Beruflich Dokumente
Kultur Dokumente
SYNOPSIS
International human resource management focuses on the management of human resources on a global basis. An organizations strategy on globalization strongly affects the approach it takes to international human resource management. The approach to international human resource management in turn influences the implementation of the major international human resource management functions of recruitment and selection, development and training, performance evaluation, remuneration and benefits, and labor relations. Companies taking an ethnocentric approach attempt to impose their home country methods on their subsidiaries. The polycentric approach follows local practices. Finally, a geocentric or global approach develops practices for world-wide use.
Knowledge and innovation dissemination Managing critical knowledge and speed of information flow Talent identification and development Identify capable people who are able to function effectively Barriers to women in IHRM International ethics & Language (e.g. spoken, written, body language)
Disadvantages
1. HCNs promotion opportunities are limited. 2. Adaptation to host country may take a long time. 3. PCNs may impose an inappropriate HQ style. 4. Compensation differences between PCNs and HCNs may cause problems.
5. Govt. policy may force hiring of HCNs. 6. Promotional opportunities not limited - so higher morale among HCNs
Disadvantages
1. HQ may have less control over operations. 2. HCNs may still have limited career opportunities outside the subsidiary. 3. Hiring HCNs limits opportunities for PCNs to gain overseas experience. 4. Hiring HCNs may encourage a federation of disintegrated national units rather than one integrated global unit.
Disadvantages
1. Transfers must consider national animosities. 2. Host government may resent TCNs as much as PCNs. 3. TCNs may not comply with HQ style of management. TCNs may not want to return after assignment
The cultural differences & environmental differences will be huge and expatriates may not be able to cope up with. Thus resulting in costly management mistakes. e.g., Procter & Gamble Associate with higher incidence of IHRM problems Example - Korean MNC's Hyundai, Samsung, Indian MNC's TCS, Infosys, Wipro. US MNC's GE, Citi corp., Exxon appoint home country nationals to lead the foreign subsidiary. (Ethnocentric approach)
14.8.2 Polycentric
Key positions are filled with HCNs Host country nationals manage subsidiaries Consistent with multidomestic strategy Disadvantage: Create a gap between home and host operations( This gap is created due to cultural differences between the two countries(i.e. host and subsidiary)
Example: US MNC's P&G, Pepsi, Coca cola. Indian MNCs Ranbaxy appoint a host country executive along with a home country executive to support or viceversa (polycentric approach)
Electrolux (the vacuum cleaner company) has for many years attempted to recruit and develop a group of international managers from diverse countries. These people constitute a mobile base of managers who are used in a variety of facilities as the need arises.
14.9.4 Regiocentric
Recruiting on a regional basis. For example, a U.S. based firm could create three regions; Europe, the Americas, and Asia-pacific.
European staff would be transferred throughout the European region (say a Briton to Germany, a French national to Belgium, and a German to Spain). Eg: Ford Motor Company. Disadvantage: produce federalism at a regional rather than a country basis and constrain the organization from taking a global stance.
Figure 14.9.1 Advantages and disadvantages of using local employees to staff international subsidiaries Advantages
Lower labor costs Demonstrates trust in local citizenry Increases acceptance of the company by the local community Maximizes the number of options available in the local environment Leads to recognition of the company as a legitimate participant in the local economy
Disadvantages
Makes it difficult to balance local demands and global priorities Leads to postponement of difficult local decisions until they are unavoidable, when they are more difficult, costly, and painful than they would have been if implemented earlier May make it difficult to recruit qualified personnel May reduce the amount of control exercised by headquarters
Figure 14.9.2. Advantages and disadvantages of using expatriate employees to staff international subsidiaries Advantages
Disadvantages
Creates problems of adaptability to foreign environment and culture
Permits closer control and coordination of international subsidiaries Gives employees a multinational orientation through experience at parent company Establishes a pool experienced executives of internationally
foreigness
of
the
May involve high transfer and salary costs May result in personal and family problems Leads to high failure rate
While most MNCs do not hire new college graduates to take foreign positions immediately, many hire graduates with the intention of sending them abroad in the future.
The amount of knowledge transfer inherent in the expatriates job in the foreign operation the nature of the job and the essential skills required to do that job
14.11.5 Language
The ability to speak a second language is an aspect often linked with crosscultural ability. Language skills may be regarded as of critical importance for some expatriate positions, but lesser in others. Communication skills rather than specific language skills was an important selection criteria for the top subsidiary management position. Differences in language are recognized as a major barrier to effective cross cultural communication. Language problems were largely viewed as mechanical and manageable problems that could be solved individually. Another component to language as a situation factor in the selection decision.
14.12 .1 Training
At the international level, human resource development professionals are responsible for: 1. Training and development of employees located in subsidiaries around the world. 2. Specialized training to prepare expatriates for assignments abroad, and
3. Development of a special group of globally minded managers.
Area Briefings
Cases
Role Playing
Culture Assimilator
Field Experiences
Provide an opportunity for the trainee to go to the host country or another unfamiliar culture to experience living and working there for a short time.
Develop Listening Skills: Listening is an integral element of effective and productive communication. Cross cultural training helps people to understand how to listen, what to listen for and how to interpret what they hear within a much broader framework of understanding. By becoming good listeners, people naturally become good communicators. People Use Common Ground: In the workplace people have a tendency to focus on differences. When cross cultural communication problems arise the natural inclination is to withdraw to opposing sides and to highlight the negative aspects of the other. Cross cultural training assists in developing a sense of mutual understanding between people by highlighting common ground. Once spaces of mutual understanding are established, people begin to use them to overcome culturally challenging situations. Career Development: Cross cultural training enhances peoples skills and therefore future employment opportunities. Having cross cultural awareness gives people a competitive edge over others especially when applying for positions in international companies with a large multi-cultural staff base.
The selection process in international firms is particularly important because of the high cost of expatriate failure. Expatriate failure is the early return of an expatriate manager to his or her country because of an inability to perform in the overseas assignment.
Spouses in 90% of cases come back early .They faces isolation, loneliness, boredom.
Financial package, cost in foreign country may be higher. Example's family overseas in Japan may face such a situation. Lack of inability to adapt. In host country they have to face uncertainties ,relate with people with different values and beliefs. this happens when no training is given on cultural nuances Poor programmers for career support and repatriation. Lack of support from HQ. Inadequate preparation, training and orientation prior to assignment. Managers sent on foreign assignments may experience culture shock, a psychological phenomenon that may lead to feelings of fear, helplessness, irritability, and disorientation
Negative effects on expatriate concerned Family relationships may be affected Loss of market share
A cost-of-living allowance may be given to managers to offset differences in the cost-of-living in the home and host countries. A hardship premium (also known as a foreign service premium) may be paid to mangers who accept assignments in relatively unattractive locations. Special benefits packages that may be provided to expatriate managers include housing, education, medical treatment, travel to the home country, and club
memberships
14.14.1 REPATRIATION:
Virtually all repatriated personnel experienced some personal difficulty in reintegrating on return home. The main complaints were loss of status loss of autonomy lack of recognition of the value of the experience and lack of career direction Means PNCs, TCNs, or even HCNs finish their overseas assignment & come back to their home headquarters & which leads to reverse cultural shock. Effects Anxious. Dissatisfied. Co-workers may not be interested in hearing his experience. Repatriates job may not make as much use of internationally acquired KSAs as it could
Out of sight out of mind International experience devalued Loss of status and pay relatively peaking Changes in the HQ
SOCIAL FACTORS
Expat assignment - different type of social interaction (going from a very close expat community to where everyone is very busy with their own lives) Problems of spouse returning to the workforce Lack of peer support for teenagers
Acting as long distance supervisor to other expatriates. Join the pool of international managers
The method for the performance evaluation should be bars and anchor rating scale which measure behavior approach.
INTERNATIONAL COMPENSATION:
in case of an expatriate assignment it is necessary to give compensation keeping various in consideration like: Cost of living Taxes Savings Travelling allowance Education By keeping in mind all these factors there are three methods employed by organizations like: Host country based: In this case base salary is kept as that in host country and other expenses according to home country. Home country based: In this case base salary is kept as that of home country but other expenses according to host country.
Region based: In this case people working away from their home country or in a different region are paid more.
INTERNATIONAL LABOR RELATIONS: In this it is necessary for an organization going global to know about types of unions and rate of unionization in that country.
14. 17 Summary
Puts qualified managers in place Creates global culture Transfer of core competences
Local manager resentment Cultural myopia Immigration barriers Costly Limits career mobility Isolates HQ from overseas subs Costly Immigration barriers
Key overseas positions staffed by local managers Geocentric Global and Transnational Best for job gets it
Uses HR efficiently Builds strong global culture and informal management network
International compensation covers 3 policies Home based policy- links expatriates salary to salary structure of relevant home country. Adv- creates equity with home country colleagues Can be cheaper when home country has lower wage than host country. Problem occur when expatriate is been bouncing from subsidiary to subsidiary over many years and no longer identifies himself as a birth country national Host based links base salary to salary structure of host country but retains the home country salary structure for other international supplements. Region based compensates expatriates working in their home regions at somewhat lower levels than those who are working in region far from home. International labour relations. International hr manager must devise strategies to improve best fit between labour relation activities & external environment
14.18 Questions
Q1) Discuss the issues need to be considered for recruitment in the context of IHRM? Q2) Discuss the causes of expatriate failure? Q3) What is repatriation and how can one make most of expatriates knowledge?
References
Strategic HRP Research Paper : Expatriation: the cross cultural issues and design of training for coping by Amit Pande (IIM) HUMAN RESOURCE MANAGEMENT IN INTERNATIONAL ORGANIZATIONS by Sonja Treven.