1. International Human Resources Management
Managing Human Resources - Unit 15
International Human Resources Management
Copyright © 2011 by Nelson Education Ltd.

2. Managing Human Resources - Unit 15
Learning Outcomes
After studying this chapter, you should be able to:
Identify the types of organizational forms used for competing internationally.
Explain the economic, political-legal, and cultural factors in different countries that HR managers need to consider.
Explain how domestic and international HRM differ.
Discuss the staffing process for individuals working internationally.
Identify the unique training needs for international assignees and their employees.
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

3. Learning Outcomes (Cont’d)
Managing Human Resources - Unit 15
Learning Outcomes (Cont’d)
Identify the characteristics of a good international compensation plan.
Reconcile the difficulties of home- and host-country performance appraisals.
Explain how labour relations differ around the world.
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

4. Increasing Importance of Global Human Resource Understanding
Global Competition
International Mergers and Acquisitions
Foreign Human Resources
Market Access
Opportunities
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5. Managing Across Borders
Domestic firm that uses its existing capabilities to move into overseas markets.
International corporation
Firm with independent business units operating in multiple countries.
Multinational corporation (MNC)
Firm that has integrated worldwide operations through a centralized home office.
Global corporation
Firm that attempts to balance local responsiveness and global scale via a network of specialized operating units.
Transnational corporation
Copyright © 2011 by Nelson Education Ltd.

6. Managing Human Resources - Unit 15
Figure 15.1 Types of Organizations
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

7. How International Companies Affect the World Economy
Managing Human Resources - Unit 15
How International Companies Affect the World Economy
Their production and distribution extend beyond national boundaries, making it easier to transfer technology.
They have direct investments in many countries, affecting the balance of payments.
They have a political impact that leads to cooperation among countries and to the breaking down of barriers of nationalism.
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

8. How Does the Global Environment Influence Management?
Managing Human Resources - Unit 15
How Does the Global Environment Influence Management?
Unified Economies
Cultural Environment
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Copyright © 2011 by Nelson Education Ltd.

9. Managing Human Resources - Unit 15
Figure 15.2 Cultural Environment of International Business
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Copyright © 2011 by Nelson Education Ltd.

10. Domestic versus International HRM
Managing Human Resources - Unit 15
Domestic versus International HRM
Issues in international HRM in helping employees adapt to a new and different environment outside their own country:
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

11. International Staffing
Employees from the home country who are on international assignment.
Expatriates, or Home-country Nationals
Employees who are natives of the host country.
Host-country Nationals
Employees who are natives of a country other than the home country or the host country.
Third-country Nationals
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12. Advantages of Host Country Nationals
Hiring local citizens is generally less costly than relocating expatriates.
Since local governments usually want good jobs for their citizens, foreign employers may be required to hire locally.
Most customers want to do business with companies they perceive to be local versus foreign.
Advantages of Host Country Nationals
Copyright © 2011 by Nelson Education Ltd.

13. Advantages of Expatriates
Talent available within the company
Greater control over managers
Company experience
Mobility
Development opportunities for managers
Advantages of Expatriates
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14. Third Country National
Broad experience
International outlook
Multilingual
Advantages of
Third Country National
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15. Recruiting Internationally
Managing Human Resources - Unit 15
Recruiting Internationally
Work Permit, or Visa
Guest Workers
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

16. Selecting Global Managers
Managing Human Resources - Unit 15
Selecting Global Managers
Begin with self-selection.
Create a candidate pool.
Assess core skills.
Assess augmented skills and attributes.
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

17. Training and Development
Managing Human Resources - Unit 15
Training and Development
Essential training program content to prepare employees for working internationally
Culture shock
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

18. Managing Human Resources - Unit 15
Figure 15.9 A Synthesis of Country Clusters
Source: Simcha Ronen and Oded Shenkar, “Clustering Countries on Attitudinal Dimensions: A Review and Synthesis,” Academy of Management Review 10, no. 3 (July 1985): 435–54. Copyright © 1985 by Academy of Management Review. Reprinted with permission of the Academy of Management Review via Copyright Clearance Center.
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

19. Returning from an Overseas Assignment
Managing Human Resources - Unit 15
Returning from an Overseas Assignment
Repatriation
The process of an employee transitioning home from an international assignment.
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Copyright © 2011 by Nelson Education Ltd.

20. Managing Human Resources - Unit 15
Training Methods
Reviewing available information about the host company: books, magazines, video tapes.
Conversations with host country natives.
Sensitivity training to become familiar with the customs and overcome prejudices.
Temporary assignments to encourage shared learning.
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

21. Managing Human Resources - Unit 15
Compensation
Different countries have different norms for employee compensation.
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

22. Compensation of Host-Country Employees
Managing Human Resources - Unit 15
Compensation of Host-Country Employees
Hourly wages vary dramatically from country to country.
Pay periods are different.
Seniority may be an important factor.
High pay rates can upset local compensation practices.
Bonuses, profit-sharing, benefits and paid leave may be more extensive and legally required.
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

23. Compensation of Expatriate Managers
Managing Human Resources - Unit 15
Compensation of Expatriate Managers
Provide an incentive to leave Canada
Allow for maintaining a N.A. standard of living
Provide for security in countries that are politically unstable or present personal dangers
Include provisions for good healthcare
Provide for the education of children
Consider foreign taxes the employee is likely to have to pay (in addition to domestic taxes) and help with tax forms and filing
Allow for maintaining relationships with family, friends, and business associates
Facilitate reentry home
Have a written agreement
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

24. Expatriate Compensation Systems
Managing Human Resources - Unit 15
Expatriate Compensation Systems
Home-Based Pay
Balance-Sheet Approach
Split Pay
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Copyright © 2011 by Nelson Education Ltd.

25. Performance Appraisal of International Managers
Managing Human Resources - Unit 15
Performance Appraisal of International Managers
Who Should Appraise Performance?
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Copyright © 2011 by Nelson Education Ltd.

26. Assessing Performance
Different evaluation criteria
Additional job duties
Individual learning
Organizational learning
Providing feedback
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27. International Organizations and Labour Relations
Managing Human Resources - Unit 15
International Organizations and Labour Relations
International Differences in Unions
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Copyright © 2011 by Nelson Education Ltd.

28. HR approaches to Labour Relations
Hands off
Monitor
Guide and advise
Strategic planning
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