1. Human Resources A Global View March 13, 2008 Buenos Aires, Argentina March 13, 2008 Buenos Aires, Argentina

2. GLOBALIZATION  Tom Friedman book “The World is Flat”  Technology has leveled the playing field  Evolution / Adaptation / Change are necessities  Managerial and Personal Competencies necessary to being successful in a variable environment  Tom Friedman book “The World is Flat”  Technology has leveled the playing field  Evolution / Adaptation / Change are necessities  Managerial and Personal Competencies necessary to being successful in a variable environment

3. CULTURAL VARIABLES  One size doesn’t fit all  Not only basic cultural understanding, but understanding of distinct sub cultures and local norms. Statistics show that 30-40% of American companies and ex-pats fail in a foreign country due to their inability to adapt to the local culture.  EXAMPLES:  Wal-Mart  McDonald’s  Sundays are regular work days in the Middle East  Misassumptions and Mixed Feelings  Poor Technology  Poor Work Ethic  Inferior Academics  Anti-American sentiments  One size doesn’t fit all  Not only basic cultural understanding, but understanding of distinct sub cultures and local norms. Statistics show that 30-40% of American companies and ex-pats fail in a foreign country due to their inability to adapt to the local culture.  EXAMPLES:  Wal-Mart  McDonald’s  Sundays are regular work days in the Middle East  Misassumptions and Mixed Feelings  Poor Technology  Poor Work Ethic  Inferior Academics  Anti-American sentiments

4. BUSINESS OPERATING PHILOSOPHY IN FOREIGN COUNTRIES  Need for experienced people  Local  Ex-Pats  Transferees  Need for Managers who speak English  Need for multi-cultural experience  Need for experienced people  Local  Ex-Pats  Transferees  Need for Managers who speak English  Need for multi-cultural experience

5. HUMAN RESOURCE STRATEGIES / TRENDS  Strategic role of HR in the Company  Business Partner vs. Administrator  Increased emphasis on Safety in the workplace  Outsourcing and Third Party providers  Team building skills development  Technical skills training for skilled labor (in-house vs tech centers)  Managerial or “Executive” coaching / Succession Planning  Team Interviewing  Strategic role of HR in the Company  Business Partner vs. Administrator  Increased emphasis on Safety in the workplace  Outsourcing and Third Party providers  Team building skills development  Technical skills training for skilled labor (in-house vs tech centers)  Managerial or “Executive” coaching / Succession Planning  Team Interviewing

6.  Compensation  Split Pay Systems - good or bad?  Employee profit Plan (for all employes) Example: ENTRY BUDGETMAX EBITDA 1% 2.5%3.5%  Is based on Gross Earnings  Payments made Quarterly  Compensation  Split Pay Systems - good or bad?  Employee profit Plan (for all employes) Example: ENTRY BUDGETMAX EBITDA 1% 2.5%3.5%  Is based on Gross Earnings  Payments made Quarterly HUMAN RESOURCE STRATEGIES / TRENDS

7.  Compensation Trends  Signing Bonuses  Management Incentive Plans  Bonus Banks  Compensation Trends  Signing Bonuses  Management Incentive Plans  Bonus Banks HUMAN RESOURCE STRATEGIES / TRENDS

8. RECRUITING AND SELECTION  The Process and Timelines  Effective Sources / Resources  Posting Sites  Company Web-Sites  Professional Associations  Printed Advertising  Universities  3rd Party Recruiters  Employee Referrals  Pitfalls associated with these resources  “Hot” industries and economic sectors  “Most Wanted” professional competencies  The Process and Timelines  Effective Sources / Resources  Posting Sites  Company Web-Sites  Professional Associations  Printed Advertising  Universities  3rd Party Recruiters  Employee Referrals  Pitfalls associated with these resources  “Hot” industries and economic sectors  “Most Wanted” professional competencies