Hiring and Managing Employees

Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

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
International Business 5e
Chapter 16 - 2

Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

International HRM Expatriates

Citizens of one country who are living and working in another country Recruitment and selection

Often modified

Training and development

Compensation
Labor relations

Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

International Business 5e

Chapter 16 - 3

Ethnocentric Staffing
Individuals from home country manage operations abroad
+ Tight control over subsidiaries + Locally qualified people not always available + Re-create local operations in home-office image + Interests of home office may be better protected

Advantages

Relocations are expensive Disadvantages Create foreign image for the business
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall International Business 5e
Chapter 16 - 4

Polycentric Staffing
Individuals from host country manage operations abroad

Advantages

+ Responsibility on those knowing local business + Avoid expensive relocations from home nation

Disadvantages Potentially lose control of subsidiary

Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall International Business 5e
Chapter 16 - 5

Geocentric Staffing
Best-qualified individuals, regardless of nationality, manage operations abroad

Advantages

+ Develop global managers who can adjust

easily to any business environment

Disadvantages These individuals command high salaries

Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall International Business 5e
Chapter 16 - 6

Tips for Small Businesses

Expanding internationally can severely strain the resources of small firms:
Dont entrust local operations solely to U.S. expatriates Local contacts dont guarantee contracts

Treat employees abroad as you want to be treated

Employ the Web in your talent search
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall International Business 5e
Chapter 16 - 7

Human Resource Planning

Forecasting human resource needs and supply

Phase 1

Phase 2

Phase 3

Take inventory of current human resources

Estimate firms future human resource needs

Develop plan to recruit and select people for vacant and anticipated new positions
Chapter 16 - 8

Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

International Business 5e

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
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall International Business 5e
Chapter 16 - 9

Selecting Human Resources

Process of screening and hiring the best-qualified applicants with the greatest performance potential Ability to bridge cultural differences is key Expatriates must adapt to new ways of life Cultural sensitivity raises odds for success
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall International Business 5e
Chapter 16 - 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
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall International Business 5e
Chapter 16 - 11

Reverse Culture Shock

Psychological process of readapting to ones home culture Methods of reducing its effects

Once-natural thoughts and feelings now strange Can be more unsettling than culture shock Many companies reabsorb expatriates poorly
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

Home-culture reorientation programs Career-counseling sessions Career-development program before posting abroad
Chapter 16 - 12

International Business 5e

Cultural Training Methods

Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

International Business 5e

Chapter 16 - 13

Compiling a Cultural Profile

CultureGrams Country Studies Area Handbooks

Background Notes

Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

International Business 5e

Chapter 16 - 14

Employee Compensation
Managerial employees
Cost-of-living effects Bonus and tax incentives Cultural and social factors Greater labor mobility in some markets

Nonmanagerial workers
Greater cross-border investment

Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

International Business 5e

Chapter 16 - 15

Labor-Management Relations
Positive or negative condition of relations between a companys management and its workers
Rooted in local culture Often affected by political movements

Directly influences workers lives

Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall International Business 5e
Chapter 16 - 16

Importance of Labor Unions

Can affect selection of a location Popularity of emerging markets in Asia
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

Can affect company performance in a market Union power declining across much of Europe
Chapter 16 - 17

International Business 5e

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
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall International Business 5e
Chapter 16 - 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
International Business 5e
Chapter 16 - 19

Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

Hiring and Managing Employees

Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall