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8/8/2019 3 IHRM INFOERA Assignment 2 answer example .ppt
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Introduction: Define international human resource management
(IHRM)
Understand ho cor!orate strateg" influences IHRM
#$!lain the ma%or IHRM functions& recruitment andselection' training and deelo!ment' !erformanceealuation' com!ensation and enefits' and laorrelations
Discuss additional s!ecial concerns of managinge$!atriate em!lo"ees
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International Human
Resource Management
(IHRM) The management of human resources
in global corporations
The management of expatriate
employees
The comparison of human resource
management (HRM) practices in a
variety of different countries
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+!!roaches to Managing
and ,taffing ,usidiaries Ethnocentric
Home country approach
olycentric
!ocal approach
Regiocentric
Regional approach
"eocentric#"lobal
"lobal approach
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.hoosing an +!!roach to
IHRM
$orporate international strategy olitical and legal concerns
!evel of development in foreign locations Technology and the nature of the product %rgani&ational life cycle 'ge and history of the subsidiary %rgani&ational and national cultural
differences
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Recruitment and ,election
rocesses through hich an organi&ation
taes in ne members
Recruitment'ttracting a pool of *ualified applicants for
the positions available
+election
$hoosing the candidate hose
*ualifications most closely match the ,ob
re*uirements
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.lassif"ing #m!lo"ees
arent $ountry -ational ($-) Host $ountry -ational (H$-)
Third $ountry -ational (T$-)
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he Influence of Managing
and ,taffing +!!roaches Ethnocentric approach
$-.s usually staff important
positions at head*uarters and
subsidiaries
olycentric approach
H$-.s generally or in foreign
subsidiaries
$-.s manage head*uarters
positions
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he Influence of Managing
and ,taffing +!!roaches Regiocentric approach$-.s and managers from the
region/either H$-.s or T$-.s/
staff regional head*uarterspositions
H$-0s primarily staff localsubsidiaries
"eocentric approach$hooses the most suitable person
for a position
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,electing the Right
.andidate
-eed a balance beteen internal
corporate consistency and
sensitivity to local labor practices
$onsider cultural values
Must comply ith local labor las
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raining and Deelo!ment
lanned individual learning1organi&ation development1 and
career development
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Delier" of 4rograms
5orldide
$entrali&edEthnocentric 2 training originates
at head*uarters and corporatetrainers travel to subsidiaries"eocentric 3 training develops
through input from both
head*uarters and subsidiary staffand trainers could be from anylocation
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Delier" of 4rograms
5orldide
4ecentrali&ed
Training on a local or regional basis
!ocal people develop trainingmaterials and techni*ues for use in
their on area
Effective training considers culturalbacground of trainees
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Deelo!ing 6loall" Minded
Managers
$ompanies hose $E%0s have
international assignment
experience are better performers $ompanies must identify managers
ith global potential and provide
them various training and
development opportunities
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erformance Evaluation
+ystematic appraisal of
employees. performance ithin the
organi&ation 4epends on overall HRM strategy
+hould consider cultural
influences
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.om!ensation and 7enefits
4evelops and administers the salary
system and other forms of remuneration
$ompensation and benefit levels reflect
local labor maret conditions
$ompany usually develops policy to
offer salaries and benefits representing a
specific maret level $ulture influences value put on various
compensation and benefit practices
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aor Relations
Identifies and defines the roles of
management and orers in the
orplace
In many countries1 governmentregulated
5nions organi&ed at the local1 company1
regional (ithin country)1 or national
level
-umber of orers ithin a country ho
are union members varies
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Managing #$!atriates
Must deal ith the complexities of
employing and moving people
outside of their home countries $ost a ma,or factor
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#$!atriate 9ailure Rates
-umber ho do not remain abroad
for the duration of their assignment
6aries by country and gender 7ailure rate correlated ith the
rigor of selection and training
procedures
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#$!atriate ,election
8estern European1 9apanese
multinationals emphasi&e technical
competence and ability to acclimate
-orth 'merican corporations select
mainly on technical competence
ehaviors successful at home may not
or abroad revious experience abroad may or may
not predict future success
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.ross-.ultural raining
Methods
Explain the ma,or aspects of the host country
culture1 including customs1 traditions1 every day
behaviors;
Explain the history1 geography1 economy1
politics1 and other general information about the
host country and region;
ortray a real3life situation in business orpersonal life to illustrate some aspect of living
or oring in the host culture;
$ultural riefings
'rea riefings
$ases
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.ross-.ultural raining
Methods
Role laying
$ulture 'ssimilator
7ield Experiences
'llos the trainee to act out a situation that he
or she might face in living or oring in the
host country;
rovides a ritten set of situations that the
trainee might encounter in living or oring in
the host country; Trainee selects one from a set
of responses to the situation and is given
feedbac as to hether it is appropriate and hy;
rovide an opportunity for the trainee to go to
the host country or another unfamiliar culture to
experience living and oring for a short time;
H ,i i l 9 I fl h
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Ho ,ituational 9actors Influence the
,election of a .. Method
4egree of Training
Rigor
High
!o
High
!o
!o High
$lassroom !anguage Training
7ilms7'$T5'!
oos!ectures
'rea riefings
$ase +tudies$ulture 'ssimilators
+ensitivity Training
'-'!
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.ross-.ultural +d%ustment
Expatriates must ad,ust to ne or
situation1 interactions ith locals1 and
ne general environment
$ompany can facilitate ad,ustment by
providing training for expatriates and
their families before and during the
assignment
Expatriates often experience cultural
shoc
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.ulture ,hoc: ."cle
!o
High
> ? @ A B C
Months in a -e $ulture
M o o d
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#$!atriate #aluation
9ob abroad may include more than
hat it does at home
+enior expat managers oftenevaluated on financial performance
of subsidiary
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#$!atriate .om!ensation
Influenced by general corporate
compensation policy
Expats usually receive extracompensation and benefits
4ifferent pacages offered in
different locations
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"!ical #$!atriate 7enefits
%verseas premium
Housing alloance
$ost of living alloance ($%!') Moving expenses
Tuition for dependent education
Home leave Tax reimbursement plans
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#$!atriate Reentr"
Reverse culture shoc common
Many organi&ations fail to
successfully manage expatriatereentry
Individuals may pursue
boundaryless career %rgani&ations can help to ease
reentry
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.hanges in 6loal Moilit"
-e types of cross3border
employee transfers becoming
popular Most important ob,ectives for
cross3border transfers to transfer
sills and noledge and to
develop and manage global
competencies
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.onergence or Diergence;
!arge corporations.
preference for
consistent
orldide systems
+maller companies.
desire for more
professional
systems
-eed to follo
local HRM las
4evelopment of
uni*uetechni*ues and
practices to suit
local cultural and
legalre*uirements
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.onclusion&
Im!lications for Managers
#er" international manager has
res!onsiilit" for effectiel" managing
human resources' therefore must
understand IHRM functions