Title: Staffing and Training for Global Operations
1Staffing and Training for Global Operations
2(No Transcript)
3International HRM
- The management of human resources in global
corporations - The management of expatriate employee
- The comparison of human resource management
practices in different countries
4Factors Influencing Staffing Company
- Ownership of Foreign Subsidiaries
- Technology
- Market Influences
- Organizational Structure
- Commitment to International Business
- Style of Management
5Factors Influencing Staffing Individuals
- Qualifications and Experience
- Record of Previous Performance
- Commitment to International Business
- Suitability for International Business
- Family Commitment
6Factors Influencing Staffing Host-Country
- Level of Economic and Technological Development
- Political Stability
- Control of Foreign Investment
- Availability of Qualified Personnel
- Sociocultural Setting
- Geographical Location
7Factors Differing IHRM from HRM
- Different Labor Markets
- International Mobility Problems
- National Management Styles and Practices
- National Orientations
- Strategy and Control
8Types of Staffing Policy The Ethnocentric
Approach
- All key management positions are filled by
parent-country nationals (PCNs). - Overcomes lack of qualified managers in host
country. - Maintain a unified corporate culture.
- Helps transfer core competencies.
- Produces resentment in host country.
- Can lead to cultural myopia.
9Types of Staffing Policy The Polycentric
Approach
- Host-country nationals (HCNs) manage
subsidiaries, while parent-country nationals
occupy key positions at headquarters. - Alleviates cultural myopia.
- Inexpensive to implement.
- Limits career mobility.
- Isolates headquarters from foreign subsidiaries.
10Types of Staffing Policy The Global Approach
- Seeks the best people for key jobs throughout the
organization, regardless of nationality. - Greater pool of qualified candidates.
- Uses human resources efficiently.
- Helps build strong culture and informal
management network. - Immigration policies may limit implementation.
- Expensive.
11Maintaining a Globalization Momentum Through a
Global Staffing Policy(Exhibit 9-1)
Top management commitment
B a r r ier s
Search for global operators Staff
transfers Intl team
Global staffing policy
Momentum Maintained
Globalization Momentum
Staff availability Time and cost constraints Host
government requirements HRM policies
12Recruitment and SelectionClassifying Employees
- Parent Country National (PCN) The employees
nationality is the same as the organizations - Host Country National (HCN)The employees
nationality is the same as the location of the
subsidiary - Third Country National (TCN) The employees
nationality is neither that of the organization
nor that of the location of the subsidiary
13Recruitment and Selection
- College Recruitment
- Management Inventories
- Adaptability Assessment
14SELECTION CRITERIA FOR INTERNATIONAL ASSIGNMENTS
Spouses and Dependents
Independence and Self-Reliance
Adaptability to Cultural Change
Leadership Ability
Communication Skills
Technical Competence
15The Compensation Issue
The major reason for the decline in the number of
expatriates in recent years is because of the
large expenses involved
16Compensation Expatriate
- MNEs must pay enough to attract people to move
but must not overpay - Cost of living
- Job-status payment
- Foreign-service premiums and hardship allowances
- Complications of nationality differences
17Components of an Expatriate Compensation Package
- Salary
- Home rate/home currency
- Local rate/local currency
- Salary adjustments or promotions home or local
standard - Bonus home or local currency, home or local
standard - Stock options
- Inducement payment/hardship premium percentage
of salary or lump sum payment, home/local
currency - Currency protection discretion or split basis
- Global salary and performance structures
18Components of an Expatriate Compensation Package
(contd.)
- Taxation
- Tax protection
- Tax equalization
- Other services
-
- Benefits
- Home-country program
- Local program
- Social Security program
19Components of an Expatriate Compensation Package
(contd.)
- Allowances
- Cost-of-living allowances
- Housing standard
- Education
- Relocation
- Perquisites
- Home leave
- Shipping and storage
20Cost of Living In Select Cities
0 25 50 75 100 125 150
Tokyo Hong Kong London Moscow New York Sao
Paulo Athens Mexico City Prague Delhi
21Common Elements in an Expatriate Compensation
Package
- 1. In the US this was around 175,000 for
upper-middle managers in the late-1990s - 2. Extra vacation time, paid airfare for annual
visit home, emergency leave. - 3. Cost-of-living, relocation, housing,
education, and hardship - 4. Two tax bills, from the host country and the
U.S. - 5. One-time, lump sum premium.
22Compensation Labor
- Importance of Differences
- MNEs may need to pay more than local companies to
entice workers from existing jobs - Fringe Benefits
- Fringe benefits vary substantially among
countries - Job-Security Benefits
- Liability for Injuries
- How to Compare
- Labor-Cost Dynamics
23Cross-Cultural Training Purposes
- Encourage sensitivity
- Increase the cross-cultural skills
- Promote awareness of underlying values of a
culture - Reduce culture shock
- Build rapport, trust, and confidence
- Improve managerial effectiveness
- Improve customer and employee relationships
24Training
- Cultural Training seeks to foster an appreciation
of the host countrys culture. - Language Training helps build rapport with local
employees and improve managers effectiveness. - Practical Training is aimed at helping the
expatriate manager and the family ease themselves
into day-to-day life in the host country.
25Training Techniques (as classified by Tung)
- Area studies, that is, documentary programs about
the countrys geography, economics,
sociopolitical history, and so forth - Culture assimilators, which expose trainees to
the kinds of situations they are likely to
encounter that are critical to successful
interactions - Language training
- Sensitivity training
- Field experiences exposure to people from other
cultures within the trainees own country.
26Cross-Cultural Training Rigor Low
Technique Lectures, videotapes, reading
background material. Objectives Provide
background information on host country business
and national culture, basic information on
company operation.
27Cross-Cultural Training Rigor
Technique Intercultural experiential learning
exercises, role playing, simulations, case
studies, survival language training. Objectives
Build general and specific knowledge of host
country culture, reduce enthocentrism.
28Cross-Cultural Training Rigor High
Technique Field trips to host country, meeting
with managers experienced in host country,
meeting with host country national, intensive
language training. Objectives Develop comfort
with host country national culture, business
culture, and social institutions.
29Training Program Design Process
Strategic Goals
Goals of Training
Delivery System
Methodologies
Needs Analysis
Syllabus
Materials Design
Resource Analysis
Past Evaluation
Program Implementation
Evaluation