1. HRM in the Local Context: When and How to Adapt Chapter 11, Part 1

2. The National Context of HRM Education and training of the labor pool Laws and cultural expectations for selection practices Impact on women and ethnic minorities Types of jobs favored by applicants Laws and cultural expectations regarding fair wages and promotion criteria Laws and traditions regarding labor practices

3. Human Resources Management (HRM) and HRM Functions HRM: deals with the entire relationship of the employee with the organization Recruitment: process of identifying and attracting qualified people to apply for vacant positions Selection: process of filling vacant positions in the organization

4. HRM Functions (2) Training and development: giving employees the knowledge, skills, and abilities to perform successfully Performance appraisal: system to measure and assess employees’ work performance

5. HRM Functions (3) Compensation (pay and benefits): organization’s entire reward package, including financial rewards, benefits, and job security Labor relations: ongoing relationship between an employer and those employees represented by labor organizations

6. Recruitment Strategies Used Around the World Walk-ins or unsolicited applications Newspaper or Internet advertisement Company Web site job posting Internal job postings Public and private personnel agencies Placement services of educational institutions Current employee recommendations

7. Exhibit 11.2: Steps in the Recruiting Process

8. Recruitment in Korea and Japan Backdoor recruitment: prospective employees are friends or relatives of those already employed Hourly employees from certain high schools may be preferred Managers are recruited from prestigious universities.

9. How People Prefer to Find Jobs Employment Agencies People in English speaking countries tend to use private employment agencies French applicants use both public and private employment agencies Public employment agencies are preferred in Former Communist and socialist countries Scandinavian countries (Ex: Norway, Sweden)

10. How People Prefer to Find Jobs Advertisements and the Internet Advertising in newspapers and responding to newspaper ads Both very public forms of recruitment People in individualistic societies are more likely to use these methods Use of the Internet is probably more popular in individualistic societies than in collectivist societies

11. How People Prefer to Find Jobs Application Methods People in individualistic and high femininity societies more likely to apply for a job directly People in collectivist or socialist societies are more likely to get help from friends or family members Japan, Korea, and other East Asian countries Latin America

12. Selection in the U.S. Job qualifications are laid out in a job description Match skills and job requirements Individual achievements are the basis for selection Prohibitions against nepotism - the hiring of family members Forbidding managers to supervise family members Laws against discriminating on the basis of race or ethnic background, gender, age, or disability Reasonable accommodations must be made to allow a disabled person to work if he or she is qualified for the job.

13. Exhibit 11.7: Typical Steps in U.S. Personnel Selection

14. Selection in Collectivist Cultures Based on the in-group. This is believed to reduce risks of hiring the wrong person. Value potential trustworthiness, reliability, and loyalty over performance-related background Preference for family In large companies, high school and university ties substitute for family membership In Japan and Korea, young men are preferred because they can be taught company values and are believed to be more dedicated workers than women.

15. Implications for the Multinational: Recruitment and Selection Managers must often follow local norms to get best workers Evaluate costs and benefits of following local traditions

16. Training and Development Need for training and development varies by country Differences in training and development due to Differences in educational systems Values regarding educational credentials Cultural values regarding other personnel practices

17. Training and Development in the U.S. Senior level managers often identify managerial potential Appraisals of managerial readiness based on Assessment centers Mentoring “Fast track” careers Remains the responsibility of the individual

18. Exhibit 11.10: Skills Taught by U.S. Organization

19. Training and Development in Mexico

20. Training for Skilled Workers in Germany 1. Dual system: combination of company apprenticeship training and part-time vocational school training. Leads to a skilled worker certificate and employment as a skilled worker 2. College level training in a Fachschule (vocational college Leads to employment as a Meister (master technician)

21. Training Skilled Workers in Germany

22. HRM in Japan Permanent employment for 15-18% of work force Permanent (usually male), full-time employees of large companies Recruitment directly from universities Recruits join the company as a group New recruits are often liberal arts graduates Selected on personal qualities that fit the corporate culture Rotation among different jobs is an important part of training and development Similar pay and promotion for first 10 years—age seniority

23. HRM in Japan A manager who is performing poorly may be transferred to a more appropriate job in a related company or supplier (also done in Korea). Lifetime employment usually ends at age 55. Manager may be offered part-time employment or a transfer to a related company, usually a supplier Almost half a manager's compensation is based on bonuses, which are given twice a year When profits are low, bonuses are also low. Small companies often have to lay off workers during economic recessions

24. HRM in Japan Pressures for change Asahi ties promotions to evaluations Matsushita uses merit pay for managers Honda is phasing out seniority Fewer new college graduates are being hired Toyota established a training center in Tokyo for their U.S. managers