© © 2012 2012 South-Western, South-Western, Cengage Cengage Learning, Learning, Inc Inc All All rights rights reserved reserved Prepared Prepared by by Joseph Joseph B B Mosca, Mosca, Monmouth Monmouth University University & & Marla Marla M M Kameny, Kameny, Baton Baton Rouge Rouge Community Community College College PowerPoint PowerPoint Presentation Presentation Design Design by by Charlie Charlie Cook, Cook, The The University University of of West West Alabama Alabama Learning Objectives After studying this chapter, you should be able to: Describe the growth of international business Identify and discuss global issues in international human resource management Discuss the human resource management function in international business Identify and discuss domestic issues in international human resource management Describe the issues involved in managing international transfers and assignments Summarize the issues in international labor relations © 2012 South-Western, Cengage Learning, Inc All rights reserved 3–2 The Growth of International Business • During the 1950s, the U.S was the dominant force • In the 1960s, the U.S was challenged by other countries • The U.S market downturn in 2002 had effects on world markets © 2012 South-Western, Cengage Learning, Inc All rights reserved 3–3 Global Business Centers © 2012 South-Western, Cengage Learning, Inc All rights reserved 3–4 International Hiring Challenges • Understanding the culture • Being aware of motivational aspects • Evaluating employee performance • Understanding technology awareness and usage • Recognizing preferred communication styles • Observing the preferred management structure Observing the organizational culture â 2012 South-Western, Cengage Learning, Inc All rights reserved 3–5 Global Issues in International HRM © 2012 South-Western, Cengage Learning, Inc All rights reserved 3–6 International HRM Strategies Staffing Staffing Considerations Considerations Ethnocentri Ethnocentri cc staffing staffing model model © 2012 South-Western, Cengage Learning, Inc All rights reserved Polycentric Polycentric staffing staffing model model 3–7 International HR Strategy • Ethnocentric Staffing Model  Assumes that home-based perspectives take precedence over local perspectives and issues positions to parent country nationals  Primarily uses parent-country nationals to staff higher level foreign positions © 2012 South-Western, Cengage Learning, Inc All rights reserved 3–8 International HR Strategy • Polycentric Staffing Model  Makes heavy use of host-country nationals throughout the organization  Puts parent-country nationals, host-country nationals, and third-country nationals in the same category  Attempts always to hire the best person available for a position © 2012 South-Western, Cengage Learning, Inc All rights reserved 3–9 Understanding the Cultural Environment • Culture  The set of values, symbols, beliefs, and languages that guide behavior of the people within that culture • Importance of Cultural Awareness  International business managers:  Must be aware of cultural nuances  Must be cognizant of the role of cultural differences and similarities in workers from different cultures © 2012 South-Western, Cengage Learning, Inc All rights reserved 3–10 Hofstede’s Dimensions of Culture Power Power Distance Distance Individualism Individualism versus versus Collectivism Collectivism Uncertainty Uncertainty Avoidance Avoidance © 2012 South-Western, Cengage Learning, Inc All rights reserved Masculinity Masculinity versus versusFemininity Femininity Time Time Orientation Orientation 3–11 Political and Legal Issues of International Business © 2012 South-Western, Cengage Learning, Inc All rights reserved 3–12 Fundamental Management Challenges in International Business © 2012 South-Western, Cengage Learning, Inc All rights reserved 3–13 Specific Specific HR HR Issues Issues in in International International Business Business Exporting Exporting Licensing Licensing © 2012 South-Western, Cengage Learning, Inc All rights reserved Direct Direct Investment Investment Joint JointVenture Venture Strategic Strategic Alliance Alliance 3–14 Beyond the Book: Recruiting and Selecting Key Elements Recruitment Recruitmentof of employees employeesfor for international international business businessis isan an important importantstep step in inHRM HRM © 2012 South-Western, Cengage Learning, Inc All rights reserved Defining Definingthe theskills skillsand andabilities abilities necessary necessaryto toperform perform Defining Definingthe theskills skillsand and abilities abilitiesthat thatare areneeded neededto to work workin inaaforeign foreignnation nation 3–15 Domestic Issues in International HRM © 2012 South-Western, Cengage Learning, Inc All rights reserved 3–16 International Transfers and Assignments of Expatriates Important Important Considerations Considerations in in the the Use Use of of Expatriates Expatriates Personnel Personnel Selection Selection Pre-Posting Pre-Posting Training Training © 2012 South-Western, Cengage Learning, Inc All rights reserved Compensation Compensation and andEvaluation Evaluation 3–17 Selecting Expatriates for International Assignments Sources Sources for for Expatriates Expatriates Parent-Country Parent-Country Personnel Personnel Host-Country Host-Country Personnel Personnel © 2012 South-Western, Cengage Learning, Inc All rights reserved Third-Country Third-Country Personnel Personnel 3–18 Local (Host Country) Issues • Local Training and Development  Extent of local workforce training and development necessary for nationals to perform effectively • Local Compensation Issues  Assessing individuals  Assessing groups  Necessity for hardship premium for expatriates © 2012 South-Western, Cengage Learning, Inc All rights reserved 3–19 Beyond the Book: Repatriation of Expatriates  The final step in HRM in global business  Bringing an expatriate home is not a simple matter  Extensive adjustment by expatriates is often required upon their return at the end of lengthy assignments © 2012 South-Western, Cengage Learning, Inc All rights reserved 3–20 Expatriate Compensation Balance Sheet © 2012 South-Western, Cengage Learning, Inc All rights reserved 3–21 International Labor Relations • Labor Relations  Is the process of dealing with employees who are organized into labor unions  Are heavily regulated and restricted by law  Are affected by management actions toward labor and labor actions toward management © 2012 South-Western, Cengage Learning, Inc All rights reserved 3–22 ... studying this chapter, you should be able to: Describe the growth of international business Identify and discuss global issues in international human resource management Discuss the human resource. .. management function in international business Identify and discuss domestic issues in international human resource management Describe the issues involved in managing international transfers and assignments... employees who are organized into labor unions  Are heavily regulated and restricted by law  Are affected by management actions toward labor and labor actions toward management © 2012 South-Western,