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11
Chapter 12 Global Human Resource Management
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The international HRM wheel
Corporate
Internationalpersonnel
Local personnel
3
4
The changing features of international managers
Recruitment essentiallyHQ in home country
Expat package
Local recruits stay local
Strong ‘corporate style’diffused in the subsidiaries
‘Foreign office’ type of career
Dual career system
Performance appraisal focuses on local performances
Recruitment from all over the world
Increasingly ‘local’ contracts
Possibilities for locals tobecome part of the core
A lot of job rotation: regional; global
A lot of international management development programmes
Performance appraisalsinclude local plus global orregional achievement
From To
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The international manager
The international manager
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The dual allegiance of international managers
Allegiance to local firm
International managers who see themselves as free agents
International managers who “go native”
International managers who see themselves as dual citizens
International managers who leave their hearts at home
Allegiance to parent firmLow
Low
High
High
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Pattern Pros Cons
Free agent Often have superior international capabilities (e.g. language, negotiation) Often somewhat less costly than traditional international managers
Often leave with little warning Replacement costs may be significant May serve self-interests more than company interests
Go native
Adjust well and quickly to local culture Usually effective in local environment including interactions with employees, customers, suppliers, etc.
May fight global initiatives May be slow to implement directives from
headquarters Likely to leave firm after repatriation
Heart at home
Quick to implement directives from headquarters More likely to stay with firm after repatriation
Adjusts poorly and slowly to local culture and environment
Likely to inappropriately implement directives from the parent organization
Dual citizen
Adjust well and quickly to local culture Usually effective in local environment Facilitates the coordination of global initiatives Responsive to directives from head- quarters
Requires serious thought and commitment from the company to develop into dual citizen
Are a rare breed and are attractive to other firms who may try to steal them away
The dual allegiance of international managers
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Adjustment in an international assignment: the “U-curve hypothesis”
Adjustment/ Satisfaction
0 2 4 6 8 10 12
Honeymoon
Culture shock
Adjustment
Mastery
Months
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Benefits for the
company
Time
Local impact
Global integration
Acculturation Productive tenure
Optimum tenure
Total benefitsA
B
C
X
The country assignment
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The impact of international cultural differences for management
Multicultural teams- International managers vs locals- Group
building/working/relationships- Conflict resolutions
Partnerships/transactions- Contract negotiations- Joint ventures/partnerships- Official meetings- Community events/social events
Interpersonal relationships- Communication- Etiquette- Decoding attitudes and behaviour- Understanding ‘silent’ language
Hierarchical/managerial interactions (boss/colleagues/subordinates)
- Feedback- Control- Reward/punishments- Personal space- Motivations
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“Local employees avoid telling their boss they think they are wrong” – agree or disagree?
Hong Kong
Japan
Korea
China
Malaysia
Thailand
Indonesia
Philippines
Singapore
Taiwan
Strongly agreeStrongly disagree
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“Employees and managers prefer to tell stories than admit they made a mistake” – agree or disagree?
Korea
China
Malaysia
Indonesia
Hong Kong
Taiwan
Philippines
Thailand
Japan
Singapore
Strongly agreeStrongly disagree
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“Telling an employee in front of others that he/she made a mistake is not acceptable” – agree or disagree?
MALAYSIA
HONGKONG
INDONESIA
CHINA
PHILIPPINES
KOREA
TAIWAN
SINGAPORE
THAILAND
JAPAN
Strongly agreeStrongly disagree
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International managers: culture shock
PHYSICAL DIFFERENCES
CULTURAL DIFFERENCES
LEVEL OFDISORIENTATION
STRESS UNEASE
FLIGHT ACCEPT GOES NATIVEFIGHT
• rejects• retreats• insulates
• hostility• disgust• disapproval
• interested• looks for contacts• learns about culture
• enthusiastic• adopts local practices: food; dress; style• local ‘companion’
THELOCALIZED
EXPAT
THECOSMOPOLITAN
EXPAT
THE“COLONY”
REACTIONS
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Problems on repatriation• The majority of international managers experience some degree of culture
shock during repatriation• More than half of returning international managers feel their overseas
assignment had a negative impact on their careers• 1 out of every 5 managers who finish an international assignment want to
leave the company when they return• The majority of international managers feel their re-entry position is less
challenging and satisfying than their overseas assignment• Most returning international managers feel there are limited opportunities
for using their newly acquired knowledge and skills, and feel their international expertise is not appreciated by their firms
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HRM practices which support effective expatriation
Staffing and selection• Communicate the value of international assignments for the company’s global mission• Recruit employees who see international assignments as a challenging opportunity• Recruit employees who demonstrate cultural openness• Provide a realistic job and career preview
Training and career development• Make international assignments a part of the career development process• Encourage early international experience• Provide ongoing mentoring and coaching• Create learning opportunities during the assignment• Use international assignments as a leadership development tool
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Performance appraisal and compensation• Differentiate performance management based on international manager roles• Align incentives with expatriation objectives• Tailor benefits to the international manager’s needs• Focus on equality of opportunities, not cash• Emphasize rewarding careers rather than short-term outcomesExpatriation and repatriation activities• Involve the family in the orientation and repatriation program• Establish mentor relationships between international managers and executives from the home
location• Provide support for dual careers.• Secure opportunities for the returning manager to use knowledge and skills learned while on the
international assignment
HRM practices which support effective expatriation cont.
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Different types of international managers according to the stage of subsidiary development
BUILD
GROW
CONSOLIDATE
PIONEER DEVELOPER ORGANIZER
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Individual skills for international managers in emerging countries
CULTURALSKILLS
RELATIONSHIPSKILLS
POLITICALSKILLS
Understanding of andsensitivity to etiquette,social norms, religions,ethnical characteristics
Knowledge andreference to arts andliterature
Language skills canhelp
Ability to build andmaintain a networkof contacts
Ability to negotiate
Ability to learn
Ability to understandthe local politicalcontext and subtleties
Ability to communicatewith opinion leadersand keydecision-makers
Ability to integrate local national priorities intobusiness strategies andpractices
Knowledge and expertise in product and services
Performancedemonstration
LEADERSHIPSKILLS
PROFESSIONALSKILLS
Ability to motivate
Ability to teachand coach
Ability to lead teams
Ability to respect
Role model
Paternalistic
Ability to inspire
Ethics
Ability to communicate without arrogance
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More pressure to localize staff
From host country government• To accelerate transfer of technology• To develop human resources• To create employment
From head office• To cut costs• To build competences• To keep staff
From local staff itself• To satisfy ambition• To develop career• To improve conditions
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Integrating local staff
• Career development and the ‘glass ceiling’• Fairness• Feedback• Rewards• Discipline and education• Long-term policies
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Skills that Chinese employees consider to be important for international managers
• Cultural sensitivity • Guidance • Clarity• Teaching orientation• Expertise (to be tested)• Short-term Presence (commitment?)• Adaptability• Fairness• Morality• Personal touch (paternalism)
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• Hard work and productivity• Knowledge• Language• Desire to learn• Loyalty• Honesty and morality• Initiative• Leadership
Skills that international managers consider to be important for Chinese employees