final review
tiantian 123
GlobalHRManagement.pptxGlobal Human Resources – ch19
Subtitle
Overseas jobs
U.S. Government
Dept of Commerce, Dept of State, Dept. of Agriculture, CIA,
www.usajobs.com ; https://careers.state.gov/work/foreign-service/officer/test-process/
Private Sector
Banking and Finance, Product Design and Development, IT, Transportation, Marketing & Public Relations, Consulting and Tax, Entertainment, Automotive and Aerospace, Biomedical, Consumer Goods
Non-Governmental Organizations
UN, World Bank, World Economic Forum, ADB, LADB, USAID
HR and firm strategy
Global Human Resource Mgmt
Human Resources Strategy
Staffing
Performance Evaluation
Management development
Compensation, and
Labor Relations
ADDED Complexities: labor market, culture, legal systems, economic systems
Staffing policies
Ethnocentric
Polycentric
Geocentric
Ethnocentric Staffing policy
Key management positions around the world are filled by parent-country Nationals.
Japanese Approval – Panasonic, Fuji, etc.
Dutch Mafia – Philips
Korean Approval – Samsung, etc.
Rationale:
Specific expertise needed
Supports a unified global corporate culture
Method to create value by transferring core-competencies from the home market to a developing market (e.g. kaizen, etc.)
Drawbacks:
Dis-incentive for “local-hires”
Onset of “Cultural myopia” – decisions made steps removed from customers, which can lead to big mistakes, or missing latest trends
Polycentric Staffing
Host-country nationals occupy top management positions
Rationale:
Local knowledge and expertise needed to support the business
Cultural understanding and management understanding of how to lead and motivate employees
Drawbacks:
Host country managers may not have access to advancement opportunities
Integration challenges between HQ and subsidiary, further complicated by “Tower of Babel” communication
May result in a “federation” of independent national units
Geocentric staffing
Puts the best qualified and capable people in senior positions regardless of their nationality
Rationale:
Enables firms to utilize its talents more effectively
Enables firm to build a cadre of international executives who can easily work across borders and cultures – resulting in a strong unifying global corporate culture
Supports transnational strategy
expatriates
Expatriates are citizens of one country who are working in another country, for an extended period of time (1 year or greater)
Stressors:
Moving
Job environment
Language
Support Systems
Family and extended family
Safety
Access to same quality/range of services in home country
= higher than average failure rates
Reasons for failure
Inability to cope with larger responsibilities
Difficulties with new environment
Personal or emotional problems
Inability for spouse to adjust
Preparation and enhancing success for expatriates – better screening of staff assignments
Characteristics supportive of success
Self orientation – strong self-esteem, confidence and mental well-being
Others orientation – ability to interact with others and ease in entering new social situations
Perceptual ability – ability to empathize with others, and understand diverse perspectives and ways of doing and communicating things
Cultural toughness – ability for the manager to function in a culture that is unfamiliar or uncomfortable
Global mindset – cognitive complexity and cosmopolitan outlook and comfortable with ambiguity
Training and development
Language
Culture
Integration into the “Expat” community
Return Home (the new “foreign” environment)
Management Development Programs
Cross training through multiple functions in multiple locations – domestic and international
Creates a network and “alumni”
Fosters a global corporate culture
Compensation
Base Salary
Foreign Service Premium
Allowances (housing & education)
Tax differentials
Tax treaty
Tax exemptions
Benefits
BRIEF NOTES:
Premium can be 10-30% of base
International schools - $20- 30K per year
Housing - $4-$5k per month
Foreign Earned Income exclusion – upto $103k per year
Medical care in some locations may be sub-standard
Diverse workforce
Source of competitive advantage
Diverse sets of customers require tacit cultural knowledge
Enterprise learning through diverse opinions and problem solving techniques
Diversity in the workplace has shown to enhance employee satisfaction
Labor relations
Labor Laws differ, sometimes significantly from one location to the next
Work week – 35 hours to 60 hours
Holidays
Relations between management and labor, and rights thereof
Hiring and Firing employees
Age and gender hiring practices
