Human Resource Management Chapter 17

Human Resource Management (Chapter 17)

• This chapter focuses on managing global human resources.
• Managing globally presents unique challenges because what works in one country may not work in another.
• International human resource management (IHRM) incorporates human resource management concepts and techniques to tackle specific challenges of global operations.
• Global employers face differences in political, social, legal, and cultural aspects.
• The Hofstede Study details cultural dimensions, such as power distance, individualism, masculinity, uncertainty avoidance, and long-term orientation.
• Different economic systems (market, planned, mixed) directly influence HR policies.

Learning Objectives

• Learning Objective 17.1 lists international business HR challenges.
• Learning Objective 17.2 illustrates how intercountry differences affect HRM with examples.
• Learning Objective 17.3 lists and describes main methods for staffing global organizations.
• Learning Objective 17.4 discusses important issues in training, appraising, compensating international employees.
• Learning Objective 17.5 details the similarities and differences in global employee engagement.
• Learning Objective 17.6 explains, by example, how to implement a global human resource management program.

Staffing Global Organizations

• International staffing decisions involve choosing between home-country and host-country nationals.
• Expatriates (expats) are employees sent from the home country.
• Parent country nationals/Home-country nationals are employees sent from the home country.
• Host-country nationals are employees hired locally.
• Third-country nationals are employees from other countries recruited for global roles.

Internationalization Stage, Values, and Staffing Policy

• Ethnocentric (home-country focus), polycentric (host-country focus), and global (global perspective) organizations demonstrate different staffing philosophies.
• Expatriate management and local hires are core differentiators in organizational staffing.
• Other solutions, such as outsourcing (offshoring), are also used.

Improving Performance: HR as a Profit Center

• Reducing expatriate costs is a significant HR concern.
• Global virtual teams are an increasingly employed trend within multinational corporations.

Selecting International Managers

• Realistic previews, adaptability screening, and testing are crucial steps in selecting international managers.
• Considerations to avoid early expatriate returns include addressing personality, family pressures, and implementing careful screening processes, and improving orientation.

Diversity Counts

• Sending women managers abroad is also gaining consideration.

Improving Performance: HR Tools for Line Managers and Small Businesses

• Practical solutions are needed to manage expatriate challenges.

Training and Maintaining Employees on International Assignment

• Pre-departure, ongoing, and ethical training are important to prepare international employees for their work assignments.
• Appraising managers working abroad can be challenging due to cultural differences. Adaptation and considerations for local job contexts and on-site managerial appraisals are crucial for accurate performance evaluations.
• Compensation approaches for international assignments, such as the balance sheet approach, incentives (foreign service premium, hardship allowance, and mobility premium), influence employees' retention and job satisfaction.

Steps in Establishing a Global Pay System

• Strategies (step 1) for global pay systems start with determining a crucial executive behavior, establishing a global philosophy, identifying gaps in the pay system, systemizing pay systems, and adapting pay policies.

Training and Maintaining Employees Abroad

• Union relations practices, safety procedures, and international travel protections are critical to maintaining a safe and productive work environment.
• International assignees need protections given by their home organization, locally.

Repatriation: Problems and Solutions

• Wasted investment in training and sending employees abroad necessitates retention strategies.
• Repatriation programs help employees transition back to their home countries. Managing knowledge and experience loss is key.
• Value the expatriate's experience and use it to benefit the organization.

Improving Performance: HR Practices Around the Globe

• Business travel factors are discussed and identified.

Employee Engagement Guide for Managers

• Employee engagement considerations around the globe are covered.

Implementing a Global Human Resource Management Program

• Implementing a global resource management program involves thoughtful strategies and tactics.
• Methods for putting a global HR system into practice are described in detail.
• Forming global networks, standardizing ends and competencies, being sensitive to local pressures, consistent communication are crucial components.

Other Considerations for Global HR

• Adequate resources are crucial in supporting global HR functions.

This chapter explores the complexities of managing human resources on a global scale. It highlights the unique challenges faced by global employers and the importance of understanding cultural dimensions and economic systems. The chapter also discusses key methods for staffing international organizations.