Lec 11 Flashcards
(19 cards)
Importance of International Human Resources
Human resource management is key to an efficient and productive workplace
Understanding how employees feel they are being treated is important
–>Retention and commitment to the organization is achieved by focusing on employees and tailoring human resource management to the individual
Importance of International Human Resources
Success of firms depends on attracting the most qualified employees and matching them to the jobs for which they are best suited. “Talent War”
Sending employees overseas can be expensive
–>Investment in recruiting and training is required
Nature of the human resources process is changing as a result of ongoing pressures for reduced costs and increased efficiencies
Sources for Human Resources
Home-country nationals
Host-country nationals
Third-country nationals
Inpatriates(us firm gets indians into us)
expatriates( indian firm gets american)
Other potential sources
->Subcontracting
Home-Country Nationals
Managers who are citizens of the country where the MNC is headquartered
–>Called headquarters nationals
Reasons to use home-country nationals
- > Start up operations
- > Provide technical expertise
- > Develop promising managers
- > Facilitate coordination and control
Host-Country Nationals
Local managers hired by the MNC
Reasons to use host-country nationals
- > Countries expect the MNC to hire local talent
- > Cut cost of transferring and maintaining home-country personnel
Third-Country Nationals (TCNs)
Managers who are citizens of countries other than the country in which:
MNC is headquartered
Managers are assigned to work by the MNC
Advantages of using TCNs
Salary and benefit package is less than that of a home-country national (cost-saving)
Good working knowledge of the region or familiarity with the local language
Achieve corporate objectives is more effective than with expatriates or local nationals (a perspective of a foreigner)
Substitute for expatriates and offer new perspectives to viewpoints of local nationals and headquarters personnel during rapid expansion
Possible to demonstrate a global or transnational image and bring unique cross-cultural skills to the relationship in joint ventures
Inpatriates
Individuals from a host country or third country who are assigned to work in the home country
- > Called inpats
- > Help MNCs develop their global core competencies
- > Global managers or transnational managers are now emerging
Offshore Outsourcing
Presents significant opportunities for cost savings, lower overhead, and access to qualified personnel
Politically controversial - Union groups, politicians, and NGOs have challenged MNCs’ right to engage in labour arbitrage
Can create quality control problems
Tool for managing and deploying international human resources
Staffing philosophy for multinational companies
Ethnocentric staffing approach: Put home-office people in charge of key international management positions.
Polycentric staffing approach: Place local nationals in key positions and allows these managers to appoint and develop their own people.
Regiocentric staffing approach: Relies on local manager from a particular geographic region to hander operations in and around that area.
Global/Geocentric staffing approach: Integrate diverse regions of the world through a global approach to decision making.
How does staff philosophy link with international strategy?
page 28
Selection Criteria for International Assignments–> auslandseinsätze
General criteria:
Adaptability to cultural change Physical and emotional health Age, experience, and education Language training Motivation for a foreign assignment Spouse and family adaptability Leadership ability
Adaptability to cultural change
Previous overseas travel Knowledge of foreign languages Overseas studies Immigration backgrounds or heritage Interpersonal skills, especially with host country nationals
Compensation
Base salary - Amount of money that an expatriate receives in the home country
Benefits - One-third of compensation for regular employees
Allowances - Expensive feature that covers a variety of expenses
Cost-of-living, relocation, housing, education, and hardship allowances
Incentives - Ongoing premiums are replaced with a one-time, lump-sum premium
Tax equalization - Any taxes that exceed what would have been imposed in the home country are paid by the MNCs
Repatriation
Return to one’s home country from an overseas assignment
Reasons for returning
–>Agreed-on tour of duty is over
–>Family concerns
-Difficulty faced by spouses in acclimating to a
new culture
-Desire to educate children in a home-country
school
–>Company restructuring
Repatriation: Readjustment Problems
Demotion of permanent position
Lack of opportunities to put foreign experience to work
Lack of communication about what would happen after return
Loss of salary and fringe benefits
Difficulty in adjusting to lower standard of living
Absence of cultural lifestyles
Less significance on international experiences
Transition Strategies
Help smooth the adjustment from an overseas to a stateside assignment
Repatriation agreements: Firm:
- > Agrees with the individual the duration of overseas posting
- > Promises to give the individual, on return, a job that is mutually acceptable
Some firms rent or maintain expatriates’ homes until they return
Transition Strategies
Arranging an event to welcome and recognize the employee and family
Establishing support to facilitate family reintegration
Offering repatriation counselling or workshops to ease the adjustment
Assisting the spouse with job counselling, résumé writing, and interviewing techniques
Training in International Management
Helps ensure that employees’ full potential is tapped in overseas assignments
Aids in understanding the customs, cultures, and work habits of the local culture
Simplest training - Placing a cultural integrator in each foreign operation
Topics in cultural training - Social and business etiquette, customs, economics, history, and politics
