International Human Resource Management and Labor Relations

28 Agu

Chapter 20:
Human Resource Management and Labor Relations

Download International Human Resource Management and Labor Relations

International Business, 4th Edition

Griffin & Pustay

Chapter Objectives_1

Describe the nature of human resource management in international business

Detail how firms recruit and select managers for international assignments

Explain how international businesses train and develop expatriate managers

Describe labor relations in international business

Chapter Objectives_2

Discuss how international firms conduct performance appraisals and determine compensation for their expatriate managers

Analyze retention and turnover issues in international business

Explain basic human resource issues involving non-managerial employees

Human Resource Management (HRM)

Set of activities directed at attracting, developing, and maintaining the effective workforce necessary to achieve a firm’s objective

Differences in culture, levels of economic development, and legal systems among countries may force changes in HRM systems

Figure 20.1 The International Human Resource Management Process

International Managerial Staffing Needs

Staffing Issues




Staffing Categories

Managerial and Executive Employees

Non-managerial Employees

Scope of Internationalization

Size of staffing tasks depends on scope of firm’s international involvement

Export department

International division

Global organization

Centralization versus Decentralization
of Control

Centralized firms

Favor home country managers

Most common amongst international division form

Decentralized firms

Favor host country managers

Most common amongst multidomestic firms

Staffing Philosophy

Parent Country Nationals (PCNs)

Host Country Nationals (HCNs)

Third Country Nationals (TCNs)

Strategies for Staffing

Ethnocentric staffing model

Polycentric staffing model

Geocentric staffing model

Figure 20.2 Necessary Skills and Abilities for International Managers


Experienced Managers

Younger Managers

Selecting expatriates in an important element in international human resource management

Managerial Selection

Managerial competence

Appropriate training

Adaptability to new situations

Table 20.1 Questions from AT&T’s Questionnaire for Screening Overseas Transferees_1

Would your spouse be interrupting a career to accompany you on an international assignment? If so, how do you think this will affect your spouse and your relationship with each other?

Do you enjoy the challenge of making your own way in new situations?

Securing a job upon reentry will be primarily your responsibility. How do you feel about networking and being your own advocate?

How able are you in initiating new social contacts

Can you imagine living without a television?

Table 20.1 Questions from AT&T’s Questionnaire for Screening Overseas Transferees_2

How important is it for you to spend significant amounts of time with people of your own ethnic, racial, religious, and national background?

As you look at your personal history, can you isolate any episodes that indicate a real interest in learning about other peoples and cultures?

Has it been your habit to vacation in foreign countries?

Do you enjoy sampling foreign cuisine?

What is your tolerance for waiting for repairs?

Culture Shock

Figure 20.3 Phases in Acculturation

Honeymoon Phase

New culture seems exotic and stimulating

Excitement of working in new environment makes employee overestimate ease of adjusting

Lasts for first few days or months

Disillusionment Phase

Differences between new and old environments are blown out of proportion

Challenges of everyday living

Many stay stuck in this phase

Adaptation Phase

Employee begins to understand patterns of new culture

Gains language competence

Adjusts to everyday living


Anxiety has ended

Employee gains confidence in ability to function productively in new culture

Repatriation may be difficult

Overseas Success

Likelihood of managers being successful at overseas assignment increases if the managers

Can freely choose whether to accept or reject the assignment

Have been given a realistic preview of the job and assignment

Have been given a realistic expectation of what their repatriation assignment will be

Have a mentor back home who will guard their interests and provide support

See a clear link between the expatriate assignment and their long-term career path

Training and Development

Assessing training needs

Basic training methods



Developing younger managers

Performance Appraisal

Process of assessing how effectively people are performing their jobs


To provide feedback to individuals about how well they are doing

To provide a basis for rewarding top performers

To identify areas in which additional training and development may be needed

To identify problem areas that may call for a change in assignment

Compensation Packages

Include salary and nonsalary items

Determined by

Labor market forces

Occupational status

Professional licensing requirements

Standards of living

Government regulations

Tax codes

Table 20.2 Annual Cost of Living in Selected Locations Worldwide, 2003

Differential Compensation

Cost-of-living allowance

Hardship premium or foreign-service premium

Tax equalization system

Figure 20.5 An Expatriate Balance Sheet

Labor Relations

Labor relations in a host country often reflects laws, culture, social structure, and economic conditions

Union membership may be high

These striking South Korean workers are picketing government offices in Seoul


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Ditulis oleh pada 28/08/2012 in Akutansi International


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