ihrm module 2
TRANSCRIPT
Hiring and Hiring and Managing Managing EmployeesEmployees
Module 2Module 2
Sapna Sapna
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Human Resource Management Human Resource Management (HRM)(HRM)
Refers to the activities an organization carries out to use its human resources effectively
Four major tasks of HRM - Staffing policy
- Management training and development
- Performance appraisal
- Compensation policy
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International Human Resource International Human Resource ManagementManagement
Strategic role: HRM policies should be congruent with the firm’s strategy and its formal and informal structure and controls
Task complicated by profound differences between countries in labor markets, culture, legal, and economic systems
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International H.R.M.International H.R.M.
Often modifiedOften modified
ExpatriatesCitizens of one country who are living
and working in another country
ExpatriatesCitizens of one country who are living
and working in another country
Recruitment and selectionRecruitment and selection
Training and developmentTraining and development
Compensation Compensation
Labor relations Labor relations
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Factors Making International HR Factors Making International HR DifficultDifficult
Different labor markets- Mix of available workers- Mix of labor costs
International worker mobility problemsNational management styles and practicesNational orientationsStrategy and control
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International Managerial International Managerial TermsTerms
Locals – citizens of the countries in which they are working
Expatriates – non-citizen - Home-country national
- Third-country national
International labor Market International labor Market SourcesSources
PCNs- to start up, own people are preferred
- They have the necessary technical & managerial expertise
• HCNs- acquiring local talent(middle & lower level positions)
- Sometimes according to Government’s restrictions
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TCNs- two important reasons to hire them-
- These people have the necessary expertise
- They were judged to be the best ones for the job
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International labor Market International labor Market SourcesSources
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Approaches to Staffing-Approaches to Staffing-1. Ethnocentric Staffing1. Ethnocentric Staffing
AdvantagesAdvantages
+ Tight control over subsidiaries
+ Locally qualified people not always available
+ Re-create local operations in home-office image
+ Interests of home office may be better protected
– Relocations are expensive
– Create “foreign” image for the businessDisadvantagesDisadvantages
Individuals from home country manage operations abroadIndividuals from home country manage operations abroad
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2. Polycentric Staffing2. Polycentric Staffing
AdvantagesAdvantages+ Responsibility on those knowing local business+ Avoid expensive relocations from home nation
– Potentially lose control of subsidiaryDisadvantagesDisadvantages
Individuals from host country manage operations abroadIndividuals from host country manage operations abroad
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3. Geocentric Staffing3. Geocentric Staffing
AdvantagesAdvantages+ Develop global managers who can adjust easily to any business environment
– These individuals command high salariesDisadvantagesDisadvantages
Best-qualified individuals, regardless of nationality,Best-qualified individuals, regardless of nationality,manage operations abroadmanage operations abroad
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Filling Foreign Managerial Filling Foreign Managerial PositionsPositions
Typically more difficult to fill than domestic positions because:- People don’t like to move
- There are legal impediments to using expatriates
- Many are apprehensive about language issues
- Many assignments are open-ended
- Perception that assignment abroad will negatively affect family lifestyle
- Living is more expensive abroad
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Reasons to Use ExpatriatesReasons to Use Expatriates
Lack of locally qualified candidatesBroaden the companies understanding of the overall corporate systemGain professional/foreign experienceCan control operations according to headquarters’ preferencesNeed to transfer technology abroadGain valuable educational experience
Reasons to use Host Country Reasons to use Host Country NationalsNationals
They are more familiar with the Local culture
They know the Local Language
They cost less than home country nationals
Employing locals is simply good PR
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Main Challenges in IHRMMain Challenges in IHRM
High failure rates of expatriation & repatriation
Deployment – getting the right mix of skills in the organization regardless of geographic allocation•
Knowledge and innovation dissemination –managing critical knowledge and speed of information flow
Talent identification and development – identify capable people who are able to function effectively
• Barriers to women in IHRM
• International ethics
• Language (e.g. spoken, written, body)
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Main Challenges in IHRMMain Challenges in IHRM
Different labour laws
Different political climate
Different stage(s) of technological advancement
Different values and attitudes e.g. time, achievement, risk taking
Roles of religion e.g. sacred objects, prayer, taboos, holidays, etc
Educational level attained
Social organizations e.g. social institutions, authority structures, interest groups, status systems
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Human Resource PlanningHuman Resource Planning
Phase 1 Phase 2 Phase 3
Take inventory of
current human
resources
Estimate firm’s
future human
resource needs
Develop plan to recruit and select people for vacant and anticipated new positions
Forecasting human resource needs and supplyForecasting human resource needs and supply
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Recruiting Human ResourcesRecruiting Human Resources
• Recent college graduatesRecent college graduates
• Local managerial talentLocal managerial talent
• Non managerial workersNon managerial workers
• Current employeesCurrent employees
Process of identifying and attracting a qualified pool of applicants for vacant positions
Methods of RecruitmentMethods of Recruitment
Using Head-hunters
Cross-national advertising
E-recruitment
International graduate programs
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Selecting Human ResourcesSelecting Human Resources
Ability to bridge cultural differences is key
Expatriates must adapt to new ways of life
Cultural sensitivity raises odds for success
Process of screening and hiring the best-qualified applicantswith the greatest performance potential
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Selecting the Proper Selecting the Proper ExpatriateExpatriate
Technical competenceLocal acceptancePersonal attributes-emotional maturity, empathy, respect towards other value systemsFamily situation-Most common reason for failure is inability of the expatriate’s family to adjustCountry specific requirements- hardship postings- distance, culture, climate etcCompany specific requirements- processes, duration, nature of responsibilityLanguage
Selection TechniqueSelection Technique
Screening the applicant’s background
Testing the candidate’s ability to adapt to the new culture & environment
Investigating the family conditions of the potential candidate according to foreign environment & culture
Assessing the capacity of the manager to fit in the foreign culture
Using various tests to check the personality of the candidate
Finally selection when there is a match in JD & JS
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The Expatriate ProblemThe Expatriate Problem
Expatriate failure: premature return of the expatriate manager to his/her home country
• Cost of failure is high: estimate = 3X the expatriate’s annual salary plus the cost of relocation (impacted by currency exchange rates and assignment location)
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Reasons for Expatriate Reasons for Expatriate FailureFailure
US multinationals- Inability of spouse to adjust
- Manager’s inability to adjust
- Other family problems
- Manager’s personal or emotional immaturity
- Inability to cope with larger overseas responsibilities
European multinationals
Inability of spouse to adjust
Japanese Firms
- Inability to cope with larger overseas responsibilities
- Difficulties with the new environment
- Personal or emotional problems
- Lack of technical competence
- Inability of spouse to adjust
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Stage I:
Thrilling experience
Stage II:
Downward slide
Stage III:
Recovery begins
Stage IV:
Embrace local culture
Culture ShockCulture Shock
Psychological process affecting people living abroad that is characterized by homesickness, irritability,
confusion, aggravation and depression
Refresh Your Mind!!!!
Training & DevelopmentTraining & Development
Module 3
Sapna
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IntroductionIntroduction
T is the process of altering employee behavior, attitudes & knowledge in a way that increases the probability of individual & organizational goal attainment
It helps in following ways-- It minimizes personal problems like politeness, tolerance,
sensibility etc- T is important as clients, suppliers, customers will be from all
over the world- It makes expatriates familiar with customs, cultures & work
habits etc- It can also improve the overall management style- It enhances team work, leadership effectiveness etc
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Components- Components- Predeparture TrainingPredeparture Training
Cultural awareness programme
Preliminary visits
Language training-- Role of English as language of world- Host- country language skills & adjustment- Knowledge of Corporate language• Practical assistance- relocation specialist• Job related factors
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Types of Cross cultural TTypes of Cross cultural T
Environmental briefing
Cultural Orientation
Cultural assimilators
Language training
Sensitivity T to develop attitudinal flexibility
Field Experience
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Cultural Training MethodsCultural Training Methods
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Compiling a Cultural ProfileCompiling a Cultural Profile
CultureGramsBackground
NotesCountry
Studies AreaHandbooks
T leads to Learning T leads to Learning OrganizationsOrganizations
Personal Mastery
Mental models
Building shared vision
Team Learning
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Repatriation of ExpatriatesRepatriation of Expatriates
A critical issue in the training and development of expatriate managers is preparing them for reentry into their home country
Repatriation should be seen as the final link in an integrated, circular process that selects, trains, sends, and brings home expatriate managers
Research shows that there is a problem with the repatriation process
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Reverse Culture ShockReverse Culture Shock
Psychological processof readapting to one’s
home culture
Methods ofreducing its effects
• Once-natural thoughts andfeelings now strange
• Can be more unsettling thanculture shock
• Many companies reabsorbexpatriates poorly
• Once-natural thoughts andfeelings now strange
• Can be more unsettling thanculture shock
• Many companies reabsorbexpatriates poorly
• Home-culture reorientationprograms
• Career-counseling sessions• Career-development program
before posting abroad
• Home-culture reorientationprograms
• Career-counseling sessions• Career-development program
before posting abroad
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Repatriation of ExpatriatesRepatriation of Expatriates
Didn’t know what position they hold upon return.
Firm vague about return, role and career progression.
Took lower level job.
Leave firm within one year.
Leave firm within three years
10 20 30 40 50 60 70percent
Shortcomings- T & DShortcomings- T & D
International assignments are temporary in nature
Competency requirement of project & individual not known to HR accurately
Debate between technical skills or relational skills leads to confusion
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