1. © 2010 Cengage Learning. All rights reserved.
CHAPTER 13
GLOBAL t PENG
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2. Chapter 15 LEARNING OBJECTIVES
After studying this chapter, you should be able to:
Explain staffing decisions, with a focus on expatriates
Identify training and development needs for expatriates and host country nationals
Identify and discuss compensation and performance appraisal issues
List factors that affect labor relations in both home and host countries
Discuss ho the institution- and resource-based views shed additional
Identify the five C’s of human resource management
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3. LO1: EXPLAIN STAFFING DECISIONS
Terms to know:
Human resources management
Staffing
Host Country Nationals (HCNs)
Expatriates
Human resources management – activities that attract, select and manage employees.
Staffing – HRM activities associted with hiring employees.
Host Country Nationals (HCNs) – employees from host country, “locals.”
Expatriates – individuals working in a foreign country.
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4. LO1: EXPLAIN STAFFING DECISIONS
Polycentric approach
Ethnocentric approach
Geocentric approach
Ethnocentric approach – emphasizes norms and practices of parent company; relies on PCNs.
Polycentric approach – focuses on norms and practices of host country; relies on HCNs. Geocentric approach – focuses on finding most suitable managers, disregarding nationality.
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5. LO1: EXPLAIN STAFFING DECISIONS
Systematic link between strategic posture of an MNE and its staffing approach
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6. LO1: THE ROLE OF EXPATRIATES
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7. LO1: FACTORS IN EXPATRIATE SELECTION
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8. LO2: TRAINING AND DEVELOPMENT NEEDS
Training for expatriates:
Length and rigor should correspond to expected length of stay.
Extensive language training
Sensitivity training, with immersion approach
Development for expatriates (repatriates):
Psychological contract
Career anxiety
Loss of status
Cultural re-adjustment
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9. LO2: TRAINING AND DEVELOPMENT NEEDS
Training and Development for HCNs:
In China, for example, key factor in retaining or losing talent is which employer can offer training and development opportunities.
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10. LO3: COMPENSATION AND APPRAISAL
Compensation for expatriates:
Going Rate: Pays expatriates the going rate for comparable positions in host country.
Balance Sheet:Balances the cost of living differences relative to parent country levels and adds a financial inducement to make the package
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11. LO3: COMPENSATION AND APPRAISAL
Compensation for HCNs:
Low-level HCNs have relatively little bargaining power.
HCNs in management and professional positions gaining more bargaining power.
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12. LO3: COMPENSATION AND APPRAISAL
Performance Appraisal:
evaluation of employee performance for the purpose of promotion, retention or ending employment.
Cultural differences may create problems in appraising HCNs.
Expatriates need to be evaluated by their own supervisors.
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13. LO4: FACTORS IN LABOR RELATIONS
At home:
Firms’ key concern – cut costs, enhance competitiveness.
Unions’ concern – higher wages and more benefits.
Threat of job loss vs. threat of strike.
Abroad:
MNEs prefer to deal with non-unionized labor.
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14. LO5: INSTITUTIONS AND HUMAN RESOURCE MANAGEMENT
Formal institutions:
Every country has rules and regulations governing human resource management.
Informal institutions:
MNEs from different
countries have different norms in staffing.
Must avoid stereotyping
Informal institutions:
MNEs from different
countries have different norms in staffing.
Must avoid stereotyping
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15. LO5: RESOURCES AND HUMAN RESOURCE MANAGEMENT
Does a particular HR activity add value?
Are particular HR activities rare?
How imitable are certain HR activities?
Do HR practices support organizational capabilities?
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16. DEBATE: ACROSS-THE-BOARD PAY CUT vs. REDUCTION IN FORCE
With US firms, results tend to be very negative.
May clash with individualistic culture.
Reduction in force:
“Corporate cannibalism”
Often viewed as unethical outside the Anglo-American world
When managed correctly, impacted employees are able to separate with dignity.
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17. © 2010 Cengage Learning. All rights reserved.
LO7: THE FIVE C’s OF HRM
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