Hiring and Managing Employees 16 Copyright © 2014 Pearson Education, Inc

Hiring and Hiring and Managing Managing EmployeesEmployees

16

Copyright © 2014 Pearson Education, Inc.

16 - 2Copyright © 2014 Pearson Education, Inc.

• Explain the three different types of staffing policies used by international companies

• Describe the recruitment and selection issues facing international companies

• Discuss the importance of training and development programs, especially cultural training

• Explain how companies compensate managers and workers in international markets

• Describe the importance of labor-management relations and how they differ around the world

Chapter ObjectivesChapter Objectives


IntelIntel

• 83,000 employees in 45 facilities worldwide• Issues of recruitment, selection, salary, etc.• All employees take part in cultural training

• 83,000 employees in 45 facilities worldwide• Issues of recruitment, selection, salary, etc.• All employees take part in cultural training


International HRMInternational HRM

Culture affects

Expatriate managers

Recruitment and selection

Training and development

Compensation

Labor relations

Staffing policy


Ethnocentric StaffingEthnocentric Staffing

Advantages

+ Locally qualified people not always available

+ Tight control over subsidiaries

+ Ease the transfer of special know-how

+ Guard a company from industrial espionage

– Relocations are expensive

– Can give the business a “foreign” imageDisadvantages

Individuals from home country manage operations abroad


Polycentric StaffingPolycentric Staffing

Advantages+ Responsibility on those knowing local business

+ Avoid expensive relocations from other nations

– May resemble a collection of national entities

– Can potentially harm performanceDisadvantages

Individuals from host country manage operations abroad


eBay in IndiaeBay in India

Source: Reuters/Vivek PrakashSource: Reuters/Vivek Prakash

Local cultural knowledge

+ Business acumen

= Success

Local cultural knowledge

+ Business acumen

= Success


Geocentric StaffingGeocentric Staffing

Advantages+ Managers who can adjust anywhere

+ Break down nationalistic barriers

– These individuals command high salariesDisadvantage

Best-qualified individuals, regardless of nationality,manage operations abroad


Discussion QuestionDiscussion Question

What are the three different types of international staffing policies that companies can implement?


Answer to Discussion Answer to Discussion QuestionQuestion

In ethnocentric staffing, operations abroad are managed by individuals from the home country. In polycentric staffing, operations abroad are managed by individuals from the host country. In geocentric staffing, operations abroad are managed by the best-qualified individuals regardless of nationality.


Human Resource PlanningHuman Resource Planning

Phase 1 Phase 2 Phase 3

Take inventory of current human

resources

Estimate firm’s future human

resource needs

Develop plan to recruit and select people for vacant and anticipated new positions

Forecasting human resource needs and supply


Tips for Going GlobalTips for Going Global

Going global can severelystrain the resources of firmsGoing global can severely

strain the resources of firms

Do not rely solely on home-country expatriatesDo not rely solely on home-country expatriates

Local contacts do not guarantee contractsLocal contacts do not guarantee contracts

Treat employees abroad with respectTreat employees abroad with respect

Employ the Web in your talent searchEmploy the Web in your talent search


Recruiting Human ResourcesRecruiting Human Resources

Recent college graduates

Local managerial talent

Nonmanagerial workers

Current employees

Process of identifying and attracting a qualified pool of applicants for vacant positions


Selecting Human ResourcesSelecting Human Resources

Ability to bridge cultural differences is key

Expatriates must adapt to new ways of life

Assess cultural sensitivity of job candidates

Process of screening and hiring the best-qualified applicants with the greatest performance potential


Stage I:

Thrilling experience

Stage II:

Downward slide

Stage III:

Recovery begins

Stage IV:

Embrace local culture

Culture ShockCulture Shock

Psychological process affecting people living abroad that is characterized by homesickness, irritability,

confusion, aggravation, and depression


Reverse Culture ShockReverse Culture Shock

Readaptingto home culture

Reducing its effects

Once-natural thoughts andfeelings now strange

Can be more unsettling thanculture shock

Some companies reabsorbexpatriates poorly

Home-culture reorientationprograms

Career-counseling sessions Career-development program

before posting abroad



The psychological process of re-adapting to one’s home culture is called __________.

a. Ethnocentric shock

b. Culture shock

c. Reverse culture shock



The psychological process of re-adapting to one’s home culture is called __________.

a. Ethnocentric shock

b. Culture shock

c. Reverse culture shock


Cultural Training MethodsCultural Training Methods


Compiling a Cultural ProfileCompiling a Cultural Profile

CultureGramsBackground

NotesCountry

Studies AreaHandbooks


Worker TrainingWorker Training

Emerging markets

Basic skillstraining

Apprenticeshiptraining


Compensation of ManagersCompensation of Managers

Bonus andtax incentives

Bonus andtax incentives

Cultural andsocial factors

Cultural andsocial factors

Cost-of-livingeffects

Cost-of-livingeffects


Compensation of WorkersCompensation of Workers

Labor mobility insome markets

Labor mobility insome markets

Greater cross-border investment

Greater cross-border investment



What types of cultural training methods can help prepare managers for international assignments?



The main methods of cultural training used to prepare managers for international assignments include environmental briefings, cultural orientations, cultural assimilation, sensitivity training, language training, and field experience.


Labor-Management RelationsLabor-Management Relations

Intertwined nature

Rooted in local culture

Often affected by political movements

Positive or negative relations betweena company’s management and its workers

Source: Z1015/_Bernd Settnik/NewscomSource: Z1015/_Bernd Settnik/Newscom


Selectionof a location

Selectionof a location

Performancein a market

Performancein a market

Emergingmarkets

Emergingmarkets

Codeterminationin Germany

Codeterminationin Germany

Labor UnionsLabor Unions


But can be difficult

Workers in different nations often compete

Some say this lowers wages and union power

International Labor International Labor MovementsMovements

International activities of unions are improving treatment of workers and reducing child labor



The positive or negative condition of relations between company management and its workers is called __________ relations.

a. Labor union

b. Codetermination

c. Labor-management



The positive or negative condition of relations between company management and its workers is called __________ relations.

a. Labor union

b. Codetermination

c. Labor-management

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any

means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher.

Printed in the United States of America.

Copyright © 2014 Pearson Education, Inc.

16 - 31

Documents

Hiring and Managing Employees 16 Copyright © 2014 Pearson Education, Inc