Human resource 1e by denisi griffin chapter 03

©
© 2012
2012 South-Western,
South-Western, Cengage
Cengage Learning,
Learning, Inc.
Inc.
All
All rights
rights reserved.
reserved.

Prepared
Prepared by
by Joseph
Joseph B.
B. Mosca,
Mosca, Monmouth
Monmouth University
University &
& Marla
Marla M.
M. Kameny,
Kameny, Baton
Baton
Rouge
Rouge Community
Community College
College
PowerPoint
PowerPoint Presentation

Presentation Design
Design by
by Charlie
Charlie Cook,
Cook, The
The University
University of
of West
West Alabama
Alabama


Learning Objectives

After studying this chapter, you should be able to:

1. Describe the growth of international business.
2. Identify and discuss global issues in international
human resource management.
3. Discuss the human resource management function in
international business.
4. Identify and discuss domestic issues in international
human resource management.
5. Describe the issues involved in managing international
transfers and assignments.
6. Summarize the issues in international labor relations.
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

3–2

The Growth of
International
Business

• During the 1950s, the U.S. was the
dominant force.
• In the 1960s, the U.S. was challenged by
other countries.
• The U.S. market downturn in 2002 had
effects on world markets.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

3–3


Global Business Centers

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3–4


International Hiring Challenges
• Understanding the culture
• Being aware of motivational aspects
• Evaluating employee performance
• Understanding technology awareness and usage
• Recognizing preferred communication styles

• Observing the preferred
management structure.
• Observing the organizational culture

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

3–5


Global Issues in International HRM

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3–6


International HRM Strategies

Staffing
Staffing
Considerations
Considerations

Ethnocentri
Ethnocentri
cc
staffing
staffing
model
model

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

Polycentric
Polycentric
staffing
staffing
model
model

3–7


International HR Strategy
• Ethnocentric Staffing Model
 Assumes that home-based perspectives take

precedence over local perspectives and
issues positions to parent country nationals.
 Primarily uses parent-country nationals to

staff higher level foreign positions.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

3–8


International HR Strategy
• Polycentric Staffing Model

 Makes heavy use of host-country nationals

throughout the organization.
 Puts parent-country nationals, host-country

nationals, and third-country nationals in the
same category.
 Attempts always to hire the best person

available for a position.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

3–9


Understanding the Cultural
Environment
• Culture
 The set of values, symbols, beliefs, and languages that

guide behavior of the people within that culture.

• Importance of Cultural Awareness
 International business managers:


Must be aware of cultural nuances.



Must be cognizant of the role of
cultural differences and similarities
in workers from different cultures.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

3–10


Hofstede’s Dimensions of
Culture
Power
Power
Distance
Distance

Individualism
Individualism
versus
versus
Collectivism
Collectivism

Uncertainty
Uncertainty
Avoidance
Avoidance

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

Masculinity
Masculinity
versus
versusFemininity
Femininity

Time
Time
Orientation
Orientation

3–11


Political and Legal Issues of International Business

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

3–12


Fundamental Management Challenges
in International Business

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

3–13

Specific
Specific HR
HR Issues
Issues in
in
International
International Business
Business

Exporting
Exporting

Licensing
Licensing

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

Direct
Direct
Investment
Investment

Joint
JointVenture
Venture
Strategic
Strategic
Alliance
Alliance

3–14


Beyond the Book:
Recruiting and Selecting Key Elements

Recruitment
Recruitmentof
of
employees
employeesfor
for
international
international
business
businessis
isan
an
important
importantstep
step
in
inHRM
HRM

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

Defining
Definingthe
theskills

skillsand
andabilities
abilities
necessary
necessaryto
toperform
perform

Defining
Definingthe
theskills
skillsand
and
abilities
abilitiesthat
thatare
areneeded
neededto
to
work
workin
inaaforeign
foreignnation
nation

3–15


Domestic Issues in International HRM

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

3–16


International Transfers and
Assignments of Expatriates
Important
Important Considerations
Considerations
in
in the
the Use
Use of
of Expatriates
Expatriates

Personnel
Personnel
Selection
Selection

Pre-Posting
Pre-Posting
Training
Training

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Compensation

Compensation
and
andEvaluation
Evaluation

3–17


Selecting Expatriates for
International Assignments
Sources
Sources for
for
Expatriates
Expatriates

Parent-Country
Parent-Country
Personnel
Personnel

Host-Country
Host-Country
Personnel
Personnel

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

Third-Country
Third-Country

Personnel
Personnel

3–18


Local (Host Country) Issues
• Local Training and Development
 Extent of local workforce training and

development necessary for nationals
to perform effectively

• Local Compensation Issues
 Assessing individuals
 Assessing groups
 Necessity for hardship premium

for expatriates

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

3–19


Beyond the Book:
Repatriation of Expatriates
 The final step in HRM in global business
 Bringing an expatriate home is not a simple matter.
 Extensive adjustment by expatriates is often

required upon their return at the end of lengthy
assignments.

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3–20


Expatriate Compensation Balance Sheet

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

3–21


International Labor Relations
• Labor Relations
 Is the process of dealing with employees who

are organized into labor unions.
 Are heavily regulated and restricted by law.
 Are affected by management actions toward

labor and labor actions toward management.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

3–22