Human Resource Management

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Human Resource Management
Management is the art of getting things done
through people,
and things get done better with the right people.

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Human Resource Management

• Set of activities directed at attracting,
  developing, and maintaining the effective
  workforce necessary to achieve a firms objective

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Human Resource Management Goals
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International Human Resource Management

• Differences in culture, levels of economic
  development, and legal systems among countries
  make the task more complex for international HR
  managers.
• Selecting
• Training
• Compensation and benefits

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International Human Resource Management

• Select staff from home country, host country, or
  third country?

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International Managerial Staffing Needs

• Staffing Categories
• Managerial and Executive Employees
• Non-managerial Employees

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Scope of Internationalization

• Size of staffing tasks depends on scope of firms
  international involvement
• Export department
• International division
• Global organization

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Centralization versus Decentralization of Control

• Centralized firms
• Favor home country managers
• Most common among international division form
• Decentralized firms
• Favor host country managers
• Most common among multidomestic firms

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Staffing Philosophy

• Parent Country Nationals (PCNs)
• Host Country Nationals (HCNs)
• Third Country Nationals (TCNs)

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Strategies for Staffing

• Ethnocentric staffing model PCNs in upper-level
  positions
• Polycentric staffing model HCNs because they
  know the market best
• Geocentric staffing model choose the most
  qualified people regardless of nationality

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Necessary Skills and Abilities for International
Managers

• Skills and Abilities
• Necessary to Do
• The Job
• Technical
• Functional
• Managerial

• Skills and Abilities
• Necessary to Work
• In a Foreign Location
• Adaptability
• Location-specific skills
• Personal characteristics

Improved Chances of Succeeding in An
International Job Assignment
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Recruitment

• Experienced Managers hired from within or via
  specialized headhunters.
• Younger Managers perhaps with specialized
  technical training or language skills. Can be
  groomed for foreign assignments.

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Managerial Selection

• Good candidates have
• Managerial competence
• Appropriate training
• Ability to adapt to new situations

• Expatriate failure has a high cost!

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Questions from ATTs Questionnaire for Screening
Overseas Transferees_1

• Would your spouse be interrupting a career to
  accompany you on an international assignment? If
  so, how do you think this will affect your spouse
  and your relationship with each other?
• Do you enjoy the challenge of making your own way
  in new situations?
• Securing a job upon reentry will be primarily
  your responsibility. How do you feel about
  networking and being your own advocate?
• How able are you in initiating new social
  contacts
• Can you imagine living without a television?

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Questions from ATTs Questionnaire for Screening
Overseas Transferees_2

• How important is it for you to spend significant
  amounts of time with people of your own ethnic,
  racial, religious, and national background?
• As you look at your personal history, can you
  isolate any episodes that indicate a real
  interest in learning about other peoples and
  cultures?
• Has it been your habit to vacation in foreign
  countries?
• Do you enjoy sampling foreign cuisine?
• What is your tolerance for waiting for repairs?

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Culture Shock
Psychological phenomenon that may lead to
feelings of fear, helplessness, irritability,
and disorientation
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Phases in Acculturation
Honeymoon
Disillusionment
Adaptation
Biculturalism
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Honeymoon Phase

• New culture seems exotic and stimulating
• Excitement of working in new environment makes
  employee overestimate ease of adjusting
• Lasts for first few days or months

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Disillusionment Phase

• Differences between new and old environments are
  blown out of proportion
• Challenges of everyday living
• Many stay stuck in this phase

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Adaptation Phase

• Employee begins to understand patterns of new
  culture
• Gains language competence
• Adjusts to everyday living

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Biculturalism

• Anxiety has ended
• Employee gains confidence in ability to function
  productively in new culture
• Repatriation may be difficult

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Overseas Success

• Likelihood of managers being successful at
  overseas assignment increases if the managers
• Can freely choose whether to accept or reject the
  assignment
• Have been given a realistic preview of the job
  and assignment
• Have been given a realistic expectation of what
  their repatriation assignment will be
• Have a mentor back home who will guard their
  interests and provide support
• See a clear link between the expatriate
  assignment and their long-term career path

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Training and Development

• Assessing training needs
• Basic training methods
• Standardized
• Customized
• Developing younger managers

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Performance Appraisal

• Process of assessing how effectively people are
  performing their jobs
• Purpose
• To provide feedback to individuals about how well
  they are doing
• To provide a basis for rewarding top performers
• To identify areas in which additional training
  and development may be needed
• To identify problem areas that may call for a
  change in assignment

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Compensation Packages

• Include salary and nonsalary items
• Determined by
• Labor market forces
• Occupational status
• Professional licensing requirements
• Standards of living
• Government regulations
• Tax codes

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Annual Cost of Living in Selected Locations
Worldwide, 2003
Rank City Index Rank City Index
1 Tokyo, Japan 126.1 11 Shanghai, China 98.4
2 Moscow, Russia 114.5 12 St. Petersburg, Russia 97.3
3 Osaka, Japan 112.2 13 Oslo, Norway 92.7
4 Hong Kong 111.6 14 Hanoi, Vietnam 89.5
5 Beijing, China 105.1 15 Copenhagen, Denmark 89.4
6 Geneva, Switzerland 101.8 16 Ho Chi Minh City, Vietnam 88.5
7 London, UK 101.3 17 Milan, Italy 87.2
8 Seoul, South Korea 101.0 18 Shenzhen, China 86.7
9 Zurich, Switzerland 100.3 19 Guangzhou, China 86.7
10 New York City, USA 100.0 20 White Plains, NY, USA 86.2
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Differential Compensation

• Cost-of-living allowance
• Hardship premium or foreign-service premium
• Tax equalization system

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Labor Relations

• Labor relations in a host country often reflects
  laws, culture, social structure, and economic
  conditions
• Union membership may be high