Jeffrey a mello 4e chapter 14 labor relations

GLOBAL HUMAN RESOURCE MANAGEMENT International International Imperative Imperative Why Why organizations organizations expand expand internationally internationally –– To Tocapture captureenhanced enhancedmarket marketopportunities opportunitiesthat thatforeign foreign countries countriesmay maypresent present –– To Toachieve achieveeconomies economiesofofscale scaleininproduction production&& administration administrationby byexpanding expandingscope scope&&volume volumeofofoperations operationstoto international internationalmarkets markets –– Keeping Keepingup upwith withindustry industryleaders leadersmay mayrequire requireorganization organization enter enterforeign foreignmarkets markets –– Acquiring Acquiringownership ownershipofofforeign-based foreign-basedorganization organizationoror subsidiary subsidiary How How International International & & Domestic Domestic HRM HRM Differ Differ International International HRM HRM requires requires –– Managing Managingbroader broaderrange rangeofoffunctional functionalareas areas –– Becoming Becomingmore moreinvolved involvedininemployees’ employees’personal personal lives lives –– Setting Settingup upseveral severaldifferent differentHRM HRMsystems systemsfor for different differentgeographic geographiclocations locations –– Dealing Dealingwith withmore morecomplex complexexternal externalconstituencies constituencies –– Participating Participatinginininternational internationalassignments assignmentsthat thathave have heightened heightenedexposure exposuretotopersonal personalrisk risk International International Expansion Expansion Strategies Strategies for for expanding expanding internationally internationally –– Exporting Exportinglocally locallyproduced producedgoods goodstotohost hostcountry country –– Subcontracting Subcontractingor orlicensing licensingproduction productionofofcertain certain goods goodsor orservices servicestotoforeign foreignpartner partner –– Entering Enteringinto intojoint jointventure venturewith withforeign foreignpartner partner –– Setting Settingup upoperations operations(making (makingaadirect directinvestment) investment) ininform formofofforeign foreignbranch branchor orsubsidiary subsidiary Assessing Assessing Culture: Culture: Hofstede’s Hofstede’s Cultural Cultural Differences Differences Dimensions Dimensions •• Individualism Individualism or or collectivism collectivism –– Individualistic Individualisticsocieties societiesvalue valuedevelopment developmentofof&&focus focuson on individual individual –– Collective Collectivesocieties societiesvalue valuegroup grouprelationships relationships •• Power Power distance distance –– Extent Extenttotowhich whichsociety societyisishierarchical, hierarchical,&&how howpower powerisis distributed distributedamong amongits itsmembers members •• Uncertainty Uncertainty avoidance avoidance –– Extent Extenttotowhich whichsociety societyfeels feelscomfortable comfortablewith withambiguity ambiguity&& values values&&encourages encouragesrisk-taking risk-taking •• Quantity Quantity versus versus quality quality of of life life Hall’s Hall’s Model Model of of Cultural Cultural Differences Differences •• Time Time –– Importance Importanceororsense senseofoftime timeinindaily dailyactivities activities •• Space Space(distance) (distance) –– Amount Amountofofphysical physicaldistance distanceindividuals individualsattempt attempttotomaintain maintainbetween between themselves themselves&&others others •• Material Materialgoods goods –– Emphasis Emphasisororinferences inferenceson onpossession possessionofofgoods goodstotosignify signifypower, power, success success&&status status •• Friendships Friendships –– Importance Importanceofoffriendships friendshipsininconferring conferringstatus status •• Agreements Agreements –– Considers Considershow howagreements agreementsare arereached reached Strategic Strategic HR HR Issues Issues in in Global Global Assignments Assignments Approaches Approaches to to sending sending employees employeesabroad abroad –– Administrative Administrativeapproach approach •• Assisting Assistingemployee employeedestined destinedfor forinternational internationalassignment assignment with withpaperwork paperwork&&minor minorlogistics logistics –– Tactical Tacticalapproach approach •• Managing Managing“risk “riskor orfailure” failure”factor factorof ofoverseas overseasassignment assignmentby by providing providingpaperwork paperworkassistance assistance&&modest modestamount amountof oftraining training –– Strategic Strategicapproach approach •• Extensive Extensivesupport support&&coordination coordinationof ofinternational internationalassignment assignment &&strategized strategizedrepatriation repatriationprogram programatatend endof ofassignment assignment Strategic Strategic HR HR Issues Issues in in Global Global Assignments Assignments Strategic Strategic management managementof of global global assignments assignments 1.1 2.2 3.3 4.4 5.5 6.6 Establish Establishspecific specificpurpose purposefor forassignment assignment Select Selectappropriate appropriateemployee employeefor forassignment assignment Organizational Organizational&&individual individualpurposes purposesfor forassignment assignmentmust must be beidentified identified&&matched matched Assess Assessadaptability adaptabilitytotohost hostculture cultureofofboth bothemployee employee&&any any family familymembers memberswho whowill willbe beaccompanying accompanyingemployee employee Provide Provideappropriate appropriatetraining trainingfor foremployee employee&&family family members members Simultaneous Simultaneoustraining trainingshould shouldbe beconducted conductedfor for headquarters headquartersstaff staff European European Union Union •• European EuropeanUnion Union(EU) (EU)has hasaalarge largenumber numberof ofumbrella umbrella employment employmentlaws lawsthat thatprovide providefar farmore moreworker workerprotection protection than thanafforded affordedin inthe theU.S U.S •• Employment-at-will Employment-at-willisisgenerally generallyfollowed followedin inthe theU.S., U.S.,but but ititisisgenerally generallynot notallowed allowedin inthe theEU, EU,where whereititisisdifficult difficult and andexpensive expensiveto toterminate terminateworkers workers •• EU EUworkers workershave havemore moregenerous generousvacation, vacation,maternity, maternity, retirement retirementand andother otherbenefits benefitsthan thanU.S U.S.workers workers •• Work Workcouncils councilsmust mustapprove approvemany manymanagement managementactions actionsin in several severalEU EUcountries countries Mexico Mexico and and Canada Canada Even Eventhough thoughMexico Mexicoand andCanada Canadaare areborder bordercountries, countries,HR HRisis carried carriedout outvery verydifferently differentlyin ineach eachcountry country •• Much Muchemployment employmentdiscrimination discriminationwhich whichwould wouldbe beillegal illegal in inthe theUnited UnitedStates Statesisisstandard standardpractice practicein inMexico Mexico •• enforcement enforcementof ofexisting existinglaws lawsisisalso alsovery verylax lax •• Canada, Canada,on onthe theother otherhand, hand,isisknown knownto tovigorously vigorouslyenforce enforce laws lawswhich whichprohibit prohibitdiscrimination discriminationin inemployment employment •• workers workersin inCanada Canadaalso alsoreceive receivefar farmore moreprotection protectionthat that their theircounterparts counterpartsin inthe theUnited UnitedStates States China China •• Tremendous Tremendousgrowth growthopportunities opportunitiesininthe thefree freemarket marketeconomy economyinin China Chinaare arebeing beingcapitalized capitalizedon onby bywestern westernorganizations organizationswith with significant significantHR HRchallenges challenges •• Many Manyuniversity universitygraduates graduatesare arenot notsuitable suitablefor foremployment employmentininglobal global organizations organizationsdue duetotodeficiencies deficienciesininlanguage, language,interpersonal interpersonalskills, skills, ability abilitytotowork workininteams teamsand andbasic basicliteracy literacy •• Those Thosewho whoare arecapable capableof ofworking workingeffectively effectivelyininaamultinational multinationalcan can command commandvery veryhigh highsalaries salaries Retention Retentionof ofsuch suchworkers workerscan canbe beaa challenge, challenge,given giventhe thehigh highdemand demandfor forthem them •• Supervisory Supervisoryrelations, relations,employer employer prestige, prestige,development developmentopportunities, opportunities, compensation compensationand andjob jobtitle titleare arekey keyfactors factorswhich whichimpact impactretention retention India India •• India Indiabears bearssome someresemblance resemblancetotoChina Chinagiven giventhe thesize sizeof ofits itspopulation population and and growing growingeconomy, economy,however howeverthere thereare arestark starkdifferences differencesbetween between China Chinaand andIndia India •• India Indiahas hasaasignificant significantpopulation populationof ofcitizens citizenswho whoare arewell-equipped well-equippedtoto work workininmultinationals multinationals India’s India’stechnically technicallytrained trainedworkforce workforceisishighly highly sought soughtafter afteryet yetdemand demandexceeds exceedssupply, supply,making makingretention retentionaachallenge challenge •• India Indiahas hasan anextremely extremelycomplicated complicatedlegal legalsystem systemwhich whichinvolves involvesmore more than than100 100different differentnoncodified noncodifiedand andambiguous ambiguouslaws lawsrelated relatedtoto employment employment Termination Terminationof ofemployees employeesisisdifficult difficultand andmany many employee employeebenefits benefitsare arelegally legallyrequired required Reading Reading14.1 14.1 In In the the Eye Eye of of the the Beholder Beholder Nine Ninecultural culturaldifferences differences •• •• •• •• •• •• •• •• •• Performance Performanceorientation orientation Assertiveness Assertiveness Future FutureOrientation Orientation Humane HumaneOrientation Orientation Institutional InstitutionalCollectivism Collectivism In-group In-groupCollectivism Collectivism Gender GenderEgalitarianism Egalitarianism Power PowerDistance Distance Uncertainty UncertaintyAvoidance Avoidance Reading Reading14.1 14.1 In In the the Eye Eye of of the the Beholder Beholder •• •• •• •• •• •• Successful Successfulglobal globalleaders leaderswere werefound foundto tobe be Charismatic/value-based Charismatic/value-based(able (ableto toinspire inspireand andmotivate motivate others othersbased basedon onfirmly firmlyheld heldcore corebeliefs) beliefs) Team-oriented Team-oriented(able (ableto tobuild buildteams teamsand andimplement implement common commonpurpose purposeamong amongteam teammembers) members) Participative Participative(involve (involveothers othersin inmaking makingand andimplementing implementing decisions) decisions) Humane-oriented Humane-oriented(supportive, (supportive,considerate, considerate,compassionate compassionate and andgenerous) generous) Autonomous Autonomous(independent (independentand andindividualistic) individualistic) Self-protective Self-protective(ensure (ensuresafety safetyand andsecurity) security) Reading Reading14.1 14.1 In In the the Eye Eye of of the the Beholder Beholder When When in in Brazil Brazil •• spend spend time time meeting meeting key key executives executives •• spend spend time time with with the the team team both both at at work work and and in in informal informal settings settings •• remember remember Brazil Brazil isis low low on on performance performance orientation orientation and and future future orientation orientation and and high high on on power power distance distance •• rewards rewards should should be be based basedon on both both individual individual and and team team performance performance with with team team emphasized emphasized Reading Reading14.1 14.1 In In the the Eye Eye of of the the Beholder Beholder When When in in France France •• keep keep the the personal personal outside outside of of business business •• maintain maintain high high power power distance distance •• low low human human orientation orientation may may result result in in being being nonnonsupportive supportive •• low low levels levels of of future future and andperformance performance orientation orientation imply imply little little interest interestin in grand grand visions visions •• strategy strategy and andaction action plans plans need need to to be be simple simple and and well-planned well-planned Reading Reading14.1 14.1 In In the the Eye Eye of of the the Beholder Beholder When WhenIn InEgypt Egypt •• manager managershould shouldact actdistinct distinctfrom fromthe theteam teamand andpresent presentan animage imageof of omnipotence omnipotence •• manager managerneeds needstotobe beseen seenas asdeserving deservingof ofleadership leadershiprole roleand andstatus status •• very verystrong strongin-group/out-group in-group/out-groupcollectivism collectivismwith within-group in-group maintenance maintenanceparamount paramountinindecision decisionmaking making •• group groupharmony harmonyimportant importantand andteam teamleader leadershould shouldbe bepaternal, paternal, autocratic autocraticyet yetbenign benign •• high highhumane humaneorientation orientationinvites invitesfamily familyissues issuesinto intoworkplace workplacefor forboss’ boss’ assistance assistance •• team teamexpects expectstotoprovide provideinput inputbut butdecision decisiontotobe bemade madeby byleader leader •• employees employeesexpect expectleaders leaderstotodevelop developand andcommunicate communicategrand grandand and ambitious ambitiousstrategies strategies Reading Reading14.1 14.1 In In the the Eye Eye of of the the Beholder Beholder When When in in China China •• high high performance performance orientation, orientation, high high institutional institutional orientation orientation and and high high in-group in-group collectivism collectivism •• personal personal relationships relationships and and networking networking are are foundation foundation on on which which business business isis conducted conducted and and ultimate ultimate test test of of effectiveness effectiveness and and success success •• Confucian Confucian ideas ideas stress stress relationships relationships and and community; community; word word “self” “self” has has negative negative connotation connotation •• workers workers respond respondto to exciting exciting visions visions    Reading Reading 14.2 14.2 –– Cross-Cultural Cross-Cultural Management Management and and Organizational Organizational Behavior Behavior in in Africa Africa Modern ModernAfrican AfricanManagement ManagementPrinciples Principles •Collective •CollectiveSolidarity: Solidarity:Employee Employeeteams teamswork workmost mosteffectively, effectively,achieving achievingcohesiveness cohesivenessand and solidarity, by working toward a common purpose solidarity, by working toward a common purpose •Group •GroupSignificance Significance(Ubuntu): (Ubuntu):Ubuntu Ubuntumeans meansthat thathumanity humanityisisaashared sharedvalue valueininwhich which personhood exists within a group context, only insofar as a person values others personhood exists within a group context, only insofar as a person values others •Harmony •Harmonyand andSocial SocialCohesion: Cohesion:Emphasis Emphasisisisplaced placedon onmaintaining maintainingpeace peaceand andkeeping keeping conflict to a minimum by promoting internal, communal, and familial harmony conflict to a minimum by promoting internal, communal, and familial harmony •Consensus: •Consensus:Emphasis Emphasisisisplaced placedon oncollective collectivedecision decisionmaking making •Consultation: •Consultation:Group Groupparticipation participationisisstrongly stronglyemphasized, emphasized,asasare aremutual mutualunderstanding, understanding,joint joint problem solving, and honoring the collective wisdom of all team members problem solving, and honoring the collective wisdom of all team members •Local •LocalTime Time(or (or“African” “African”Time): Time):InInAfrica, Africa,time timestandards standardsare areambiguous, ambiguous,and andthus thusrequire require flexibility on the part of non-African managers flexibility on the part of non-African managers •Paternal/Maternal •Paternal/MaternalLeadership: Leadership:African Africanfirms firmsare areoften oftenstructured structuredlike likeAfrican Africanfamilies familiesand, and, therefore, organizational leaders (managers, supervisors, and owners) tend to behave with therefore, organizational leaders (managers, supervisors, and owners) tend to behave with paternal paternal(or (ormaternal) maternal)responsibility responsibilitytoward towardtheir theirstaff staffmembers members •Age •Ageand andAuthority: Authority:Advanced Advancedage ageisisinherently inherentlyequated equatedwith withauthority, authority,business businesswisdom, wisdom, rank, title, and experience Thus, an older person automatically holds a certain level rank, title, and experience Thus, an older person automatically holds a certain levelofof superiority, superiority,regardless regardlessofofrank, rank,title, title,ororeducation education    Reading Reading 14.2 14.2 –– Cross-Cultural Cross-Cultural Management Management and and Organizational Organizational Behavior Behavior in in Africa Africa Dimensions Dimensionsof ofAfrican AfricanCulture Culturerelated relatedto toWorkplace WorkplaceBehavior Behavior    Collectivism Collectivism(vs (vs.American AmericanIndividualism) Individualism)    Performance PerformanceFeedback Feedback- -discussing discussingan anemployee’s employee’sperformance, performance,weaknesses, weaknesses, shortcomings, or abilities openly with the employee is likely to cause shortcomings, or abilities openly with the employee is likely to causeembarrassment embarrassmentand and clash head-on with the society’s harmony norm Team members may go so far as to protect clash head-on with the society’s harmony norm Team members may go so far as to protect the thenonperformer, nonperformer,when whennecessary, necessary,by bysharing sharingorordividing dividinghis hisororher herresponsibilities responsibilitiesamong among themselves themselves    High HighPower PowerDistance Distance- -people peopleofoflower lowerstatus statusshow showmuch muchhigher higherdeference deferencetoward towardthose thoseofof authority authorityororsenior seniorstatus statusthan thanisistypical typicalininthe theWest West.Since Sinceage ageand andexperience experienceare areesteemed, esteemed, ititisisoften considered inappropriate to question or challenge a teacher, supervisor, or often considered inappropriate to question or challenge a teacher, supervisor, orany any member memberofofthe theprofessional professionalelite elite    Consensus-Driven Consensus-DrivenDecision DecisionMaking Making- -consensus consensusisiscrucial crucialinindecision decisionmaking makingwhich whichcan can result in a long process to reach decisions that satisfy everyone result in a long process to reach decisions that satisfy everyone    Reading Reading 14.2 14.2 –– Cross-Cultural Cross-Cultural Management Management and and Organizational Organizational Behavior Behavior in in Africa Africa Dimensions Dimensionsof ofAfrican AfricanCulture Culturerelated relatedto toWorkplace WorkplaceBehavior Behavior Harmony Harmony- -ininAfrican Africanculture, culture,saving savingface faceisishighly highlyvalued valuedwith withdirect directand andfrank frank communication not the norm and a discomfort with blunt statements It is critical communication not the norm and a discomfort with blunt statements It is criticaltoto maintain maintainharmony harmonyatatalmost almostany anycost costinininterpersonal interpersonalrelationships relationships    Dissent DissentMay MayImply ImplyDisrespect Disrespect- -aashow showofofdissent dissentcan canbe beinterpreted interpretedasasaashow showofof disrespect disrespectand andthe thehierarchical hierarchicalnature natureofofbusiness businessculture culturetends tendstotodiscourage discouragesubordinates subordinates from openly disagreeing, challenging the status quo, speaking one’s mind, criticizing from openly disagreeing, challenging the status quo, speaking one’s mind, criticizingideas, ideas, giving givingfeedback, feedback,and andreporting reportingproblems problems.To Toavoid avoiddisturbing disturbingharmony, harmony,Africans Africanswill willoften often give giveaapositive positiveanswer answerand andbe bereluctant reluctanttotorefuse refuseaarequest request    Quality QualityOrientation Orientation- -Africans Africansare aremore morefocused focusedon onaasubjective, subjective,quality-oriented quality-orientedapproach approach totoproblems, which cannot be measured and is usually based on personal experience problems, which cannot be measured and is usually based on personal experience Quantities Quantitiesand andobjective objectiveinterpretation interpretationofoffigures figuresisiseschewed eschewedininfavor favorofofperceptions perceptions Reading Reading 14.2 14.2 –– Cross-Cultural Cross-Cultural Management Management and and Organizational Organizational Behavior Behavior in in Africa Africa Dimensions Dimensionsof ofAfrican AfricanCulture Culturerelated relatedto toWorkplace WorkplaceBehavior Behavior Importance ImportanceofofFamily FamilyTies Ties hiring hiringrelatives, relatives,rather ratherthan thanhiring hiringbased basedon onmerit merit and andexperience, experience,isisthe thecommon commonpractice practice.Beyond Beyondfamily, family,nepotism nepotismtranscends transcends blood bloodties tiestotoencompass encompassloyal loyalfriends friendsand andimportant importantallies, allies,such suchas asmembers membersof of other large family firms other large family firms    Negotiations Negotiationsand andConcessions Concessions––ultimate ultimatedecision decisionmakers makersare areusually usuallynot not directly directlyinvolved involvedwith withnegotiations negotiationsand andonly onlybrought broughtinto intothe theprocess processtotomake make last-minute last-minuteconcessions concessionsorordemands demands    Relationships RelationshipsPrecede PrecedeProfits Profits InIncontrast contrasttotothe theUnited UnitedStates, States,business businessinin Africa Africaisisabout aboutfriends friendsand andcolleagues colleaguesfirst, first,not notdeals dealsororprofits profits.Personal Personalrelations relations take takeprecedence precedenceininbusiness business ... overall reimbursement reimbursement&& compensation compensationlevel level •• Higher-of-home-orHigher-of-home-orhost hostmethod method –– Employee’s Employee’ssalary salaryatat home homeadjusted... leadershiprole roleand andstatus status •• very verystrong strongin-group/out-group in-group/out-groupcollectivism collectivismwith within-group in-group maintenance maintenanceparamount paramountinindecision... Collectivism In-group In-groupCollectivism Collectivism Gender GenderEgalitarianism Egalitarianism Power PowerDistance Distance Uncertainty UncertaintyAvoidance Avoidance Reading Reading14.1 14. 1 In