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International Human Resource Management (Cross Cultural Training (Reduces…
International Human Resource Management
What attracts recruits?
Brand
Purpose
Opportunity
Culture
Strategic Global Human Resource Management
Major determinant of success/failure in international businesses
Factors of production
Can be duplicated by rivals
Capital, tech, info
Human resources are the only source of sustainable competitive advantage
cannot be duplicated
Three groups of managers:
Expat (parent company)
Host country( Local)
Third country nationals
Functions:
Recruitment
Preparation and training
Performance management
Motivation
Compensation
Framework
Domestic HRM practices and policies
Firm specific factors
Contextual factors
Markets
Countries
Important characteristics
More involved activities
Relocation and orientations
Admin services for expats
permits/visas
International taxation
protection, incentive, equalisation
Personal/family lives of employees
Need for broader perspective encompassing all the involved countries
Equity issues regarding compensation
Considers more external influences
Government control
Economic environment
Reliance on home country/domestic market
Sweden is international because its domestic market is small; USA's domestic market is large so its companies are slow to internationalise
business practise
Cultural environment
Includes mix of expats and locals
changes over the course of the life cycle of organisation
Uses more parent country nationals in the beginning
Risk exposure is higher
Expat failure
Higher in/direct costs (time, money, admin)
Terrorism
International Staffing Policies (how cohorts are mixed)
Ethnocentric approach
Commonly used during the business' early stages
Limited overseas involvement
Not enough international experience
Limited network
Staffed by parent country nationals
Advantages
Can use same standards (language, system, trust etc)
Disadvantages
doesn't promote local image
limited adaptability by PCN to local environment
Polycentric approach
Host country national stagg
Functional growth
Advantages
Good for local image
Distinct national entity with decision making autonomy
Disadvantages
Control is limited
Communication can be difficult
Regiocentric approach
HCN and TCN within a particular region
Controlled growth
Advantage
Coordination across countries in the region
Disadvantage
Focus is only on the region (rather than global)
Geocentric approach
Truly global
Staffed on meric
Strategic integration
Global integration to meet domestic and overseas competition
Factors affecting Staffing Policies
Government policies and legal regulations
Managerial, educational and tech development in host country
Can be hard to find managerial talent in developing countries
Tech/nature of product
Organisation's life cycle
Cultural difference
Recruitment
Selection decision
Technical ability
Cross cultural suitability
adaptability, emotional intelligence
Language
Diplomacy
Family requirements
Business requirements
Selection criteria
Soft skills
Adaptability
Location specific skills
Language
Cultural understanding
Personal characteristics
Network
Uncertainty avoidance
Presentation
Gender norms
Issues in selection
Family issues
Children's education
Dual career couples
Expat failure
Lack of adaptability
Family problems
Lack of financial support
Balance sheet approach (home country rate + financial inducement)
Going rate approach (paid like da locals)
Poor programs for career support and repatriation
Culture shock
Four stages
Honeymoon
Irritation
Adjustment
Acculturation
Integration
Assimilation
Deculturation
Separation
Biculturalism
Cross Cultural Training
Reduces culture shock
Fact oriented training
Cultural awareness training
Cognitive behaviour modification
Experimental learning
Interaction training
Performance appraisal
Soft foals
Hard goals (quantifiable)
Contextual goals (situational factors)