Dessler Chapter 17 PPTs

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Transcript of Dessler Chapter 17 PPTs

  • Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall17*WHERE WE ARE NOW

    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall17*List the HR challenges of international business.Illustrate with examples how intercountry differences affect HRM.List and briefly describe the main methods for staffing global organizations.Discuss some important issues to keep in mind in training, appraising, and compensating international employees.Explain with examples how to implement a global human resource management program.LEARNING OUTCOMES

    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall17*HR and the Internationalization of BusinessThe Global ChallengesCoordinating market, product, and production plans on a worldwide basisCreating organization structures capable of balancing centralized home-office control with adequate local autonomyExtending HR policies and systems to service staffing needs abroad

    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall17*Challenges of International HRMDeploymentGetting the right skills to where they are needed, regardless of geographic locationKnowledge and Innovation DisseminationSpreading state-of-the-art knowledge and practices throughout the organization regardless of their originIdentifying and Developing Talent on a Global Basis Identifying those who can function effectively in a global organization and developing their abilities

    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall17*Intercountry Differences Affecting HRM

    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall17*Global Differences and Similaritiesin HR Practices

    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall17*Staffing the Global OrganizationInternational staffing: Home or local?Expatriates (expats)Home-country nationalsThird-country nationalsOffshoringHaving local employees abroad do jobs that the firms domestic employees previously did in-houseOffshoring IssuesEffective local supervisory/management structureScreening and required training for localsLocal compensation policies and working conditions

    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall17*Management Values and International Staffing Policy

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  • Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall17*Selecting Expatriate ManagersAdaptability ScreeningAssessing the assignees (and spouses) probable success in handling the foreign transfer.Overseas Assignment InventoryA test that identifies the characteristics and attitudes international assignment candidates should have.Realistic Previews Cover problems to expect in the new job, as well as the cultural benefits, problems, and idiosyncrasies of the country.

    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall17*FIGURE 172Five Factors Important in International Assignee Success and Their ComponentsI. Job Knowledge and MotivationManagerial abilityOrganizational abilityImaginationCreativityAdministrative skillsAlertnessResponsibilityIndustriousnessInitiative and energyHigh motivationFranknessBelief in mission and jobPerseveranceII. Relational SkillsRespectCourtesyDisplay of respectKindnessEmpathyNonjudgmentalIntegrityConfidenceIII. Flexibility/AdaptabilityResourcefulnessAbility to deal with stressFlexibilityEmotional stabilityWillingness to changeTolerance for ambiguityAdaptabilityIndependenceDependabilityPolitical sensitivityPositive self-imageIV. Extracultural OpennessVariety of outside interestsInterest in foreign culturesOpennessKnowledge of local language(s)Outgoingness and extraversionOverseas experienceV. Family SituationAdaptability of spouse and familySpouses positive opinionWillingness of spouse to live abroadStable marriage

    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall17*FIGURE 173 Overseas Assignment Inventory

    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall17*

    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall17*Making Expatriate Assignments Successful

    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall17*Orienting and Training Employees on International AssignmentPredeparture training is needed on:The impact of cultural differences on business outcomesHow attitudes (both negative and positive) are formed and how they influence behaviorFactual knowledge about the target countryLanguage and adjustment and adaptation skills

    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall17*Trends in Expatriate TrainingUse of returning managers as resources to cultivate the global mind-sets of their home-office staff.Use of software and the Internet for cross-cultural training.Rotating assignments that permit professional growth.Management development centers where executives hone their overseas skills.Classroom programs provide overseas executives with educational opportunities similar to stateside programs.Continuing, in-country cross-cultural training.

    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall17*Compensating ExpatriatesThe Balance Sheet ApproachHome-country groups of expensesincome taxes, housing, goods and services, and discretionary expensesare the focus of attention.The employer estimates what each of these four expenses is in the expatriates home country, and what each will be in the host country.The employer then pays any differences such as additional income taxes or housing expenses.

    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall17*TABLE 171The Balance Sheet Approach (Assumes U.S. Base Salary of $80,000)

    Annual Expense Chicago, U.S. Brussels, Belgium (US$ Equivalent) Allowance Housing & utilities $35,000 $67,600$32,600 Goods & services 6,000 9,500 3,500 Taxes 22,400 56,000 33,600 Discretionary income 10,000 10,000 0 Total $73,400 $143,100 $69,700

    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall17*Incentives for International AssignmentsForeign Service PremiumsFinancial payments over and above regular base pay, and typically range between 10% and 30% of base payHardship AllowancesPayments to compensate expatriates for exceptionally hard living and working conditions at certain foreign locationsMobility PremiumsLump-sum payments to reward employees for moving from one assignment to another

    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall17*Steps in Establishing a Global Pay SystemIdentify any gaps in existing rewards systems.Develop a global compensation philosophy framework.Systematize pay systems worldwide.Adapt global pay policies to local conditions.Conduct an ongoing pay policies program assessment.

    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall17*Appraising Expatriate ManagersChallengesDetermining who should appraise the manager.Deciding on which factors to base the appraisal.Improving the Expatriate Appraisal ProcessStipulate the assignments difficulty level, and adapt the performance criteria to the situation.Weigh evaluation more toward on-site managers appraisal than toward that of the home-site manager.If home-office manager does appraisal, use a former expatriate from same overseas location for advice.

    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall17*International Labor Relations

    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall17*Terrorism, Safety, and Global HRTaking Protective MeasuresCrisis management teamsIntelligence servicesKidnapping and Ransom (K&R) Insurance Crisis situationsKidnapping: employee is a hostage until employer pays a ransomExtortion: threatening bodily harmDetention: holding employee without any ransom demandThreats to property or products unless employer makes a payment

    Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall17*Repatriation: Problems and SolutionsProblemMaking sure that the expatriate and his or her family