Chapitre 19 Flashcards
What is Human Resource Management (HRM) and what are its components
Use of Human Resources effectively, through:
HR strategy,
staffing,
performance structure,
Management development,
Compensation, &
Labor Relations (unions)
Impact HRM
Increase profitability by hiring people w values that aligns with the Company’s culture (staffing), strong culture leads to increase productivity (less turnover and increase job satisfaction) therefore reduces cost
Relationship HRM & organizational architecture
HRM impacts
incentives (compensation, e.g. tie bonus to diversity goals),
control systems performance appraisal by choosing performance metric by which to compare candidates),
people (staffing) and culture (all aspects of organizational structure are interdependant, thus they have the power to reinforce it or not)
What is the staffing policy’s impact on the firm
Staffing Policy = How u select individuals. Impact = choose individuals who’s values align with the firm to reinforce corporate culture to better implement the firm’s strategy
Types of staffing policy
Ethnocentric, Polycentric & Geocentric
Pros and Cons Polycentric
Polycentric: Manager is from host country’s subsidiaries & parent company national occupy key positions at hq.
Pros: Less expensive than Ethnocentric (bc no foreign service premium pay), less likely to have cultural myopia, good for localization strategy (high local responsiveness)
Cons: Lack of integration between subsidiaries and hq & limited opportunities
What is cultural myopia
Failure to understand host country’s cultural differences
Pros and Cons Ethnocentric
Ethnocentric: Mgmt positions filled by parent-company’s country bc host country lacks qualified individuals,
Pros: Unifies culture, easier to reproduce core competencies’ task, good for International Strategy
Cons: Resentment in host countries, lead to higher turnover, thus decrease in productivity, can lead to cultural myopia
Pros and Cons Geocentric
Geocentric: Best people for the job, regardless of nationality
Pros: Best use of human resources, decreases cultural myopia, helps build informal network, first step towards diverse culture & good for Global Standardization Strategy & Transnational Strategy
Cons: Expensive (foreign service premium), national immigration policies can limit implementation
What is an expatriate manager
Country citizen working in another country, e.g. US citizen working in Saudi Arabia
Failure rate of expatriate managers
Expatriate from US have higher failure rate, then Europe then Japan.
Expatriate leave at 2x the rate of regular manager and cost per failure is approximately 3x that of an expatriate’s annual salary
Reason failure rate for different country
Top reason for US & Europe = inability for the partner to adjust, versus Japan have this reason ranked 5th. Explanation: Most expatriate are men & Japanese’s society see women’s role traditionally
4 dimensions to decrease expatriate failure
Self-orientation, others-orientation, perceptual ability & cultural toughness
What is the Self-Orientation dimension
Self-esteem & well-being
What is the others-orientation dimension
Relationship development w national country & willingness to communicate in their language
What is the perceptual ability dimension
Empathy, nonjudgmental & ability to adapt to new norms
What is the cultural toughness dimension
If girl applying in male dominated field, difference in entertainment, food difference and language barriers
Inpatriate
Japanese manager working for Microsoft and living in the US (only possible with Geocentric staffing policy
What is a Global mindset
Fundamental attribute for manager going to subsidiary, adaptability & cultural sensitivity as apposed to technical skills
Language Training
Willingness!! (no need to be fluent) to communicate will increase effectiveness in dealing with host-country nationals
Cultural Training
Info about host’s country culture, history, politics to ease cultural shock
Training vs Development
Training: Skills for foreign posting
Development: Develop manager’s skills for his current position
Practical Training
Help expartiate manager & his family envision in day to day in host ocuntry, e.g. with an expatriate community
Repatriation of expatriate
HRM should focus on his return (will he have a better position when he returns)
Development definition
Management education, e.g. rotation of managers w different jobs within the firm to build informal network & unifies culture. Good for transnational strategy
Performance appraisal problems
Relies on hard data, e.g. productivity/market share of their subsidiary and they are subject to external factor (e.g. increase exchange rates leading to less investment in their subsidiary)
How to reduce bias in performance appraisal problems
Communication between home-manager and foreign-manager for roles because:
1-Onsite manager sees soft-variable (e.g. cross-cultural awareness), not just hard data
2- Both managers should communicate to avoid cultural misunderstanding
Difference in compensation
Problem in geocentric staffing (transnational & global standardization strategy). Should they pay consistently throughout the globe or according to prevailing standard
Expatriate pay
Balance Sheet Approach: base + foreign service premium (extra pay for working abroad) + allowances (hardship, housing, cost of living & education). Example hardship = lower standard than home so need to pay more for same standard of living, education: expatriate manager might need more money because school system is worse in host thus will have to pay for public school, company will cove the costs & expatriate might have to pay income tax in home and host country, company will pay the income tax in the host country). So it’s expensive to expatriate, u want to minimize it but ethnocentric & geocentric need to.
Why does a diverse workforce increase performance?
If diverse workforce, you have more insights into the needs of diverse customers, e.g. you can offer better marketing & it boosts your brand image (which is good from a customer pov and to attract top talent)
Steps to build a diverse workforce?
Organizational change has to be driven from the top (e.g switch staffing from ethnocentric or polycentric to geocentric), recognize it adds value, set clear goals (not quotas) and how far ur status quo is from that goal, hold manager accountable for achieving these goals (i.e. assess their performance based on diversity & tie bonus to diversity goals) and hire people from diverse background.
Diversity workshop
Remind employees about unconscious bias and reduce stereotypes with role playing
Union’s bargaining power
They challenge the company’s decision with the threat of a strike or refusing to work overtime
Multinational’s bargaining power
They can move the production to other countries or (if the case) noit unionize
Strategy of Union
Try to lobby for international labour organizations so MNC lose their bargaining power (if unionized in many countries) & to be able to disrupt production on international scale, e.g. with international Trade Secretariats: worldwide links in certain industries (mostly cars) and is largely unsuccessful because although all union want better condition for their workers, they sometime have to compete against each other to attract production facilities in their country.
Approach to labor relations: Centralized
hq is responsible for control over labor relations across all nations. Current trend is towards centralized because companies want the threat of moving production oversee in negotiation but big % of total cost therefore requires input from hq & production can be a source of the company’s competitive advantage therefore easier to transfer core competencies when centralized (i.e. transfer knowledge from hq to plant because your way to operate is your core competency and it has to be consistent all thoughout your plants)
Approach to labor relations: Decentralized
Different countries = different labr laws and all subsidiaries operate in different manner
Current threat to geocentric staffing policy
Increase in restriction in immigration law, making it hard for geocentric staffing policy (e.g. for Microsoft to attract top engineer to the US because of protectionist law of Trump), Microsoft expanded their operations to neighbour country Canada
