1. INTERNATIONAL HUMAN RESOURCE MANAGEMENT

2. COMPONENTS OF HRM Recruitment Selection Training & Development
Performance Appraisal
Compensation
Labor Relations

3. INTERNATIONAL HRM (IHRM)
Basic HRM issues remain
Must choose a mixture of international employees
How much to adapt to local conditions?

4. EMPLOYEES IN MULTINATIONAL ORGANIZATIONS
Host country nationals
Expatriates
Home country nationals
Third country nationals
Inpatriates

5. MULTINATIONAL MANAGERS
Host country or expatriate?

6. USING HOST COUNTRY MANAGERS
Do they have the expertise for the position?
Can we recruit them from outside the company?

7. USING EXPATRIATE MANAGERS
Do parent country managers have the appropriate skills?
Are they willing to take expatriate assignments?
Do any laws affect the assignment of expatriate managers?

8. IS THE EXPATRIATE WORTH IT?
High cost
High failure rate

9. EXHIBIT 11.1 PAYING FOR THE EXPATRIATE MANAGER

10. REASONS FOR U.S. EXPATRIATE FAILURE
Spouse fails to adapt
Manager fails to adapt
Other problems within the family
Personality of the manager
Level of responsibilities

11. Reasons for expatriate failure, continued
Lack of technical proficiency
No motivation for assignment

12. MOTIVATIONS TO USE EXPATS
Managers acquire international skills
Coordinate and control operations dispersed activities
Communication of local needs/strategic information to headquarters

13. KEY EXPATRIATE SUCCESS FACTORS
Professional/technical competence
Relational abilities
Motivation
Family situation
Language skills
Willingness to accept position

14. PRIORITY OF SUCCESS FACTORS
Depends on :
assignment length
cultural distance
amount of required interaction with local people
job complexity/responsibility

15. EXPATRIATE TRAINING

16. TRAINING RIGOR
The extent of effort by trainees and trainers required to prepare the trainees for expatriate positions

17. LOW RIGOR TRAINING Short time period Lectures Videos on local culture
Briefings on company operations company operations

18. HIGH RIGOR TRAINING Lasts over a month Experiential learning
Extensive language training
Often includes interactions with host country nationals

19. EXHIBIT 11.4 SHOWS VARIOUS TRAINING TECHNIQUES AND THEIR OBJECTIVES AS THE RIGOR OF THE CROSS- CULTURAL TRAINING GROWS

23. CHALLENGES OF EXPATRIATE PERFORMANCE APPRAISAL
Unreliable data
Complex and volatile environments
Time differences and distance separation
Local cultural situations

24. STEPS TO IMPROVE THE PROCESS
1. Fit the evaluation criteria to strategy. 2. Fine tune the evaluation criteria 3. Use multiple evaluators with varying periods of evaluation

25. EXPATRIATE COMPENSATION

26. THE BALANCE SHEET APPROACH
Provides a compensation package that equates purchasing power

27. BALANCE SHEET COSTS
Allowances for cost of living, housing, utilities, furnishing, educational expenses, medical expenses, club memberships, and car and/or driver expenses

28. OTHER APPROACHES Parent country wages everywhere
Wean expatriates from allowances
Pay based on local or regional markets
Cafeteria selection of allowances
Global pay systems

29. THE REPATRIATION PROBLEM
Difficult for many organizations
"Reverse culture shock"
Expatriates must relearn own national and organizational culture
Includes whole family

30. STRATEGIES FOR SUCCESSFUL REPATRIATION PROVIDE:
A strategic purpose for repatriation
A team to aid the expatriate
Home country information sources
Training and preparation for the return
Support for expatriate and family

31. WOMEN EXPATRIATES: TWO IMPORTANT "MYTHS"
Myth 1: women do not wish to take international assignments
Myth 2: women will fail in international assignments because of the foreign culture's prejudices against local women

32. SUCCESSFUL WOMEN EXPATRIATES
Foreign not female
emphasize nationality not gender
The woman's advantage
strong in relational skills
wider range of interaction options

33. MULTINATIONAL STRATEGY AND IHRM

34. IHRM ORIENTATIONS
Ethnocentric
Polycentric
Regiocentric
Global

35. IHRM ORIENTATION AND MULTINATIONAL STRATEGY
Early stages of internationalization = ethnocentric IHRM
Multilocal strategies = ethnocentric or regiocentric
Regional strategy = closer to the global

36. International strategy = ethnocentric or polycentric IHRM
Transnational strategies = a global IHRM

37. CONCLUSIONS HRM functions IHRM challenges Expatriate managers
The role of women in multinational organizations
Multinational strategies and IHRM orientations