Learning Objectives •• Know Know the the basic basic functions functions ofof human human resource resource management management •• Define Define international international human human resource
resource management management •• Understand Understand the the difference difference between between international international and and domestic domestic human human resource resource management management •• Know Know the the types types ofof workers workers used used by by multinationals multinationals
Learning Objectives •• Know Know what what toto do do toto make make the the expatriate expatriate assignment assignment easier easier for for their their female female expatriates expatriates •• Understand Understand e.HR e.HR systems systems and and how how they they can can be be useful useful inin IHRM IHRM •• Understand Understand the the relationship relationship between between choice choice ofof aa multinational multinational strategy strategy and and international international human human resource resource management management
Human Resource Management and Functions •• HRM: HRM: deals deals with with the the entire entire relationship relationship ofof the the employee employee with with the the organization organization •• Recruitment: Recruitment: process process ofof identifying identifying and and attracting attracting qualified qualified people people toto apply apply for for vacant vacant positions positions •• Selection: Selection: process process ofof filling filling vacant vacant positions positions inin the the organization organization
Basic HRM Functions •• Training Training and and development: development: giving giving employees employees the the knowledge, knowledge, skills, skills, and and abilities abilities toto perform perform successfully successfully •• Performance Performance appraisal: appraisal: system system toto measure measure and and assess assess employees’ employees’work work performance performance
Basic HRM Functions •• Compensation: Compensation: organization’s organization’s entire entire reward reward package, package, including including financial financial rewards, rewards, benefits, benefits, and and job job security security •• Labor Labor relations: relations: ongoing ongoing relationship relationship between between an an employer employer and and those those employees employees represented represented by by labor labor organizations organizations
All All HRM HRM functions, functions, adapted adapted toto the the international international setting setting Two Two added added complexities complexities compared compared toto domestic domestic HRM HRM •• Must Must choose choose aa mixture mixture ofof international international employees employees •• Must Must decide decide the the extent extent ofof adaptation adaptation toto local local conditions conditions
Types of Employees in Multinational Organizations •• ••
Expatriate: Expatriate: employee employee from from aa different different country country Home Home country country nationals: nationals: expatriate expatriate employees employees from from the the parent parent firm’s firm’s home home country country •• Third Third country country nationals: nationals: expatriate expatriate workers workers who who come come from from neither neither the the host host nor nor home home country country
Types of Employees in Multinational Organizations •• Host Host country country nationals: nationals: local local workers workers who who come come from from the the host host country country where where the the unit unit isis located located •• Inpatriate: Inpatriate: employees employees from from foreign foreign countries countries who who work work inin the the country country where where the the parent parent company company isis located located
How How can can we we identify identify talented talented local local employees? employees? How How can can we we attract attract these these employees employees toto apply apply for for jobs? jobs? Can Can we we use use our our home home country’s country’s training training methods methods with with local local employees? employees? •• What What types types ofof appraisal appraisal methods methods are are customary? customary?
Key Questions Regarding Local Employees (cont.) •• ••
What What types types ofof rewards rewards do do local local people people value? value? How How can can we we retain retain and and develop develop employees employees with with aa high high potential potential as as future future managers? managers? •• Do Do any any local local laws laws affect affect staffing, staffing, compensation, compensation, and and training training decisions? decisions?
The Expatriate or the Host Country Manager •• Multinationals Multinationals must must decide decide whether whether toto use use expatriates expatriates or or home home country country nationals nationals •• Need Need toto look look atat some some questions questions •• Given Given the the firm’s firm’s strategy, strategy, what what isis the the preference preference for for the the position? position?
Is the Expatriate Worth It? •• Decisions Decisions must must take take into into account account costs costs ofof such such assignments assignments •• High High cost cost •• High High failure failure rate rate
Strategic Role of Expatriate Assignments •• •• •• ••
Helps Helps managers managers acquire acquire international international skills skills Helps Helps coordinate coordinate and and control control operations operations dispersed dispersed activities activities Communication Communication ofof local local needs/strategic needs/strategic information information toto headquarters headquarters In-depth In-depth knowledge knowledge ofof local local markets markets
Technical Technical and and managerial managerial skills skills Personality Personality traits traits Relational Relational abilities abilities Family Family situation situation International International motivation motivation Language Language ability ability
Priority of Success Factors •• Assignment Assignment length length •• Technical Technical and and professionals professionals skills skills are are key key for for short short assignments assignments •• Cultural Cultural similarity similarity •• Required Required interaction interaction with with local local people people •• Job Job complexity complexity and and responsibility responsibility
Training and Development •• Cross-cultural Cross-cultural training: training: increases increases the the relational relational abilities abilities ofof future future expatriates expatriates and and their their spouses spouses and and families families •• Training Training rigor: rigor: extent extent ofof effort effort by by both both trainees trainees and and trainers trainers required required toto prepare prepare the the trainees trainees for for expatriate expatriate positions positions