Bài giảng International Business - Chapter 19: Global Human Resource Management

International Business 9e By Charles W.L. HillMcGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.Chapter 19Global Human Resource ManagementMcGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.What Is Human Resource Management?Human resource management (HRM) - the activities an organization carries out to utilize its human resources effectively more complex in an international business These activities include determining human resource strategy, staffing, performance evaluation, management development, compensation, labor relationsexpatriate managersFirms need to ensure there is a fit between their human resources practices and strategyWhat Is The Strategic Role Of HRM In International Firms?The Role of Human Resources in Shaping Organizational ArchitectureWhat Is A Staffing Policy?Staffing policy - the selection of employees who have the skills required to perform a particular jobThree main approaches to staffing policy The ethnocentric approach - fill key management positions with parent-country nationalsThe polycentric approach recruit host country nationals to manage subsidiaries in their own country, and parent country nationals for positions at headquartersThe geocentric approach seek the best people, regardless of nationality for key jobs Which Staffing Policy Is Best?Comparison of Staffing ApproachesWhat Is Expatriate Failure?Firms using an ethnocentric or geocentric staffing strategy will have expatriate managersexpatriate failure is the premature return of an expatriate manager to the home countryThe main reasons for Japanese expatriate failure are the inability to cope with larger overseas responsibilitydifficulties with the new environmentpersonal or emotional problemsa lack of technical competencethe inability of spouse to adjustWhat Is Expatriate Failure?The main reasons for U.S. expatriate failure are the inability of an expatriate's spouse to adaptthe manager’s inability to adjustother family-related reasonsthe manager’s personal or emotional maturitythe manager’s inability to cope with larger overseas responsibilities The reason for European expatriate failure is the inability of the manager’s spouse to adjustHow Can Firms Reduce Expatriate Failure?Firms can reduce expatriate failure through improved selection proceduresFour dimensions that predict expatriate success are Self-orientation - the expatriate's self-esteem, self-confidence, and mental well-beingOthers-orientation - the ability to interact effectively with host-country nationalsPerceptual ability - the ability to understand why people of other countries behave the way they doCultural toughness – the ability to adjust to the postingWhy Is A Global Mindset Important?A global mindset may be the fundamental attribute of a global managercognitive complexitycosmopolitan outlookA global mindset is often acquired early in life froma family that is bicultural living in foreign countrieslearning foreign languages as a regular part of family life What Is Training And Management Development?After selecting a manager for a position, training and development programs should be implementedTraining focuses upon preparing the manager for a specific jobCultural training Language trainingPractical trainingManagement development is concerned with developing the skills of the manager over timehistorically, most firms focus more on training than on management developmentWhat Happens When Expatriates Return Home?Training and development should include preparing and developing expatriate managers for reentry into their home country organization need good programs for re-integrating expatriates back into work life within their home country organization utilizing the knowledge they acquired while abroadHow Should Expatriates Be Evaluated?Evaluating expatriates can be especially complex typically, both host nation managers and home office managers evaluate the performance of expatriate managersBut, both types of managers are subject to unintentional biashome country managers tend to rely on hard data when evaluating expatriateshost country managers can be biased towards their own frame of referenceWhat Are The Key Issues In Compensating Expatriates?Two key issues on compensationHow to adjust compensation to reflect differences in economic circumstances and compensation practicesthere are substantial differences in executive compensation across countriesHow to pay expatriate managersmost firms use the balance sheet approachWhat Are The Key Issues In Compensating Expatriates?A compensation package has five components Base salary - normally in the same range as the base salary for a similar position in the home countryForeign service premium - extra pay the expatriate receives for working outside his country of originVarious allowances - hardship, housing, cost-of-living, education Tax differentials - may have to pay income tax to both the home country and the host-country governments no reciprocal tax treaty existsBenefits – many firms provide the same level of medical and pension benefits abroad that employees receive at homeWhy Are International Labor Relations Important?Organized labor is concerned that Multinationals can counter union bargaining power by threatening to move production to another countryMultinationals will farm out only low-skilled jobs to foreign plants making it easier to switch production locations Multinationals will import employment practices and contractual agreements from their home countries and reduce the influence of unions Why Are International Labor Relations Important?Organized labor has responded to the increased bargaining power of multinational corporations byTrying to set-up their own international organizationsLobbying for national legislation to restrict multinationalsTrying to achieve regulation of multinationals through international organizations such as the United NationsMany firms are centralizing labor relations to enhance the bargaining power of the multinational vis-à-vis organized labor