1. Chapter 16 Hiring and Managing Employees

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

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

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

15. 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

16. 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

17. 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

18. 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

19. 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