managing human resources 4 th canadian edition belcourt et al. powerpoint presentation by charlie...
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Managing Human Resources4th Canadian Edition
Belcourt et al.PowerPoint Presentation by Charlie Cook and adapted by Monica Belcourt.
© 2005 by Nelson, a division of Thomson Canada Limited.
© 2005 by Nelson, a division of Thomson Canada Limited. 15–2
Belcourt et al. 4th Edition
ObjectivesAfter studying this chapter, you should be able to:
1. Identify the types of organizational forms used for competing internationally.
2. Explain how domestic and international HRM differ.
3. Discuss the staffing process for individuals working internationally.
4. Identify the unique training needs for international assignees.
5. Reconcile the difficulties of home-country and host-country performance appraisals.
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Belcourt et al. 4th Edition
Objectives (cont’d)After studying this chapter, you should be able to:
6. Identify the characteristics of a good international compensation plan.
7. Explain the major differences between Canadian and European labour relations.
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Belcourt et al. 4th Edition
Increasing Importance of Global Human Resource Understanding
International International Mergers and Mergers and AcquisitionsAcquisitions
International International Mergers and Mergers and AcquisitionsAcquisitions
Importance of Global Human Resources Management
Importance of Global Human Resources Management
Foreign Human Foreign Human ResourcesResources
Foreign Human Foreign Human ResourcesResources
Global Global CompetitionCompetition
Global Global CompetitionCompetition
Market Access Market Access OpportunitiesOpportunities
Market Access Market Access OpportunitiesOpportunities
Presentation Slide 15–1
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Managing Across Borders
• International corporation Domestic firm that uses
its existing capabilities to move into overseas markets.
• Multinational corporation (MNC) Firm with independent
business units operating in multiple countries.
• Global corporation Firm that has integrated
worldwide operations through a centralized home office.
• Transnational corporation Firm that attempts to
balance local responsiveness and global scale via a network of specialized operating units.
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Types of Organizations
Figure 15.1
GLOBALGLOBAL
Views the world as a single Views the world as a single market; operations are market; operations are controlled centrally from controlled centrally from the corporate office.the corporate office.
GLOBALGLOBAL
Views the world as a single Views the world as a single market; operations are market; operations are controlled centrally from controlled centrally from the corporate office.the corporate office.
TRANSNATIONALTRANSNATIONAL
Specialized facilities permit Specialized facilities permit local responsiveness; local responsiveness; complex coordination complex coordination mechanisms provide mechanisms provide global integration.global integration.
TRANSNATIONALTRANSNATIONAL
Specialized facilities permit Specialized facilities permit local responsiveness; local responsiveness; complex coordination complex coordination mechanisms provide mechanisms provide global integration.global integration.
MULTINATIONALMULTINATIONAL
Several subsidiaries Several subsidiaries operating as stand-alone operating as stand-alone business units in multiple business units in multiple countries.countries.
MULTINATIONALMULTINATIONAL
Several subsidiaries Several subsidiaries operating as stand-alone operating as stand-alone business units in multiple business units in multiple countries.countries.
INTERNATIONALINTERNATIONAL
Uses existing capabilities Uses existing capabilities to expand into foreign to expand into foreign markets.markets.
INTERNATIONALINTERNATIONAL
Uses existing capabilities Uses existing capabilities to expand into foreign to expand into foreign markets.markets.
LOCAL RESPONSIVENESSLow High
GL
OB
AL
EF
FIC
IEN
CY
Lo
wH
igh
Presentation Slide 15–2
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Belcourt et al. 4th Edition
How International Companies Affect the World Economy
• Production and distribution extend beyond national boundaries, making it easier to transfer technology.
• They have direct investments in many countries, affecting the balance of payments.
• They have a political impact that leads to cooperation among countries and to the breaking down of barriers of nationalism.
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How Does the Global Environment Influence Management?
• Unified EconomiesClosely partnered nations such as the European
Union have developed into strong competitors.Promotes job growth in trading nations.
• Cultural environmentThe communication patterns, religion, values and
ideologies, education, and social structure of a host country influence how HR is conducted in that country.
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Belcourt et al. 4th Edition
The Nations of the European
Union
The Nations of the European
Union
Figure 15.3
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Belcourt et al. 4th Edition
Cultural Environment of International Business
Figure 15.4Presentation Slide 15–3
Values/Ideologies
• Work ethic• Time orientation• Individualism/ collectivism• Risk propensity• Achievement
Social Structure• Kinship/family• Mobility• Nationalism• Urbanization• Social stratification• Paternalism/
materialism
Communication• Language(s)• Dialects• Nonverbal• Media• Technology
Education/Human Capital• Primary/ secondary• Vocational• Professional• Literacy
Religious Beliefs• Denominations• Totems/taboos• Rituals• Holy days
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Belcourt et al. 4th Edition
Domestic versus International HRM
• Issues in international HRM in helping employees adapt to a new and different environment outside their own country:RelocationOrientationObjectiveTranslation services
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Belcourt et al. 4th Edition
International Staffing
• Expatriates, or Home-country NationalsEmployees from the home country who are on
international assignment.
• Host-country NationalsEmployees who are natives of the host country.
• Third-country NationalsEmployees who are natives of a country other
than the home country or the host country.
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Belcourt et al. 4th Edition
Advantages in Sources of Overseas Managers• Host-country
Nationals
Less cost
Preference of host-country governments
Intimate knowledge of environment and culture
Language facility
• Home-country Nationals (Expatriates)
Talent available within company
Greater control
Company experience
Mobility
Experience provided to corporate executives
Figure 15.5
• Third-country Nationals
Broad experience
International outlook
Multilingualism
Presentation Slide 15–4
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Belcourt et al. 4th Edition
Changes in International Staffing over Time
Figure 15.6
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Overseas Recruitment Issues
• Work Permit, or Work CertificateGovernment document granting a foreign
individual the right to seek employment.
• Guest WorkersForeign workers invited to perform needed
labour.
• Transnational teamsTeams composed of members of multiple
nationalities working on projects that span multiple countries.
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Selecting Expatriates
• Begin with self-selection.• Create a candidate pool.• Assess core skills.• Assess augmented skills and attributes.
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Measured Expatriate Characteristics• Core Skills
Skills that are considered critical to an employee’s success abroad.
• Augmented SkillsSkills that are helpful in
facilitating the efforts of expatriate managers.
• Failure ratePercentage of expatriates who
do not perform satisfactorily.
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Belcourt et al. 4th Edition
Expatriate Selection Criteria
Figure 15.7
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Belcourt et al. 4th Edition
Causes of Expatriate Assignment Failure
Figure 15.8
Why Do Expats Fail?
Family adjustment Poor performance
Lifestyle issues Other opportunities arise
Work adjustment Business reasons
Bad selection Repatriation issues
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Skills Of Expatriate Managers
• Core SkillsExperienceDecision makingResourcefulnessAdaptabilityCultural sensitivity Team building Maturity
• Augmented SkillsComputer skills Negotiation skills Strategic thinkingDelegation skills Change
management
HRM 3
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Boosting ROI of Expatriates
• Better candidate selection 32%• Career planning skills 26• Communicating objectives 24• Assignment preparation 20• Monitoring program 17• Cross-cultural training 10• Developing or expanding intranet 7• Communication/recognition 6• Web-based cultural training 5• Mandating destination support 4• Other 17
Figure 15.9
Major initiatives planned to improve assignment return on investment (ROI):
Source: Andrea Poe, “Selection Savvy,” HRMagazine 47, no. 4 (April 2002): 77–83.
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Training and Development
• Global ManagerA manager equipped to run an international business
• Skills of a Global ManagerAbility to seize strategic opportunitiesAbility to manage highly decentralized organizationsAwareness of global issues Sensitivity to issues of diversity Competence in interpersonal relations Skill in building community
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Training Programs for International Managers
• Essential training program content to prepare employees for working internationally: Language trainingCultural trainingAssessing and tracking career developmentManaging personal and family life
• Culture shockPerpetual stress experienced by people who settle
overseas
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Preparing for an International Assignment
1. Social and business etiquette
2. History and folklore
3. Current affairs, including relations between the host country and Canada
4. Cultural values and priorities
5. Geography, especially its major cities
7. Sources of pride and great achievements of the culture
8. Religion and the role of religion in daily life
9. Political structure and current players
10.Practical matters such as currency, transportation, time zones, hours of business
11.The language
Figure 15.10
To prepare for an international assignment, one should become acquainted with the following aspects of the host country:
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Belcourt et al. 4th Edition
Training Methods
• Reviewing available information about the host company: books, magazines, video tapes.
• Conversations with host country natives.
• Sensitivity training to become familiar with the customs and overcome prejudices.
• Temporary assignments to encourage shared learning.
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Belcourt et al. 4th Edition
A Synthesis of Country Clusters
Figure 15.11Source: Simcha Ronen and Oded Shenkar, “Clustering Countries on Attitudinal Dimensions: A Review and Synthesis,” Academy of Management Review 10, no. 3 (July 1985): 435–54. Copyright Academy of Management Review. Reprinted with permission of the Academy of Management Review and the authors; permission conveyed through the Copyright Clearance Center, Inc.
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Returning from an Overseas Assignment• Repatriation
The process of an employee transitioning home from an international assignment.
Throw a “welcome home” party.
Offer counseling to ease the transition.
Arrange conferences and presentations to make certain that knowledge and skills acquired away from home are identified and disseminated.
Get feedback from the employee and the family about how well the organization handled the repatriation process.
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Performance Appraisal of International Managers• Who Should Appraise Performance?
Home-country evaluationsHost-country evaluations
• Adjusting Performance CriteriaAugmenting job duties Individual learningOrganizational learning
• Providing FeedbackDebriefing interview
Presentation Slide 15–5
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Forces Driving Global Pay
• Cultural Preferences Importance of status Role of individual vs.
organization vs. government Equality vs. disparity Achievement vs.
relationships
• Economic Conditions Size of economy Types of industries, natural
resources Inflation, unemployment Protectionism vs. open
market
• Personal Preferences Attitudes toward risk Quality of life vs. work Short- vs. long-term Competitiveness vs.
solidarity
• Social Constraints Income tax rates, social
costs Laws and regulations Collective bargaining,
worker participation Skills, education of work
force
Figure 15.13Source: Steven Gross and Per Wingerup, “Global Pay? Maybe Not Yet!” Compensation and Benefits Review 31, no. 4 (July/August 1999): 25–34.
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Hourly Wages* in Different Countries
Figure 15.14
*Hourly compensation costs in U.S. dollars for production workers in manufacturing
Source: Department of Labor.
Presentation Slide 15–6
COUNTRYCOUNTRY $/HOUR$/HOURGermanyGermany 23.8423.84NorwayNorway 23.1323.13SwitzerlandSwitzerland 21.8421.84BelgiumBelgium 21.0421.04United StatesUnited States 20.3220.32JapanJapan 19.5919.59SwedenSweden 18.3518.35BritainBritain 16.1416.14FranceFrance 15.8815.88CanadaCanada 15.6415.64ItalyItaly 13.7613.76Hong KongHong Kong 13.5313.53IsraelIsrael 13.5313.53AustraliaAustralia 13.1513.15SpainSpain 10.8810.88KoreaKorea 8.098.09TaiwanTaiwan 5.705.70BrazilBrazil 3.023.02MexicoMexico 2.302.30Sri LankaSri Lanka 0.480.48
COUNTRYCOUNTRY $/HOUR$/HOURGermanyGermany 23.8423.84NorwayNorway 23.1323.13SwitzerlandSwitzerland 21.8421.84BelgiumBelgium 21.0421.04United StatesUnited States 20.3220.32JapanJapan 19.5919.59SwedenSweden 18.3518.35BritainBritain 16.1416.14FranceFrance 15.8815.88CanadaCanada 15.6415.64ItalyItaly 13.7613.76Hong KongHong Kong 13.5313.53IsraelIsrael 13.5313.53AustraliaAustralia 13.1513.15SpainSpain 10.8810.88KoreaKorea 8.098.09TaiwanTaiwan 5.705.70BrazilBrazil 3.023.02MexicoMexico 2.302.30Sri LankaSri Lanka 0.480.48
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Compensation of Expatriate Managers
• To be effective, an international compensation program must:Provide an incentive to leave Canada.Allow for maintaining a Canadian standard of
living.Facilitate reentry into Canada.Provide for the education of children.Allow for maintaining relationships with family,
friends, and business associates.
Presentation Slide 15–7
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Expatriate Compensation Programs
• Balance-Sheet Approach
A compensation system designed to match the purchasing power in a person’s home country
1. Calculate base pay.
2. Figure cost-of-living allowance (COLA).
3. Add incentive premiums.
4. Add relocation assistance programs.
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International Organizations and Labour Relations
• International Differences in Unions
The level at which bargaining takes place (national, industry, or workplace).
The degree of centralization of union-management relations.
The scope of bargaining.
The degree to which government intervenes.
The degree of unionization.