1 / 21

Chapter 15 International Human Resources Management

Chapter 15 International Human Resources Management. Learning Outcomes. Explain the political, economic, socio-cultural, and technological factors in different countries that HR managers need to consider Identify the types of organizational forms used for competing internationally

lemuel
Download Presentation

Chapter 15 International Human Resources Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 15International Human Resources Management

  2. Learning Outcomes • Explain the political, economic, socio-cultural, and technological factors in different countries that HR managers need to consider • Identify the types of organizational forms used for competing internationally • Explain how domestic and international HRM differ. Discuss the recruitment, selection, training, compensation, and performance appraisal needs for different types of employees working across borders • Explain how labor relations differ around the world

  3. Factors to be Considered by HR Managers • Political • Economic • Sociocultural • Technological

  4. Figure 15.1 - PEST Analysis

  5. Analyzing Your International Operations

  6. Figure 15.2 - Types of Organizations

  7. Managing Your International Operations 

  8. Recruiting Internationally • Core criteria that are viewed as essential in worldwide recruiting efforts • Personal integrity • Drive for results • Respect for others • Capability • Virtually all countries have work permit or visa restrictions that apply to foreigners

  9. Recruiting Internationally

  10. Selecting Employees Internationally • Selecting employees in a foreign country environment can be difficult • Get to know the local market and customs in hiring • To understand local markets, HR managers can • Get to know the universities, technical schools, and primary schools in the area • Develop network in the business and government communities • Understand the employees of the firm’s competitors

  11. Selecting Global Managers • Global manager:Manager equipped to run an international business • Skills required for global managers • Ability to seize strategic opportunities • Ability to manage highly decentralized organizations • Awareness of global issues • Sensitivity to issues of diversity • Competence in interpersonal relations • Community-building skills

  12. Selecting Global Managers • Cultural environment: Communications, religion, values and ideologies, education, and social structure of a country • Core skills:Skills considered critical to an employee’s success abroad • Augmented skills:Skills helpful in facilitating the efforts of expatriate managers

  13. Selecting Global Managers • Steps involved in selecting individuals for an international assignment • Begin with self-selection • Create a candidate pool • Assess candidates’ core skills • Assess candidates’ augmented skills and attributes • Companies that have selected the best candidates experience high expatriate failure rates • Failure rate:Percentage of expatriates who do not perform satisfactorily

  14. Training and Development • When employees are sent aboard for an assignment, it is critical to provide them with training • Companies have found that good training programs help them attract the employees they need from host countries

  15. Compensation • Different countries have different norms for employee compensation • Financial incentives versus nonfinancial incentives • Individual rewards versus collectivist concerns for internal equity and personal needs • General rule • Create a pay plan that supports the overall strategic intent of the organization

  16. Compensation of Host-Country Employees • Hourly wages can vary from country to country • Paid on the basis of: • Productivity • Time spent on the job • Combination of these factors • Employee benefits can range from country to country

  17. Compensation of Host-Country Managers • Global compensation system • Centralized pay system whereby host-country employees are offered a full range of: • Training programs • Benefits • Pay comparable with a firm’s domestic employees • Companies with centralized systems are having higher effectiveness and satisfaction levels with their compensation systems

  18. Compensation of Expatriate Managers • Effective international compensation program mustbe put into place • Home-based pay • Balance-sheet approach • Split pay • Host-based pay • Localization • Other issues

  19. Performance Appraisal • Appraisal of employee’s performance • Home-country evaluations • Host-country evaluations • Home versus host-country evaluations • Local managers with daily contact with the person are to have an accurate picture of his or her performance

  20. Analyzing the International Labor Environment • Factors of union strength • Level of employee participation • Per capita labor income • Mobility between management and labor • Homogeneity of labor (racial, religious, social class) • Unemployment levels • Companies are increasingly giving offshore jobs to countries where labor costs are lower, unionized workers have been forced to make concessions

  21. Labor Participation in Management • In European countries, provisions for employee representation are established by law • Codetermination:Representation of labor on the board of directors of a company • Power is with the shareholders who are assured the chairmanship

More Related