Human Resource Management Human Resource Management Different approaches

Human Resource Management Human Resource Management  Different approaches

Human Resource Management Human Resource Management Different approaches to staffing policy Foreign postings Why do managers fail? How can they increase their chances of success? The role of training, management development, and compensation practices in IB Human Resource Management Activities resources aimed at effective use of human

Staffing, management development, performance evaluation, compensation Process borders complexity increases across Environmental differences of: labor markets, culture, legal systems, economic systems HR differences: compensation practices, labor laws, motivation issues Staffing and International Strategy Staffing Philosophy Ethnocentric key overseas positions

staffed by home managers Strategy Fit (??) International Polycentric Multidomestic key overseas positions staffed by local managers Geocentric Global and Transnational best for job gets it Pros

Cons puts qualified managers in place creates global culture transfer of core competences alleviates cultural myopia inexpensive to implement local manager resentment cultural myopia immigration barriers costly uses HR

efficiently builds strong global culture and informal management network limits career mobility isolates HQ from overseas subs costly immigration barriers Expatriate Managers Failure Rates US MNCs 1. 2.

3. 4. 5. (in order of importance) Spouse cannot adjust culturally Manager cannot adjust culturally Other family adjustment problems Managers lack of personal or emotional maturity Manager cannot cope with broader responsibility overseas Japanese MNCs 1. Manager cannot cope with broader responsibility 2. 3. 4. 5.

overseas Manager cannot adjust culturally Managers lack of personal or emotional maturity Lack of technical competence Spouse cannot adjust culturally Expatriate Success Predictors Self-orientation Strengthen self-esteem, self-confidence, mental well-being Adapt to food, music, sport, outside interests Superior technical competency Others-orientation Enhance ability to interact effectively with host nationals Relationship development, willingness to communicate

Perceptual ability Understand why people in other countries behave the way they do Non-judgmental, non-evaluative in interpreting others behavior Cultural toughness How tough is host culture to adjust to? Career Development for Expatriates Pre-departure, on-site training Cultural training Language training Practical training Repatriation Many repatriating expatriates lost to MNCs because suitable positions not available at home

Autonomy, span of control, compensation Repatriation strategy failure makes recruitment of competent expatriates difficult Other Expatriate Issues Performance appraisal Two groups with conflicting perspectives/cultures appraise the expatriate: home managers, host managers Compensation Different national standards Expatriate pay issues: base pay, cost-of- living, housing, education, hardship, foreignservice-premium, double-taxation, medical/pension benefits, home leave Performance Appraisal

Two groups evaluate expatriate managers, both biased: Host-nation managers Home-country managers Home-country managers: Distance bias No understanding of international business challenges Hard data often obscure soft issues Host-nation managers: foreign spy syndrome Expatriates career depends on home-country perception Other IHRM Issues International

labor relations Concerns of organized labor: cultural and legal differences affect attitudes towards ... Better pay, job security, working conditions Bargaining power with management Strategy of organized labor Establish international, cross-border labor organizations Lobby national governments to restrict MNC activities Approach to labor relations Degree to which MNC labor relations are centralized or decentralized (integration vs responsiveness)

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