INTERNATIONAL HUMAN RESOURCE MANAGEMENT

Managing International HR Activities

Human Resource Planning. Recruitment & Selection. Training & Development. Performance Mgt. Remuneration Expatriation/ Repatriation Employee relations

GLOBAL SELECTION PROCESS

This process includes Selection Approach Selection Procedure Selection Method

SOURCES OF GLOBAL RECRUITMENT

Parent Country National (PCN) Host Country National (HCN) Third Country National (TCN)

Parent Country Nationals

Parent Country Nationals are employees who are the citizens of the country where the companys headquarter are located.

Advantages Of Parent Country National

Helps the subsidiary companies in carrying out their operations. Help in ensuring that subsidiary companies run smoothly. Helps in providing advices and control the subsidiaries. Maintaining financial control over the operation.

Disadvantages of parent country national

Cost problem Ego and culture problem

Host Country Nationals

These are the employees of the companys subsidiary who are the citizens of the country where the subsidiary is located

Advantages Of Employing Host Country Nationals

They are familiar with native culture. They are familiar with local business norm and practices. They manage and motivate the local worker efficiently. They are familiar with taste and preference of the local consumer. Hiring host country nationals is like a good public relations.

Disadvantages Of Employing Host Country Nationals

They are not familiar with the objective goals & strategies of the parent company. They are unaware of the need of the headquarters. They view the company from the local perspective rather then the global perspective. It would be difficult to train the host country nationals due to variations in the views.

Third Country Nationals

Third country nationals is an employee of a companys subsidiary located in a country, which is not his home country

Advantages of Employing Third Country National

Least cost with required expertise, skill knowledge and foreign language skills. They have a culture fit due to their work experience in multicultural environment.

Global Selection Approach

Global Selection Approach

Ethnocentric Approach

Polycentric Approach

Geocentric Approach

Ethnocentric Approach
Under this approach parent country nationals are selected for all the key management jobs

Polycentric Approach
Under this approach the position including the senior management positions of the subsidiaries are filled by the host country nationals.

Geocentric Approach
Under this approach , the most appropriate candidates are selected for jobs from any part of the globe.

4. EXPATRIATES
Expatriates are those living or working in a foreign country

Categories of expatriates
1.

2.
3. 4.

Permanent Temporary expatriates Trainee expatriates Management cadre

Expatriate Assignment Life Cycle

Determining the need for an Expatriate. Selection Process. Pre assignment training. Departure. Post Arrival Orientation & Training.
Crisis and Failure.- Repatriation & Adjustment. Crisis and Adjustment- Reassigned Abroad

Selection of Expatriates
The whole process is conducted in 3 Phases General criteria Concentration on Activities Training

Six factors in Selection Process

1 Application forms Information related to Education profile, experience, work history etc 2.Interviewing

Interview of both the candidate as well as Spouse. It can be more then one round of interviews.

3. Assessment Centers. This is a concept which was developed By AT&T. Have proved to be excellent predictors of employees who have become highly successful performers. 4. Employment Testing

Intelligence

Test Personality Test Physical Ability Test Assessment Centres Aptitude Test

5. Reference Checks Background checks form Previous Employers Previous Colleagues Professional Associates Teachers Friend etc 6. Physical Examination Motive is to determine candidates physical state especially in case of Extreme work conditions. Another motive is for employees health record/ health related employment benefits.

Compensation

Balance Sheet Approach Localization/ Going Rate Concept Negotiation Lump Sum Cafeteria Region

Problems In Compensation: Discrepancies in pay between Parent, Home, Host. Remuneration issues related to reentry. Need to vary compensation according to Lifecycle of Expatriate.
Components Base

of Remuneration Package

Salary. Benefits Incentives ESOP

International Adjustment
The international adjustment is the degree to which the expatriates feels comfortable living and working in the host country

International Adjustment Adjustment to overseas work place Adjustment in interacting with the host nationals Adjustment to the general environment

Dimension of International Adjustment / Framework

Individual Job Organization Non work

Self Efficacy- Stress reduction, Technical Competence, Reinforcement Substitution Relational Skill- Finding mentors, communicate ( Conversational Currency). Non work- Culture novelty, family adjustment, Job Dimension- Role clarity, role discretion, role novelty, role conflict. Organizational culture

Culture Adjustment (Shock)

Honeymoon Stage/ Tourist Stage. Initiation & Hostility / Disillusionment Stage. Gradual Adjustment Phase. Mastery Stage

Repatriation of Expatriates

Reasons for returning :Formally agreed assignment is over. Expatriates want their children to be educated in home country. Not happy with overseas assignment. Failure to do a good job.

Repatriation Process

Preparation. Physical Relocation. Transition Readjustment

Readjustment problems

Out of sight out of mind, syndrome Feel Demoted. Organizational changes when he was abroad made his position Peripheral. Technological up gradation makes his knowledge and skill obsolete.

Repatriation Options

1.
2. 3. 4. 5.

Transition strategies to adjust expatriates. Repatriation Agreements. International Cadre. Assignments Involving in Projects when coming for leave. Separate Unit

Training & Development

Cross Cultural training Fact oriented training. Attribution training. Cultural awareness training. Cognitive behaviour modification training. Experimental training.