1. Managing Human Resources in an International Business
Dessler, Cole, and Sutherland
Human Resources Management in Canada
Canadian Ninth Edition 18
Chapter Eighteen
Managing Human Resources in an International Business
© 2005 Pearson Education Canada Inc., Toronto, Ontario
18-1

2. The Internationalization of Business
Three Broad Global HR Challenges
Deployment
of skills
where
needed
Knowledge
and
innovation
dissemination
Identifying
and developing
talent on a
global basis
© 2005 Pearson Education Canada Inc., Toronto, Ontario

3. The Internationalization of Business
Practical Issues
-candidate identification, assessment, selection
-global assignment cost projections
-specific assignment letters
-compensation, benefits, and tax programs
-relocation assistance
-family support
© 2005 Pearson Education Canada Inc., Toronto, Ontario

4. How Intercountry Differences Affect HRM
Cultural factors
Economic factors
Labour cost factors
Industrial relations factors
© 2005 Pearson Education Canada Inc., Toronto, Ontario

5. Improving International Assignments Through Selection
-expatriate selection process must consider:
-family/personal issues
-level of cultural skills
-important success factors are:
-flexibility
-language ability
-family adjustment
© 2005 Pearson Education Canada Inc., Toronto, Ontario

6. Improving International Assignments Through Selection
International Staffing: Sources of Managers
Locals: citizen of country where working
Expatriates: noncitizen of country where working
Home-country nationals: citizens of home/
parent country
Third-country nationals: noncitizen of parent or
host country
© 2005 Pearson Education Canada Inc., Toronto, Ontario

7. Improving International Assignments Through Selection
International Staffing Policy
Ethnocentrism
-home country management style superior to
host country
Polycentrism
-host country management style most appropriate
for host country
Geocentrism
-best managers may be found anywhere
© 2005 Pearson Education Canada Inc., Toronto, Ontario

8. Improving International Assignments Through Selection
Five Important Factors for International Assignee Success
-job knowledge and motivation
-relational skills
-flexibility/adaptability
-extra-cultural openness
-family situation
© 2005 Pearson Education Canada Inc., Toronto, Ontario

9. Improving International Assignments Through Selection
Adaptability Screening
-past experience
-realistic job previews
-paper and pencil tests
eg. Overseas Assignment Inventory
© 2005 Pearson Education Canada Inc., Toronto, Ontario

10. Training and Maintaining International Employees
Orientation and Training
-raise awareness of cultural differences and
their impact
-understand attitudes and their effects on
behaviour
-factual knowledge about target country
-language skills, adjustment and adaptation
© 2005 Pearson Education Canada Inc., Toronto, Ontario

11. Training and Maintaining International Employees
International Compensation (1 of 3)
Balance Sheet Approach
-maintain same standard of living as at home
-base salary
-overseas/foreign service premium
-allowances (housing, education)
© 2005 Pearson Education Canada Inc., Toronto, Ontario

12. Training and Maintaining International Employees
International Compensation (2 of 3)
Incentives
-tied to performance of foreign subsidiary
-builds a sense of ownership among local managers
-attracts and retains overseas managers
© 2005 Pearson Education Canada Inc., Toronto, Ontario

13. Training and Maintaining International Employees
International Compensation (3 of 3)
International EAPs
-help with stress of relocation
-reactions to culture shock include:
-homesickness
-boredom
-depression
-family tension/conflict
© 2005 Pearson Education Canada Inc., Toronto, Ontario

14. Training and Maintaining International Employees
Performance Appraisal
-stipulate difficulty level of assignment
-weight on-site managers’ appraisal higher than
home-site manager
-advice to home-country manager from former
expatriate
-modify performance criteria for overseas situation
-use qualitative as well as quantitative criteria
© 2005 Pearson Education Canada Inc., Toronto, Ontario

15. Training and Maintaining International Employees
International Labour Relations (1 of 2)
-industry/regionally oriented
-locals less autonomous
-employer associations negotiate
-union recognition less formal
-union security less formal
-some collective agreements outside the law
© 2005 Pearson Education Canada Inc., Toronto, Ontario

16. Training and Maintaining International Employees
International Labour Relations (2 of 2)
-brevity of agreements
-grievances less frequent
-strikes less frequent
-less government regulation, more direct intervention
-more worker participation
-works councils
-codetermination
© 2005 Pearson Education Canada Inc., Toronto, Ontario

17. Training and Maintaining International Employees
Safety and Fair Treatment
-kidnapping ‘way of life’ in many areas
-arrive close to airport departure time
-home and car security systems
-vary departure and arrival times for work
-keep up to date on crime
-project confident body language
© 2005 Pearson Education Canada Inc., Toronto, Ontario

18. Training and Maintaining International Employees
Repatriation
-write repatriation agreements
-assign a sponsor
-provide career counseling
-keep communication open
-offer financial support
-develop reorientation programs
-build in return trips
© 2005 Pearson Education Canada Inc., Toronto, Ontario