3 IHRM INFOERA Assignment 2 answer example .ppt

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    Introduction: Define international human resource management

    (IHRM)

    Understand ho cor!orate strateg" influences IHRM

    #$!lain the ma%or IHRM functions& recruitment andselection' training and deelo!ment' !erformanceealuation' com!ensation and enefits' and laorrelations

    Discuss additional s!ecial concerns of managinge$!atriate em!lo"ees

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    International Human

    Resource Management

    (IHRM) The management of human resources

    in global corporations

    The management of expatriate

    employees

    The comparison of human resource

    management (HRM) practices in a

    variety of different countries

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     +!!roaches to Managing

    and ,taffing ,usidiaries Ethnocentric

    Home country approach

    olycentric

    !ocal approach

    Regiocentric

    Regional approach

    "eocentric#"lobal

    "lobal approach

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    .hoosing an +!!roach to

    IHRM

    $orporate international strategy olitical and legal concerns

    !evel of development in foreign locations Technology and the nature of the product %rgani&ational life cycle 'ge and history of the subsidiary %rgani&ational and national cultural

    differences

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    Recruitment and ,election

    rocesses through hich an organi&ation

    taes in ne members

    Recruitment'ttracting a pool of *ualified applicants for

    the positions available

    +election

    $hoosing the candidate hose

    *ualifications most closely match the ,ob

    re*uirements 

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    .lassif"ing #m!lo"ees

    arent $ountry -ational ($-) Host $ountry -ational (H$-)

    Third $ountry -ational (T$-)

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    he Influence of Managing

    and ,taffing +!!roaches Ethnocentric approach

    $-.s usually staff important

    positions at head*uarters and

    subsidiaries

    olycentric approach

    H$-.s generally or in foreign

    subsidiaries

    $-.s manage head*uarters

    positions

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    he Influence of Managing

    and ,taffing +!!roaches Regiocentric approach$-.s and managers from the

    region/either H$-.s or T$-.s/

    staff regional head*uarterspositions

    H$-0s primarily staff localsubsidiaries

    "eocentric approach$hooses the most suitable person

    for a position

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    ,electing the Right

    .andidate

    -eed a balance beteen internal

    corporate consistency and

    sensitivity to local labor practices

    $onsider cultural values

    Must comply ith local labor las

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    raining and Deelo!ment

    lanned individual learning1organi&ation development1 and

    career development

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    Delier" of 4rograms

    5orldide

    $entrali&edEthnocentric 2 training originates

    at head*uarters and corporatetrainers travel to subsidiaries"eocentric 3 training develops

    through input from both

    head*uarters and subsidiary staffand trainers could be from anylocation

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    Delier" of 4rograms

    5orldide

    4ecentrali&ed

    Training on a local or regional basis

    !ocal people develop trainingmaterials and techni*ues for use in

    their on area

    Effective training considers culturalbacground of trainees

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    Deelo!ing 6loall" Minded

    Managers

    $ompanies hose $E%0s have

    international assignment

    experience are better performers $ompanies must identify managers

    ith global potential and provide

    them various training and

    development opportunities 

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    erformance Evaluation

    +ystematic appraisal of

    employees. performance ithin the

    organi&ation  4epends on overall HRM strategy

    +hould consider cultural

    influences

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    .om!ensation and 7enefits

    4evelops and administers the salary

    system and other forms of remuneration

    $ompensation and benefit levels reflect

    local labor maret conditions

    $ompany usually develops policy to

    offer salaries and benefits representing a

    specific maret level $ulture influences value put on various

    compensation and benefit practices

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    aor Relations

    Identifies and defines the roles of

    management and orers in the

    orplace

    In many countries1 governmentregulated

    5nions organi&ed at the local1 company1

    regional (ithin country)1 or national

    level

    -umber of orers ithin a country ho

    are union members varies 

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    Managing #$!atriates

    Must deal ith the complexities of

    employing and moving people

    outside of their home countries $ost a ma,or factor 

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    #$!atriate 9ailure Rates

    -umber ho do not remain abroad

    for the duration of their assignment

    6aries by country and gender  7ailure rate correlated ith the

    rigor of selection and training

    procedures

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    #$!atriate ,election

    8estern European1 9apanese

    multinationals emphasi&e technical

    competence and ability to acclimate

    -orth 'merican corporations select

    mainly on technical competence

    ehaviors successful at home may not

    or abroad revious experience abroad may or may

    not predict future success

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    .ross-.ultural raining

    Methods

    Explain the ma,or aspects of the host country

    culture1 including customs1 traditions1 every day

    behaviors;

    Explain the history1 geography1 economy1

    politics1 and other general information about the

    host country and region;

    ortray a real3life situation in business orpersonal life to illustrate some aspect of living

    or oring in the host culture;

    $ultural riefings

     

    'rea riefings

    $ases

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    .ross-.ultural raining

    Methods

    Role laying

    $ulture 'ssimilator 

    7ield Experiences

    'llos the trainee to act out a situation that he

    or she might face in living or oring in the

    host country;

    rovides a ritten set of situations that the

    trainee might encounter in living or oring in

    the host country; Trainee selects one from a set

    of responses to the situation and is given

    feedbac as to hether it is appropriate and hy;

    rovide an opportunity for the trainee to go to

    the host country or another unfamiliar culture to

    experience living and oring for a short time;

    H ,i i l 9 I fl h

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    Ho ,ituational 9actors Influence the

    ,election of a .. Method

    4egree of Training

    Rigor 

    High

    !o

    High

    !o

    !o  High

    $lassroom !anguage Training

    7ilms7'$T5'!

    oos!ectures

    'rea riefings

    $ase +tudies$ulture 'ssimilators

    +ensitivity Training

    '-'!

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    .ross-.ultural +d%ustment

    Expatriates must ad,ust to ne or

    situation1 interactions ith locals1 and

    ne general environment

    $ompany can facilitate ad,ustment by

    providing training for expatriates and

    their families before and during the

    assignment

    Expatriates often experience cultural

    shoc

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    .ulture ,hoc: ."cle

    !o

    High

    > ? @ A B C

    Months in a -e $ulture

         M    o    o     d

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    #$!atriate #aluation

    9ob abroad may include more than

    hat it does at home

    +enior expat managers oftenevaluated on financial performance

    of subsidiary

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    #$!atriate .om!ensation

    Influenced by general corporate

    compensation policy

    Expats usually receive extracompensation and benefits

    4ifferent pacages offered in

    different locations

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    "!ical #$!atriate 7enefits

    %verseas premium

    Housing alloance

    $ost of living alloance ($%!') Moving expenses

    Tuition for dependent education

    Home leave Tax reimbursement plans

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    #$!atriate Reentr"

    Reverse culture shoc common

    Many organi&ations fail to

    successfully manage expatriatereentry

    Individuals may pursue

    boundaryless career  %rgani&ations can help to ease

    reentry

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    .hanges in 6loal Moilit"

    -e types of cross3border

    employee transfers becoming

    popular  Most important ob,ectives for

    cross3border transfers to transfer

    sills and noledge and to

    develop and manage global

    competencies

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    .onergence or Diergence;

    !arge corporations.

    preference for

    consistent

    orldide systems

    +maller companies.

    desire for more

    professional

    systems

    -eed to follo

    local HRM las

    4evelopment of

    uni*uetechni*ues and

    practices to suit

    local cultural and

    legalre*uirements

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    .onclusion&

    Im!lications for Managers

    #er" international manager has

    res!onsiilit" for effectiel" managing

    human resources' therefore must

    understand IHRM functions