IHRM1 - Praveen Kamath

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    International Human Resource Management

    q

    Internationalization of Businessq Types of International Business

    q How Intercountry differences affect HRM

    q Why International Assignments fail

    q International Staffing Policy

    qSelecting International Managers

    q Adaptability Screening

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    Trends

    inInternational

    Business

    Convergence &

    Diversification

    Virtual Work

    Customer intimacy

    War for talent

    Speenovation

    Operational Excellence

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    Types ofInternational

    Business

    Exporting

    Franchising

    Foreign Direct Investment

    Multinational Enterprise

    Whole owned Subsidiary

    Multinational Corporation

    Global Corporation

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    HR & InternationalBusiness

    Understanding of

    the business Delivery of HRPractices

    Managing RAPIDChange

    Managing Culture ProfessionalCredibility

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    New Orientation& Outlook !!

    New Strategies

    New Organization

    capabilities New EmployeeBehaviors

    New Processes

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    Intellectual Capital Strategic Intent

    Learning Culture

    Leadership

    Customer Intimacy

    Innovation

    OrganizationalCapabilities

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    Buy

    Build

    Borrow

    Bind

    Bounce

    Competence

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    Talent Era !!

    Talent is everythingEra!

    y Baby Boomers(46-64)

    y Gen X-ers(65 - 78)

    y Gen Y-ers(1978-)

    y Fading Loyalty

    y Strategic Outsourcing

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    Critical Success Factors for HR inInternational Business

    q

    Build a Brand ImageqBuild Strong Managerial Bandwidth

    q Manage Talent well

    q New Performance Culture

    q Hone HR Competencies

    q Generalistq Manager employee Aspirations

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    Intercountry differences affect HRM...

    WVision:Different country leaders have differentpoint of view & vision

    WCultural Factors: Japan - US - Europe - Asia

    WEconomic Factors:Financial Health of the Country

    W Cost Impact:India, China,US,Hong Kong

    WCommunication:Language Advantage.

    WIR Factors

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    Why International Assignment fail ?

    t Adjustment Factors - Self & Family

    t Health related problems

    t Inability to understand the Govt. Rules &

    Regulationst Selection on the basis of technical competencerather than adaptability issues

    t Lack of preparations (Cross-Cultural, LinguisticSkills) for the intending expatriate

    t A failure to plan for repatriation to the parentCompany

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    International StaffingSources of Managers Locals - are citizens of the countries where they are working

    Home Country Nationals - are the citizens of the country in whichthe multinational companys headquarters are based

    Third Country Nationals - are citizens of a country other than theparent or the host country

    International Staffing Policy

    Four types of headquarters orientation toward subsidiariesin a multinational enterprise

    Ethnocentric

    Polycentric

    Regiocentric

    Geocentric

    Orientation

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    Complexity of

    Organization

    Authority;

    decision Making

    Evaluation &

    Control

    Rewards &punishments;

    incentives

    Communication;Information flow

    Geographical

    Identification

    Aspects of theenterprise

    Perpetuation

    (recruiting,Staffing,

    development)

    Orientation

    Complex in home

    country, simple in

    subsidiaries

    High in head-

    quarters

    Home standards

    applied for persons

    & performance

    High in headquarters,

    low in subsidiaries

    High volume of

    orders, commands,

    advice to subsidiaries

    Nationality of

    the owner

    Ethnocentric

    People of homecountry developedfor key positionseverywhere in the

    world

    Varied &Independent

    Relatively low in

    headquarters

    Determined

    locally

    Wide variation;can be high orlow rewards forsubsidiaryperformance

    Little to & from

    headquarters, little

    among subsidiaries

    Nationality of

    host country

    Polycentric

    People of localnationalitydeveloped for keypositions in their

    own country

    Highly interdependent

    on a regional basis

    High regional headquarters&/or high collaborationamong subsidiaries

    Determined regionality

    Rewards for contribution

    to regional objectives

    Little to & from corporateheadquarters, but may be highto & from regionalheadquarters & amongcountries

    Regional Company

    Regiocentric

    Regional people

    developed for key positions

    anywhere in the region

    Orientation

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    Complexity of

    Organization

    Authority;

    decision Making

    Evaluation &

    Control

    Rewards &punishments;

    incentives

    Communication;Information flow

    Geographical

    Identification

    Aspects of theenterprise

    Perpetuation

    (recruiting,Staffing,

    development)

    Orientation

    Increasingly Complex & highly interdependent on a

    worldwide basis

    Geocentric

    Collaboration of headquarters & subsidiaries around

    the world

    Standards which are universal & local

    Rewards to international & local executives for

    reaching local & worldwide objectives

    Both ways & among subsidiaries around the world

    Truly worldwide company, but identifying with

    national interests

    Best people everywhere in the world developed for

    key positions everywhere in the world

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    International Staffing Strategieslssformational Skills - the ability to move from a domestic (ethnocentrinternational (Geocentric) focus

    national Skills -Knowledge & Skills in comparative HRM practices

    snational Skills -how to market the business & how to involve employferent national context

    ign Language Skills

    tstability & Flexibility -ability to adapt to new circumstances & situa

    ond flexibility to different & often novel ideas & viewpoints

    ural Toughness - the ability to succeed in an alien culture

    le Orientation - Rapport Building & Relationship building with host- couals

    eptual ability - the ability to understand why people behave as they dohize with them

    ily adaptability - the ability of the spouse & children to adapt to & be henvironment

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    5 Factors for International Assigne

    Job Knowledge & MotivationManagerial Ability

    Organizational AbilityImaginationCreativity

    Administration Skills

    AlertnessResponsibility

    IndustriousnessInitiative & energy

    High motivationFrankness

    Belief in mission & jobPerseverance

    1

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    5 Factors for International Assigne

    Relational SkillsRespect

    Courtesy & tact

    Display of respectKindnessEmpathy

    NonjudgmentalnessIntegrity

    Confidence

    2

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    5 Factors for International Assigne

    Flexibility/AdaptabilityResourcefulness

    Ability to deal with stressFlexibility

    Emotional Stability

    Willingness to ChangeTolerance for ambiguity

    AdaptabilityIndependenceDependability

    Political sensitivityPositive self-image

    3

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    5 Factors for International Assigne

    Extra-Cultural OpennessVariety of outside interests

    Interest in foreign culturesOpennessKnowledge of local Languages

    Outgoingness & extraversionOverseas experience

    4

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    5 Factors for International Assigne

    5Family Situation

    Adaptability of spouse & family

    Spouses positive opinionWillingness of spouse to live abroad

    Stable marriage

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    Adaptability ScreeningNormally conducted by Psychologists or psychiatrist

    Work experience

    Education

    Language Skills

    Paper & Pencil Tests

    Aptitude Tests

    Personality Tests

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    ning & Maintaining International Employel 1: Impact of Cultural Differences

    el 2: Focus on attitudes

    el 3: Skill Building

    el 4: : LanguageAdaptationAdjustment

    Skills

    Fundamental Cross-Cultural Training Methodologies

    Information or Fact-Oriented Training

    Attribution Training

    Cultural Awareness Training

    Cognitive-Behaviour Modification

    Experiential Learning

    Interaction Training

    d l C C l l i i h d l i

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    Fundamental Cross-Cultural Training MethodologiesInformation or Fact-OrientedTrainingAttribution Training

    Cultural Awareness Training

    Cognitive-Behaviour ModificationExperiential Learning

    Interaction Training

    Trainees are presented with various facts through

    Live Lectures

    Videotapes

    Reading Materials

    F d l C C l l T i i M h d l i

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    Fundamental Cross-Cultural Training MethodologiesInformation or Fact-Oriented Training

    Attribution TrainingCultural Awareness Training

    Cognitive-Behaviour ModificationExperiential Learning

    Interaction Training

    Focuses on explanations of behaviour

    Point of View of the Native

    Learn the cognitive standards

    Standards of Behaviour

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    International Compensation

    The objectives

    Consistency & equity for all employees Attraction & retention of skilled staff

    Facilitation of International transfers

    Consistency with the overall business strategies

    Motivation

    Broad Approaches for Compensation

    Home based policies

    Host based policies

    Region based policies

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    International CompensationBalance sheet approach

    Aims to equalise the purchasing power ofexpatriates & their home country colleagues

    Incentiveamount to compensate quality of lifeissues (e.g.housing,education,recreation & social)

    Designing Appropriate International Reward System

    Base Salary + additional benefits (eg. currencyprotection,taxation,housing & education allowances)

    Expectation Management

    Grapevine Management

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    Pay Principles

    Job Bands

    Market match and pricing

    Setting the budget

    Market Position

    Market Movement

    Affordability

    Delivering Pay

    Performance Bands

    Budget

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    Pay Strategy

    New

    Employee

    New tothe job

    CompetentPerformer

    HighPerformer

    SolidContributor

    HighPotential

    CriticalJobs

    LowerQuartile(25P)

    Median

    UpperQuartile(75P)

    $$

    Performance Bands

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