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288 33 Powerpoint Slides Chapter 17 International Human Resource Management
288 33 Powerpoint Slides Chapter 17 International Human Resource Management
International Business
Rakesh Mohan Joshi Professor & Chairperson, IIFT New Delhi
Chapter 17
Learning Objectives
resource management
HRM has become a crucial determinant to a firms success Growing significance of trans-national experience for top Off-shoring of business operations to low-cost locations
has augmented the complexity of staffing, performance monitoring, and differential compensations.
very relevant in other countries due to differences in sociocultural and regulatory environments.
Copyright @ Oxford University Press International Business R. M. Joshi Chapter 17: International Human Resource Management
International HRM
Comprising diverse requirements of
Enhanced risks
Export Department International Division Structure Global Organizational Structure Global Functional Division Structures
companys home country HRM practices for its employees across the world. Key managerial Locals are and technical personnel are recruited from the parent country nationals (PCNs). with limited opportunities to grow.
Copyright @ Oxford University Press International Business R. M. Joshi Chapter 17: International Human Resource Management
Host
country nationals (HCNs) are often employed in foreign subsidiaries whereas the headquarters
employees are transferred within a region rather than across the region.
development of a real global corporation. The best talented personnel are posted throughout the MNE irrespective of their nationalities.
Copyright @ Oxford University Press International Business R. M. Joshi Chapter 17: International Human Resource Management
Staffing
The process of determining the organizations
Manpower Availability
Availability of desired manpower affects a firms decision to hire locals or expatriates. MNEs often hire locals for lower level jobs except for some Middle East countries which import people even for labour and other low-paid jobs. However, for most
Short-term (upto three months): Assignments related to small project work, machinery
Extended (Upto one year): Involving similar activities as for short-term assignments for a relatively longer duration
Long-term (one to five years): Also referred to as traditional expatriate assignment, involve a well-defined role in foreign operations. Assignments, such as production or marketing manager or a managing director of a subsidiary
Non-standard Assignments
Commuter assignments
Rotational assignments Contractual assignments
Virtual assignments
Chapter 17: International Human Resource Management
MNEs engage host country citizens for middle and lower level jobs.
Copyright @ Oxford University Press International Business R. M. Joshi Chapter 17: International Human Resource Management
Expatriates Employees who temporarily reside and work outside their home country are commonly known as expatriates or
expats. Expatriates are often used as agents of direct control, socialization, network trade, and gathering market
business intelligence.
Copyright @ Oxford University Press International Business R. M. Joshi Chapter 17: International Human Resource Management
Parent country nationals (PCNs) Employees country who where are citizens the of the is
MNE
with PCNs.
Copyright @ Oxford University Press International Business R. M. Joshi Chapter 17: International Human Resource Management
Off-shoring
Transferring jobs to foreign countries which were previously carried out domestically.
activities too.
Copyright @ Oxford University Press International Business R. M. Joshi Chapter 17: International Human Resource Management
Selection:
The
process
by
which
organizations fill their vacant positions. The process of recruitment and selection varies widely among countries
Copyright @ Oxford University Press International Business R. M. Joshi Chapter 17: International Human Resource Management
Global mindset
Strategic
perspective
vision
and
long-term
Family
attitude
towards
international
assignments
Managing Expatriates
People working out of their home countries, also known as expatriates, form an integral part of a firms international staffing strategy, especially for higher management positions. Beside identifying and recruiting the right personnel with desired skills for international assignments, it is also extremely important to provide them with a conducive environment to get their optimum output
Copyright @ Oxford University Press International Business R. M. Joshi Chapter 17: International Human Resource Management
Inability to adjust in alien cultures Career apprehensions on repatriation Relocation anxieties High costs of living and income gaps Problems related to lifestyle adjustments, such as uncomfortable living conditions Family problems, such as spouse dissatisfaction, childrens education, and safety concerns Health and medical concerns Adaptation problems to different management styles
Chapter 17: International Human Resource Management
Repatriation
The process of returning home by an expatriate after completion of foreign assignment that include:
Preparation
Physical relocation
Transition
Re-adjustment
Training
Training: The process by which employees acquire skills, knowledge, and abilities to perform both their current and future assignments in the organization. Training so as to aims at altering the behaviour, of
Language training
Practical training
Performance Management
The process that enables a firm to evaluate the performance of its personnel against pre-defined parameters for their consistent improvements so as to achieve organizational goals. The system used to formally assess and measure employees
Compensation
The financial remuneration that employees receive in exchange of their services rendered to the organization. It includes wages, salaries, pay rise, and other monetary issues.
A good compensation system should be designed within the regulatory framework of the country of operation of an MNE and should be able to attract and retain the best available talent
Copyright @ Oxford University Press International Business R. M. Joshi Chapter 17: International Human Resource Management
Hardship allowance Cost of living allowance (COLA) Housing allowance Home leave allowances Education allowances Relocation allowances Assistance for tax equalization
Chapter 17: International Human Resource Management
Home-country-based
Host-country-based Hybrid of the above two
of
their
operations
which
often
have
considerable differences.
Copyright @ Oxford University Press International Business R. M. Joshi Chapter 17: International Human Resource Management