Upload
kavita-chauhan
View
416
Download
8
Tags:
Embed Size (px)
Citation preview
11
INTERNATIONAL HUMAN INTERNATIONAL HUMAN RESOURCERESOURCE
22
Human Resource ManagementHuman Resource Management
Human Resource Management (HRM) Human Resource Management (HRM) involves all management decisions involves all management decisions and practices that directly affect the and practices that directly affect the people who work for the organization.people who work for the organization.
33
A Definition of Human Resource A Definition of Human Resource ManagementManagement
““HumanHuman” represents the dimension of HRM ” represents the dimension of HRM which relates to the soft aspects such as which relates to the soft aspects such as commitment of employees through commitment of employees through participation and the most important assets participation and the most important assets being the employees. being the employees.
““ResourceResource” represents the hard aspects such ” represents the hard aspects such as the strategy link of HRM and the importance as the strategy link of HRM and the importance of efficient utilization of employees. of efficient utilization of employees.
““ManagementManagement” represents the role of HRM as ” represents the role of HRM as part of management that implies that it’s not part of management that implies that it’s not only an administrative function that carries out only an administrative function that carries out the formulated policies but also a managerial the formulated policies but also a managerial function that contributes to strategy function that contributes to strategy formulation.formulation.
44
Why International Human Why International Human Resource Management?Resource Management?
Increasing globalization, firms and Increasing globalization, firms and employees in them moving all over employees in them moving all over the world.the world.
Major problems in international Major problems in international operations because of human operations because of human resource management blundersresource management blunders
Hence need to understand human Hence need to understand human resource management in a global resource management in a global perspectiveperspective
55
Why International Human Why International Human Resource Management? Resource Management? (cont’d)(cont’d)
Managing a Multicultural WorkforceManaging a Multicultural Workforce Developing Managerial Talent in a Developing Managerial Talent in a
Global Business EnvironmentGlobal Business Environment
66
The General Field of HRThe General Field of HR
Major Functions and ActivitiesMajor Functions and ActivitiesHuman resource planningHuman resource planningStaffingStaffing
RecruitmentRecruitmentSelectionSelectionPlacementPlacement
Performance appraisalPerformance appraisalTraining and developmentTraining and developmentIndustrial relationsIndustrial relations
77
International Recruitment International Recruitment and Selectionand Selection
RecruitmentRecruitment – Defined as searching for – Defined as searching for and obtaining potential job candidates and obtaining potential job candidates in sufficient numbers for and quality in sufficient numbers for and quality so that the organization can select the so that the organization can select the most appropriate persons for its job most appropriate persons for its job needs.needs.
SelectionSelection – Defined as the process of – Defined as the process of gathering information for the purposes gathering information for the purposes of evaluating and deciding whom of evaluating and deciding whom should be employed in particular jobs. should be employed in particular jobs.
88
Types Of Types Of InternationalInternational Staffing Staffing PolicyPolicy
EthnocentricEthnocentric All key managerial positions are filled by All key managerial positions are filled by parent-country nationals.parent-country nationals.Consistent with international strategyConsistent with international strategyDisadvantage: cultural myopiaDisadvantage: cultural myopiaThe cultural differences & environmental The cultural differences & environmental differences will be huge and expatriates may differences will be huge and expatriates may not be able to cope up with. Thus resulting in not be able to cope up with. Thus resulting in costly management mistakes.costly management mistakes.e.g., Procter & Gamble – Associate with higher e.g., Procter & Gamble – Associate with higher incidence of IHRM problemsincidence of IHRM problems
99
Types Of International Types Of International Staffing PolicyStaffing Policy
PolycentricPolycentric Key positions are filled with Host country nationals.Key positions are filled with Host country nationals. Host country nationals manage subsidiariesHost country nationals manage subsidiariesConsistent with multi domestic strategyConsistent with multi domestic strategyDisadvantage: create a gap between home and host Disadvantage: create a gap between home and host operationsoperations
Geocentric or globalGeocentric or global Best managers are recruited from within or outside the Best managers are recruited from within or outside the company regardless of nationality, TCN’s – used by company regardless of nationality, TCN’s – used by European MNC’s, some U.S. companies (Philips, Heinz, European MNC’s, some U.S. companies (Philips, Heinz, Unilever, IBM)Unilever, IBM) Help build an informal management networkHelp build an informal management network Disadvantage: may be subject to the immigration policiesDisadvantage: may be subject to the immigration policies
1010
Types Of International Types Of International Staffing PolicyStaffing Policy
RegiocentricRegiocentric Recruiting on a regional basis.Recruiting on a regional basis.
For example, a U.S. based firm could create three regions;For example, a U.S. based firm could create three regions;
Europe, the Americas, and Asia-pacific.Europe, the Americas, and Asia-pacific.
European staff would be transferred throughout the European staff would be transferred throughout the EuropeanEuropean
region (say a Briton to Germany, a French national to region (say a Briton to Germany, a French national to Belgium,Belgium,
and a German to Spain). and a German to Spain).
E.g.: Ford Motor Company.E.g.: Ford Motor Company.
Disadvantage: produce federalism at a regional rather than Disadvantage: produce federalism at a regional rather than a country basis and constrain the organization from taking a a country basis and constrain the organization from taking a global stance.global stance.
1111
Selecting Staff for Selecting Staff for International AssignmentsInternational Assignments
Selecting staff for international assignments is a Selecting staff for international assignments is a complex undertaking for several reasons, complex undertaking for several reasons, including:including:
Identifying a suitable person for the assignmentIdentifying a suitable person for the assignment Predicting his or her performance in a new, culturally Predicting his or her performance in a new, culturally
potentially very different environmentpotentially very different environment Dealing with personal and family-related issues and Dealing with personal and family-related issues and
problems problems Devising an appropriate compensation packageDevising an appropriate compensation package Complying with host country regulationsComplying with host country regulations
1212
Criteria for Selecting Staff Criteria for Selecting Staff for International for International
AssignmentsAssignments
SELECTION DECISION
Technical Ability
Cross-Cultural Suitability
Family Requirements
Country-CulturalRequirements
Language
Organization-SpecificRequirements
1313
The Staff Selection The Staff Selection CriteriaCriteria
(Technical Ability)(Technical Ability) Technical and managerial competencies Technical and managerial competencies
of the person to perform the required of the person to perform the required
taskstasks
Research studies indicate that technical Research studies indicate that technical
ability are the most important selection ability are the most important selection
criteria for organizations criteria for organizations
Usually easy to evaluate on the basis of Usually easy to evaluate on the basis of
past performancepast performance
1414
The Staff Selection The Staff Selection CriteriaCriteria
(Cross-Cultural Suitability)(Cross-Cultural Suitability) Certain individual traits and characteristics can Certain individual traits and characteristics can
have an impact on the success or failure of an have an impact on the success or failure of an
international assignment – cultural empathy, international assignment – cultural empathy,
adaptability, diplomacy, language ability, positive adaptability, diplomacy, language ability, positive
attitude, emotional stability, and maturityattitude, emotional stability, and maturity
Ability to implement technical and managerial Ability to implement technical and managerial
skills and feel reasonably comfortable in a foreign skills and feel reasonably comfortable in a foreign
environment environment
Sometimes difficult to determineSometimes difficult to determine
1515
The Staff Selection The Staff Selection CriteriaCriteria
(Family Requirements)(Family Requirements) Spouse may not adjust to a foreign Spouse may not adjust to a foreign
environmentenvironment
Adjustment level of spouse depends on several Adjustment level of spouse depends on several
factors, such as the adjustment of the factors, such as the adjustment of the
expatriate and the spouse’s own opinion of the expatriate and the spouse’s own opinion of the
international assignmentinternational assignment
A higher level of organizational support in the A higher level of organizational support in the
early stages of expatriation usually correlates early stages of expatriation usually correlates
with a higher level of adjustment by the spousewith a higher level of adjustment by the spouse
1616
The Staff Selection The Staff Selection CriteriaCriteria
(Country-Cultural (Country-Cultural Requirements)Requirements) ““Hardship Postings” (Remoteness of job Hardship Postings” (Remoteness of job
location, social upheavals, safety risks, very location, social upheavals, safety risks, very
low standard of living and lack of recreational low standard of living and lack of recreational
opportunities etc.)opportunities etc.)
Pressure of living in repressive cultures and Pressure of living in repressive cultures and
countries (e.g. China, Saudi Arabia and other countries (e.g. China, Saudi Arabia and other
totalitarian Islamic states in the Middle East)totalitarian Islamic states in the Middle East)
Denial of work permits to female expatriates Denial of work permits to female expatriates
1717
The Staff Selection The Staff Selection CriteriaCriteria
(Organization-Specific (Organization-Specific Requirements)Requirements)
Situational Factors influence staff selection. Situational Factors influence staff selection. Examples:Examples:
Organization’s staffing approach may require Organization’s staffing approach may require sending more expatriates to work in certain sending more expatriates to work in certain regions and locations than otherwiseregions and locations than otherwise
Partner organizations may be involved in the Partner organizations may be involved in the selection of expatriate staff, for example, on selection of expatriate staff, for example, on international joint venturesinternational joint ventures
Certain specific skills, for example, training, may Certain specific skills, for example, training, may be used as a selection criteriabe used as a selection criteria
1818
The Staff Selection The Staff Selection CriteriaCriteria
(Language)(Language) Important situational factor. Knowledge of Important situational factor. Knowledge of
the host country’s language is considered the host country’s language is considered
critical for many senior-level positions along critical for many senior-level positions along
with the ability to communicate effectivelywith the ability to communicate effectively
Knowledge of the host country’s language Knowledge of the host country’s language
helps expatriates and their families feel helps expatriates and their families feel
more comfortable in the new environmentmore comfortable in the new environment
1919
The Staff Selection The Staff Selection CriteriaCriteria
(Other Considerations 1)(Other Considerations 1)TimeTime – Unexpected international vacancies may – Unexpected international vacancies may
arise for which positions have to be quickly arise for which positions have to be quickly
filled by expatriates and which may preclude filled by expatriates and which may preclude
the use of screening teststhe use of screening tests
Family Family - A potential expatriate may refuse the - A potential expatriate may refuse the
international assignment due to family international assignment due to family
considerations (children’s welfare and considerations (children’s welfare and
education, parental care, single parents)education, parental care, single parents)
2020
The Staff Selection The Staff Selection CriteriaCriteria
(Other Considerations 2)(Other Considerations 2)Dual-Career CouplesDual-Career Couples – Research studies – Research studies undertaken reveal that many potential expatriates undertaken reveal that many potential expatriates are reluctant or unwilling to take on international are reluctant or unwilling to take on international assignments because of the career implications for assignments because of the career implications for their spouses, e.g. loss of jobs and career their spouses, e.g. loss of jobs and career opportunities, difficulty in finding new employment opportunities, difficulty in finding new employment in the expatriate’s host country in the expatriate’s host country
Some companies are now offering assistance Some companies are now offering assistance programs for the benefit of their expatriates’ programs for the benefit of their expatriates’ spouses (employment hunting, networking, intra-spouses (employment hunting, networking, intra-company employment, commuter marriages and company employment, commuter marriages and on-assignment career support) on-assignment career support)
2121
The Staff Selection The Staff Selection CriteriaCriteria
(Other Considerations 3)(Other Considerations 3)Female Managers – Studies reveal that female expatriates Female Managers – Studies reveal that female expatriates make up a very small proportion (< 10% percent) of the make up a very small proportion (< 10% percent) of the total expatriate population. Possible reasons are:total expatriate population. Possible reasons are:
Females are less desirous than males of international Females are less desirous than males of international assignmentsassignments
Females are less likely to be offered international Females are less likely to be offered international assignmentsassignments
There are a comparatively smaller number of females with There are a comparatively smaller number of females with the requisite skills to be sent on international assignmentsthe requisite skills to be sent on international assignments
Many repressive cultures discourage the sending of Many repressive cultures discourage the sending of female expatriates, and female expatriates, and
In many repressive cultures males do not like reporting to In many repressive cultures males do not like reporting to females females
2222
What does IHRM add into the What does IHRM add into the Traditional Framework of Traditional Framework of
HRM?HRM?Types of employeesTypes of employeesWithin and cross-cultural workforce diversityWithin and cross-cultural workforce diversityCoordinationCoordinationCommunicationCommunication
Human resource activitiesHuman resource activitiesProcurementProcurementAllocationAllocationUtilization of human resourcesUtilization of human resources
Nation/country categories where firms Nation/country categories where firms expand and operateexpand and operateHost countryHost countryParent countryParent countryThird countryThird country
2323
Some Terms DefinedSome Terms Defined
Host Country National (HCN)Host Country National (HCN): Belongs to : Belongs to the Country where the subsidiary is the Country where the subsidiary is located located
Parent Country National (PCN)Parent Country National (PCN): Belongs : Belongs to the Country where the firm has its to the Country where the firm has its headquartersheadquarters
Third Country Nationals (TCN)Third Country Nationals (TCN): Belongs : Belongs to any other country and is employed by to any other country and is employed by the firmthe firm
2424
What is an expatriate?What is an expatriate?
An employee who is working and An employee who is working and temporarily residing in a foreign temporarily residing in a foreign countrycountry• Some firms prefer to use the term Some firms prefer to use the term
““international assigneesinternational assignees””• Expatriates are Expatriates are PCNPCNs from the parent s from the parent
country operations, country operations, TCNTCNs transferred to s transferred to either HQ or another subsidiary, and either HQ or another subsidiary, and HCNHCNs transferred into the parent s transferred into the parent countrycountry
2525
The Expatriate ProblemThe Expatriate ProblemHigh Expatriate Failure RatesHigh Expatriate Failure RatesAverage cost per failure to the parent Average cost per failure to the parent
firm can be as high as three times the firm can be as high as three times the expatriate’s annual domestic salary plus expatriate’s annual domestic salary plus the cost of relocationthe cost of relocation
Between 16% & 40% of all American Between 16% & 40% of all American employees sent abroad to developed employees sent abroad to developed nations, and almost 70% sent to less nations, and almost 70% sent to less developed nations return home earlydeveloped nations return home early
2626
The Reasons for The Reasons for “Expatriate Failure”“Expatriate Failure”
Inability to Cope With Larger International
Responsibility
Manager’s Personal orEmotional Maturity
Manager’s Inabilityto Adjust
Other Family Reasons
Spouse’s Inability to Adjust
Difficulties with thenew environment
Personal or emotionalproblems
Lack of technical competence
2727
Expatriate FailureExpatriate Failure
The selection process in international firms is The selection process in international firms is particularly important because of the high cost of particularly important because of the high cost of expatriate failure. expatriate failure. Expatriate failureExpatriate failure is the early return of an is the early return of an expatriate manager to his or her country because expatriate manager to his or her country because of an inability to perform in the overseas of an inability to perform in the overseas assignment. assignment. The cost of expatriate failure ranges between The cost of expatriate failure ranges between $40,000-$250,000.$40,000-$250,000.
Expatriate failure rates may be as high as 20-50 Expatriate failure rates may be as high as 20-50 percent in many U.S. companies, higher than for percent in many U.S. companies, higher than for either European or Japanese companieseither European or Japanese companies. .
2828
PerformancePerformance Appraisal Appraisal
A communication tool to measure each A communication tool to measure each individual's contributionindividual's contribution
To evaluate talent and achievement with To evaluate talent and achievement with sensible consistency and accuracysensible consistency and accuracy
To help distinguish barriers to top performance To help distinguish barriers to top performance
2929
Why Appraise Why Appraise PerformancePerformance
Periodic evaluation helps mangers to have a better Periodic evaluation helps mangers to have a better understanding of each employee's skills with the goal to understanding of each employee's skills with the goal to facilitate, train and develop abilities and power to their facilitate, train and develop abilities and power to their employeesemployees
A chase to assess job development, encourage interest A chase to assess job development, encourage interest and enhance job performance by pointing out the and enhance job performance by pointing out the development and recognizing productive workdevelopment and recognizing productive work
A feedback system that mightA feedback system that might otherwise be overlookedotherwise be overlooked
3030
An iterative process of goal-setting, An iterative process of goal-setting,
communication, observation and evaluation to communication, observation and evaluation to
support, retain and develop exceptional support, retain and develop exceptional
employees for organizational success.employees for organizational success.
Performance Performance ManagementManagement
CommunicateCommunicate
ObserveObserveEvaluateEvaluate
Set GoalsSet Goals
3131
Rating ScaleRating Scale
4 - Excellent 4 - Excellent (Exceeds Standards)(Exceeds Standards)
3 - Good 3 - Good (Fully Meets Standards)(Fully Meets Standards)
2 – Acceptable 2 – Acceptable (Usually Meets Standards)(Usually Meets Standards)
1 – Unsatisfactory 1 – Unsatisfactory (Fails to Meet (Fails to Meet Standards)Standards)
3232
Training and DevelopmentTraining and DevelopmentTraining = Altering behaviorTraining = Altering behaviorDevelopment = Increasing Development = Increasing
knowledgeknowledgeLearning = Permanent change in Learning = Permanent change in
behaviorbehaviorTypes of TrainingTypes of Training
Lectures
Programmed
instructions
Audio-Visual
Computer
assisted
Reasons for TrainingReasons for Training
TurnoverTurnoverChange in programChange in programNeeds of organization or personnelNeeds of organization or personnelCost effectivenessCost effectivenessEmployee promotion and Employee promotion and
advancementadvancement
Results or OutcomesResults or Outcomes
Increased quality and quantity of Increased quality and quantity of work performancework performance
Decrease accidentsDecrease accidents Increase knowledge, skills attitudesIncrease knowledge, skills attitudesDecrease costs of managementDecrease costs of managementDecrease absenteeism and turnover Decrease absenteeism and turnover
ratesrates Increase job satisfaction - productionIncrease job satisfaction - production
3535
INDUSTRIAL RELATIONS INDUSTRIAL RELATIONS
1. IR is a relationship between 1. IR is a relationship between management and employees or management and employees or among employees and their among employees and their organizations, that characteristics and organizations, that characteristics and grow out of employment.grow out of employment.
2. IR may be defined as the complex of 2. IR may be defined as the complex of inter- relations among workers, inter- relations among workers, managers and government. managers and government.
3636
Objective of IRObjective of IR
1.1. To promote and develop labor To promote and develop labor management relation.management relation.
2.2. To regulate the production by minimizing To regulate the production by minimizing industrial conflictsindustrial conflicts
3.3. To provide opportunity to workers to To provide opportunity to workers to involve in decision making process with involve in decision making process with management.management.
4.4. To encourage and develop trade unions in To encourage and develop trade unions in order to improve the workers' strength.order to improve the workers' strength.
3737
Differences between Domestic HRM Differences between Domestic HRM and IHRMand IHRM
More HR activitiesMore HR activities: taxation, culture : taxation, culture orientation, administrative servicesorientation, administrative services
The need for a broader perspectiveThe need for a broader perspective: cater : cater to multiple needsto multiple needs
More involvement in employees’ personal More involvement in employees’ personal liveslives: adjustment, spouses, children: adjustment, spouses, children
Risk exposureRisk exposure: expatriate failure, terrorism: expatriate failure, terrorism Broader external influencesBroader external influences: government : government
regulations, ways of conductregulations, ways of conduct
3838
Choosing an Approach to Choosing an Approach to IHRMIHRM
Political and Legal ConcernsPolitical and Legal ConcernsLevel of Development in Foreign Level of Development in Foreign
LocationsLocationsTechnology and the Nature of the Technology and the Nature of the
ProductProductOrganizational Life CycleOrganizational Life CycleCultural DifferencesCultural Differences
3939