Chapter 11: Strategic International HRM Flashcards
KEY CHALLENGES INFLUENCING HR PRACTICES
AND PROCESSES WITHIN AN INTERNATIONAL
CONTEXT
Workforce Diversity- integration and inclusivity, having HRM systems that accommodate the needs of a diverse labour force
Employment Legislation- manoeuvring complex legal stipulations, ensuring compliance across the board
Security- war zone areas/crime-polluted areas; need to consider the safety of employees
Strategic International planning
Projecting global competence supply, forecasting global competence needs, and developing a blueprint to establish global competence pools within companies
Strategic IHrm
“human resource management issues, functions, and policies and practices that result from the strategic activities of multinational enterprises and that impact the international concerns and goals of those enterprises.”
- creating policies and practices that impact international concerns and goals of companies
Strategic HRM: Domestic stage and HR strategy
The initial step to going international through exports is so HR practices will stay the same
Multidomestic stage and strategy
Gaining expertise decides to set up a subsidiary; Stage of adapting to cultural differences
Multinational stage and strategy
Increased competition from other MNCs prompted the company to shift strategy- resulting in the standardization of products and services, as well as HR (exportive approach)
Global strategy
Introducing culturally
sensitive products in
chosen countries with
the least amount of cost
Integrative IRHM Approach
Combining home HR
practices with local
practices and selecting
the most qualified
people for the appropriate positions no
matter where these
candidates come from.
Key HR Practices and Processes within an international context- International Assignments
Definition: sending current workers overseas
Purpose of overseas assignments
- Strategic Control: retain the culture, structure, and decision processes of the home-country firm.
- Transfer of Knowledge and skills to host-country workers
Types of International Assignments
Frequent Flyers- Makes frequent trips to host country, but never relocates to that country.
International Commuters: Work in host country but live in home-country. So, they travel to host in week, and come home during weekends or longer periods of time.
Short-term assignment: Relocation assignment for less than 1 year; living in host country.
Expatriate Assignment: Relocated for mroe than year- usually carry their family; work for 3-5 years
Permamnent transfer: permanently moved to host country
- Consider cost of long term stay
- Demand and supply for global operations
Workforce planning- International context
understanding and interpreting:
Local labour market data,
Issues relating to external human capital demand and supply,
the environment
flexible labour practices.
Reliance in Labour Market Data
Many sources: Givt agencies, professional organizations,
Tempting to use foreign gov stats
- Use several sources; trutsted networks
- Get industry experience
External Human Capital Demand and Supply
- Need to understand market
- Failure to understand can result in unexpected costs
- Can be addressed through expatriate strategy- bring in ppl and have them transfer skills
The environment
- availability of resources
- SWOT
Flexible Labour Strategies
- Flexible Hours, job sharing, part-time etc.
- Accomodates those who can’t take on fulltime, centrally located employment
International Recruitment
Internal vs external recruitment on three levels:
HCNs- workers from subsidiary country who know foreign culture well(strong adaptive approach)
PCNs- workers from head quarters; familiar with company culture(strong exportive approach)
TCNs- Persons from Third country who knows both foreign market and company culture from previous experience( mixture of exportive and adaptive approach)
Adv/Dis of each
Adv:
PNC- Good in company norm; bad with norms of host country, costs of relocating
HCN- Familiarity with the host-country
culture , Limited familiarity with firm’s own
operations
TCNs- loyal to firm, familiar with host country, Enhanced career development
opportunities by allowing employees from the various subsidiaries to move
to other subsidiaries; cross-cultural preparation still may be required, may be low on corporate culture
Selection- Several authors have simplified the above lengthy list into the following three dimensions of cross-cultural. competencies.
Self-maintenance- capability to substitute sources of reinforcement when necessary and deal with alienation and
isolation
Relationship competencies, which refer to the capability to develop and
maintain relationships with home-country nationals (HCNs)
Perceptual competencies- understand why foreigners behave the way they do, to make correct attributions about the reasons or causes of HCN s’ behaviour, and to correct those attributions when they
prove incorrect.
PRE-ASSIGNMENT TRAINING
The researchers found that effective training should emphasize five points:
- Assess and evaluate the needs of training for expatriates.
- Clarify the purpose and goals of training that are relevant and applicable to
participants’ daily activities. - Plan and design the training programs to meet training goals.
- Implement the training plan.
- Use several techniques to increase the effectiveness of training programs.
POST-ASSIGNMENT ACTIVITIES
Repatriation - The process of PCNs, TCNs, or even HCNs
returning to their home
headquarters or home
subsidiaries
Issues with repatriation
- Prior to the return home, the employee may become anxious at the thought
of having no appropriate position to return to; this anxiety can affect productivity abroad and work adjustment shortly after repatriation. - The employee may become dissatisfied with his or her standard of living upon
return, having become accustomed to the special status that accompanied the
expatriate position. - Co-workers may not be interested in hearing about the repatriate’s experiences.
lots of things have gone on in their own lives over the last few years, and
they’ve had their own preoccupations and focus. - The repatriate’s job may not make as much use of internationally acquired
KSAOs as it could.43 In this case, “out of sight, out of mind” is the operative phrase.
Career Development- Post Assignment Activities
The first is to regard the international assignment as merely one step in
an overall career development plan.
The second is to ensure that the next step (i.e.,
the candidate’s subsequent assignment) makes good use of the KSAOs developed
internationally, as these will serve as a source of competitive advantage to the firm.
Integration- The repatriate could serve as a mentor
or formal trainer to future expatriates or provide input into the CCT process by
recounting critical incidents experienced abroad.
Another option is for the expatriate not to be repatriated but instead to join the pool of global managers and remain an international employee for the duration of
his or her career, rotating from subsidiary to subsidiary.
11 LABOUR RELATIONS
industrial unions: all grades of employees in an industry;
craft: based on skilled occupations across industries;
conglomerate: represent members in more than one industry.
general: open to all employees in the country
each country varies in rate of unionization.
Labour relations involve wage rates.
- need to increase fit between labor relation activities and external environment
