Chapter 14 Establishing HRM Practices Overseas

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Chapter 14Establishing HRM Practices Overseas
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HRM and Competitive Advantage
HR Planning Job Analysis
Recruitment Selection
Output Retention Legal Compliance Company Image
Competence Motivation Work Attitudes
Cost Leadership Product Differentiation
Training/Develop. Performance App. Compensation Pr
oductivity Imp.
Workplace Justice Unions Safety
Health International
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Linking International HRM Practices to
Competitive Advantage
HRM Adapted To Local Cultures
Lower Costs Higher Productivity Minimized Legal
Costs
Competitive Advantage
Expatriation/Repatriation Managed Effectively
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International Business

• Wholly-owned subsidiaries
• Joint ventures

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Culture
artifacts
artifacts
Assumptions Values Rules
artifacts
artifacts
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Dimensions on Which Cultures Differ

• The nature of people
• How people relate to others
• Primary mode of activity
• Conception of space
• Time orientation

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Cross-Cultural Differences in the Workplace

• How interviews should be conducted
• How managers should act with their subordinates
• How negotiations should be conducted
• How training should be delivered
• How people should be paid for work

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Degree of Condemnation for Violating Cultural
Rules
Widely Shared Narrowly Shared
Deeply Held
Severe Punishment
Disapproval or Censure
Slight or None
Shallowly Held
Minor Condemnation
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Expatriates

• A professional/ managerial employee moved from
  one country to, and for employment in, another
  country

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The Use of Expatriates and Competitive Advantage
Succession Planning Coordination and Control
Systems Informational Needs
Competitive Advantage
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Expatriate Rights Under the Civil Rights Act of
1991

• ...coverage to U.S. citizens employed in a
  foreign country, provided that compliance with
  this provision would not cause the employer to
  violate the law of the foreign country in which
  the workplace is located.

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Selecting Expatriates

• Ability to handle stress
• Reinforcement substitution
• Ability to develop relationships
• Perceptual skills

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How Expatriates can Develop Relationships with
Host Nationals

• Communicate in the host language.
• Develop the skill of conversational currency.

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Perceptual Skills Needed by Expatriates

• Flexibility of ones belief systems
• Ability to avoid being judgmental about the
  belief and value systems of the host culture
• Ability to make flexible attributions about why
  host nationals behave the way they do
• High tolerance for uncertainty

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Training Needs of Expatriates

• Understanding and working with people from
  different backgrounds
• Managing multicultural teams
• Understanding global business

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Problems Appraising Expatriate Job Performance

• Invalid performance criteria
• not appropriate for foreign culture
• Rater competence
• dont understand situational factors
• Rater bias
• cultural misinterpretations

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Overcoming Expatriate Performance Appraisal
Problems

• Use multiple raters.
• Make sure that some of those raters have lived
  and worked in the country in which the expatriate
  is working.

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Compensation Premiums Provided to Expatriates

• Foreign service premiums
• Hardship allowance
• Cost of living allowances
• Housing allowances

• Club membership
• allowances
• Taxes
• Car and driver
• allowances

• Utility allowances
• Furnishing allowances
• Education allowances

• Home leave allowances
• Relocation allowances
• Medical allowances

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Problems of Repatriates

• Undetermined job assignments
• Less important jobs
• Readjusting to native culture
• Loss of premiums and other cultural amenities

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HRM Programs for Expatriates

• Mentoring
• Formalized career planning
• Communication systems

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Managing Host Country Employees

• Adjust HRM practices to the norms and culture of
  the host country.
• Develop training programs that are compatible
  with the host countrys views of the educational
  process.
• Develop compensation systems that are adapted to
  what motivates employees in the host culture.

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The Line Manger and International HRM Issues

• Manage expatriate subordinates with understanding
  of their situation.
• Manage in a host country yourself by adapting to
  the host country culture.

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The HRM Department and International Issues

• Who should be sent overseas?
• What kind of training will they need, both before
  they leave and once they are abroad?
• What kind of compensation package will be needed
  to induce candidates to go overseas?

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The HRM Department and International Issues

• In what ways do the companys human resource
  policies and procedures need to be adjusted
  overseas?
• How do performance appraisal systems need to be
  modified due to international differences?
• How may integrated global management development
  programs be created