Chap016 - Chapter 16 Chapter Global Human Resource...

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Chapter 16 Chapter 16 Global Human Resource Management
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16-2 Introduction Question: What is human resource management? Human resource management (HRM) refers to the activities an organization carries out to utilize its human resources effectively HRM activities include determining human resource strategy staffing performance evaluation management development compensation labor relations
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16-3 Introduction HRM is more complex in an international business because of differences between countries in labor markets, culture, legal systems, economic systems, and so on International HRM also deals with issues related to expatriate managers (citizens of one country working abroad) including when to use expatriates who to send on expatriate posting how expatriates should be compensated how to handle the repatriation of expatriates
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16-4 The Strategic Role of International HRM Question: Why is international HRM important to the success of the firm? Strategy is implemented through organization People are the linchpin to the firm’s organization architecture So, success in international business requires that HRM policies be congruent with the firm’s strategy
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16-5 The Strategic Role of International HRM The Role of Human Resources in Shaping Organization Architecture
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16-6 Staffing Policy Staffing policy is concerned with the selection of employees for a particular job It involves selecting people who have the right skills for a particular job It also involves developing and promoting the corporate culture of the firm (the organization’s norms and value systems)
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16-7 Types of Staffing Policy There are three types of staffing policies 1. the ethnocentric approach 2. the polycentric approach 3. the geocentric approach The most attractive policy is the geocentric approach, however it is not always easy to implement
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16-8 Types of Staffing Policy 1. The Ethnocentric Approach An ethnocentric approach to staffing policy is one in which key management positions in an international business are filled by parent-country nationals The policy makes most sense for firms pursuing an international strategy
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16-9 Types of Staffing Policy An ethnocentric staffing policy is attractive when the firm believes there is a lack of qualified individuals in the host country to fill senior management positions the firm sees an ethnocentric staffing policy as the best way to maintain a unified corporate culture the firm wants to transfer knowledge of core competencies to the foreign operation This policy is falling out of favor because it limits the advancement of host country nationals it can lead to cultural myopia
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16-10 Types of Staffing Policy The ethnocentric approach to staffing is falling out of favor because it limits the advancement of host country nationals This can lead to resentment, lower productivity, and increased turnover it can lead to
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This note was uploaded on 04/23/2011 for the course ECON 103 taught by Professor Econ during the Spring '11 term at Universitas Katolik Parahyangan.

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Chap016 - Chapter 16 Chapter Global Human Resource...

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