

grants another firm the right todo business in a prescribedmanner


8/59

Multinational corporation - Firmthat is based in one country andproduces goods or providesservices in one or more foreign

countriesGlobal corporation - Has corporate

units in a number of countries thatare integrated to operate as oneorganization worldwide


9/59

Expatriate

A citizen of one country

living and working inanother country.


10/59

Multinational

Corporation (MNC)A firm with assembly and

production facilities in severalcountries and regions of theworld.


11/59

Transnational

CorporationA firm with operations in many

countries and highlydecentralized operations. Thefirm owes little allegiance to its

country of origin and has weakties to any given country.


12/59

HR and

International

BusinessChallenge


13/59

What HRM strategies areappropriate at different stages of

internationalization?How is the best employee mix

(host-country and expatriate)determined?

Why do international assignments

fail?How are returning employees re-

integrated into the firm?


14/59

Development

Knowledge &innovation

dissemination

Identifying anddevelopment talent on

a global basis


15/59

How Inter-countrydifference affects

HRM?


16/59

Cultural factors

Economic factors

Labor cost factors


17/59

Cultural Perspective


18/59

Cultural Environment

Language, religion,

values, attitudes,education, social

organization, technology,politics, and laws of a

country


19/59

Dimensions to

CulturePower distance

Individualism

Uncertainty avoidance

Masculinity/femininity

Long-term/short-term orientation


20/59

Dimensions on

Which Cultures

Differ


21/59

The nature of people

How people relate to

othersPrimary mode of activity

Conception of spaceTime orientation

I t f


22/59

Impact of

Culture on

IHRM Practices

A t f lt


23/59

Aspects of culture

you can seeDress

Food

ClimateHousing


24/59

Aspects ofculture youcant see


25/59

Communication style

What motivates people

Role expectations

Negotiation styles

Non-verbal communication

Tempo of work

How tasks are assigned

Attitude toward authority


26/59

Cross-CulturalDifferences in the

Workplace


27/59

How interviews should beconducted

How managers should act withtheir subordinates

How negotiations should beconducted

How training should bedelivered

How people should be paid for

work


28/59

Difference ineconomicsystems


29/59

In free enterprise systems-the need for efficiency

tends to favor HR policiesthat value productivity,

efficient workers and staffcutting where market

dictate


30/59

In more socialist

systems, HR practicestend to shift toward

preventingunemployment, even

at the expense ofsacrificing efficiency


31/59

Why DiscussIHRM?


32/59

Becoming truly

global requireseffective

management of a

diverse internationallabor force


33/59

International HR Management

is the strategic integrationand alignment of HR practiceswith business objectives toenhance firm and employeeperformance around the globe

Defining IHRM


34/59

Think about how you would get talent

IN THROUGH OUTof an organization on a global scale:

Recruiting

SelectionCompensation

Benefits

Performance ManagementTraining


35/59

Global HR: HR Planning

In deciding level of internationalinvolvement of the business.

HR provides information aboutrelevant HR issues (e.g., localmarket pay rates, labor laws)

Decisions about where & how manyemployees are needed for eachfacility


36/59

International Staffing

Recruitment

Selection

Training andDevelopment

Key Issues


37/59

Global HR: Selection

Identify host-country, parent-country, &third-country nationals

Hire locally? For which jobs?

Anticipate emotional cycle associated withforeign assignment:

Culture shock

Learning

adjustment


38/59

Consider criteria associated with successin working overseas:

Competence in area of expertise

Ability to communicate verbally &nonverbally in foreign country

Flexibility, tolerance of ambiguity, &sensitivity to cultural differences

Motivation to succeed & enjoyment of

challenges Willingness to learn about countrys

culture, language, customs

Support from family members


39/59

Selection of Employees

for InternationalAssignments


40/59

Emphasize cultural sensitivity asa selection criteria

Establish a selection board ofexpatriates

Require previous internationalexperience

Screen candidates spouses andfamilies


41/59

Global HR: Training &

DevelopmentConsider differences when developing

training

Norms for participation? Language?Content?

Cross-cultural preparation for international

assignment (departure, assignment, return) International assignments as a part of

career paths (development)

Process for identifying employees


42/59

Four Step Approach

to Training OverseasCandidates

L l 1


43/59

Level 1 training focuses on the impact of culturaldifferences, and on raising trainees awareness ofsuch differences and their impact on business

outcomes.

Level 2 training aims at getting participants tounderstand how attitudes (both negative andpositive) are formed and how they influencebehavior.

Level 3 training provides factual knowledgeabout the target country.

Level 4 training provides skill building in areaslike language and adjustment and adaptation skills.

Global HR:


44/59

Global HR:

Performance MgmtConsider legal requirements, local

business practices, national cultureThink about

What is rated & how it is rated

How much performance is measured

Norms for providing feedback


45/59

Global HR: Compensation

Pay level & relative worth of jobs maydiffer across counties (e.g., different labor

markets)Pay consistency vs. tailoring to location?

Consider company costs & ability tocompete

Incentive pay

Benefits legal issues, expectations


46/59

Why InternationalAssignments Fail

?


47/59

Career blockage

Culture shock

Lack of pre-departure cross-cultural training

Overemphasis on technicalqualifications

Family problems


48/59

Upon Return


49/59

Lack of Respect for

Acquired Skills

Loss of Status

Poor Planning for Return

Position

Reverse Culture Shock


50/59

Managing Host CountryEmployees


51/59

Adjust HRM practices to thenorms and culture of the host

country.

Develop training programs that are

compatible with the host countrysviews of the educational process.

Develop compensation systemsthat are adapted to what motivatesemployees in the host culture.


52/59


53/59

Summary

Managing Human


54/59

Managing Human

Resources in anInternational

Business


55/59

How Inter-countrydifference affects

HRM?


56/59

Cultural factors

Economic factors

Labor cost factors


57/59

Why DiscussIHRM?


58/59

Why InternationalAssignments Fail

?


59/59

Upon Return

Documents

HRM Lec 44 Usman Bhatti