Chapter 16 Hiring and Managing Employees

International Business 4e Chapter Preview List the pros and cons of each staffing policy Identify the key international recruitment and selection issues Explain international training and development programs Discuss the international compensation of managers and workers Describe labor-management relations globally © Prentice Hall, 2008 International Business 4e

Citizens of one country who are living and working in another country International H.R.M. Expatriates Citizens of one country who are living and working in another country Recruitment and selection Training and development Compensation Labor relations Often modified © Prentice Hall, 2008 International Business 4e

Ethnocentric Staffing Individuals from home country manage operations abroad Advantages 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 Disadvantages Relocations are expensive Create “foreign” image for the business © Prentice Hall, 2008 International Business 4e

Polycentric Staffing Advantages Disadvantages Individuals from host country manage operations abroad Advantages Responsibility on those knowing local business Avoid expensive relocations from home nation Disadvantages Potentially lose control of subsidiary © Prentice Hall, 2008 International Business 4e

Geocentric Staffing Advantages Disadvantages Best-qualified individuals, regardless of nationality, manage operations abroad Advantages Develop global managers who can adjust easily to any business environment Disadvantages These individuals command high salaries © Prentice Hall, 2008 International Business 4e

Tips for Small Businesses Expanding internationally can severely strain the resources of small firms: Don’t entrust local operations solely to U.S. expatriates Local contacts don’t guarantee contracts Treat employees abroad as you want to be treated Employ the Web in your talent search © Prentice Hall, 2008 International Business 4e

Human Resource Planning Forecasting human resource needs and supply 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 © Prentice Hall, 2008 International Business 4e

Recruiting Human Resources Process of identifying and attracting a qualified pool of applicants for vacant positions Recent college graduates Local managerial talent Nonmanagerial workers Current employees © Prentice Hall, 2008 International Business 4e

Selecting Human Resources Process of screening and hiring the best-qualified applicants with the greatest performance potential Ability to bridge cultural differences is key Expatriates must adapt to new ways of life Cultural sensitivity raises odds for success © Prentice Hall, 2008 International Business 4e

International Business 4e Culture Shock Psychological process affecting people living abroad that is characterized by homesickness, irritability, confusion, aggravation, and depression Stage I: Thrilling experience Stage II: Downward slide Stage III: Recovery begins Stage IV: Embrace local culture © Prentice Hall, 2008 International Business 4e

Psychological process International Business 4e Reverse Culture Shock Psychological process of readapting to one’s home culture  Methods of reducing its effects  Once-natural thoughts and feelings now strange Can be more unsettling than culture shock Many companies reabsorb expatriates poorly Home-culture reorientation programs Career-counseling sessions Career-development program before posting abroad © Prentice Hall, 2008 International Business 4e

Cultural Training Methods © Prentice Hall, 2008 International Business 4e

Compiling a Cultural Profile International Business 4e CultureGrams Background Notes Country Studies Area Handbooks © Prentice Hall, 2008 International Business 4e

Employee Compensation Managerial employees Nonmanagerial workers Cost-of-living effects Greater cross-border investment Bonus and tax incentives Greater labor mobility in some markets Cultural and social factors © Prentice Hall, 2008 International Business 4e

Labor-Management Relations Positive or negative condition of relations between a company’s management and its workers Rooted in local culture Often affected by political movements Directly influences workers’ lives © Prentice Hall, 2008 International Business 4e

Importance of Labor Unions Can affect selection of a location Can affect company performance in a market Popularity of emerging markets in Asia Union power declining across much of Europe © Prentice Hall, 2008 International Business 4e

International Labor Movements International activities of unions are making progress in improving treatment of workers and reducing child labor But generating support can be difficult because: • Events in distant lands difficult to comprehend • Workers in different nations often compete © Prentice Hall, 2008 International Business 4e

International Business 4e Chapter Review List the pros and cons of each staffing policy Identify the key international recruitment and selection issues Explain international training and development programs Discuss the international compensation of managers and workers Describe labor-management relations globally © Prentice Hall, 2008 International Business 4e