II Jai Sri Gurudev II
Sri Adichunchanagiri ShikshAna Trust ®
SJB Institute of Technology
(An Autonomous Institute under Visvesvaraya Technological University, Belagavi
Approved by AICTE, New Delhi, Recognized by UGC, New Delhi with 2(f) and 12 (B).
Accredited by NAAC with ‘A+’ Grade, Accredited by National Board of Accreditation)
No. 67, BGS Health & Education City, Dr Vishnuvardhan Road, Kengeri, Bengaluru-560060
Global HRM
22MBAHR404
Module 4
Prepared by
Dr. Harshitha S
Assistant Professor
MBA Department
SJBIT
MODULE 4
Training and development:
Training and development for expatriates; Training
and development for international staff.
Compensation: Compensation in international
perspective, Approaches to international
Compensation, International total rewards objectives
for MNC’s, Key components of global total rewards
programs, Complexities faced by IHR managers.
Training for expatriates
Training and development for expatriates is crucial for
ensuring their success and well-being while working in a
foreign country.
Training provides insights into local customs, business
etiquette, communication styles, and work practices. It helps
expatriates adapt quickly, build relationships with local
colleagues, and navigate cultural challenges effectively leading
to more successful assignments and better overall performance.
Candidates are also given pre-departure training which
emphasises on cultural awareness and business customs of the
country of posting to help cope with unexpected events in a new
country. This pre-departure training helps in minimising culture
shock and depression that usually sets in a new country and
culture.
Evans et al. (2002) describe three main issues that concern the
training and development of the expatriates.
•The first one concerns the different training methods,
•Second the timing of training and
•Third issue concerns preparing the spouse and family when
accompanying the expatriate during the international assignment.
Process of Training and Development in
International Human Resource Management
Pre-Departure Training
•Cultural Awareness: Educate expatriates about the culture, customs,
social norms, and business etiquette of their host country. This includes
understanding local traditions, religious practices, and social interactions.
•Language Training: Provide language courses or resources to help
expatriates learn the basics of the local language, which can improve
daily interactions and professional communication.
•Business Practices: Offer insights into the local business environment,
including management styles, negotiation tactics, and decision-making
processes.
•Legal and Administrative Information: Inform expatriates about local
laws, regulations, and administrative procedures, including work permits,
taxation, and healthcare systems.
In-Country Orientation
•Local Support Network: Introduce expatriates to local
contacts, including colleagues, mentors, and support
services, to help them build a network and find assistance
when needed.
•Housing and Logistics: Provide guidance on finding
accommodation, understanding transportation options, and
other logistical aspects of living in a new country.
•Cultural Immersion: Encourage participation in local
events, social activities, and community engagements to help
expatriates integrate more fully into their new environment.
Ongoing Development
•Continued Language Learning: Offer ongoing language
support or advanced courses to improve proficiency over time.
•Cultural Adjustment Support: Provide access to counseling or
coaching to help expatriates manage cultural adjustment
challenges and work-life balance issues.
•Professional Development: Ensure that expatriates have access
to career development opportunities, including training programs
and leadership development tailored to their role and local
context.
•Feedback and Coaching: Regularly check in with expatriates
to provide feedback, address any issues, and offer coaching to
enhance their performance and adaptation.
Family Support
•Family Orientation:
If applicable, provide orientation for expatriates’
families, including information on schools, healthcare,
and local community resources.
•Spouse/Partner Support:
Offer resources or support for spouses or partners to
help them find employment or engage in social
activities, which can significantly impact the
expatriate’s adjustment and performance.
Repatriation Preparation
•Reverse Culture Shock Training:
Prepare expatriates for the challenges of returning to
their home country, including reverse culture shock and
reintegration into their previous roles or new positions.
•Career Transition Support:
Assist with career planning and transitioning back into
the home country’s job market, if applicable.
Training and development for international staff
Training and development for international staff are essential
for fostering their success and integration within a global
organization.
Such programs help employees adapt to diverse cultural
environments, enhance their professional skills, and effectively
contribute to the company's goals across different regions.
Cultural Sensitivity and Awareness
•Cultural Training: Offer training that covers cultural norms,
values, and communication styles relevant to the staff’s
locations or client base. This includes understanding local
customs, social etiquette, and regional business practices.
•Diversity and Inclusion Training: Promote an understanding
of diversity issues and inclusion practices within a global
context. This helps staff navigate and respect different
perspectives and backgrounds.
Language Skills Development
•Language Training: Provide opportunities for staff
to learn or improve their proficiency in relevant
languages. This can range from basic language skills
to advanced business communication.
•Language Immersion: Encourage or facilitate
immersion experiences where staff can practice
language skills in real-life settings.
Professional Skills Enhancement
•Technical Skills Training: Offer training relevant to the staff’s specific
roles, such as new technologies, industry practices, or management
techniques.
•Leadership Development: Develop leadership programs that focus on
managing cross-cultural teams, international project management, and
strategic thinking on a global scale.
Cross-Cultural Communication
•Communication Workshops: Provide workshops on effective cross-
cultural communication, including strategies for overcoming language
barriers and misinterpretations.
•Virtual Collaboration Tools: Train staff on using virtual collaboration
tools and techniques to work effectively with global teams.
Adaptation and Adjustment Support
•Onboarding Programs: Develop comprehensive
onboarding programs that include information
about the company’s global operations, culture,
and policies.
•Mentorship and Buddy Systems: Pair
international staff with mentors or buddies who
have experience working in the host country or
with international teams to provide guidance and
support.
Compliance and Legal Training
•Regulatory Awareness: Educate staff about relevant local laws,
regulations, and compliance requirements that affect their roles.
•Ethics Training: Ensure understanding of the company’s global
ethical standards and practices, including anti-corruption policies
and workplace conduct.
Performance Management and Feedback
•Clear Expectations: Set clear expectations for performance and
provide regular feedback. Ensure that performance metrics are fair
and relevant across different cultural contexts.
•Development Plans: Create personalized development plans based
on performance reviews, career aspirations, and training needs.
Career Development and Growth
•Global Mobility Opportunities: Offer career development
programs that include international assignments, cross-functional
projects, and opportunities to work in different regions.
•Skill Development: Provide access to additional training and
educational opportunities to support career growth and
advancement within the organization.
Support for Relocation and Settlement
•Relocation Assistance: Offer support with logistics, housing,
and settling-in services for staff moving to new locations.
•Local Integration: Facilitate integration into the local
community by offering information on cultural events, local
services, and social activities.
Continuous Improvement and Evaluation
•Feedback Mechanisms: Implement regular feedback
mechanisms to assess the effectiveness of training
programs and make necessary adjustments.
•Program Evaluation: Continuously evaluate and
update training programs to reflect changes in global
business practices, cultural trends, and organizational
needs.
Compensation in international perspective
Compensation from an international perspective
involves navigating diverse practices and
expectations across different countries.
Organizations must consider various factors to
design competitive and fair compensation packages
for international employees.
Local Market Practices
•Benchmarking: Compare compensation levels against
local market standards to ensure competitiveness. This
involves understanding salary ranges, benefits, and
typical compensation structures in different countries.
•Cost of Living: Adjust salaries based on the cost of
living in the host country. This often involves using cost-
of-living indices to ensure that employees maintain a
comparable standard of living.
Compensation Components
•Base Salary: Set base salaries according to local market rates
and the employee’s role, experience, and performance. Base
salary adjustments may be necessary for international
assignments.
•Allowances and Benefits: Include allowances for housing,
transportation, education (for children), and other expatriate-
specific needs. Benefits might also include health insurance,
retirement plans, and tax equalization.
•Bonuses and Incentives: Design bonus structures that align
with local practices and motivate employees. This may include
performance bonuses, signing bonuses, or retention bonuses.
Legal and Regulatory Compliance
•Employment Laws: Adhere to local employment laws
and regulations regarding minimum wage, overtime, and
other compensation-related matters.
•Taxation: Understand and comply with local tax
regulations. This includes handling payroll taxes, social
security contributions, and ensuring tax equalization or
protection if the employee is on an expatriate assignment.
Cultural Considerations
•Cultural Norms: Recognize and respect cultural norms
and expectations regarding compensation and benefits. For
example, some cultures may place a high value on
additional benefits, while others may prioritize base salary.
•Communication: Clearly communicate compensation
packages and any changes to employees in a manner that
aligns with local cultural expectations.
Global Mobility and Expatriate Compensation
•Expatriate Packages: Develop comprehensive expatriate
packages that often include base salary adjustments, cost-of-
living allowances, housing allowances, and other expatriate-
specific benefits.
•Repatriation Support: Provide support for repatriation,
including assistance with relocating back to the home
country and adjusting compensation packages accordingly.
Equity and Fairness
•Internal Equity: Ensure fairness and consistency in
compensation across different regions, considering
variations in local market conditions.
•Global Equity: Strive for global equity by aligning
compensation practices with the organization’s overall
compensation philosophy while accounting for local
variations.
Compensation Strategies and Structures
•Global Compensation Philosophy: Develop a global
compensation philosophy that balances global consistency
with local adaptation. This includes setting guidelines for
how compensation should be structured and adjusted
internationally.
•Flexibility and Adaptation: Allow flexibility to adapt
compensation structures based on local market conditions
and employee needs.
Communication and Transparency
•Clear Communication: Provide transparent
information about compensation packages,
including how salaries and benefits are
determined.
•Regular Updates: Keep employees informed
about any changes in compensation policies or
practices, especially when there are updates
that impact international staff.
Technology and Tools
•Compensation Management Systems: Utilize global compensation
management systems to streamline the administration of international
compensation packages and ensure consistency.
•Data Analytics: Leverage data analytics to monitor compensation trends,
conduct market comparisons, and make informed compensation decisions.
Continuous Review and Adjustment
•Regular Reviews: Conduct regular reviews of compensation packages to
ensure they remain competitive and aligned with market conditions and
organizational goals.
•Employee Feedback: Gather feedback from international employees
regarding their compensation and benefits to identify areas for
improvement.
Approaches to international Compensation
Approaches to international compensation are
designed to address the complexities of managing
employee pay and benefits across different countries.
The goal is to balance fairness, competitiveness, and
compliance while accommodating local market
conditions and cultural expectations.
Local Plus Approach
Description: This approach involves paying employees
based on local market rates and adding a few additional
benefits or allowances to account for the differences
between the home and host countries.
Features:
•Base Salary: Set according to local market rates.
•Allowances: Additional allowances for housing,
transportation, or education.
•Benefits: Local benefits are supplemented with extra perks
to address expatriate needs.
Pros:
•Aligns with local market conditions.
•Often simpler to administer compared to more
complex approaches.
Cons:
•May not address all the unique needs of
expatriates.
•Can result in varied compensation packages within
the same organization.
Global Market Rate Approach
Description: Employees are paid according to global market rates,
often based on their position and responsibilities rather than local
market conditions.
Features:
•Base Salary: Determined by global salary surveys and benchmarks.
•Consistency: Ensures a consistent pay structure across different
locations.
Pros:
•Promotes fairness and equity across the organization.
•Simplifies compensation administration for multinational companies.
Cons:
•May not consider local cost of living or market conditions.
•Can be more expensive in lower-cost locations.
Home Country Plus Approach
Description: Employees are paid according to their
home country’s salary structure, with adjustments or
allowances for the host country’s living conditions and
costs.
Features:
•Base Salary: Based on home country pay scales.
•Cost-of-Living Adjustments: Additional allowances
to cover differences in cost of living.
•Benefits: May include home-country benefits or
additional expatriate-specific benefits.
Pros:
•Ensures consistency with home-country
salary expectations.
•Can make it easier for expatriates to
adjust financially.
Cons:
•Can be complex to manage and adjust.
•May not always align with local market
conditions.
Host Country Pay Approach
Description: Employees are paid according to the local market rates of the
host country, often with additional benefits to cover specific expatriate needs.
Features:
•Base Salary: Set according to local market standards.
•Benefits: Extra allowances or benefits to accommodate expatriate
requirements.
Pros:
•Aligns compensation with local market conditions.
•Can simplify the compensation process in the host country.
Cons:
•Can create disparities between expatriates and local employees.
•May not fully address the needs of expatriates accustomed to home-country
compensation levels.
Balance Sheet Approach
Description: A comprehensive approach that aims to maintain
the expatriate’s home-country standard of living while working
abroad. This method uses a detailed balance sheet to compare
home and host country costs and adjusts compensation
accordingly.
Features:
•Base Salary: Adjusted to maintain the home-country standard
of living.
•Cost-of-Living Adjustments: Comprehensive adjustments
based on differences in living expenses.
•Tax Equalization: Adjustments to ensure employees are not
disadvantaged by differences in tax systems.
Pros:
•Provides a high level of equity for expatriates.
•Addresses a wide range of cost-of-living and tax
differences.
Cons:
•Complex and resource-intensive to administer.
•Requires detailed data collection and analysis.
Total Rewards Approach
Description: This approach takes a holistic view of
compensation, considering not only base salary but also
benefits, allowances, and other rewards. It aims to offer a
comprehensive package that reflects both local and
international standards.
Features:
•Base Salary and Benefits: Includes all elements of
compensation.
•Additional Rewards: May include performance bonuses,
stock options, and other incentives.
Pros:
•Provides a complete view of employee
compensation.
•Can be tailored to meet diverse needs and
preferences.
Cons:
•Requires careful planning and management to
ensure consistency and fairness.
•May involve higher administrative costs.
Flexible Benefits Approach
Description: Allows employees to choose from a range of benefits and
compensation options based on their preferences and needs.
Features:
•Customizable Benefits: Employees can select benefits that suit their
personal circumstances.
•Core Benefits: A set of standard benefits is provided, with additional
options available.
Pros:
•Increases employee satisfaction by providing tailored benefits.
•Allows flexibility to address diverse needs and preferences.
Cons:
•Can be complex to administer.
•Requires significant investment in flexible benefits management systems.
International total rewards objectives for MNC’s
International total rewards objectives for multinational
corporations (MNCs) are critical for attracting, retaining,
and motivating a global workforce while aligning with
diverse regulatory environments and cultural expectations.
1. Consistency with Local Compliance: Ensure that total
rewards programs comply with local laws and regulations
in each country where the company operates. This
includes adhering to tax laws, labor standards, and
mandatory benefits.
Competitive Positioning: Develop compensation and
benefits packages that are competitive in each local
market to attract and retain top talent. This involves
benchmarking against local industry standards and
adjusting packages to reflect local cost of living and
market conditions.
Equity and Fairness: Strive for internal equity by
ensuring that employees in similar roles and with similar
performance levels receive comparable rewards,
regardless of their geographical location. This involves
balancing global consistency with local relevance.
•Cultural Sensitivity: Tailor rewards programs to fit the
cultural expectations and preferences of employees in
different regions. This might include varying the emphasis on
cash bonuses, benefits, work-life balance perks, and
recognition programs.
•Flexibility and Adaptability: Create a flexible rewards
framework that can be adapted to changing market
conditions, economic environments, and evolving employee
expectations. This includes being responsive to emerging
trends and employee feedback.
•Cost Management: Manage total rewards costs effectively
while maintaining competitiveness and compliance. This
involves regularly reviewing and adjusting compensation
structures and benefits offerings to align with budgetary
constraints and financial goals.
•Employee Engagement and Motivation: Develop rewards
programs that enhance employee engagement and
motivation by recognizing and rewarding performance,
achievements, and contributions in a way that resonates with
employees across different regions.
Retention and Succession Planning: Design rewards
systems that support retention strategies and
succession planning, ensuring that key talent is
motivated to stay with the company and is recognized
for their potential to take on future leadership roles.
Key Components of Global Total Rewards
Programs
Total rewards are a critical recruitment tool to attract
top talent worldwide and retain valuable employees,
contributing to a company's growth and success.
Global total rewards programs are designed to attract,
retain, and motivate employees across different
countries by offering a comprehensive package of
compensation and benefits.
Compensation:
Base Salary: Competitive salary structures that align with local
market rates while maintaining consistency with the organization's
global pay strategy.
Variable Pay: Bonuses, commissions, and incentives tied to
individual, team, or company performance. This includes annual
bonuses, sales commissions, and long-term incentives like stock
options.
Equity Compensation: Stock options or other equity-based
rewards that may be offered to employees as part of their overall
compensation package, often used to align employee interests
with company performance.
Benefits:
•Health and Wellness: Comprehensive health insurance, including
medical, dental, and vision coverage. Wellness programs might also
include mental health support, fitness benefits, and preventive care.
•Retirement Plans: Pension schemes, 401(k) plans, or other
retirement savings plans that comply with local regulations and
provide adequate retirement security.
•Paid Time Off (PTO): Vacation days, sick leave, personal days,
and public holidays that align with local labor laws and cultural
practices.
•Family and Parental Leave: Maternity, paternity, and adoption
leave, which should meet or exceed local legal requirements and
support work-life balance.
•Work-Life Balance:
•Flexible Work Arrangements: Options such as
remote work, flexible hours, and compressed
workweeks that help employees balance work and
personal life.
•Employee Assistance Programs (EAPs): Services
that offer support for personal issues, including
counseling, financial advice, and legal assistance.
•Recognition and Rewards:
•Employee Recognition Programs: Formal and
informal ways to acknowledge and reward employee
achievements and contributions, such as awards, public
recognition, or special events.
•Career Development Opportunities: Access to
training, education, and career advancement programs
that support employees' professional growth and
development.
Global Mobility and Relocation Support:
•Relocation Assistance: Support for employees
who are moving internationally, including help
with moving expenses, housing, and settling-in
services.
•Expatriate Benefits: Additional allowances or
benefits for employees working abroad, such as
cost-of-living adjustments, tax equalization, and
repatriation support.
Legal and Compliance Considerations:
•Compliance with Local Regulations: Ensuring that all
components of the total rewards program comply with local
laws and regulations in each country where the company
operates.
•Data Protection: Adhering to data privacy laws and
regulations related to employee information, which can vary
significantly by region.
Communication and Transparency:
•Clear Communication: Providing employees with clear
information about their total rewards package, including
how it is structured and how it aligns with company goals.
•Feedback Mechanisms: Implementing channels for
employees to provide feedback on the rewards program
and make adjustments as needed.
Cultural Sensitivity:
•Localized Benefits: Tailoring benefits and rewards to
align with cultural expectations and preferences in
different regions to ensure relevance and effectiveness
Complexities faced by IHR managers
International Human Resources (IHR) managers face a unique set of
challenges due to the global nature of their work.
• Cultural Differences: Managing a diverse workforce means
navigating varying cultural norms, communication styles, and
work ethics. IHR managers need to ensure that policies and
practices are sensitive to these differences while maintaining
organizational coherence.
• Change Management: Leading change initiatives in a global
context can be complicated by differing reactions to change and
varying levels of readiness among employees in different regions.
•Legal and Regulatory Compliance: Different countries have distinct
labor laws, regulations, and employment standards. IHR managers must
stay updated on these laws to ensure compliance and avoid legal pitfalls,
which can be particularly challenging in rapidly changing or complex legal
environments.
•Talent Management and Recruitment: Attracting, hiring, and retaining
talent across borders involves understanding local job markets,
compensation expectations, and employment practices. This can be
complicated by differing educational standards and qualifications.
•Technological Integration: Implementing and managing global HR
information systems requires careful consideration of varying technological
infrastructures and data protection regulations across countries.
•Compensation and Benefits: Designing competitive
compensation packages that align with both local market
conditions and the company’s global standards is a complex
task. Managers must balance cost control with offering attractive
benefits that comply with local regulations.
•Training and Development: Developing and implementing
training programs that are effective across different cultures and
languages requires careful planning. Ensuring that training
materials and delivery methods are appropriate for a diverse
audience is crucial.
•Communication Barriers: Effective communication across
different languages and cultural contexts can be challenging.
IHR managers need to implement strategies to overcome these
barriers and ensure clear and consistent messaging.
•Expatriate Management: Managing expatriate employees
involves addressing their needs and those of their families,
including relocation, cultural assimilation, and repatriation.
This can be resource-intensive and requires careful planning
and support.
•Global Mobility and Travel: Coordinating international assignments,
visas, and travel logistics can be complex. Ensuring that employees are
legally allowed to work in different countries and handling any related
issues is a significant part of IHR management.
•Employee Relations and Conflict Resolution: Addressing and
resolving conflicts in a multicultural environment requires sensitivity
and an understanding of diverse perspectives. Developing conflict
resolution strategies that work in different cultural contexts is essential.
•Strategic Alignment: Aligning HR strategies with the overall business
strategy on a global scale can be challenging. IHR managers need to
ensure that HR practices support the company’s international objectives
while being adaptable to local conditions.
like updating records, deleting
outdated entries, or organizing data
files.
2.Incorporating Variety:
1. Assisting in Data Analysis: The
clerk is involved in basic data
analysis tasks, such as identifying
trends or patterns from the data and
providing preliminary insights.
2. Supporting Team Projects: The
role includes supporting other team
members with data-related tasks for
various projects, such as compiling
information for presentations or
assisting in research tasks.
3.Improved Coordination:
1. Interdepartmental Liaison: The
clerk acts as a liaison between
departments to ensure that data
requirements are met and that there
is consistency in data handling
across different functions.
2. Training New Hires: The clerk is
responsible for training new
employees on data entry procedures
