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Chapter 16 Hiring and Managing Employees

Chapter 16 Hiring and Managing Employees. Chapter Preview. List the pros and cons of each staffing policy Identify the key international recruitment and selection issues Explain international training and development programs

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Chapter 16 Hiring and Managing Employees

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  1. Chapter 16 Hiring and Managing Employees

  2. Chapter Preview • List the pros and cons of each staffing policy • Identify the key international recruitment and selection issues • Explain international training and development programs • Discuss the international compensation of managers and workers • Describe labor-management relations globally International Business 4e

  3. Recruitment and selection Compensation Training and development Labor relations International H.R.M. Expatriates Citizens of one country who are living and working in another country Often modified International Business 4e

  4. Ethnocentric Staffing Individuals from home country manage operations abroad Advantages • Tight control over subsidiaries • Locally qualified people not always available • Re-create local operations in home-office image • Interests of home office may be better protected Disadvantages • Relocations are expensive • Create “foreign” image for the business International Business 4e

  5. Polycentric Staffing Individuals from host country manage operations abroad Advantages • Responsibility on those knowing local business • Avoid expensive relocations from home nation Disadvantages • Potentially lose control of subsidiary International Business 4e

  6. Geocentric Staffing Best-qualified individuals, regardless of nationality, manage operations abroad Advantages • Develop global managers who can adjust • easily to any business environment Disadvantages • These individuals command high salaries International Business 4e

  7. Tips for Small Businesses Expanding internationally can severely strain the resources of small firms: Don’t entrust local operations solely to U.S. expatriates Local contacts don’t guarantee contracts Treat employees abroad as you want to be treated Employ the Web in your talent search International Business 4e

  8. Take inventory of current human resources Estimate firm’s future human resource needs Develop plan to recruit and select people for vacant and anticipated new positions Human Resource Planning Forecasting human resource needs and supply Phase 1 Phase 2 Phase 3 International Business 4e

  9. Current employees • Recent college graduates • Local managerial talent • Nonmanagerial workers Recruiting Human Resources Process of identifying and attracting a qualified pool of applicants for vacant positions International Business 4e

  10. Ability to bridge cultural • differences is key • Expatriates must adapt • to new ways of life • Cultural sensitivity raises • odds for success Selecting Human Resources Process of screening and hiring the best-qualified applicants with the greatest performance potential International Business 4e

  11. Culture Shock Psychological process affecting people living abroad that is characterized by homesickness, irritability, confusion, aggravation, and depression Stage I: Thrilling experience Stage II: Downward slide Stage III: Recovery begins Stage IV: Embrace local culture International Business 4e

  12. Once-natural thoughts and • feelings now strange • Can be more unsettling than • culture shock • Many companies reabsorb • expatriates poorly • Home-culture reorientation • programs • Career-counseling sessions • Career-development program • before posting abroad Reverse Culture Shock Psychological process of readapting to one’s home culture  Methods of reducing its effects  International Business 4e

  13. Cultural Training Methods International Business 4e

  14. Compiling a Cultural Profile CultureGrams Background Notes Country Studies Area Handbooks International Business 4e

  15. Employee Compensation Managerial employees Nonmanagerial workers Cost-of-living effects Greater cross-border investment Bonus and tax incentives Greater labor mobility in some markets Cultural and social factors International Business 4e

  16. Rooted in local culture • Often affected by • political movements • Directly influences • workers’ lives Labor-Management Relations Positive or negative condition of relations between a company’s management and its workers International Business 4e

  17. Can affect selection of a location Can affect company performance in a market Popularity of emerging markets in Asia Union power declining across much of Europe Importance of Labor Unions International Business 4e

  18. International Labor Movements International activities of unions are making progress in improving treatment of workers and reducing child labor But generating support can be difficult because: • Events in distant lands difficult to comprehend • Workers in different nations often compete International Business 4e

  19. Chapter Review • List the pros and cons of each staffing policy • Identify the key international recruitment and selection issues • Explain international training and development programs • Discuss the international compensation of managers and workers • Describe labor-management relations globally International Business 4e

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