INTERNATIONAL HUMAN RESOURCE MANAGEMENT
Managing International HR Activities
Human Resource Planning. Recruitment & Selection. Training & Development. Performance Mgt. Remuneration Expatriation/ Repatriation Employee relations
GLOBAL SELECTION PROCESS
This process includes Selection Approach Selection Procedure Selection Method
SOURCES OF GLOBAL RECRUITMENT
Parent Country National (PCN) Host Country National (HCN) Third Country National (TCN)
Parent Country Nationals
Parent Country Nationals are employees who are the citizens of the country where the companys headquarter are located.
Advantages Of Parent Country National
Helps the subsidiary companies in carrying out their operations. Help in ensuring that subsidiary companies run smoothly. Helps in providing advices and control the subsidiaries. Maintaining financial control over the operation.
Disadvantages of parent country national
Cost problem Ego and culture problem
Host Country Nationals
These are the employees of the companys subsidiary who are the citizens of the country where the subsidiary is located
Advantages Of Employing Host Country Nationals
They are familiar with native culture. They are familiar with local business norm and practices. They manage and motivate the local worker efficiently. They are familiar with taste and preference of the local consumer. Hiring host country nationals is like a good public relations.
Disadvantages Of Employing Host Country Nationals
They are not familiar with the objective goals & strategies of the parent company. They are unaware of the need of the headquarters. They view the company from the local perspective rather then the global perspective. It would be difficult to train the host country nationals due to variations in the views.
Third Country Nationals
Third country nationals is an employee of a companys subsidiary located in a country, which is not his home country
Advantages of Employing Third Country National
Least cost with required expertise, skill knowledge and foreign language skills. They have a culture fit due to their work experience in multicultural environment.
Global Selection Approach
Global Selection Approach
Ethnocentric Approach
Polycentric Approach
Geocentric Approach
Ethnocentric Approach
Under this approach parent country nationals are selected for all the key management jobs
Polycentric Approach
Under this approach the position including the senior management positions of the subsidiaries are filled by the host country nationals.
Geocentric Approach
Under this approach , the most appropriate candidates are selected for jobs from any part of the globe.
4. EXPATRIATES
Expatriates are those living or working in a foreign country
Categories of expatriates
1.
2.
3. 4.
Permanent Temporary expatriates Trainee expatriates Management cadre
Expatriate Assignment Life Cycle
Determining the need for an Expatriate. Selection Process. Pre assignment training. Departure. Post Arrival Orientation & Training.
Crisis and Failure.- Repatriation & Adjustment. Crisis and Adjustment- Reassigned Abroad
Selection of Expatriates
The whole process is conducted in 3 Phases General criteria Concentration on Activities Training
Six factors in Selection Process
1 Application forms Information related to Education profile, experience, work history etc 2.Interviewing
Interview of both the candidate as well as Spouse. It can be more then one round of interviews.
3. Assessment Centers. This is a concept which was developed By AT&T. Have proved to be excellent predictors of employees who have become highly successful performers. 4. Employment Testing
Intelligence
Test Personality Test Physical Ability Test Assessment Centres Aptitude Test
5. Reference Checks Background checks form Previous Employers Previous Colleagues Professional Associates Teachers Friend etc 6. Physical Examination Motive is to determine candidates physical state especially in case of Extreme work conditions. Another motive is for employees health record/ health related employment benefits.
Compensation
Balance Sheet Approach Localization/ Going Rate Concept Negotiation Lump Sum Cafeteria Region
Problems In Compensation: Discrepancies in pay between Parent, Home, Host. Remuneration issues related to reentry. Need to vary compensation according to Lifecycle of Expatriate.
Components Base
of Remuneration Package
Salary. Benefits Incentives ESOP
International Adjustment
The international adjustment is the degree to which the expatriates feels comfortable living and working in the host country
International Adjustment Adjustment to overseas work place Adjustment in interacting with the host nationals Adjustment to the general environment
Dimension of International Adjustment / Framework
Individual Job Organization Non work
Self Efficacy- Stress reduction, Technical Competence, Reinforcement Substitution Relational Skill- Finding mentors, communicate ( Conversational Currency). Non work- Culture novelty, family adjustment, Job Dimension- Role clarity, role discretion, role novelty, role conflict. Organizational culture
Culture Adjustment (Shock)
Honeymoon Stage/ Tourist Stage. Initiation & Hostility / Disillusionment Stage. Gradual Adjustment Phase. Mastery Stage
Repatriation of Expatriates
Reasons for returning :Formally agreed assignment is over. Expatriates want their children to be educated in home country. Not happy with overseas assignment. Failure to do a good job.
Repatriation Process
Preparation. Physical Relocation. Transition Readjustment
Readjustment problems
Out of sight out of mind, syndrome Feel Demoted. Organizational changes when he was abroad made his position Peripheral. Technological up gradation makes his knowledge and skill obsolete.
Repatriation Options
1.
2. 3. 4. 5.
Transition strategies to adjust expatriates. Repatriation Agreements. International Cadre. Assignments Involving in Projects when coming for leave. Separate Unit
Training & Development
Cross Cultural training Fact oriented training. Attribution training. Cultural awareness training. Cognitive behaviour modification training. Experimental training.
