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8/9/2019 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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