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Human Resource Management ELEVENTH EDITION 1 GARY DESSLER Part 5 | Employee Relations Chapter 17 Managing Global Human Resources © 2008 Prentice Hall, Inc. All rights reserved. PowerPoint Presentation by Charlie Cook The University of West Alabama After studying this chapter, you should be able to: 1. List the HR challenges of international business. 2. Illustrate how intercountry differences affect HRM. 3. Discuss the global differences and similarities in HR practices. 4. Explain five ways to improve international assignments through selection. 5. Discuss how to train and maintain international employees. © 2008 Prentice Hall, Inc. All rights reserved. 17–2 HR and the Internationalization of Business • The Global Challenges  Coordinating market, product, and production plans on a worldwide basis.  Creating organization structures capable of balancing centralized home-office control with adequate local autonomy.  Extending HR policies and systems to service staffing needs abroad. © 2008 Prentice Hall, Inc. All rights reserved. 17–3 Intercountry Differences Affecting HRM Cultural Factors Economic Systems International Human Resource Management Legal and Industrial Relations Factors © 2008 Prentice Hall, Inc. All rights reserved. 17–4 Global Differences and Similarities in HR Practices Personnel Selection Procedure Use of Pay Incentives International Human Resource Management Purpose of Performance Appraisal Training and Development Practices © 2008 Prentice Hall, Inc. All rights reserved. 17–5 How to Implement a Global HR System • Best practices for making a global HR system more acceptable to local managers: 1. Remembering that global systems are more accepted in truly global organizations. 2. Investigating pressures to differentiate and determine their legitimacy. 3. Working within the context of a strong corporate culture is best. © 2008 Prentice Hall, Inc. All rights reserved. 17–6 A Global HR System (cont’d) • Best practices for developing a more effective global HR system:  Form global HR networks that make local HR managers a part of global teams.  Remember that it’s more important to standardize ends and competencies than specific methods. • Best practices for implementing the global HR system:  Remember, “You can’t communicate enough.”  Dedicate adequate resources for the global HR effort. © 2008 Prentice Hall, Inc. All rights reserved. 17–7 Staffing the Global Organization (cont’d) Top Management Values Ethnocentric International Staffing Policy Polycentric Geocentric © 2008 Prentice Hall, Inc. All rights reserved. 17–8 Staffing the Global Organization (cont’d) Inability of Spouse to Adjust Personality Personal Intentions Family Pressures © 2008 Prentice Hall, Inc. All rights reserved. Why Expatriate Assignments Fail Inability to Cope with Overseas Responsibilities Lack of Cultural Skills 17–9 Staffing the Global Organization (cont’d) Realistic Previews Careful Screening Helping Expatriate Assignments Succeed Improved Orientation Cultural and Language Training Improved Benefits Packages © 2008 Prentice Hall, Inc. All rights reserved. 17–10 Selecting Expatriate Managers • Adaptability Screening  Assessing the assignee’s (and spouse’s) probable success in handling the foreign transfer.  Overseas Assignment Inventory  A test that identifies the characteristics and attitudes international assignment candidates should have. • Realistic Previews  The problems to expect in the new job, as well as the cultural benefits, problems, and idiosyncrasies of the country. © 2008 Prentice Hall, Inc. All rights reserved. 17–11 Compensating Expatriates • The “Balance Sheet Approach”  Home-country groups of expenses—income taxes, housing, goods and services, and discretionary expenses—are the focus of attention.  The employer estimates what each of these four expenses is in the expatriate’s home country, and what each will be in the host country.  The employer then pays any differences such as additional income taxes or housing expenses. © 2008 Prentice Hall, Inc. All rights reserved. 17–12 International Labor Relations Characteristics of European Labor Relations Industry-Wide Centralization Employer Organization © 2008 Prentice Hall, Inc. All rights reserved. Multiple Union Recognition Content and Scope of Bargaining 17–13 KEY TERMS codetermination expatriates (expats) home-country nationals third-country nationals offshoring ethnocentric polycentric geocentric adaptability screening foreign service premiums hardship allowances mobility premiums © 2008 Prentice Hall, Inc. All rights reserved. 17–14