Professional Documents
Culture Documents
IHRM
IHRM
IHRM
COMPONENTS OF HRM
Recruitment Selection Training & Development Performance Appraisal Compensation Labor Relations
MULTINATIONAL MANAGERS
IS THE EXPATRIATE
High cost High failure rate
WORTH IT?
Home Salary
Tokyo
London
Taipei
Hong Kong
Singapore
EXPATRIATE FAILURE
Spouse fails to adapt Manager fails to adapt Other problems within the family Personality of the manager Level of responsibilities
failure, continued
MOTIVATIONS TO USE
Managers acquire international skills Coordinate and control operations dispersed activities Communication of local needs/strategic information to headquarters
EXPATS
FACTORS
SUCCESS FACTORS
Depends on : assignment length cultural distance amount of required interaction with local people job complexity/responsibility
PRIORITY OF
DECISION MATRIX USED TO SET PRIORITIES OR DIFFERENT SUCCESS FACTORS DURING SELECTION
Longer Duration
Professional/ Technical Skills Relational Abilities International Motivation Family Situation Language Skills
High
Assignment Characteristics Greater More Interaction More Cultural and Complex or DisCommunica- Responsimilarity tion sible Job Requirements with Locals Neutral Moderate High
EXPATRIATE TRAINING
TRAINING RIGOR
LOW RIGOR
TRAINING
Short time period Lectures Videos on local culture Briefings on company operations company operations
HIGH RIGOR
TRAINING
Lasts over a month Experiential learning Extensive language training Often includes interactions with host country nationals
VARIOUS TRAINING TECHNIQUES AND THEIR OBJECTIVES AS THE RIGOR OF THE CROSS- CULTURAL TRAINING GROWS
Techniques: Field trips to host country, meetings High with managers experienced Training in host country, meetings Rigor with host country nationals, intensive language training. Objectives: Develop comfort with host country national culture, business culture, and social institutions.
Techniques: Experiential learning exercises, role playing, simulations, case Midstudies, survival level language training. Training Rigor Objectives: General and specific knowledge of host country culture, reduce ethnocentrism.
Techniques: Lectures, videotapes, reading background material. Objectives: Provide Low background information on Training host country business and Rigor national cultures, basic information on company operations.
CHALLENGES OF EXPATRIATE
Unreliable data Complex and volatile environments Time differences and distance separation Local cultural situations
PERFORMANCE APPRAISAL
STEPS TO IMPROVE
THE PROCESS
1. Fit the evaluation criteria to strategy. 2. Fine tune the evaluation criteria 3. Use multiple evaluators with varying periods of evaluation
sources of information a superior or the HRM professionals may use to evaluate an expatriate managers
Criteria Meeting objectives Management skills Project successes Leadership skills Communication skills Subordinate development Team building Interpersonal skills Cross-cultural interaction skills Management skills Leadership skills Meeting objectives Service quality and timeliness Negotiation skills Cross-cultural interaction skills
Periods Six months and at the completion of a major project After completion of major project Six months
Subordinates
On-site supervisor
COMPENSATION
EXPATRIATE
SHEET APPROACH
Provides a compensation package
THE BALANCE
BALANCE SHEET
COSTS
Allowances for cost of living, housing, utilities, furnishing, educational expenses, medical expenses, club memberships, and car and/or driver expenses
Expatriate Assignment Expenses and Balanced Spendable Income + Allowances = + Base Salary Allowances as an incentive to take position, foreign service premium, hardship pay, R&R Taxes Allowances to balance extra tax payments Goods and Services Allowances to cover cost of living differences, housing, childrens education, medical costs, automobile, recreation, home leave travel Housing Allowances for moving expenses, settling in expenses, initial housing costs, and furnishing allowances Spendable Income
= + = +
Housing
= +
Spendable Income
APPROACHES
OTHER
Parent country wages everywhere Wean expatriates from allowances Pay based on local or regional markets Cafeteria selection of allowances Global pay systems
THE REPATRIATION
Difficult for many organizations "Reverse culture shock" Expatriates must relearn own national and organizational culture Includes whole family
PROBLEM
REPATRIATION PROVIDE:
A strategic purpose for repatriation A team to aid the expatriate Home country information sources Training and preparation for the return Support for expatriate and family
WOMEN EXPATRIATES:
SUCCESSFUL WOMEN
EXPATRIATES
Foreign not female emphasize nationality not gender The woman's advantage strong in relational skills wider range of interaction options
MULTINATIONAL
MULTINATIONAL STRATEGY
Early stages of internationalization = ethnocentric IHRM Multilocal strategies = ethnocentric or regiocentric Regional strategy = closer to the global
CONCLUSIONS
HRM functions IHRM challenges Expatriate managers The role of women in multinational organizations Multinational strategies and IHRM orientations