15 Chapter Irwin/McGraw-Hill Managing Human Resources Globally Objectives • Identify the recent changes that have caused companies to expand into international markets • Discuss the four factors that most strongly influence HRM in international markets • List the different categories of international employees • Identify the four levels of global participation and the HRM issues faced within each level • Discuss the ways companies attempt to select, train, compensate, and reintegrate expatriate managers © The McGraw-Hill Companies, Current Global Changes 15-2 European Economic Economic Community Community (EC) (EC) European North American American Free Free Trade Trade Agreement Agreement North (NAFTA) (NAFTA) Growth of of Asia Asia Growth General Agreement Agreement on on Tariffs Tariffs and and Trade Trade General (GATT) (GATT) Irwin/McGraw-Hill © The McGraw-Hill Companies, 15-3 Factors Affecting HRM in Global Markets Education / Human Capital Culture Human Resource Management Economic System Irwin/McGraw-Hill Political / Legal System © The McGraw-Hill Companies, 15-4 Hofstede’s Cultural Dimensions Power distance distance Power Uncertainty avoidance avoidance Uncertainty Individualism vs vs Individualism Collectivism Collectivism Masculinity vs.Femininity vs.Femininity Masculinity Long-term vs vs short-term short-term Long-term Irwin/McGraw-Hill © The McGraw-Hill Companies, 15-5 Managing Employee in a Global Context Types of of Employees Employees Types expatriates expatriates parent country country parent nationals nationals host country country host nationals nationals third country country third nationals nationals Irwin/McGraw-Hill © The McGraw-Hill Companies, 15-6 Managing Employees in a Global Context Levels of of Participation Participation Levels domestic domestic international international multinational multinational global global Irwin/McGraw-Hill © The McGraw-Hill Companies, 15-7 Managing Expatriates in Global Markets Major issues issues include: include: Major Selection Selection Training Training Compensation Compensation Reacculturation Reacculturation Irwin/McGraw-Hill © The McGraw-Hill Companies, 15-8 Areas to Consider in the Selection of Expatriate Managers Motivation Motivation Health Health Language Ability Ability Language Family considerations considerations Family Resourcefulness & & Resourcefulness initiative initiative Adaptability Adaptability Career planning planning Career Financial Financial Irwin/McGraw-Hill © The McGraw-Hill Companies, 15-9 Emphasis in Cross-cultural Training Programs Expatriates must must be be clear clear about about their their Expatriates own cultural cultural background background own Expatriates must must understand understand the the Expatriates particular aspects aspects of of culture culture in in the the particular new work work environment environment new Expatriates must must learn learn to to Expatriates communicate accurately accurately in in the the new new communicate culture culture Irwin/McGraw-Hill © The McGraw-Hill Companies, 15-10 Communicating Across Language Barriers Verbal behavior behavior Verbal Nonverbal behavior behavior Nonverbal Attribution Attribution Comprehension Comprehension Design Design Motivation Motivation Irwin/McGraw-Hill © The McGraw-Hill Companies, 15-11 Compensation of Expatriates Total pay pay packages packages have have Total four components: components: four Base salary salary Base Tax equalization equalization Tax allowances allowances Benefits Benefits Other allowances: allowances: Other cost-of-living cost-of-living housing housing education education relocation relocation Irwin/McGraw-Hill © The McGraw-Hill Companies, [...]... Compensation of Expatriates Total pay pay packages packages have have Total four components: components: four Base salary salary Base Tax equalization equalization Tax allowances allowances Benefits Benefits Other allowances: allowances: Other cost-of-living cost-of-living housing housing education education relocation relocation Irwin/McGraw-Hill © The McGraw-Hill Companies,