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International HRM Challenge

Chapter 17. International HRM Challenge. Chapter 17 Overview. Specify the HRM strategies that are most appropriate for firms at different stages of internationalization Identify the best mix of host-country and expatriate employees given the conditions facing the firm

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International HRM Challenge

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  1. Chapter 17 International HRM Challenge (c) 2007 by Prentice Hall

  2. Chapter 17 Overview • Specify the HRM strategies that are most appropriate for firms at different stages of internationalization • Identify the best mix of host-country and expatriate employees given the conditions facing the firm • Explain why international assignments often fail and the steps a firm can take to ensure success in this area (c) 2007 by Prentice Hall

  3. Chapter 17 Overview (cont’d) • Understand reintegrating returning employees into the firm after they have completed an international assignment • Develop HRM policies and procedures that match the needs and values of different cultures • Consider ethical implications of HRM policies and procedures on a global basis (c) 2007 by Prentice Hall

  4. The Stages of International Involvement (c) 2007 by Prentice Hall

  5. The Stages of International Involvement • Expatriate – A citizen of one country living and working in another country. • Multinational corporation (MNC) – A firm with assembly and production facilities in several countries and regions of the world. • Transnational corporation – A firm with operations in many countries and highly decentralized operations. The firm owes little allegiance to its country of origin and has weak ties to any given country. (c) 2007 by Prentice Hall

  6. Determining the Mix of Host-Country and Expatriate Employees • Wholly owned subsidiary • Joint venture • Ethnocentric approach • Polycentric approach • Geocentric approach (c) 2007 by Prentice Hall

  7. Determining the Mix of Host-Country and Expatriate Employees • Sufficient local talent is not available • An important part of the firm’s overall business strategy is the creation of a corporatewide global vision • International units and domestic operations are highly interdependent • The political situation is unstable • There are significant cultural differences between the host country and the home country (c) 2007 by Prentice Hall

  8. The Challenges of Expatriate Assignments Why International Assignments End in Failure • Career blockage • Culture shock • Lack of pre-departure cross-culture training • Overemphasis on technical qualifications • Getting rid of a troublesome employee • Family problems (c) 2007 by Prentice Hall

  9. The Challenges of Expatriate Assignments Difficulties on Return • Lack of respect of acquired skills • Loss of status • Poor planning for return position • Reverse culture shock (c) 2007 by Prentice Hall

  10. Effectively Managing Expatriate Assignments with HRM Policies and Practices Selection • Emphasize cultural sensitivity as a selection criterion • Establish a selection board of expatriates • Require previous international experience • Explore the possibility of hiring foreign-born employees who can serve as “expatriates” at a future date • Screen candidates’ spouses and families (c) 2007 by Prentice Hall

  11. Training (c) 2007 by Prentice Hall

  12. Career Development • Position the international assignment as a step toward advancement within the firm • Provide support for expatriates • Provide career support for spouse (c) 2007 by Prentice Hall

  13. Provide the expatriate with a disposable income that is equivalent to what he or she would receive at home Provide an explicit “add-on” incentive for accepting an international assignment Avoid having expatriates fill the same jobs held by locals or lower-ranking jobs Compensation (c) 2007 by Prentice Hall

  14. Effectively Managing Expatriate Assignments with HRM Policies and Practices • Role of HR Department • Women and International Assignments (c) 2007 by Prentice Hall

  15. Developing HRM Policies in a Global Context National Culture, Organizational Characteristics, and HRM Practices • Power distance • Individualism • Uncertainty avoidance • Masculinity/femininity • Long-term/short-term orientation (c) 2007 by Prentice Hall

  16. Developing HRM Policies in a Global Context • EEO in the International Context • Important Caveats • “National culture” may be an elusive concept • Corporate headquarters sometimes blame international personnel problems on cultural factors without careful study • Hard data on the success and failure of different HRM practices as a function of national culture are practically nonexistent • Different cultures often have very different notions of right and wrong • The business laws of other countries often force companies to change their practices (c) 2007 by Prentice Hall

  17. Human Resource Management and Exporting Firms Key impediments to exporting: • Lack of knowledge of international markets, business practices, and competition • Lack of management commitment to generating international sales (c) 2007 by Prentice Hall

  18. Summary and Conclusions • The stages of international involvement • Determining the mix of host-country and expatriate employees • The challenges of expatriate assignments • Developing HRM policies in a global context • Human resource management and exporting firms (c) 2007 by Prentice Hall

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