1. Hiring and Managing Employees

2. List the pros and cons of each staffing policy Identify the key international recruitment and selection issues Explain international training and development programs Discuss the international compensation of managers and workers Describe labor-management relations globally Chapter Preview

3. © Prentice Hall, 2006International Business 3e Chapter 16 - 3 International H.R.M. Expatriates - Citizens of one country who are living and working in another country Often modified - Recruitment and selection - Training and development - Compensation - Labor relations

4. © Prentice Hall, 2006International Business 3e Chapter 16 - 4 Ethnocentric Staffing Individuals from home country manage operations abroad Advantages - Tight control over subsidiaries - Locally qualified people not always available - Re-create local operations in home-office image - Interests of home office may be better protected Disadvantages - Relocations are expensive - Create “foreign” image for the business

5. © Prentice Hall, 2006International Business 3e Chapter 16 - 5 Polycentric Staffing Individuals from host country manage operations abroad Advantages - Responsibility on those knowing local business - Avoid expensive relocations from home nation Disadvantage - Potentially lose control of subsidiary

6. © Prentice Hall, 2006International Business 3e Chapter 16 - 6 Geocentric Staffing Best-qualified individuals, regardless of nationality, manage operations abroad Advantages - Develop global managers who can adjust easily to any business environment Disadvantage - These individuals command high salaries

7. © Prentice Hall, 2006International Business 3e Chapter 16 - 7 Tips for Small Businesses Expanding internationally can severely strain the resources of small firms: - Don’t entrust local operations solely to US expatriates - Local contacts don’t guarantee contracts - Treat employees abroad as you want to be treated - Employ the Web in your talent search

8. © Prentice Hall, 2006International Business 3e Chapter 16 - 8 Human Resource Planning Forecasting human resource needs and supply Phase 1 - Take inventory of current human resources Phase 2 - Estimate firm’s future human resource needs Phase 3 - Develop plan to recruit and select people for vacant and anticipated new positions

9. © Prentice Hall, 2006International Business 3e Chapter 16 - 9 Recruiting Human Resources Process of identifying and attracting a qualified pool of applicants for vacant positions - Current employees - Recent college graduates - Local managerial talent - Nonmanagerial workers

10. © Prentice Hall, 2006International Business 3e Chapter 16 - 10 Selecting Human Resources Process of screening and hiring the best-qualified applicants with the greatest performance potential - Ability to bridge cultural differences is key - Expatriates must adapt to new ways of life - Cultural sensitivity raises odds for success

11. © Prentice Hall, 2006International Business 3e Chapter 16 - 11 Culture Shock Psychological process affecting people living abroad that is characterized by homesickness, irritability, confusion, aggravation and depression - Stage I: Thrilling experience - Stage II: Downward slide - Stage III: Recovery begins - Stage IV: Embrace local culture

12. © Prentice Hall, 2006International Business 3e Chapter 16 - 12 Reverse Culture Shock Psychological process of readapting to one’s home culture - Once-natural thoughts and feelings now strange - Can be more unsettling than culture shock - Many companies reabsorb expatriates poorly Methods of reducing its effects - Home-culture reorientation programs - Career-counseling sessions - Career-development program before posting abroad

13. © Prentice Hall, 2006International Business 3e Chapter 16 - 13 Cultural Training Methods Extent of managers’ international involvement - Field experience - Language training - Sensitivity training - Cultural assimilation - Cultural orientations - Environmental briefings

14. © Prentice Hall, 2006International Business 3e Chapter 16 - 14 Compiling a Cultural Profile CultureGrams Country Studies Area Handbooks Background Notes

15. © Prentice Hall, 2006International Business 3e Chapter 16 - 15 Employee Compensation Managerial employees - Cost-of-living effects - Bonus and tax incentives - Cultural and social factors Nonmanagerial workers - Greater cross-border investment - Greater labor mobility in some markets

16. © Prentice Hall, 2006International Business 3e Chapter 16 - 16 Labor-Management Relations Positive or negative condition of relations between a company’s management and its workers - Rooted in local culture - Often affected by political movements - Directly influences workers’ lives

17. © Prentice Hall, 2006International Business 3e Chapter 16 - 17 Importance of Labor Unions Can affect selection of a location Popularity of emerging markets in Asia Can affect company performance in a market Union power declining across much of Europe

18. © Prentice Hall, 2006International Business 3e Chapter 16 - 18 International Labor Movements International activities of unions are making progress in improving treatment of workers and reducing child labor But generating support can be difficult because: - Events in distant lands difficult to comprehend - Workers in different nations often compete