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1、,Chapter Eighteen,Global Human Resource Management,Human Resource Management (HRM),Refers to the activities an organization carries out to use its human resources effectively Four major tasks of HRM Staffing policy Management training and development Performance appraisal Compensation policy,Interna
2、tional Human Resource Management,Strategic role: HRM policies should be congruent with the firms strategy and its formal and informal structure and controls Task complicated by profound differences between countries in labor markets, culture, legal, and economic systems,International Human Resource
3、Management,Staffing Policy,Staffing policy Selecting individuals with requisite skills to do a particular job Tool for developing and promoting corporate culture Types of Staffing Policy Ethnocentric Polycentric Geocentric,Ethnocentric Policy,Key management positions filled by parent-country nationa
4、ls Best suited to international businesses Advantages: Overcomes lack of qualified managers in host nation Unified culture Helps transfer core competencies Disadvantages: Produces resentment in host country Can lead to cultural myopia,Polycentric Policy,Host-country nationals manage subsidiaries Par
5、ent company nationals hold key headquarter positions Best suited to multi-domestic businesses Advantages: Alleviates cultural myopia Inexpensive to implement Helps transfer core competencies Disadvantages: Limits opportunity to gain experience of host country nationals outside their own country Can
6、create gap between home and host country operations,Geocentric Policy,Seek best people, regardless of nationality Best suited to global and trans-national businesses Advantages: Enables the firm to make best use of its human resources Equips executives to work in a number of cultures Helps build str
7、ong unifying culture and informal management network Disadvantages: National immigration policies may limit implementation Expensive to implement due to training and relocation Compensation structure can be a problem,Comparison of Staffing Approaches,The Expatriate Problem,Expatriate: citizens of on
8、e country working in another Expatriate failure: premature return of the expatriate manager to his/her home country Cost of failure is high: estimate = 3X the expatriates annual salary plus the cost of relocation (impacted by currency exchange rates and assignment location) Inpatriates: expatriates
9、who are citizens of a foreign country working in the home country of their multinational employer,Reasons for Expatriate Failure,US multinationals Inability of spouse to adjust Managers inability to adjust Other family problems Managers personal or emotional immaturity Inability to cope with larger
10、overseas responsibilities European multinationals Inability of spouse to adjust,Japanese Firms Inability to cope with larger overseas responsibilities Difficulties with the new environment Personal or emotional problems Lack of technical competence Inability of spouse to adjust,Expatriate Failure Ra
11、te,Expatriate Selection,Reduce expatriate failure rates by improving selection procedures An executives domestic performance does not (necessarily) equate to his/her overseas performance potential Employees need to be selected not solely on technical expertise, but also on cross-cultural fluency,Fou
12、r Attributes that Predict Success,Self-Orientation Possessing high self-esteem, self-confidence and mental well-being Others-Orientation Ability to develop relationships with host country nationals Willingness to communicate,Four Attributes that Predict Success,Perceptual Ability The ability to unde
13、rstand why people of other countries behave the way they do Being nonjudgmental and flexible in management style Cultural Toughness Relationship between country of assignment and the expatriates adjustment to it,Training and Management Development,Training: Obtaining skills for a particular foreign
14、posting Cultural training: Seeks to foster an appreciation of the host countrys culture Language training: Can improve expatriates effectiveness, aids in relating more easily to foreign culture, and fosters a better firm image Practical training: Ease into day-to-day life of the host country,Trainin
15、g and Management Development,Development: Broader concept involving developing managers skills over his or her career with the firm Several foreign postings over a number of years Attend management education programs at regular intervals,Repatriation of Expatriates,A critical issue in the training a
16、nd development of expatriate managers is preparing them for reentry into their home country Repatriation should be seen as the final link in an integrated, circular process that selects, trains, sends, and brings home expatriate managers Research shows that there is a problem with the repatriation p
17、rocess,Repatriation of Expatriates,Management Development and Strategy,Development programs designed to increase the overall skill levels of managers through: Ongoing management education Rotation of managers through a number of jobs within the firm to give broad range of experiences Used as a strategic tool to build a strong unifying culture and informal management network Above techniques support transnational and global strategies,
