Seminar. International Human Resources chapter Kasım 14 Salı 20- Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

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Bertram Todd Pope
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1 Seminar International Human Resources chapter 20

2 Learning Objectives p To discuss the importance of human resource management p To explain the types of expatriates p To profile the staffing frameworks used by MNEs p To assess how MNEs select, prepare, compensate, and retain expatriates

3 Introduction Learning Objective 1: To discuss the importance of human resource management

4 Introduction p In addition to insightful strategies, great supply chains, sharp financial systems, and so on, successful MNEs have great people p It is important to get the right person in the right job in the right place at the right time for the right compensation

great people p It is important to get the right person in the

5 What is HRM? p Human resource management (HRM) n the activities that staff the MNE p HRM is more difficult in international companies because of n Environmental differences n Strategic contingencies n Organizational challenges

6 What is HRM? Factors Influencing HRM in International Business

7 Strategizing HRM p Superior human resources are essential to n high productivity n competitive advantage n value creation p MNEs need to integrate strategy and HRM

8 The Perspective of the Expatriate Learning Objective 2: To explain the types of expatriates

9 The Perspective of the Expatriate p MNE executives can be n locals n expatriates p leave their own country to live and work in another Home country nationals Third-country nationals

10 The Perspective of the Expatriate p Trends in expatriate assignments n most expatriate assignments are short term lasting less than a year n more assignments are going to younger and older workers than in the past n the number of female expatriates, thirdcountry nationals, and reverse expatriates is rising

assignments are going to younger and older workers than in the past n the

11 Staffing Frameworks in the MNE Learning Objective 3: To profile the staffing frameworks used by MNEs

12 Staffing Frameworks in the MNE p There are three approaches to staffing policy n Ethnocentric p fill key management positions with homecountry nationals n Polycentric p use host-country nationals to manage local subsidiaries n Geocentric p seek the best people for key jobs throughout the organization, regardless of nationality

Polycentric p use host-country nationals to manage local subsidiaries n

13 Staffing Frameworks in the MNE The Ethnocentric Framework: Key Benefits

14 Staffing Frameworks in the MNE The Polycentric Framework: Key Benefits

15 Staffing Frameworks in the MNE p The key advantage of the geocentric approach is that managers can move between countries and cultures without losing their personal effectiveness p But, this approach is difficult to develop and maintain

countries and cultures without losing their personal

16 Staffing Frameworks in the MNE Comparing Approaches to Staffing Foreign Operations

17 Managing Expatriates Learning Objective 4: To assess how MNEs select, prepare, compensate, and retain expatriates

18 Managing Expatriates p Expatriate selection n screening executives to find those with the greatest inclination and highest potential for a foreign assignment p Candidates are screened according to n Technical competence n Adaptiveness p self-maintenance p satisfactory relationships with host nationals p sensitivity to host environments n Leadership

are screened according to n Technical competence n Adaptiveness p self-maintenance p

19 Managing Expatriates Key Competencies of Expatriates

20 Managing Expatriates p Expatriate failure n a manager s premature return home due to poor performance p The rate of failure is dropping in general, but is higher in emerging economies n China and India p The cost of failure can easily reach $1 million

failure is dropping in general, but is higher in emerging

21 Managing Expatriates Concerns of Expatriates Ahead of Moving to Foreign Assignments

22 Managing Expatriates p Common reasons for expatriate failure n inability of the spouse and family to adapt to the host country p To prevent expatriate failure, companies may provide preparation programs to provide n General country understanding n Cultural sensitivity n Practical skills

23 Managing Expatriates p Compensation packages should n Motivate employees n Allow employees to maintain their standard of living n Reflect the responsibilities of the position n Ensure that after-tax income will not fall n Maintain pay equity among peers n Compete with industry packages n Be easily administered

24 Managing Expatriates p Types of compensation plans p Balance sheet approach n equalizes purchasing power across countries so expatriates have the same living standard in their foreign posting that they had at home p Home-based method p Headquarters-based method p Host-based method

25 Managing Expatriates p A typical compensation package includes n Base salary n Foreign service allowance n Fringe benefits n Tax differentials

26 Managing Expatriates What Does an Expatriate Cost?

27 Managing Expatriates Top Five Most Expensive Cities for Expatriates by Region

28 Managing Expatriates p Repatriation n the process of reintegrating the expatriate into the home country upon completion of the foreign assignment p Can pose problems n Work n Financial n Social p The challenge is to find the right job for the returning manager

29 p Trends Brainpower: Drains, Circulation, or Returns? n worker populations will grow faster in developing countries n wealthier countries will continue to grow in the number of retirees p MNEs must adapt n Brain drain n Labor-saving threats n Brain circulation

30 Activities p Handouts

Global Human Resource Management. Vorravee Pattaravongvisut

Global Human Resource Management Vorravee Pattaravongvisut Traditional Organization Chart Top Management Middle Management Front-line people Customers Customer Oriented Org Chart Customers Front-line people