1. Human Resource Management
International
Human Resource Management
Good Evening – March 17th, 2011

2. Human Resource Management (HRM)
Refers to the activities an organization carries out to use its human resources effectively
Four major tasks of HRM
A) Staffing policy
B) Management training and development
C) Performance appraisal
D) Compensation policy

3. International Human Resource Management (IHRM)
Strategic role: HRM policies should be congruent with the firm’s strategy and it’s formal and informal structure and controls
Right People, Right Place, Right Time
Task complicated by profound differences between countries in labor markets, culture, legal and economic systems

4. Implications for Managers
What are the factors that would effect the choice and nature of H.R. policies in an international organization?

5. Main challenges in IHRM
High failure rates of expatriation and repatriation
Deployment – getting the right mix of skills in the organization regardless of geographical location
Knowledge and innovation dissemination – managing critical knowledge and speed of information flow
Talent identification and development – identify capable people who are able to function effectively
Barriers to women in IHRM
International ethics
Language (e.g. spoken, written, body)

6. Main challenges in IHRM
Different labor laws
Different political climate
Different stage(s) of technological advancement
Different values and attitudes e.g. time, achievement, risk taking
Roles of religion e.g. sacred objects, prayer, taboos, holidays, etc
Educational level attained
Social organizations e.g. social institutions, authority structures, interest groups, status systems

7. Types of “International" Organizations
International organization:Any organization that exports to/ imports from organizations in other countries with primarily domestic production –Multidomestic.
Multinational organization: An organization with operations in different countries but each is viewed as a relatively separate enterprise.
Global organization: An enterprise structured so that national boundaries become blurred. The best people are hired irrespective of national origin, Transnational.

8. Global Staffing Issues
Selecting candidates for overseas assignment
Assignment terms and documentation
Relocation processing and vendor management
Immigration processing
Cultural and language orientation and training
Compensation administration and payroll processing
Tax administration
Career planning and development
Handling of spouse and dependent matters

9. Expatriates
An employee sent by his/her company in one country to work in a different country.

10. The Use of Expatriates Reliance on expatriates increase when:
Sufficient local talent is not available.
An important part of the firm’s overall business is the creation of a corporate global vision.
International units and domestic operations are highly interdependent.
The political situation is unstable.
There are significant cultural differences between the host country and the home country.

11. Use of Expatriates Why do International Assignments Fail?
Career blockage (“the home office has forgotten about me”)
Culture Shock, resulting in frustration and poor cooperation abroad.
Family problems, due to poor adjustment and/or lack of contact if family is left behind.
Over-emphasis on technical qualifications.
Getting rid of a problem employee.

12. Use of Expatriates Over-emphasis on technical qualifications.
Why do International Assignments Fail? (con’t)
Over-emphasis on technical qualifications.
Getting rid of a problem employee.

13. The Roles of an Expatriate
Agent of direct control
Agent of socialization
Network builder
Boundary spanner
Language node
Expatriate’s home location
Foreign Location

14. Satisfaction Time of Arrival Level of Satisfaction First arrive High
Few months Lower
After 2 years Higher than previous
-Similar Language and religion are important factors for satisfaction
-People over 35 yrs - higher level of satisfaction after 1st year
-Men adjust faster to overseas assignments than women

15. Cross-Cultural Adjustment
Expatriates must adjust to new work situation, interactions with locals, and new general environment
Company can facilitate adjustment by providing training for expatriates and their families before and during the assignment
Expatriates often experience cultural shock (psychological disorientation)

16. Factors Important in International Assignee Success
I. Job Knowledge
and Motivation
Managerial & organizational ability
Imagination, creativity
Administrative skills
Alertness
Responsibility
Industriousness
Initiative and energy
High motivation
Frankness
Belief in mission and job
Perseverance
II. Relational Skills
Courtesy
Display of respect
Kindness
Empathy
Non-judgmentalness
Integrity
Confidence
Source: Adapted from Arthur Winfred Jr., and Winston Bennett Jr., “The International Assignee: The Relative Importance of Factors Perceived to Contribute to Success,” Personnel Psychology 18 (1995), pp. 106–107.

17. IV. Extracultural Openness
Factors Important in International Assignee Success
III. Flexibility/
Adaptability
Resourcefulness
Ability to deal with stress
Flexibility
Emotional stability
Willingness to change
Tolerance for ambiguity
Independence
Dependability
Political sensitivity
Positive self-image
IV. Extracultural Openness
Variety of outside interests
Interest in foreign cultures
Openness
Local language [s] known
Outgoingness & extroversion
Overseas experience
V. Family Situation
Adaptability of spouse and family
Spouse’s positive opinion
Willingness of spouse to live abroad
Stable marriage

18. Environmental Briefings
Cross Cultural Training Programs
Environmental Briefings
Cultural Orientation
Language Training
Sensitivity Training
Field Experience

19. Compensation Two issues:
Pay executives in different countries according to the standards in each country? or
Equalize pay on a global basis?
Method of payment

20. Components of Expatriate Pay
Base Salary
Same range as a similar position in the home country
Foreign service premium
Extra pay for work outside country of origin
Allowances
Hardship, housing, cost-of-living and education allowances
Taxation
Firm pays expatriate’s income tax in the host country
Benefits
Level of medical and pension benefits identical overseas

21. Typical Expatriate Benefits & Incentives
Overseas premium
Housing allowance
Cost of living allowance (COLA)
Moving expenses
Tuition for dependent education
Home leave
Tax reimbursement plans
Hardship allowances
Mobility premiums

22. Appraising Expatriate Managers
Challenges in appraising overseas managers
Determining who should appraise the manager.
Deciding on which factors to base the appraisal.
Job abroad may include more than what it does at home

23. Guidelines for Performance Appraisal
More weight given to onsite
manager’s evaluation.
Expat who worked in same
location should assist home-office
manager with evaluation.
If foreign on-site manager preparing
evaluation, home-office manager should
be consulted before finalization.

24. A BIG THANK YOU TO ALL….