Ch.17- Global Human Resource Management

Development of HR until 1913

company social services- protective function for employees like child labor

Development of HR until 1945

payroll office and staff administration- professionalization of administration

Development of HR until 1975

Personnel management- work conditions: specialized function within HR after 1970

Development of HR until 1995

Human Resources management- HR controlling, renumeration models to leverage productivity

Development of HR until today

strategic HR- business partner, change agent, CoC/CoE

future HR

evidence-based HR, agile HR, virtual HR, AI

role of HR departments from most to least in past

administrative, operational/ employee advocate, strategic

role of HR departments from most to least in future

strategic, operational/ employee advocate, administrative

activities an organization carries out to utilize its Human Resources effectively

human resource management (HRM)

examples of human resource management

determining human resource strategy, staffing, performance evaluation, management development, compensation, labor relations

why is international HRM more complex in an international business- 4

differences in labor markets, culture, legal systems, economic systems

international HRM also deals with issues related to expatriate managers, which are….

citizens of one country working abroad

concerns of expatriate managers

when to use, who to send, how to compensate, and repatriation

how is strategy implemented

organization of an enterprise

what does superior human resource management show

high productivity and competitive advantage in a global economy

what role does Human Resources have for organizational architecture

people, incentives and controls, culture

concerned with the selection of employees for a particular job

staffing policy

staffing policy is involved with selecting people with the ____ ____ for a particular job and developing and promoting the _______ ____ of the firm

right skills, corporate culture

the organization’s norms and value systems

corporate culture

a strong corporate culture can help a firm implement its _____

strategy

types of staffing policies

ethnocentric approach, polycentric approach, geocentric approach

key management positions are filled by parent-country nationals

ethnocentric approach

the ethnocentric approach can lead to

culture myopia

host-country nationals manage local subsidiaries and parent-country nationals hold positions at headquarters

polycentric approach

What staffing policy do most US multinationals possess

polycentric approach

the best people are sought for key jobs throughout the organization, regardless of their nationality

geocentric approach

an ethnocentric approach is compatible with what strategy

export/ international strategy

a polycentric approach is compatible with what strategy

multidomestic/ localization strategy

a geocentric approach is compatible with what strategy

global standardization and transnational strategies

low global integration and low local responsiveness

export strategy

low global integration and high local responsiveness

multidomestic strategy

high global integration and low local responsiveness

standardization strategy

high global integration and high local responsiveness

transnational strategy

ethnocentric advantages

overcomes lack of qualified managers in host nation, unifies culture, helps transfer core competencies

ethnocentric disadvantages

produces resentment in host country employees, can lead to cultural myopia

polycentric advantage

alleviates cultural myopia, inexpensive to implement

polycentric disadvantage

limits career mobility, isolates headquarters from foreign subsidiaries

geocentric advantage

uses Human Resources efficiently, helps build strong culture and informal management networks

geocentric disadvantage

national immigration policies may limit implementation, expensive

what approaches rely on expatriate managers

ethnocentric and geocentric

the premature return of an expatriate manager to the home country

expatriate failure

inability of spouse to adjust, inability of manager to adjust, other family problems, manager’s personal or emotional maturity, inability to cope with larger overseas responsibilities

main reasons for expatriate failure for U.S. MNEs

inability of spouse to adjust

main reasons for expatriate failure for European MNEs

Inability to cope with larger overseas responsibilities, difficulties with the new environment, personal or emotional problems, lack of technical competence (evidence expatriates were not recruited because of their expertise), inability of spouse to adjust

main reasons for expatriate failure for Japanese MNEs

focuses upon preparing the manager for a specific job

training

focuses on developing the skills of the manager over career with the firm

management development

different training for expatriate managers

cultural training, language training, practical training

seeks to foster an appreciation for the host country’s culture

cultural training

improves the effectiveness of managers and helps them better relate to the foreign country

language training

helps the expatriate manager and family ease into day-to-day life of the host country

practical training

help build a strong unifying culture and informal management network by increasing skill levels of managers

management development programs

two key issues of compensation include __________ to reflect national differences in economic circumstances and compensation practices, how __________ should be paid

adjusting compensation, expatriates managers

typical compensation packages include

base salary, foreign service premium, allowances, benefits, tax differentials

allowances include

hardship allowance, housing allowance, cost-of-living allowance, education allowance

may have to pay income tax to both home-country and host-country governments unless host country has reciprocal tax treaty

expatriate taxation

what happens when a reciprocal tax treaty isn’t in force

the firm pays the expatriate’s income tax in the host country

bring insights into needs of diverse customer base, capitalizes on talent of women and minorities, develops better relationships with diverse customer base, may improve brand image, increases employee satisfaction

how does diversity improve performance talents

the concerns of organized labor are Multinationals can counter union bargaining power by threatening to _______ to another country, multinationals will keep highly skilled tasks in the ________ and farm out only _______ tasks, imported employment practices and contractual agreements will reduce _______ influence and power.

move production, home country, low-skilled tasks, union

strategy of organized labor includes Trying to establish their own ___________, lobbying for national legislation to restrict multinationals, trying to achieve regulations of multinationals through ___________ such as the United Nations.

international organizations, national legislation, multinationals, international organizations

most labor relations have been decentralized to

individual subsidiaries