1. International Business (12)
Huang Huiping
Economic School.Whut

2. 12. Global Human Resource Management
In this Unit:
Human resource management (HRM);
Staff policy
Expatriate Managers
Training and management development
Performance appraisal
Compensation
International labor relations

3. 12.0 Organization: The Implementation of Strategy
Organization architecture： can be used to refer to the totality of a firm’s organization, including：
- formal organizational structure,
- control systems and incentives,
- organizational culture,
- processes,
- people.
（组织结构：指企业组织整体，包括正式组织机构、控制和激励系统、组织文化、工作流程和人员）

4. Figure : Organizational Architecture

5. (1)Organizational structure :
the formal division of the organization into subunits
the location of decision-making responsibilities within that structure (centralized versus decentralized)
the establishment of integrating mechanisms to coordinate the activities of subunits including cross-functional teams or pan-regional committees
(2)Control systems are the metrics used to measure performance of subunits and make judgments about how well managers are running those subunits
Structure and control systems establish decision-making responsibilities and integration mechanisms.

6. Incentives are the devices used to reward appropriate managerial behavior
(3)Processes are the manner in which decisions are made and work is performed within the organization
(4)Organizational culture refers to the norms and value systems that are shared among the employees of an organization
(5)People refers to not just the employees of the organization, but also the strategy used to recruit, compensate, and retain those individuals and the type of people they are in terms of their skills, values, and orientation

7. In Sum: Strategic Fit Market conditions fits Operations strategy
supports
Market
conditions
fits
supports
Organization
architecture
supports

8. 12.1 Intro.
Human Resource Management : refers to the activities an organization carries out to utilize its human resources effectively
These activities include:
determining the firm's human resource strategy
staffing
performance evaluation
management development
compensation
labor relations
Success in international business requires that HRM policies be congruent with the firm’s strategy

9. The Strategic Role Of International HRM
Firms need to ensure there is a fit between their human resources practices and strategy
In order to carry out a strategy effectively, employees need the right training, an appropriate compensation package, and a good performance appraisal system

10. The Strategic Role Of International HRM
As shown in in this figure, people are the linchpin of a firm’s organization architecture. For a firm to outperform its rivals in the global marketplace, it must have the right people in the right postings. Those people must be trained appropriately so that they have the skill sets required to perform their jobs effectively, and so that they behave in a manner that is congruent with the desired culture of the firm. Their compensation packages must create incentives for them to take actions that are consistent with the strategy of the firm, and the performance appraisal system the firm uses must measure the behavior that the firm wants to encourage. As indicated in Figure 18.1, the human resource function, through its staffing, training, compensation, and performance appraisal activities, has a critical impact upon the people, culture, incentive, and control system elements of the firm’s organization architecture (performance appraisal systems are part of the control systems in an enterprise). Thus, human resource professionals have a critically important strategic role.
Figure : The Role of Human Resources in Shaping Organizational Architecture

11. 12.2 Staff Policy
Staff Policy: Strategic concerning with selecting employees for particular jobs.
Types of Staff Policy
The ethnocentric approach(种族中心人员配备战略）
Polycentric approach（多中心战略）
Geocentric approach (地理中心战略）
Summary (see table15-1)

12. The ethnocentric approach to staffing policy fills key management positions with parent-country nationals
It makes sense for firms with an international strategy
Firms that pursue an ethnocentric policy believe that:
there is a lack of qualified individuals in the host country to fill senior management positions
it is the best way to maintain a unified corporate culture
value can be created by transferring core competencies to a foreign operation via parent country nationals

13. The ethnocentric staffing policy is no longer popular with most firms because:
it limits advancement opportunities for host country nationals
it can lead to "cultural myopia"

14. 2. The polycentric staffing policy
recruits host country nationals to manage subsidiaries in their own country, and parent country nationals for positions at headquarters
It makes sense for firms pursuing a localization strategy
The polycentric approach:
can minimize cultural myopia
may be less expensive to implement than an ethnocentric policy

15. There are two disadvantages to the polycentric approach:
host country nationals have limited opportunities to gain experience outside their own country and thus cannot progress beyond senior positions in their own subsidiaries.
a gap can form between host country managers and parent country managers

16. 3. The geocentric staffing policy
seeks the best people, regardless of nationality for key jobs
This approach is consistent with building a strong unifying culture and informal management network
It makes sense for firms pursuing either a global or transnational strategy
Immigration policies of national governments may limit the ability of a firm to pursue this policy

17. The geocentric approach:
enables the firm to make the best use of its human resources
builds a cadre of international executives who feel at home working in a number of different cultures
can be limited by immigration laws
is costly to implement

18. Types of Staff Policy

19. 12. 3 Expatriate managers （外派经理人）
Expatriate failure rate
Expatriate selection
1) self-orientation
2) others-orientation
3) perceptual ability
4) cultural toughness

20. 12.4 Training and Management Development
Training for Expatriate managers
Culture training
Language training
Practice training
Repatriation of Expatriate

21. 12.5 Compensation The salary of expatriate Base salary
Foreign service premium
Allowances
Taxation
Benefits