Bài giảng Global Business Today - Chapter 17 Global Human Resource Management

Global Business Today 8eby Charles W.L. HillChapter 17Global Human Resource ManagementIntroduction Question: What is human resource management?Human resource management (HRM) refers to the activities an organization carries out to utilize its human resources effectively HRM activities include:Determining human resource strategyStaffingPerformance evaluationManagement developmentCompensationLabor relationsIntroductionHRM is more complex in an international business because of differences between countries in labor markets, culture, legal systems, economic systems, and so onInternational HRM also deals with issues related to expatriate managers (citizens of one country working abroad) including:When to use expatriatesWho to send on expatriate postingHow expatriates should be compensatedHow to handle the repatriation of expatriates Strategic Role of  International HRMQuestion: Why is international HRM important to the success of the firm?Strategy is implemented through organizationPeople are the linchpin to the firm’s organization architectureSo, success in international business requires that HRM policies be congruent with the firm’s strategy Staffing PolicyStaffing policy is concerned with the selection of employees for a particular jobSelecting people who have the right skills for a particular jobDeveloping and promoting the corporate culture of the firm - the organization’s norms and value systems There are three types of staffing policies:The ethnocentric approachThe polycentric approachThe geocentric approach Staffing PolicyFirms that use expatriates must consider the problem of expatriate failure - the premature return of an expatriate manager to his home countryU.S. firms have higher expatriate failure rates than either European or Japanese firmsMendenhall and Oddou identified four dimensions that predict expatriate success:Self-orientationOthers-orientationPerceptual abilityCultural toughness Training and Management  DevelopmentTo reduce expatriate failure, firms should provide:Cultural training - seeks to foster an appreciation for the host country's cultureLanguage training - improves the effectiveness of managers and helps them better relate to the foreign countryPractical training - helps the expatriate manager and family ease into day-to-day life of the host countryManagers also need to be prepared for reentry into their home country organizationPerformance AppraisalQuestion: How should employees be evaluated?Performance appraisal systems are used to evaluate employeesWhen evaluating employees :Home country managers tend to rely on hard dataHost country managers can be biased towards their own frame of referenceSo, many firms rely on both groups to evaluate the performance of expatriate managersPerformance AppraisalQuestion: How can firms reduce the bias in performance evaluations?To reduce bias:Most expatriates believe more weight should be given to an on-site manager's appraisal than to an off-site manager's appraisalA former expatriate who has served in the same location should be involved in the appraisal processHome office managers should probably be consulted before an on-site manager completes a formal termination evaluationCompensationQuestion: What are the key compensation issues for international firms? There are two key issues:How compensation should be adjusted to reflect national differences in economic circumstances and compensation practicesHow expatriate managers should be paid Firms using a geocentric policy that want to develop an international cadre of managers must pay executives the same salary regardless of their country of originCompensationThe most common approach to expatriate pay is the balance sheet approachEqualizes purchasing power across countries so employees can have the same standard of living in the foreign country as they do at homeA typical compensation package includes:Base salaryA foreign service premiumAllowances of various typesBenefits Tax differentials International Labor RelationsQuestion: How is organized labor able to limit the choices available to an international business?A firm's ability to pursue a transnational or global strategy can be significantly constrained by the actions of labor unions So, the HRM function must foster harmony and minimize conflict between management and labor International Labor RelationsQuestion: What are the concerns of organized labor? Organized labor is concerned that:The multinational can counter union bargaining power by threatening to move production to another countryMultinationals will keep highly skilled tasks in the home country and farm out only low skilled tasksImported employment practices and contractual agreements will reduce its influence and power International Labor RelationsOrganized labor has responded to the increased bargaining power of multinationals by: Trying to set-up their own international organizationsLobbying for national legislation to restrict multinationalsTrying to achieve regulations of multinationals through international organization such as the United NationsSo far, these efforts have had only limited success International Labor Relations Question: How do firms approach labor relations?Traditionally, most labor relations have been decentralized to individual subsidiariesHowever, because many firms are realizing that the way in which work is organized within a plant can be a major source of competitive advantage, there is a shift towards greater centralization to enhance the bargaining power of the multinational vis-à-vis organized labor In addition, many firms are realizing how work is organized within a plant can be a source of competitive advantage