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1、part five employee relations s e v e n t e e nmanaging global human resources 17 lecture outline strategic overview hr and the internationalization of business the hr challenges of international business how inter-country differences affect hrm global differences and similarities in hr practice pers
2、onnel selection procedures the purpose of the performance appraisal training and development practices the use of pay incentives how to implement a global hr system making the global hr system more acceptable developing a more effective global hr system implementing the global hr system staffing the
3、 global organization international staffing: home or local? offshoring values and international staffing policy why expatriate assignments fail selecting expatriate managers training and maintaining expatriate employees orienting and training employees on international assignments compensating expat
4、riates appraising expatriate managers international labor relations terrorism, safety and global hr repatriation: problems and solutions a final word: auditing the hr function in brief: this chapter outlines some of the hr problems and issues involved with international businesses. the subjects cove
5、red include inter-country differences, using selection to improve international assignments, and training and maintaining international employees. interesting issues: many companies desire to rotate managers through international assignments, but find that work visa requirements of the host countrie
6、s (including the .) can sometimes greatly hinder these efforts. annotated outlinei. hr and the internationalization of business international business and its impact on managing due to the european market unification, the introduction of the euro currency, the opening of eastern europe, and the rapi
7、d development of demand in asia and other areas of the world, large and small firms are finding their success depends on their ability to market and manage overseas. a. the hr challenges of international business deployment, knowledge and innovation dissemination, and identifying and developing tale
8、nt on a global basis. complicating these decisions are the cultural, political, legal, and economic differences among countries and their peoples. b. how inter-country differences affect hrm a company operating multiple units abroad does not have the luxury of dealing with a relatively limited set o
9、f economic, cultural, and legal variables. 1. cultural factors countries differ widely in their cultures, which are the basic values to which their citizens adhere. cultural differences from country to country necessitate corresponding differences in management practices among a company s subsidia r
10、ies. 2. economic systems differences in economic systems translate into differences in hr practices. differences in labor costs are substantial. 3. legal and industrial relations factors vary dramatically from country to country. in many european countries, work councils replace the informal or unio
11、n based worker-management mediations typical in . firms. in germany and several other countries, codetermination is the rule where employees have the legal right to a voice in setting company policies. 4. the european community refers to the unification of separate european countries in the 1990s in
12、to a common market for goods, services, capital, and labor. ?notes educational materials to useii. global differences and similarities in hr practices a. personnel selection procedures employers around the world tend to use similar criteria and methods for selecting employees. as in the united state
13、s, employers around the world usually rank “personal interviews,” “the person s ability to perform the technical requirements of the job, ” and “proven work experiences in a similar job” at or near the top of the criteria or methods they use.b. the purpose of the performance appraisal there tends to
14、 be more variation in how employers in different countries use the results of performance appraisals. to recognize subordinate” was a main purpose for appraisals in japan and mexico. c. training and development practices there are usually more similarities than differences across countries. in parti
15、cular, employers just about everywhere rank “to improve technical abilities” as the main purpose for providing employees with training. the amount of training firms provide does vary substantially from country to country. when youre on your own, hr for line managers and entrepreneurs: comparing smal
16、l businesses, hr practices in the united states and china researchers have identified many differences between hr for small businesses in china from those in the united states. differences are significant in the areas of: job analysis, performance appraisal practices, and actual pay practices. d. th
17、e use of pay incentives there are great variations in the use of incentive pay. some communist countries actually use more incentive pay than the . ?notes educational materials to useiii. how to implement a global hr system a. making the global hr system more acceptable 1. remember global systems ar
18、e more accepted in truly global organizations. 2. investigate pressures to differentiate and determine their legitimacy. 3. try to work within the context of a strong corporate culture. b. developing a more effective global hr system 1. form global hr networks. 2. remember that it s more important t
19、o standardize ends and competencies than specific methods. c. implementing the global hr system 1. remember, “you can t communicate enough.”2. dedicate adequate resources for the global hr effort. ?notes educational materials to useiv. staffing the global organization a. international staffing: home
20、 or local? multinational companies (mncs) employ several types of international managers. locals are citizens of the countries where they are working. expatriates (“expats ”) are non-citizens of the countries in which they are working. home-country nationals are citizens of the country in which the
21、multinational company has its headquarters. third-country nationals are citizens of a country other than the parent or the host country. b. offshoring having local employees abroad do jobs that the firm s domestic employees previously did in-houseis growing by leaps and bounds. offshoring jobs is ve
22、ry controversial. in the 1980s and 1990s, it was mostly manufacturing jobs that employers shipped overseas. c. values and international staffing policy ethnocentric run firms would staff foreign subsidiaries with parent-country nationals because they believe that home country attitudes, management s
23、tyles, and knowledge are superior to the host country. polycentric run firms would staff foreign subsidiaries with host-country nationals because they are the only ones that can really understand the culture and the behavior of the host country market. geocentric run firms would staff foreign subsid
24、iaries with the best people for key jobs regardless of nationality because they believe that the best manager for any specific position anywhere on the globe may be in any of the countries in which the firm operates. d. why expatriate assignments fail international assignments fail for various reaso
25、ns including: personality, the persons intentions, and non-work factors. e. selecting expatriate managers is similar to selecting domestic managers, but you need to determine if managers for international assignments can cope internationally. 1. adaptability screening, often conducted by a psycholog
26、ist or psychiatrist, is aimed at assessing the assignees and familys probable success in handling the foreign transfer. the new workplace: sending women managers abroad many managers assume that women dont want to work abroad. in fact, this survey found, women do want international assignments. empl
27、oyers tend to assume that women posted abroad are more likely to become crime victims. however, most of the surveyed women expats said that safety was no more an issue with women than it was with men. fear of cultural prejudices against women is another common issue. here, theres no doubt that in so
28、me cultures women have to follow different rules than do their male counterparts. but even here, as one expat said, “even in the more harsh cultures, once they recognize that the women can do the job, once your competence has been demonstrated, it becomes less of a problem.”?notes educational materi
29、als to usev. training and maintaining expatriate employees a. orienting and training employees for international assignments some claim there is generally little or no systematic selection and training for assignments overseas. a four-step approach is recommended: 1) focus on the impact of cultural
30、differences, and on raising trainees awareness of such differences and their impact on business outcomes; 2) get participants to understand how attitudes (positive and negative) are formed and how they influence behavior; 3) provide factual knowledge about the target country; and 4) provide skill bu
31、ilding in areas like language, adjustment and adaptation skills. 1. trends in expatriate training more firms are providing continuing, in-country cross-cultural training during the early stages of a persons overseas assignment; employers are returning managers as resources to cultivate the “global m
32、indsets” of the rest of their home office staff; there is increased use of software and the internet for cross-cultural training. b. compensating expatriates presents some tricky problems due to the question of whether or not to maintain companywide pay scales and policies 1. the balance sheet appro
33、ach, the common approach to expatriate pay, refers to equalizing purchasing power across countries. 2. incentives many firms offer overseas managers long-term incentives that are tied more closely to performance at the foreign subsidiary level. c. appraising expatriate managers can be improved by: 1
34、. stipulating the assignments level;2. weighing the evaluation more toward the on- site managers appraisal than toward the home- site managers distant perceptions of the employee s performance. 3. modifying the normal performance criteria used for that particular position to fit the overseas positio
35、n. these differences can be in many different areas. know your employment law: the equal employment opportunity responsibilities of multinational employers . employers doing business abroad, or foreign firms doing business in the united states or its territories, have wide-ranging responsibilities t
36、o their employees under american equal employment opportunity laws, including title vii, the adea, and the ada. d. terrorism, safety, and global hr 1. taking protective measures 2. kidnapping and ransom (k&r) insurance the insurance itself typically covers several costs associated with kidnappin
37、gs, abductions, or extortion attempts. these costs might include, for instance, hiring a crisis team, the actual cost of the ransom payment to the kidnappers or extortionists, ensuring the ransom money in case it s lost in transit, legal expenses, and employee death or dismemberment. e. repatriation
38、: problems and solutions some common repatriation problems are: they often fear that out of sight is out of mind; returning expatriates are assigned to mediocre or makeshift jobs; returnees are taken aback when the trappings of the overseas job are lost upon return; the expatriates former colleagues
39、 have been promoted while he/she was gone; and the expatriates family may go through culture shock. some possible solutions are: written repatriation agreements; assign a sponsor; provide career counseling; keep communications open; and develop reorientation programs. improving productivity through
40、hris: taking the hris global as a company grows relying on manual hr systems to manage activities like worldwide safety, benefits administration, payroll, and succession planning becomes unwieldy. for global firms, it makes particular sense to expand the firms human resource informationsystems abroa
41、d. f. a final word: auditing the hr function requires using accounting and statistical techniques to calculate the cost of human resources. the hr review should be aimed at tapping top managers opinions regarding the hr functions effectiveness by assessing what should be, and what is. “what should b
42、e” refers to hrs broad aim, which involves a broad philosophy and vision statement, and a focused mission statement. “what is ” should address the following questions. what are the hr functions? how important are these functions? how well is each of the functions performed? what needs improvement? h
43、ow effectively does the corporate hr function use resources? how can hr become most effective? the hr scorecard, strategy and results: managing global human resources lisa takes steps to make the hotel paris hr functions global in nature. this includes expatriate manager training, integrated hris th
44、at allows top management to monitor hr performance on an ongoing basis, and a new incentive system for local managers. ?notes educational materials to usediscussion questions 1. you are the president of a small business. what are some of the ways you expect being involved internationally will affect
45、 your business? being involved internationally can affect virtually every aspect of your business. it can affect the growth of your business due to additional markets, it can affect costs of doing business, and it can affect every aspect of hrm as outlined in the chapter 2. what are some of the spec
46、ific uniquely international activities an international hr manager typically engages in? 1) formulating and implementing hr policies and activities in the home-office of a multinational company. this hrm manager would engage in selecting, training, and transferring parent-company personnel abroad an
47、d formulating hr policies for the firm as a whole and for its foreign operations. 2) conducting hr activities in the foreign subsidiary of an mnc is another form. again, local hr practices are often based on the parent firms hr policies, fine-tuned for local country practices. 3. what inter-country
48、differences affect hrm? give several examples of how each may specifically affect hrm. 1) cultural factors - . managers may be most concerned with getting the job done. chinese managers may be most concerned with maintaining a harmonious environment. and hispanic managers may be more concerned with
49、establishing trusting, friendship relationships. 2) economic factors - . economic systems tend to favor policies that value productivity while more socialistic countries like sweden would favor policies that prevent unemployment. 3) labor cost factors - mexican labor costs (low) can allow inefficien
50、cies of labor, while german labor costs (high) might require a focus on efficiency. 4) industrial relations factors - german law requires that workers have a vote in setting policies while in japan the employees do not have a say, but the government may have a say in establishing policies. 5) the eu
51、ropean community - the ec will gradually reduce the differences between member countries. 4. you are the hr manager of a firm that is about to send its first employees overseas to staff a new subsidiary. your boss, the president, asks you why such assignments fail, and what you plan to do to avoid s
52、uch failures. how do you respond? estimates say that 20% to 25% of all overseas assignments fail. reasons include: inability of spouse to adjust, managers inability to adjust, other family problems, and managers inability to cope with responsibility. we will need to select a manager that displays: a
53、daptability and flexibility, cultural toughness, self-orientation, others-orientation, perceptual ability, and has a family with adaptability. 5. what special training do overseas candidates need? in what ways is such training similar to and different from traditional diversity training? it is sugge
54、sted that a four-step training approach be taken: 1) training focused on the impact of cultural differences and their impact on business outcomes; 2) training focused on attitudes that are aims at getting participants to understand how attitudes (both positive and negative) are formed and how the in
55、fluence behavior; 3) training focused on factual knowledge about the target country; and 4) skill building in areas like language and adjustment and adaptation skills. this training is different from traditional diversity training in the last two steps, which are not normally part of diversity train
56、ing. in addition, traditional training and development is needed as with any other manager. 6. how does appraising an expatriates performance differ from appraising that of a home-office manager? how would you avoid some of the unique problems of appraising the expatriates performance? a major diffi
57、culty is: who actually appraises the performance? (cultural differences could affect it) there are five suggestions: 1) stipulate the assignments difficulty level; 2) weight the evaluation towards the on-site managers appraisal; 3) have a former expatriate advise the home-site manager in his or her
58、evaluation; 4) modify the normal performance criteria to fit the position and characteristics of the locale; 5) attempt to give credit for insights, not just measurable criteria. 7. as an hr manager, what program would you establish to reduce repatriation problems of returning expatriates? the progr
59、ams listed in the chapter give a good summarization of the types of programs and activities that should be established to assure a smooth repatriation. dessler companion web sitewe invite you to visit the dessler homepage () on the prentice hall web site for the best online business support availabl
60、e. this site provides professors with a customized course web site, including new communication tools, one-click navigation of chapter content, and great resources, such as internet resources, an hrci exam prep guide, assessment exercises, and more. individual and group activities 1. working individuall
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