1. Chapter 16 Hiring and Managing Employees

2. © Prentice Hall, 2008International Business 4e Chapter 16 - 2 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 Chapter Preview

3. © Prentice Hall, 2008International Business 4e Chapter 16 - 3 International H.R.M. Often modified Expatriates Citizens of one country who are living and working in another country Expatriates Citizens of one country who are living and working in another country Recruitment and selection Training and development Compensation Labor relations

4. © Prentice Hall, 2008International Business 4e Chapter 16 - 4 Ethnocentric Staffing 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 – Relocations are expensive – Create “foreign” image for the business Disadvantages Individuals from home country manage operations abroad

5. © Prentice Hall, 2008International Business 4e Chapter 16 - 5 Polycentric Staffing Advantages + Responsibility on those knowing local business + Avoid expensive relocations from home nation – Potentially lose control of subsidiary Disadvantages Individuals from host country manage operations abroad

6. © Prentice Hall, 2008International Business 4e Chapter 16 - 6 Geocentric Staffing Advantages + Develop global managers who can adjust easily to any business environment – These individuals command high salaries Disadvantages Best-qualified individuals, regardless of nationality, manage operations abroad

7. © Prentice Hall, 2008International Business 4e Chapter 16 - 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

8. © Prentice Hall, 2008International Business 4e Chapter 16 - 8 Human Resource Planning Phase 1Phase 2Phase 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 Forecasting human resource needs and supply

9. © Prentice Hall, 2008International Business 4e Chapter 16 - 9 Recruiting Human Resources Recent college graduates Recent college graduates Local managerial talent Local managerial talent Nonmanagerial workers Nonmanagerial workers Current employees Current employees Process of identifying and attracting a qualified pool of applicants for vacant positions

10. © Prentice Hall, 2008International Business 4e Chapter 16 - 10 Selecting Human Resources  Ability to bridge cultural differences is key  Expatriates must adapt to new ways of life  Cultural sensitivity raises odds for success Process of screening and hiring the best-qualified applicants with the greatest performance potential

11. © Prentice Hall, 2008International Business 4e Chapter 16 - 11 Stage I: Thrilling experience Stage II: Downward slide Stage III: Recovery begins Stage IV: Embrace local culture Culture Shock Psychological process affecting people living abroad that is characterized by homesickness, irritability, confusion, aggravation, and depression

12. © Prentice Hall, 2008International Business 4e Chapter 16 - 12 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 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 Home-culture reorientation programs Career-counseling sessions Career-development program before posting abroad

13. © Prentice Hall, 2008International Business 4e Chapter 16 - 13 Cultural Training Methods

14. © Prentice Hall, 2008International Business 4e Chapter 16 - 14 Compiling a Cultural Profile CultureGrams Background Notes Country Studies Area Handbooks

15. © Prentice Hall, 2008International Business 4e Chapter 16 - 15 Nonmanagerial workers Managerial employees Employee Compensation Bonus and tax incentives Bonus and tax incentives Cultural and social factors Cultural and social factors Greater labor mobility in some markets Greater labor mobility in some markets Cost-of-livingeffectsCost-of-livingeffects Greater cross-border investment investment

16. © Prentice Hall, 2008International Business 4e Chapter 16 - 16 Labor-Management Relations Rooted in local culture Often affected by political movements Directly influences workers’ lives Positive or negative condition of relations between a company’s management and its workers

17. © Prentice Hall, 2008International Business 4e Chapter 16 - 17 Can affect selection of a location Can affect selection of a location Can affect company performance in a market Can affect company performance in a market Popularity of emerging markets in Asia Popularity of emerging markets in Asia Union power declining across much of Europe Union power declining across much of Europe Importance of Labor Unions

18. © Prentice Hall, 2008International Business 4e Chapter 16 - 18 But generating support can be difficult because: Events in distant lands difficult to comprehend Workers in different nations often compete International Labor Movements International activities of unions are making progress in improving treatment of workers and reducing child labor

19. © Prentice Hall, 2008International Business 4e Chapter 16 - 19 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 Chapter Review