Global Dimensions of HR Mgmt. 2

Advantages of PCNs

Higher control and coordination + Develops promising managers

Disadvantages of PCNs

Long adaptation process + Sometimes impose inappropriate culture

Advantages of HCNs

Eliminating language/cultural barriers + Reduces costs

Disadvantages of HCNs

Can hinder the development of a unified corporate culture and strategy (instead of working towards common global objectives, subsidiaries may prioritize their own national interests)

Advantages of TCNs

Lower costs + Shorter adoption period

Disadvantages of TCNs

National history anomalies + Increased regulations

PCN (expatriates from parent country)

employees who are citizens of the country where the company's HQ is located, regardless of where they are working globally (ex. an American employee working for an American company branch in Germany)

HCN (locals in host country)

employees who are citizens of the country where the company operates, but NOT citizens of the country where the company's HQ is located (ex. an American employee working for a German company branch in America)

TCN (third parties)

employees who are citizens of a country OTHER THAN the parent country (where the company is headquartered) and the host country (where the employee works)

Ethnocentric staffing approach

cultures are all similar + PCNs are favored

Polycentric staffing approach

cultures are totally different + HCNs are favored

Geocentric staffing approach

ability is more important than nationality

Regiocentric

geocentric approach (ability is more important than nationality), but also limited to a specific region

Determinants of staffing choices include

(1) context specificity, (2) company specificity, (3) IHRM practices, (4) local unit specificity

Context specificity in choosing staff

cultural/institutional context + staff ability + industry type

Company specificity in choosing staff

structure/strategy + international experience + corporate governance + organizational culture

IRHM practices in choosing staff

planning + staffing/selection + compensation/benefits + training/development + performance management + industrial relations management

Local unit specificity in choosing staff

establishment method + strategic role/importance + need for importance + locus of decision

Locus of decision

the degree to which people believe that they, as opposed to things beyond their influence, have control over the outcome of events in their lives

International assignments are chosen to

(1) fill a position/make up for lack of available skills, (2) develop organization further with training/development/transfer of knowledge

Different asignee roles include

(1) agents of direct control, (2) agents of socializing, (3) network builders, (4) language nodes, (5) boundary spinners, (6) knowledge transfers

Agents of direct control

expatriates sent abroad to enforce the PC's policies, practices, and procedures DIRECTLY

Agents of socializing

employees responsible for instilling the company's values/culture/norms within the subsidiary (foreign branch)

Network builders

employees who focus on establishing/maintaining relationships within + outside the organization

Language nodes

employees who act as linguistic/cultural bridges between PC and HC

Boundary spinners

employees operating at the interface between the organization and external entities + manage external relationships

Knowledge transfers

employees who facilitate the flow of knowledge/expertise from the company HQ to the subsidiaries

Expatriates

live overseas for a specific period

Problems with expatriates

costs, family issues, and troubles adapting

Non-expatriates

travel overseas for a specific period

Problems with non-expatriates

family issues, logistics, health issues, and government problems

Inpatriates

travel from HC to PC

Advantages of inpatriates

transfer of knowledge, "org culture", and creation of a global mindset

Advantages of internal recruits being internationally assigned include

having an easily accessible pool of applicants + employees already have familiarity with their org culture

Disadvantages of internal recruits being internationally assigned include

lack of diversity + difficulties with adaptation

Advantages of external recruits being internationally assigned include

an extended pool of applicants + potentially easier time adapting

Disadvantages of external recruits being internationally assigned include

non-familiarity with org culture

Expatriate failure manifests in

(1) premature repatriation (returning home before period of assignment is completed), (2) poor performance during assignment, (3) volunteer turnover following repatriation, (4) personal costs (psychological + career), (5) organizational costs (financial + reputation)

Reasons for expatriate failure

poor selection + preparation + adaptation + repatriation... (ALL = POOR STAFFING, which HR is liable for)

Reducing expatriate failure risks includes

(1) effective PRE-assignment strategies (better selection/training), (2) effective ON-assignment strategies (better support/skills), (3) effective POST-assignment strategies (effective repartition)

Repartition

process of distributing/reallocating resources into different parts/groups

Female expatriates

(1) increase DEI, (2) are underrepresented in international assignments (due to pre-assumptions about their gender/family obligations), (3) are less common (because of lack of relevant/accessible education)

Performance management

process of evaluating/continuously improving individual, subsidiary units, AND corporate performance overall against clearly define pre-set goals/targets (future view)

Performance management is focused on

DEVELOPMENT + proactively managing employees' performance + supporting employees to achieve their goals

Performance appraisal

process of evaluating an individual's performance according to expectations of appropriate outcomes/behavior that contribute to overall organizational goal attainment (past/present view)

Performance appraisal is focused on

EVALUATION + evaluating employees' performance based on how they performed in the immediate past

Profit =

revenue - costs

Profit is made by having a ___ + ___ working together in alignment

structure; people

Control system

tracking how well the organization is performing + identifying areas of concern and then taking actions to address the concerns

Control systems focus on

(1) promoting/preventing particular behaviors, (2) shaping a positive org culture, (3) achieving particular goals

Performance management involves

EVERYONE (HCN + PCN + TCN + local employees)

Constraints of international performance management

(1) managing the WHOLE vs. PART of the system, (2) non-comparable data, (3) volatility of the global business market, (4) variable levels of maturity across markets, (5) separation by time/distance

Examples of volatility in the global business market

collapse of Communist rule + formulation of the EU + BREXIT + Chinese market reforms + COVID-19 pandemic

To determine expatriate performance, consider the impact/interrelations of

(1) compensation (balance of tasks vs. rewards), (2) task clarity/adjustment over time, (3) level of HQ support, (4) cultural adjustments (individual/family experience over time)

Technical expatriate task

short-term specialized knowledge transfer of SPECIFIC SKILLS

Functional expatriate task

long-term exchange of processes/practices aimed at integrating new systems and improving operations through TWO-WAY LEARNING

Developmental expatriate task

focus on growth/learning, benefiting both the expatriate AND local team

Strategic expatriate task

aligning local actions with global strategies, ensuring that the expatriate's work supports the company's long-term goals WHILE adapting to local market dynamics

Process of performance management of international employees

(1) goal setting, (2) coaching, (3) performance appraisal, (4) feedback

Goal setting involves

(1) hard goals, (2) soft goals, (3) contextual goals

Hard goals

tangible + measurable goals (ex. getting an A+)

Soft goals

intangible + trait-based goals (ex. becoming an effective team leader)

Contextual goals

results from a situation in which performance occurred (ex. someone breaking a rule resulting in following that rule becoming a new goal)

Coaching involves

(1) training + development (DEFINING the goal), (2) support (HELPING employees MEET the goal [mentally/financially/contextually])

Individual-related vs. task-related goals

personal development/performance of individuals in the company vs. specific organizational tasks

Performance appraisal involves

(1) who conducts it (supervisors/subsidiary managers, or multiple raters), (2) standardized OR locally customized appraisal forms, (3) frequency of appraisal, (4) 360-degree appraisal

Disadvantage of supervisor appraisal

can be distant

Disadvantage of subsidiary manager appraisal

can have culturally-bound biases

Disadvantage of multiple rater appraisal

can make the process overly complex

The concept of standardized vs. locally customized appraisal forms come from

international assignments making the appraisal process much more dynamic (this can be a good OR bad thing when considering it)

Appraisals are typically completed

annually/semi-annually in a formal setting + multiple times throughout the year in an informal setting

360-degree appraisal

performance appraisal conducted by top management + immediate superiors + customers + self + peers + subordinates (EVERYONE)

360-degree appraisal ensures

accurate performance appraisal

Feedback involves

(1) being the learning process for improving performance, (2) combining communication styles + being familiar with employee needs, (3) culture playing an important role (ex. Hall's model of high- and low-context cultures)

Feedback formula

(1) important short question to get consent to give feedback (MICRO-YES), (2) utilize DATA POINTS to further specify the issue (avoid BLUR-WORDS that mean diff. things to diff. people), (3) make an IMPACT STATEMENT to explain the impact the previous data points are having over time, (4) END ON A QUESTION to figure out the other side of the story + end feedback-giving cordially

Training

improving current work skills/behaviors

Training process

(1) identify performance opportunity OR problem, (2) identify training needs, (3) identify what knowledge/skills are required, (4) develop training resources, (5) assemble training materials, (6) conduct training program, (7) review/get feedback

Development

increasing ability in relation to future positions or jobs

Development process

(1) coaching, (2) mentoring, (3) counseling, (4) job rotation, (5) roleplaying, (6) case studies, (7) conference training, (8) special projects

International assignment trainers

expatriate trainers who are expected to train + develop HCNs

International assignment trainers are part of

the overall knowledge/competence transfer + also ensure adoption of how systems/processes work AND monitor HCN performance

International assignment trainees

expatriate trainees who are management under development

International assignment trainees' jobs lead to

development of broader perspectives to become global operators in the future

Stages of training + development

(1) preparation, (2) immersion, (3) repatriation

Preparation T + D

pre-departure training including (1) cultural awareness, (2) preliminary visits, (3) language training, (4) practical assistance, (5) security briefings, and (6) training trainers

Preparation T + D is all part of

Cross-Cultural Training (CCT)

Cross-Cultural Training (CCT) is designed by

(1) creating training methods, (2) determining levels of training rigor, (3) figuring out the duration of training, ALL WHILE CONSIDERING EXPECTED DEGREE OF INTERACTION + CULTURE NOVELTY

Culture novelty

how the different HC is different from native culture

First model of CCT

low interaction + similar cultures = <1 week training

First model of CCT utilizes

INFO-GIVING approach ("survival-level") = involves short culture briefings/lectures/movies/books + assigning LANGUAGE INTERPRETERS rather than actually teaching trainees the language

Second model of CCT

2-12 month job + some interaction = 1-4+ week training

Second model of CCT utilizes

AFFECTIVE approach = roleplaying/case studying how to deal with critical incidents + stress reduction training + CULTURE ASSIMILATOR TRAINING + MODERATE LANGUAGE TRAINING

Third model of CCT

high interaction + novel culture = 2+ months training

Third model of CCT utilizes

IMMERSION approach (focus on assessment over time) field experiences/simulations + intercultural web-based workshops + SENSITIVITY TRAINING WITH TIGHT CULTURES + EXTENSIVE LANGUAGE TRAINING

Immersion T + D

job shadowing + mentorship/coaching + job rotation + on-the-job training (OJT) + apprenticeship programs

Repatriation T + D

coming back from the HC to the PC involves individual concerns

Job-related issues from repatriation

career anxiety + difficult adjustment to work + trouble scoping with new role demands + loss of status/pay

Social issues from repatriation

difficulty with family adjustment/local networks

Expatriate assimilation process

(1) leaving home, (2) culture shock, (3) acclimating, (4) returning home, (5) reverse culture shock, (6) reacquantince with home culture

Repatriation concerns from MNE perspectives

(1) staff availability/career expectations (expatriations SHOULD be rewarded), (2) return-on-investment (ROI requires cost-benefit analysis), (3) knowledge transfer (how much value it has vs. how much is transferable)