Professional Documents
Culture Documents
International Management: Phatak, Bhagat, and Kashlak
International Management: Phatak, Bhagat, and Kashlak
Chapter 16
16-3
Learning Objectives
Understand the various approaches that multinational and global organizations undertake for managing and staffing subsidiaries in various parts of the world. Distinguish between various functions of international human resources management. Identify the various strategies for selecting staff for foreign assignments. Explain how training programs prepare managers for overseas assignments. Understand the various schemes for compensation and benefits used by multinational and global organizations.
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Chapter Topics
What is International Human Resources Management? Managing and Staffing Subsidiaries Major IHRM functions Selecting Expatriates Managing Expatriates International Human Resource Management and Competitive Advantage
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Polycentric
The company considers the needs of the local subsidiary when formulating human resources policies and practices
Regiocentric
The company considers needs of an entire region when developing human resources policies and practices
Global or Geocentric
The companys priority is the optimal use of all resources, including human resources, and local or regional considerations are not considered important for the success of the corporate strategy
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Ethnocentric
International People of home country developed for key positions everywhere in the world Complex in home country, simple in subsidiaries High in headquarters Home standards applied to people and performance High in headquarters; low in subsidiaries High volume of orders, commands, advice to subsidiaries Nationality of owner
Polycentric
Multidomestic People of local nationality developed for key positions in their own country Varied and independent Relatively low in headquarters Determined locally Wide variation; can be high or low rewards for subsidiary performance Little to and from headquarters; little among subsidiaries Nationality of host country
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Ex. 16-1(contd.)
Orientation Regiocentric
Regional Regional people developed for key positions anywhere in the region Highly interdependent on a regional basis High regional headquarters and/or high collaboration among subsidiaries Determined regionally Rewards for contribution to regional objectives
Global
Transnational Best people everywhere in the world developed for key positions everywhere in the world Global Web: complex, independent, worldwide alliances/network Collaboration of headquarters and subsidiaries around the world Globally integrated Rewards to international and local executives for reaching local and worldwide objectives based on global company goals
Authority; decision-making
Little to and from corporate HQ, but may be high to and from regional HQ and among countries
Regional company
Geographic identification
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Classifying Employees
1. Parent country national (PCN): the nationality of the employee is the same as that of the headquarters of the global organization 2. Host country national (HCN): the employees nationality is the same as that of the subsidiary 3. Third country national (TCN): The employees nationality is neither that of the headquarters or of the local subsidiary
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East Asia
Trainees have great respect for trainer who should behave, dress, and relate in a highly professional, formal manner Trainer should know what trainees need, admitting needs might represent loss of face to trainees Materials should be orderly, well organized and unambiguous, trainees most accustomed to lecture, note taking, and limited questioning Quality of program may be judged on the basis of quality of location and training materials, ceremonies with dignitaries, certificates, plaques, and speeches taken as signs of value of program
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Latin America
Preference for a decisive, clear, charismatic leader as trainer, trainees like to be identified with and loyal to a successful leader Difficult to get trainees to expose weaknesses and faults, design should include time for socializing
Educational system relies on lecture and has more theoretical emphasis, training should be delivered in the local language
Value/importance judged by location, which dignitaries invited for the ceremonies, and academic affiliation of trainer, time is flexible: beginning or ending at a certain time not important
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Year
1993 1993 1993 1993 1993 1993 1992 1993 1992 1993 1992 1993 1992 1991 1993 1992 1992 1993
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Mastery
Honeymoon
Adjustment
2.5
2
Culture Shock
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3-4
4-6
6-9
25-36
46-48 49+
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Repatriation
Repatriation is the term given to the return of the home country manager. Reasons for repatriation: The time of the overseas assignment is up Childrens education Unhappy with the assignment Family unhappiness Failure
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