Chapter 16 Hiring and Managing Employees Prentice Hall

Chapter 16 Hiring and Managing Employees Prentice Hall 2003 1

Chapter Preview • List the pros and cons of each staffing policy • Identify the key international recruitment and selection issues • Explain international training and development programs • Discuss the international compensation of managers and workers • Describe labor-management relations globally © Prentice Hall, 2008 International Business 4 e 2

International H. R. M. Expatriates Citizens of one country who are living and working in another country Recruitment and selection Often modified Training and development Compensation Labor relations © Prentice Hall, 2008 International Business 4 e 3

Ethnocentric Staffing Individuals from home country manage operations abroad + Tight control over subsidiaries + Locally qualified people not always availabl Advantages + Re-create local operations in home-office im + Interests of home office may be better prote – Relocations are expensive Disadvantages – Create “foreign” image for the business © Prentice Hall, 2008 International Business 4 e 4

Polycentric Staffing Individuals from host country manage operations abroad Advantages + Responsibility on those knowing local busin + Avoid expensive relocations from home nat Disadvantages – Potentially lose control of subsidiary © Prentice Hall, 2008 International Business 4 e 5

Geocentric Staffing Best-qualified individuals, regardless of nationality, manage operations abroad + Develop global managers who can Advantages adjust easily to any business environment Disadvantages – These individuals command high salarie © Prentice Hall, 2008 International Business 4 e 6

Tips for Small Businesses Expanding internationally can severely strain the resources of small firms: Don’t entrust local operations solely to U. S. expatriates Local contacts don’t guarantee contracts Treat employees abroad as you want to be treated Employ the Web in your talent search © Prentice Hall, 2008 International Business 4 e 7

Human Resource Planning Forecasting human resource needs and supply Phase 1 Take inventory of current human resources © Prentice Hall, 2008 Phase 2 Estimate firm’s future human resource needs International Business 4 e Phase 3 Develop plan to recruit and select people for vacant and anticipated new positions 8

Recruiting Human Resources Process of identifying and attracting a qualified pool of applicants for vacant positions • Current employees • Recent college graduates • Local managerial talent • Nonmanagerial workers © Prentice Hall, 2008 International Business 4 e 9

Selecting Human Resources Process of screening and hiring the best-qualified applicants with the greatest performance potential Ø Ability to bridge cultural differences is key Ø Expatriates must adapt to new ways of life Ø Cultural sensitivity raises odds for success © Prentice Hall, 2008 International Business 4 e 10

Culture Shock Psychological process affecting people living abroad that is characterized by homesickness, irritability, confusion, aggravation, and depression Stage I: Thrilling experience Stage II: Downward slide Stage III: Recovery begins Stage IV: Embrace local culture © Prentice Hall, 2008 International Business 4 e 11

Reverse Culture Shock Psychological process of readapting to one’s home culture Methods of reducing its effects • Once-natural thoughts and • Home-culture reorientation feelings now strange programs • Can be more unsettling than • Career-counseling sessions culture shock • Career-development program • Many companies reabsorb before posting abroad expatriates poorly © Prentice Hall, 2008 International Business 4 e 12

Cultural Training Methods © Prentice Hall, 2008 International Business 4 e 13

Compiling a Cultural Profile Background Notes Culture. Grams Country Studies Area Handbooks © Prentice Hall, 2008 International Business 4 e 14

Employee Compensation Managerial employees Cost-of-living effects Nonmanagerial workers Greater cross-border investment Bonus and tax incentives Cultural and social factors © Prentice Hall, 2008 Greater labor mobility in some markets International Business 4 e 15

Labor-Management Relations Positive or negative condition of relations between a company’s management and its workers • Rooted in local culture • Often affected by political movements • Directly influences workers’ lives © Prentice Hall, 2008 International Business 4 e 16

Importance of Labor Unions Can affect selection of a location Can affect company performance in a market Popularity of emerging markets in Asia Union power declining across much of Europe © Prentice Hall, 2008 International Business 4 e 17

International Labor Movements International activities of unions are making progress in improving treatment of workers and reducing child labor But generating support can be difficult because: • Events in distant lands difficult to comprehend • Workers in different nations often compete © Prentice Hall, 2008 International Business 4 e 18

Chapter Review • List the pros and cons of each staffing policy • Identify the key international recruitment and selection issues • Explain international training and development programs • Discuss the international compensation of managers and workers • Describe labor-management relations globally © Prentice Hall, 2008 International Business 4 e 19