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1、part fiveemployee relations17managing global human resourceslecture outlinestrategic overviewhr and the internationalization of businessthe hr challenges of international business how inter-country differences affect hrmglobal differences and similarities in hr practice personnel selection procedure
2、sthe purpose of the performance appraisaltraining and development practices the use of pay incentiveshow to implement a global hr systemmaking the global hr system more acceptable developing a more effective global hr system implementing the global hr systemstaffing the global organization internati
3、onal staffing: home or local? offshoringvalues and international staffing policy why expatriate assignments fail selecting expatriate managerstraining and maintaining expatriate employees orienting and training employees on international assignmentscompensating expatriates appraising expatriate mana
4、gers international labor relations terrorism, safety and global hrrepatriation: problems and solutionsa final word: auditing the hr functionin brief: this chapter outlines some of the hr problems and issues involved with international businesses. the subjects covered include inter-country difference
5、s, using selection to improve international assignments, and training and maintaining international employees.interesting issues: many companies desire to rotate managers through international assignments, but find that work visa requirements of the host countries (including the .) can sometimes gre
6、atly hinder these efforts.i. hr and the internationalization of businessinternationalbusinessandits impacton managing dueto the europeanmarket unification, the introduction of the euro currency, the opening of eastern europe, andthe rapiddevelopmentof demandin asiaandotherareasof theworld,largeand s
7、mall firms are finding their success depends on their ability to market and manageoverseas.a. thehrchallengesofinternationalbusiness deployment,knowledgeand innovation dissemination, and identifying and developing talent on a global basis. complicatingthesedecisionsarethecultural,political,legal,and
8、economic differences among countries and their peoples.b. how inter-country differences affect hrma company operating multiple units abroaddoesnothavetheluxuryofdealingwitharelativelylimitedsetof economic, cultural, and legal variables.1. cultural factorscountries differ widely in their cultures, wh
9、ich are the basicvaluesto whichtheircitizensadhere.culturaldifferencesfromcountryto countrynecessitatecorrespondingdifferencesinmanagementpractices among a company s subsidia ries.2. economicsystems differencesineconomicsystemstranslateinto differences in hr practices. differences in labor costs are
10、 substantial.3. legalandindustrialrelationsfactors varydramaticallyfromcountryto country. in many european countries, work councils replace the informal orunion based worker-management mediations typical in . firms. in germanyand severalothercountries,codeterminationis therulewhereemployees have the
11、 legal right to a voice in setting company policies.4. the european community refers to the unification of separate european countries in the 1990s into a common market for goods, services, capital, and labor.?noteseducational materials to useii. global differences and similarities in hr practicesa.
12、 personnelselectionprocedures employersaroundtheworldtendtouse similarcriteriaandmethodsfor selectingemployees.as in theunitedstates, employers aroundthe worldusuallyrank“ personal interviews,”“ theperson s abilitytoperformthetechnicalrequirementsof the job, ”a nd “ proven work experiences in a simi
13、lar job ” at or near the top of the criteria or methods they use.b. the purpose of the performance appraisalthere tends to be more variation in how employers in different countries use the results of performance appraisals.torecognizesubordinate”w asa mainpurposeforappraisalsinjapanand mexico.c. tra
14、ininganddevelopmentpractices thereareusuallymoresimilaritiesthan differences across countries. in particular, employers just about everywhere rank“ to improve technical abilities” as the main purpose for providing employees with training.theamountoftrainingfirmsprovidedoesvarysubstantiallyfrom count
15、ry to country.whenyou re onyourown,hr forlinemanagersand entrepreneurs:comparingsmallbusinesses,hr practicesintheunitedstatesandchina researchers haveidentifiedmanydifferencesbetweenhrforsmall businessesinchinafromthoseinthe united states. differences are significant in the areas of: job analysis, p
16、erformance appraisal practices, and actual pay practices.d. the use of pay incentivesthere are great variations in the use of incentive pay. some communist countries actually use more incentive pay than the .?noteseducational materials to useiii.how to implement a global hr systema.making the global
17、 hr system more acceptable1.remember global systems are more accepted in truly global organizations.2.investigate pressures to differentiate and determine their legitimacy.3.try to work within the context of a strong corporate culture.b.developing a more effective global hr system1.form global hr ne
18、tworks.2.rememberthatit msoreimportantto standardizeendsandcompetenciesthan specific methods.c.implementing the global hr system1.remember, “ you can t communicate enough.”2.dedicate adequate resources for the global hr effort.?noteseducational materials to useiv. staffing the global organizationa.
19、internationalstaffing:homeorlocal? multinationalcompanies(mncs) employseveraltypesofinternationalmanagers.localsarecitizensofthe countries where they are working. expatriates (“ expats ”) are-cniotinzens of the countries in which they are working. home-country nationals are citizens of thecountry in
20、 which the multinational company has its headquarters. third-country nationals are citizens of a country other than the parent or the host country.b. offshoring havinglocalemployeesabroaddojobsthatthefirm dsomestic employees previously did in-house is growing by leaps and bounds. offshoringjobs is v
21、ery controversial. in the 1980s and 1990s, it was mostly manufacturing jobs that employers shipped overseas.c. values and international staffing policy ethnocentric run firms would staff foreign subsidiaries with parent-country nationals because they believe that home country attitudes, management s
22、tyles, and knowledge are superior to thehostcountry.polycentricrun firmswouldstaffforeignsubsidiarieswithhost-country nationals because they are the only ones that can really understand the culture and the behavior of the host country market. geocentric run firms wouldstaffforeignsubsidiarieswiththe
23、bestpeopleforkeyjobsregardlessofnationality because they believe that the best manager for any specific position anywhere on the globe may be in any of the countries in which the firm operates.d. why expatriate assignments fail international assignments fail for various reasons including: personalit
24、y, the person s intentions, and-wnoornk factors.e. selecting expatriate managersis similar to selecting domestic managers, butyouneedtodetermineifmanagersforinternationalassignmentscancope internationally.1. adaptability screening,often conducted bya psychologist orpsychiatrist,is aimed at assessing
25、 the assignee s and family s probable success in handling the foreign transfer.thenewworkplace: sending women managers abroadmany managers assume thatwomen don t want towork abroad. in fact, thissurveyfound,womendowantinternationalassignments. employerstendto assumethatwomenpostedabroadaremore likel
26、ytobecomecrimevictims.however,mostofthesurveyedwomenexpatssaid thatsafetywasno morean issuewithwomen than it was with men. fear of cultural prejudices against women isanother common issue. here, there s no doubt that in some cultures women have to follow different rules than do their male counterpar
27、ts.but even here, as one expat said,“ even in the more harsh cultures,oncetheyrecognizethatthewomencandothejob,onceyour competence has been demonstrated, it becomes less of a proble m.”noteseducational materials to use?v. training and maintaining expatriate employeesa. orientingand trainingemployees
28、for internationalassignments someclaim thereis generallylittleor no systematicselectionandtrainingfor assignments overseas.a four-stepapproachis recommended:1)focusontheimpactof cultural differences, and on raising trainees awareness of such differences and theirimpactonbusinessoutcomes;2)getpartici
29、pants to understand how attitudes (positive and negative) are formed and how they influence behavior; 3)provide factual knowledge about the target country; and 4) provide skill building in areas like language, adjustment and adaptation skills.1. trendsinexpatriatetraining morefirmsareprovidingcontin
30、uing,in-country cross-cultural training during the early stages of a person s overseas assignment; employers are returning managers as resources to cultivate the“ global mindsets” of the rest of their home office staff; there is increased use of software and the internet for cross-cultural training.
31、b. compensating expatriatespresents some tricky problems due to the question of whether or not to maintain companywide pay scales and policies1. thebalancesheetapproach,thecommonapproachtoexpatriatepay, refers to equalizing purchasing power across countries.2. incentives manyfirmsoffer overseasmanag
32、erslong-termincentivesthat are tied more closely to performance at the foreign subsidiary level.c. appraising expatriate managerscan be improved by:1. stipulating the assignment s level;2. weighingthe evaluationmoretowardthe on- sitemanager s appraisalthan towardthehome- sitemanager s distantpercept
33、ionsoftheemployee s performance.3. modifying the normal performance criteria used for that particular position to fit the overseas position. these differences can be in many different areas.know your employment law: the equal employment opportunity responsibilitiesofmultinationalemployers .employers
34、doing business abroad, or foreign firms doing business in the united statesor its territories, have wide-ranging responsibilities to their employees under american equal employment opportunity laws, including title vii, the adea, and the ada.d. terrorism, safety, and global hr1. taking protective me
35、asures2. kidnappingandransom(k&r)insurance theinsuranceitselftypically coversseveralcostsassociatedwithkidnappings,abductions,or extortion attempts. these costs might include, forinstance, hiringa crisis team, the actualcostoftheransompaymenttothekidnappersorextortionists, ensuringthe ransom mon
36、eyin caseit losst in transit, legal expenses, and employee death or dismemberment.e. repatriation:problemsandsolutions somecommonrepatriationproblems are:theyoftenfearthatoutof sightis outof mind;returningexpatriatesare assignedtomediocreor makeshiftjobs;returneesare takenabackwhenthe trappingsofthe
37、overseas job are lost upon re turn; the expatriate fosrmercolleagueshavebeenpromotedwhilehe/shewasgone;andtheexpatriate s familymaygothroughcultureshock.somepossiblesolutionsare:written repatriationagreements;assignasponsor;providecareercounseling;keep communications open; and develop reorientation
38、programs.improving productivity through hris: taking the hris global asa companygrowsrelyingonmanualhrsystemstomanage activitieslikeworldwidesafety,benefitsadministration,payroll,and succession planning becomes unwieldy.forglobalfirms, it makes particular sense to expand the firm s human resource in
39、formationsystems abroad.f. afinalword:auditingthehrfunctionrequiresusingaccountingand statisticaltechniquestocalculatethecostof humanresources.thehr review should be aimed at tapping top managers opinions regarding the hr functionesffectivenessby assessingwhatshouldbe, andwhatis.“ what should be” re
40、fers to hr s broad aim, which involves a broad philosophy andvision statement, and a focused mission statement. “ what is ”s houldaddress the following questions. what are the hr functions? how importantare these functions? how well is each of the functions performed? what needs improvement? how eff
41、ectively does the corporate hr function use resources? how can hr become most effective?thehrscorecard,strategyandresults:managingglobal humanresourceslisatakesstepsto makethe hotelparis h r functions global in nature. this includes expatriate manager training, integratedhristhatallowstopmanagementt
42、omonitorhr performanceon an ongoingbasis,anda newincentivesystemfor local managers.?noteseducational materials to use1. youarethepresidentofa smallbusiness.whataresomeofthewaysyouexpectbeing involvedinternationallywillaffectyourbusiness?beinginvolvedinternationallycanaffect virtuallyevery aspect ofy
43、ourbusiness. it can affect the growth ofyour business due to additional markets, it can affect costs of doing business, and it can affect every aspect of hrm as outlined in thechapter2. whatare someof thespecificuniquelyinternationalactivitiesaninternationalhr manager typically engages in?1) formula
44、ting and implementing hr policies and activities in the home-officeof a multinational company. this hrm manager would engage in selecting, training, and transferringparent-companypersonnelabroadand formulatinghr policiesfor the firmas a wholeandfor its foreign operations. 2) conducting hr activities
45、 in the foreign subsidiary of an mnc is another form.again, local hr practices are often based on the parent firm's hr policies, fine-tuned for local countrypractices.3. whatinter-countrydifferencesaffecthrm?giveseveralexamplesofhoweachmay specifically affect hrm.1) cultural factors - . managers
46、 may be most concerned with getting thejob done. chinese managers may be most concerned with maintaining a harmonious environment.and hispanic managers may be more concerned with establishing trusting, friendship relationships.2) economic factors - . economic systems tend to favor policies that valu
47、e productivity while moresocialistic countries like sweden would favor policies that prevent unemployment. 3) labor cost factors - mexican labor costs (low) can allow inefficiencies of labor, while german labor costs (high)might require a focus on efficiency. 4) industrial relations factors - german
48、 law requires that workers have a vote in setting policies while in japan the employees do not have a say, but the government may have a say in establishing policies. 5) the european community - the ec will gradually reduce the differences between member countries.4. you are the hr manager of a firm
49、 that is about to send its first employees overseas to staff a new subsidiary. your boss, the president, asks you why such assignments fail, and what youplan to do to avoid such failures. how do you respond?estimates say that 20% to 25% of all overseasassignmentsfail.reasonsinclude:inabilityofspouse
50、to adjust,managers'inabilityto adjust,otherfamilyproblems,andmanagers'inabilityto copewithresponsibility.wewill need to select a manager that displays: adaptability and flexibility, cultural toughness, self-orientation, others-orientation, perceptual ability, and has a family with adaptabili
51、ty.5. what special training do overseas candidates need? in what ways is such training similar toand different from traditional diversity training?it is suggested that a four-step training approachbe taken:1) trainingfocusedon theimpactof culturaldifferencesandtheirimpactonbusiness outcomes;2) train
52、ingfocusedon attitudesthatare aimsat gettingparticipantsto understandhow attitudes (both positive and negative) are formed and how the influence behavior; 3) training focusedonfactualknowledgeaboutthetargetcountry;and4)skillbuildingin areaslikelanguageandadjustment and adaptation skills. this traini
53、ng is different from traditional diversity training in the lasttwosteps,whicharenotnormallypartof diversitytraining.in addition,traditionaltrainingand development is needed as with any other manager.6. how does appraising an expatriate's performance differ from appraising that of a home-office m
54、anager? how would you avoid some of the unique problems of appraising the expatriate's performance?a major difficulty is: who actually appraises the performance? (cultural differences could affect it) there are five suggestions: 1) stipulate the assignment's difficulty level; 2) weight the evaluation towards the on-site manager's appraisal; 3) h
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