In this chapter, you will learn about the staffing policies international companies use. You will also: Explore recruitment and selection in host countries and training and development programs, understand how companies compensate managers and nonmanagerial workers, and examine the importance of labor-management relations around the world.
16 Hiring and Managing Employees Copyright © 2014 Pearson Education, Inc Chapter Objectives • Explain the three different types of staffing policies used by international companies • Describe the recruitment and selection issues facing international companies • Discuss the importance of training and development programs, especially cultural training • Explain how companies compensate managers and workers in international markets • Describe the importance of labor-management relations and how they differ around the world Copyright © 2014 Pearson Education, Inc 16 - Intel • 83,000 employees in 45 facilities worldwide • Issues of recruitment, selection, salary, etc • All employees take part in cultural training Copyright © 2014 Pearson Education, Inc 16 - International HRM Expatriate managers Recruitment and selection Culture affects Training and development Compensation Labor relations Staffing policy Copyright © 2014 Pearson Education, Inc 16 - Ethnocentric Staffing Individuals from home country manage operations abroad + Locally qualified people not always available + Tight control over subsidiaries Advantages + Ease the transfer of special know-how + Guard a company from industrial espionage – Relocations are expensive Disadvantages – Can give the business a “foreign” image Copyright © 2014 Pearson Education, Inc 16 - Polycentric Staffing Individuals from host country manage operations abroad + Responsibility on those knowing local busines Advantages + Avoid expensive relocations from other nation – May resemble a collection of national entities Disadvantages – Can potentially harm performance Copyright © 2014 Pearson Education, Inc 16 - eBay in India Local cultural knowledge + Business acumen = Success Source: Reuters/Vivek Prakash Copyright © 2014 Pearson Education, Inc 16 - Geocentric Staffing Best-qualified individuals, regardless of nationality, manage operations abroad + Managers who can adjust Advantages anywhere + Break down nationalistic barriers – These individuals command high salaries Disadvantage Copyright © 2014 Pearson Education, Inc 16 - Discussion Question What are the three different types of international staffing policies that companies can implement? Copyright © 2014 Pearson Education, Inc 16 - Answer to Discussion Question In ethnocentric staffing, operations abroad are managed by individuals from the home country In polycentric staffing, operations abroad are managed by individuals from the host country In geocentric staffing, operations abroad are managed by the best-qualified individuals regardless of nationality Copyright © 2014 Pearson Education, Inc 16 - 10 Discussion Question The psychological process of re-adapting to one’s home culture is called a Ethnocentric shock b Culture shock c Reverse culture shock Copyright © 2014 Pearson Education, Inc 16 - 17 Answer to Discussion Question The psychological process of re-adapting to one’s home culture is called a Ethnocentric shock b Culture shock c Reverse culture shock Copyright © 2014 Pearson Education, Inc 16 - 18 Cultural Training Methods Copyright © 2014 Pearson Education, Inc 16 - 19 Compiling a Cultural Profile Background Notes CultureGrams Country Studies Area Handbooks Copyright © 2014 Pearson Education, Inc 16 - 20 Worker Training Emerging markets Basic skills training Apprenticeship training Copyright © 2014 Pearson Education, Inc 16 - 21 Compensation of Managers Cost-of-living Cost-of-living effects effects Bonus Bonus and and tax tax incentives incentives Cultural Cultural and and social social factors factors Copyright © 2014 Pearson Education, Inc 16 - 22 Compensation of Workers Greater Greater crosscrossborder border investment investment Labor Labor mobility mobility in in some some markets markets Copyright © 2014 Pearson Education, Inc 16 - 23 Discussion Question What types of cultural training methods can help prepare managers for international assignments? Copyright © 2014 Pearson Education, Inc 16 - 24 Answer to Discussion Question The main methods of cultural training used to prepare managers for international assignments include environmental briefings, cultural orientations, cultural assimilation, sensitivity training, language training, and field experience Copyright © 2014 Pearson Education, Inc 16 - 25 LaborManagement Relations Positive or negative relations between a company’s management and its workers Intertwined nature Rooted in local culture Often affected by political movements Copyright © 2014 Pearson Education, Inc Source: Z1015/_Bernd Settnik/Newscom 16 - 26 Labor Unions Selection Selection of of aa location location Performance Performance in in aa market market Emerging Emerging markets markets Codetermination Codetermination in in Germany Germany Copyright © 2014 Pearson Education, Inc 16 - 27 International Labor Movements International activities of unions are improving treatment of workers and reducing child labor But can be difficult Workers in different nations often compete Some say this lowers wages and union power Copyright © 2014 Pearson Education, Inc 16 - 28 Discussion Question The positive or negative condition of relations between company management and its workers is called relations a Labor union b Codetermination c Labor-management Copyright © 2014 Pearson Education, Inc 16 - 29 Answer to Discussion Question The positive or negative condition of relations between company management and its workers is called relations a Labor union b Codetermination c Labor-management Copyright © 2014 Pearson Education, Inc 16 - 30 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 © 2014 Pearson Education, Inc 16 - 31 ... Inc 16 - 20 Worker Training Emerging markets Basic skills training Apprenticeship training Copyright © 2014 Pearson Education, Inc 16 - 21 Compensation of Managers Cost-of-living Cost-of-living... Reducing its effects Once-natural thoughts and Home-culture reorientation feelings now strange programs Can be more unsettlingthan Career-counseling sessions Career-development program culture... effects effects Bonus Bonus and and tax tax incentives incentives Cultural Cultural and and social social factors factors Copyright © 2014 Pearson Education, Inc 16 - 22 Compensation of Workers