International Human Resources Management Managing Human Resources - Unit 15 International Human Resources Management Copyright © 2011 by Nelson Education Ltd.

Managing Human Resources - Unit 15 Learning Outcomes After studying this chapter, you should be able to: Identify the types of organizational forms used for competing internationally. Explain the economic, political-legal, and cultural factors in different countries that HR managers need to consider. Explain how domestic and international HRM differ. Discuss the staffing process for individuals working internationally. Identify the unique training needs for international assignees and their employees. Copyright © 2011 by Nelson Education Ltd. Copyright © 2011 by Nelson Education Ltd.

Learning Outcomes (Cont’d) Managing Human Resources - Unit 15 Learning Outcomes (Cont’d) Identify the characteristics of a good international compensation plan. Reconcile the difficulties of home- and host-country performance appraisals. Explain how labour relations differ around the world. Copyright © 2011 by Nelson Education Ltd. Copyright © 2011 by Nelson Education Ltd.

Increasing Importance of Global Human Resource Understanding Global Competition International Mergers and Acquisitions Foreign Human Resources Market Access Opportunities Copyright © 2011 by Nelson Education Ltd.

Managing Across Borders Domestic firm that uses its existing capabilities to move into overseas markets. International corporation Firm with independent business units operating in multiple countries. Multinational corporation (MNC) Firm that has integrated worldwide operations through a centralized home office. Global corporation Firm that attempts to balance local responsiveness and global scale via a network of specialized operating units. Transnational corporation Copyright © 2011 by Nelson Education Ltd.

Managing Human Resources - Unit 15 Figure 15.1 Types of Organizations Copyright © 2011 by Nelson Education Ltd. Copyright © 2011 by Nelson Education Ltd.

How International Companies Affect the World Economy Managing Human Resources - Unit 15 How International Companies Affect the World Economy Their 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. Copyright © 2011 by Nelson Education Ltd. Copyright © 2011 by Nelson Education Ltd.

How Does the Global Environment Influence Management? Managing Human Resources - Unit 15 How Does the Global Environment Influence Management? Unified Economies Cultural Environment Copyright © 2011 by Nelson Education Ltd. Copyright © 2011 by Nelson Education Ltd.

Managing Human Resources - Unit 15 Figure 15.2 Cultural Environment of International Business Copyright © 2011 by Nelson Education Ltd. Copyright © 2011 by Nelson Education Ltd.

Domestic versus International HRM Managing Human Resources - Unit 15 Domestic versus International HRM Issues in international HRM in helping employees adapt to a new and different environment outside their own country: Copyright © 2011 by Nelson Education Ltd. Copyright © 2011 by Nelson Education Ltd.

International Staffing Employees from the home country who are on international assignment. Expatriates, or Home-country Nationals Employees who are natives of the host country. Host-country Nationals Employees who are natives of a country other than the home country or the host country. Third-country Nationals Copyright © 2011 by Nelson Education Ltd.

Advantages of Host Country Nationals Hiring local citizens is generally less costly than relocating expatriates. Since local governments usually want good jobs for their citizens, foreign employers may be required to hire locally. Most customers want to do business with companies they perceive to be local versus foreign. Advantages of Host Country Nationals Copyright © 2011 by Nelson Education Ltd.

Advantages of Expatriates Talent available within the company Greater control over managers Company experience Mobility Development opportunities for managers Advantages of Expatriates Copyright © 2011 by Nelson Education Ltd.

Third Country National Broad experience International outlook Multilingual Advantages of Third Country National Copyright © 2011 by Nelson Education Ltd.

Recruiting Internationally Managing Human Resources - Unit 15 Recruiting Internationally Work Permit, or Visa Guest Workers Copyright © 2011 by Nelson Education Ltd. Copyright © 2011 by Nelson Education Ltd.

Selecting Global Managers Managing Human Resources - Unit 15 Selecting Global Managers Begin with self-selection. Create a candidate pool. Assess core skills. Assess augmented skills and attributes. Copyright © 2011 by Nelson Education Ltd. Copyright © 2011 by Nelson Education Ltd.

Training and Development Managing Human Resources - Unit 15 Training and Development Essential training program content to prepare employees for working internationally Culture shock Copyright © 2011 by Nelson Education Ltd. Copyright © 2011 by Nelson Education Ltd.

Managing Human Resources - Unit 15 Figure 15.9 A Synthesis of Country Clusters Source: 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 © 1985 by Academy of Management Review. Reprinted with permission of the Academy of Management Review via Copyright Clearance Center. Copyright © 2011 by Nelson Education Ltd. Copyright © 2011 by Nelson Education Ltd.

Returning from an Overseas Assignment Managing Human Resources - Unit 15 Returning from an Overseas Assignment Repatriation The process of an employee transitioning home from an international assignment. Copyright © 2011 by Nelson Education Ltd. Copyright © 2011 by Nelson Education Ltd.

Managing Human Resources - Unit 15 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. Copyright © 2011 by Nelson Education Ltd. Copyright © 2011 by Nelson Education Ltd.

Managing Human Resources - Unit 15 Compensation Different countries have different norms for employee compensation. Copyright © 2011 by Nelson Education Ltd. Copyright © 2011 by Nelson Education Ltd.

Compensation of Host-Country Employees Managing Human Resources - Unit 15 Compensation of Host-Country Employees Hourly wages vary dramatically from country to country. Pay periods are different. Seniority may be an important factor. High pay rates can upset local compensation practices. Bonuses, profit-sharing, benefits and paid leave may be more extensive and legally required. Copyright © 2011 by Nelson Education Ltd. Copyright © 2011 by Nelson Education Ltd.

Compensation of Expatriate Managers Managing Human Resources - Unit 15 Compensation of Expatriate Managers Provide an incentive to leave Canada Allow for maintaining a N.A. standard of living Provide for security in countries that are politically unstable or present personal dangers Include provisions for good healthcare Provide for the education of children Consider foreign taxes the employee is likely to have to pay (in addition to domestic taxes) and help with tax forms and filing Allow for maintaining relationships with family, friends, and business associates Facilitate reentry home Have a written agreement Copyright © 2011 by Nelson Education Ltd. Copyright © 2011 by Nelson Education Ltd.

Expatriate Compensation Systems Managing Human Resources - Unit 15 Expatriate Compensation Systems Home-Based Pay Balance-Sheet Approach Split Pay Copyright © 2011 by Nelson Education Ltd. Copyright © 2011 by Nelson Education Ltd.

Performance Appraisal of International Managers Managing Human Resources - Unit 15 Performance Appraisal of International Managers Who Should Appraise Performance? Copyright © 2011 by Nelson Education Ltd. Copyright © 2011 by Nelson Education Ltd.

Assessing Performance Different evaluation criteria Additional job duties Individual learning Organizational learning Providing feedback Copyright © 2011 by Nelson Education Ltd.

International Organizations and Labour Relations Managing Human Resources - Unit 15 International Organizations and Labour Relations International Differences in Unions Copyright © 2011 by Nelson Education Ltd. Copyright © 2011 by Nelson Education Ltd.

HR approaches to Labour Relations Hands off Monitor Guide and advise Strategic planning Copyright © 2011 by Nelson Education Ltd.