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1、International Business 7e by Charles W.L. Hill,McGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.,Chapter 18 Global Human Resource Management,Introduction,Human resource management (HRM) refers to the activities an organization carries out to utilize its human r
2、esources effectively These activities include: determining the firms human resource strategy staffing performance evaluation management development compensation labor relations,Introduction,HRM can help the firm reduce the costs of value creation and add value by better serving customer needs HRM is
3、 more complex in an international business because of differences between countries in labor markets, culture, legal systems, economic systems, and so on HRM must also determine when to use expatriate managers (citizens of one country working abroad), who should be sent on foreign assignments, how t
4、hey should be compensated, how they should be trained, and how they should be reoriented when they return home,The Strategic Role Of International HRM,Firms need to ensure there is a fit between their human resources practices and strategy In order to carry out a strategy effectively, employees need
5、 the right training, an appropriate compensation package, and a good performance appraisal system,The Strategic Role Of International HRM,Figure 18.1: The Role of Human Resources in Shaping Organizational Architecture,Staffing Policy,A firms staffing policy is concerned with the selection of employe
6、es who have the skills required to perform a particular job A staffing policy can be a tool for developing an promoting the firms corporate culture (the organizations norms and value system) A strong corporate culture can help the firm implement its strategy,Types Of Staffing Policy,There are three
7、main approaches to staffing policy within international businesses: 1. the ethnocentric approach 2. the polycentric approach 3. the geocentric approach,Classroom Performance System,The three types of staffing approaches for international firms include all of the following except a) Transnational b)
8、Ethnocentric c) Geocentric d) Polycentric,Types Of Staffing Policy,1. The ethnocentric approach to staffing policy fills key management positions with parent-country nationals It makes sense for firms with an international strategy Firms that pursue an ethnocentric policy believe that: there is a la
9、ck of qualified individuals in the host country to fill senior management positions it is the best way to maintain a unified corporate culture value can be created by transferring core competencies to a foreign operation via parent country nationals,Types Of Staffing Policy,The ethnocentric staffing
10、 policy is no longer popular with most firms because: it limits advancement opportunities for host country nationals it can lead to “cultural myopia“,Types Of Staffing Policy,2. The polycentric staffing policy recruits host country nationals to manage subsidiaries in their own country, and parent co
11、untry nationals for positions at headquarters It makes sense for firms pursuing a localization strategyThe polycentric approach: can minimize cultural myopia may be less expensive to implement than an ethnocentric policy,Types Of Staffing Policy,There are two disadvantages to the polycentric approac
12、h: host country nationals have limited opportunities to gain experience outside their own country and thus cannot progress beyond senior positions in their own subsidiaries. a gap can form between host country managers and parent country managers,Types Of Staffing Policy,3. The geocentric staffing p
13、olicy seeks the best people, regardless of nationality for key jobs This approach is consistent with building a strong unifying culture and informal management network It makes sense for firms pursuing either a global or transnational strategy Immigration policies of national governments may limit t
14、he ability of a firm to pursue this policy,Types Of Staffing Policy,The geocentric approach: enables the firm to make the best use of its human resources builds a cadre of international executives who feel at home working in a number of different cultures can be limited by immigration laws is costly
15、 to implement,Types Of Staffing Policy,Table 18.1: Comparison of Staffing Approaches,Classroom Performance System,Firms using _ fill all key management positions with parent-country nationals. An ethnocentric staffing policyA geocentric staffing policyA polycentric staffing policyA transcentric staf
16、fing policy,Classroom Performance System,When a firm wants to pursue a transnational strategy, a _ approach to staffing makes sense.a) Ethnocentricb) Geocentricc) Polycentricd) Transcentric,Expatriate Managers,Expatriate failure is the premature return of an expatriate manager to his or her home country Between 16 and 40 percent of all American expatriates in developed countries fail to complete their assignments, and almost 70 percent of Americans assigned to developing countries return home early Each expatriate failure can cost between $250,000 and $1 million,
