1. © 2002 Thomson Learning, Inc. CHAPTER 18 International Human Resource Management Text by Profs. M. Czinkota, I. Ronkainen, and M. Moffett Multimedia Presentation by Prof. Milton Pressley The University of New Orleans milton.pressley@uno.edu

2. © 2002 Thomson Learning, Inc. To describe the challenges of managing managers and labor personnel both in individual international markets and in worldwide operations To describe the challenges of managing managers and labor personnel both in individual international markets and in worldwide operations To examine the sources, qualifications, and compensation of international managers To examine the sources, qualifications, and compensation of international managers To assess the effects of culture on managers and management policies To assess the effects of culture on managers and management policies To illustrate the different roles of labor in international markets, especially that of labor participation in management To illustrate the different roles of labor in international markets, especially that of labor participation in management LEARNING OBJECTIVES

3. © 2002 Thomson Learning, Inc. Managing Managers Early Stages of Internationalization Early Stages of Internationalization Advanced Stages of Internationalization Advanced Stages of Internationalization © PhotoDisc

4. © 2002 Thomson Learning, Inc. Figure 18.1 – An Example of an International Management Development System

5. © 2002 Thomson Learning, Inc. Managing Managers Interfirm Cooperative Ventures Interfirm Cooperative Ventures Sources for Management Recruitment Sources for Management Recruitment Expatriates Expatriates © PhotoDisc

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7. Managing Managers Lingua Franca Lingua Franca Selection Criteria for Overseas Assignments Selection Criteria for Overseas Assignments © PhotoDisc

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9. Managing Managers Competence Factors Competence Factors Factual Cultural Knowledge Factual Cultural Knowledge Area Expertise Area Expertise Adaptability Factors Adaptability Factors Interpretive Knowledge Interpretive Knowledge Personal Characteristics Personal Characteristics The Selection and Orientation Challenge The Selection and Orientation Challenge Adaptability Screening Adaptability Screening Orientation Program Orientation Program © PhotoDisc

10. © 2002 Thomson Learning, Inc. Figure 18.2 – Companies Offering Cultural Training

11. © 2002 Thomson Learning, Inc. Managing Managers Culture Shock Culture Shock Causes and Remedies Causes and Remedies © PhotoDisc

12. © 2002 Thomson Learning, Inc. Figure 18.3 – Culture Shock Cycle for an Overseas Assignment

13. © 2002 Thomson Learning, Inc. Managing Managers Initial Euphoria Initial Euphoria Irritation and Hostility Irritation and Hostility Adjustment Adjustment Reentry Reentry Terrorism: Tangible Culture Shock Terrorism: Tangible Culture Shock Repatriation Repatriation © PhotoDisc

14. © 2002 Thomson Learning, Inc. Managing Managers Compensation Compensation Base Salary and Salary-Related Allowances Base Salary and Salary-Related Allowances Cost of living allowance (COLA) Cost of living allowance (COLA) Foreign service premium Foreign service premium Hardship allowances Hardship allowances Housing allowances Housing allowances Tax-equalization Tax-equalization © PhotoDisc

15. © 2002 Thomson Learning, Inc. Managing Managers Nonsalary-Related Allowances Nonsalary-Related Allowances Education Allowance Education Allowance Method of Payment Method of Payment Compensation of Host-Country Nationals Compensation of Host-Country Nationals © PhotoDisc

16. © 2002 Thomson Learning, Inc. Managing Labor Personnel Labor Participation in Management Labor Participation in Management Labor Participation in Decision Making Labor Participation in Decision Making © PhotoDisc

17. © 2002 Thomson Learning, Inc.

18. Managing Labor Personnel Self-management Self-management Codetermination Codetermination Minority participation Minority participation Works councils Works councils Improvement of Quality of Work Life Improvement of Quality of Work Life Work redesign programs Work redesign programs Team building Team building Quality circles Quality circles Work scheduling Work scheduling Flextime Flextime © PhotoDisc

19. © 2002 Thomson Learning, Inc. Managing Labor Personnel The Role of Labor Unions The Role of Labor Unions Human Resource Policies Human Resource Policies © PhotoDisc