Human resource management 8e by gomez mejia 2016 chapter 17

Chapter 17 International HRM Challenge Copyright © 2016 Pearson Education, Inc 17-1 Chapter Challenges Specify the HRM strategies that are most appropriate for firms at different stages of internationalization Identify the best mix of host-country and expatriate employees given the conditions facing a firm Explain the challenges of expatriate assignments Copyright © 2016 Pearson Education, Inc 17-2 Chapter Challenges Learn how to effectively manage expatriate assignments and minimize the chances of failure Develop HRM policies and procedures that match the needs and values of different cultures Consider ethical implications of HRM policies and procedures on a global basis Copyright © 2016 Pearson Education, Inc 17-3 International Involvement • • • Expatriate Multinational Corporation (MNC) Transnational Corporation Copyright © 2016 Pearson Education, Inc 17-4 The Stages of International Involvement Copyright © 2016 Pearson Education, Inc 17-5 International Involvement • • • • Outsourcing Falling Barriers Small- and Medium-Size Enterprises Going Global The Global Manager Copyright © 2016 Pearson Education, Inc 17-6 Determining the Mix Host-Country and Expatriates • • • • • Wholly owned subsidiaries Joint venture Ethnocentric approach Polycentric approach Geocentric approach Copyright © 2016 Pearson Education, Inc 17-7 Advantages and Disadvantages Copyright © 2016 Pearson Education, Inc 17-8 Reliance on Expatriates Increases When: • • • • Local talent is not available Overall business strategy is global vision International units and domestic operations are highly interdependent Technology has reduced need for expatriate to link the international units to home office • • The political situation is unstable Significant cultural differences exist between host and home countries Copyright © 2016 Pearson Education, Inc 17-9 The Challenges of Expatriate Assignments Why International Assignments Fail Career blockage Culture shock Lack of pre-departure cross-cultural training Overemphasis on technical qualifications Troublesome employees Family problems • • • • • • Copyright © 2016 Pearson Education, Inc 17-10 The Challenges of Expatriate Assignments Difficulties on Return Lack of respect for acquired skills Loss of status Poor planning for return position Reverse culture shock Copyright â 2016 Pearson Education, Inc 17-11 Using HRM to Effectively Manage Expatriates Selection • • • • • • • Emphasize cultural sensitivity as a selection criterion Establish a selection board of expatriates Require previous international experience Explore the possibility of hiring foreign-born employees Carefully consider expatriate’s ethical values Screen candidate’s spouses and families Develop an effective selection program Copyright © 2016 Pearson Education, Inc 17-12 Training • • • • Cross-cultural training to 12 months before the assignment Expatriate family training Approaches to training Information-giving approach Affective approach Impression approach o o o Copyright © 2016 Pearson Education, Inc 17-13 Career Development Important Guidelines: Position the international assignment as a step toward advancement Provide support for the expatriate Provide support for the spouse Copyright â 2016 Pearson Education, Inc 17-14 Compensation Important Guidelines: Provide the expatriate with disposable income equivalent to home disposable income Provide explicit “add-on” incentive for accepting international assignment Avoid having expatriate fill the same jobs held by locals or lower-ranking jobs • • • Copyright © 2016 Pearson Education, Inc 17-15 Using HRM to Effectively Manage Expatriates Role of HR Department Women and International Assignments Copyright © 2016 Pearson Education, Inc 17-16 Hofstede’s Five Cultural Dimensions Power Distance Individualism Uncertainty Avoidance Masculinity/Femininity Orientation Copyright © 2016 Pearson Education, Inc 17-17 EEO in the International Context Prohibition of basing employment decisions race, sex, and age Foreign-national employees are not covered by U.S law Immigration Control and Reform Act of 1986 Copyright © 2016 Pearson Education, Inc 17-18 Important Caveats • • • • • • • National culture may be an elusive concept Cultures change over time Blame is sometimes placed on cultural factors Hard data are not present Right and wrong values vary Business laws vary The need to find the right balance of HRM policies Copyright © 2016 Pearson Education, Inc 17-19 HRM and Exporting Firms • • • HRM Practices for International Activity Ethics and Social Responsibility Dealing with Political Risks Copyright © 2016 Pearson Education, Inc 17-20 Summary and Conclusions • • • • The Stages of International Involvement Determining the Mix of Host-Country and Expatriate Employees The Challenge of Expatriate Assignments Effectively Managing Expatriate Assignments with HRM Policies and Practices • • Developing HRM Policies in a Global Context Human Resource Management and Exporting Firms Copyright © 2016 Pearson Education, Inc 17-21 Pearson Education, Inc Copyright Click to edit Master text styles Second level Third level Fourth level Fifth level Copyright © 2016 Pearson Education, Inc 17-22 ... Practices • • Developing HRM Policies in a Global Context Human Resource Management and Exporting Firms Copyright © 2016 Pearson Education, Inc 17- 21 Pearson Education, Inc Copyright Click to edit... Copyright © 2016 Pearson Education, Inc 17- 3 International Involvement • • • Expatriate Multinational Corporation (MNC) Transnational Corporation Copyright © 2016 Pearson Education, Inc 17- 4 The... Copyright © 2016 Pearson Education, Inc 17- 5 International Involvement • • • • Outsourcing Falling Barriers Small- and Medium-Size Enterprises Going Global The Global Manager Copyright © 2016 Pearson