gomez_mhr05_im_17 - Part Six Chapter 17 International HRM...

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Part Six Chapter 17 International HRM Challenge CHAPTER OVERVIEW (PPT 17.1- 17.3) This chapter demonstrates how managers can effectively utilize HRM practices to enhance their firms’ competitive response in an era when the opportunities and challenges facing business are international in nature. It covers the stages of international involvement, the challenges of expatriate job assignments, and the ways to make those assignments more effective. It also discusses the development of HRM policies in a global context and the specific HR concerns of exporting firms. ANNOTATED OUTLINE I. The Stages of International Involvement (PPT 17.4- 17.5) Firms progress through five stages (e.g., domestic operations, export operations, subsidiaries or joint ventures, multinational operations, and transnational operations) as they internationalize their operations. See Figure 17-1 for a graphical display of these stages. The higher the stage, the more HR practices need to be adapted to diverse cultural, economic, political, and legal environments. For example, LHRM practices at Stage 5 companies (transnational corporations) are designed to blend individuals from diverse backgrounds to create a shared corporate (rather than national) identity and a common vision. II. Determining the Mix of Host-Country and Expatriate Employees (PPT 17.6- 17.7) Once a firm passes from the exporting stage (Stage 2) to the stage in which it opens a foreign branch (Stage 3), it must decide who will be responsible for managing the unit. There are three basic approaches to managing an international subsidiary: ethnocentric, polycentric, and geocentric. III. The Challenges of Expatriate Assignments (PPT 17.8- 17.9) 240
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Part Six One of the most challenging tasks for any firm operating internationally is to manage its expatriate workforce effectively. A. Why International Assignments End in Failure The failure of U.S. expatriates is estimated to be in the 20 to 40 percent range. Six factors account for most failures. 1. Career blockage 2. Culture shock 3. Lack of predeparture cross-cultural training 4. Overemphasis on technical qualifications 5. Getting rid of a troublesome employee 6. Family problems B. Difficulties on Return When the expatriates return home, they may experience additional problems, which include: 1. Lack of respect for acquired skills 2. Loss of status 3. Poor planning for return position 4. Reverse culture shock IV. Effectively Managing Expatriate Assignments with HRM Policies and Practices (PPT 17.10-17- 11) Companies can minimize the chances of failure by putting in place a sensible set of HRM policies and practices that get to the root of the problems. Such policies and practices would pertain to selection, training, career development, and compensation. Adequate practices in these areas can be used to avoid problems. A.
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This note was uploaded on 03/22/2009 for the course MANAGEMENT 5689-9856 taught by Professor Nialamnu during the Fall '08 term at Indiana State University .

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gomez_mhr05_im_17 - Part Six Chapter 17 International HRM...

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