int to ihrm, global recruitment,expatriate

7/30/2019 Int to IHRM, Global Recruitment,Expatriate

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INTERNATIONALHUMAN RESOURCE

MANAGEMENT

.


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Globalization of business has probably

touched the HR manager moreseverely than any other functional

head.

Till now we are covered domestic HR

activities extensively.

This chapterthrows light oninternationalization of HR activities.


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An international business must ---------------------

procure,motivate,

retain,

and effectively utilize services of peopleboth at the corporate officeand at theforeign plants.


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IHRM :

the process of procuring, allocation, and

effectively utilizing human resources inan international business is calledinternational human resourcesmanagement.


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The three national or countrycategories involved in IHRM activitiesare -------------------

the host country where a subsidiary may belocated,

the home country where the company has

its headquarters,And other countries that may be the source

of labour or finance.


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The three types of employees of aninternational business are -----

Host Country Nationals,

Parent-Country Nationals, and

Third-Country Nationals.


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SOURCES OF Global Recruitmentinclude:

1.Parent Country Nationals(PCNs).

2.Host Country Nationals.

3.Third Country National.


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1.Parent Country Nationals: Parent country nationals are employees who are the

citizens of the country where the companys

headquarters is located. Parent country nationals in international business

normally are managers, heads of subsidiary

companies, trouble-shooters.

They visit subsidiary companies to help them.


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2.Host Country Nationals:

Host country nationals are employees of the

companys subsidiary who are the citizens ofthe country where the subsidiary islocated.


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3.Third Country Nationals: For Ex----- Mr.Ajay an Indian citizen -------- is

working for an American subsidiary in France.

Mr.Ajay for the American subsidiary in France iscalled third country national.

Third country national -------------------------- is an

employee of an MNCs subsidiary located in country,which is not his home country.


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The three national or country categories

involved in IHRM activities are ------

the host country where a subsidiary may

be located, the home country where the company has

its headquarters,and

Other countries that may be the source oflabour orfinance.


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Expatriates:

Global Companies after selecting thecandidates, place them in various countries,mostly in foreign countries.

Thus, the employees of global companiesmostly work and live in foreign countries andtheir family members also live in foreigncountries.


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Employees and their familymembers working and/or living inforeign countries, are called

expatriates in the foreigncountry.


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Advantages of recruiting expatriatestaff:

Opens up a wider pool of candidates.

Opens to bring new ideas into the

organization.

May find candidates with more skills and

knowledge than the internal candidates.


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Disadvantages of recruitingexpatriate staff:

1.Candidates will not have as good anunderstanding of how the company worksand its culture.

2.The large amount of time and resources

needed for the recruitment and selectionprocess.


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Variables affecting expatriate

performance

1. Compensation package

2. Task

3. Headquarters support

4. Host environment

5. Cultural adjustment self and family.


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Components of Expatriate

Compensation

home leave and travel allowances

childrens education allowances

currency differential payments

relocation allowance

housing allowance

cost of living adjustment

payments to protect from negative taxconsequences

hardship posting allowance


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Expatriate failure:

The term Expatriate failure has been defined

as the premature return of an expatriate.

EX- Case of : Happy to going home.

A US family, from the mid-west was posted to

Melbourne, Australia.

The expatriates role was to assist the Australiansubsidiary in improve its quality control andsupplier relationships.


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The family was repatriated(send home, send

back) after 14 months into a 3-year

assignment.

The expatriate was replaced by anotherPCN.


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Cost of failure: These can be both direct and indirect.

Direct costs includes ----- airfares andassociated relocation expenses and salary

and training.

The precise amount varies according to the level of

the position concerned, country of destination,exchange rates and whether the failed manager is

replaced by another expatriate.


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The invisible or indirect costs are harder to

quantify in money but can be prove to be

more expensive for the company.

Most expatriate positions involve contactwith host govt officials and key clients.


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Failure at this level may result in ------------------------------

loss of market share,

difficulties with host-govt officials and

demands that expatriates be replaced with

HCNs(thus affecting the MNCs general

staffing approach).


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The possible effect on local staffis also an

indirect cost factor, since morale andproductivity could suffer.

Failure also, of course, has an effect on theexpatriate concerned, who may lose self-esteem, self-confidence and prestigeamong peers.


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Factors moderatingperformance:

1. Inability to adjust to the foreign culture.

2. Willingness to move the argument here is

that a person who is a reluctant(unwilling)

expatriate or

accompanied by reluctant family members ismore prone to interpret(take) negative events

and situations encountered in the new

environment.


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3.Work environment-related factors ---- If

work is less demanding and no longer time

consuming.

4.Organizational support both from home and

from the host unit.

5. Dual-career couples.


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Alternative assignment arrangements:

(a)Commuter assignments(sometimes

referred to as commuter marriages)

The spouse/partner may decide to remain inthe home country and

the couple work out ways to --------maintain

the relationship with the help of the firm.


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Ex-

a major US MNC assigned a female expatriate to its

Australian subsidiary for 18 months, her husband

remained in Chicago.

The MNC supported this arrangement through

subsidized telephone bills and three return airline

tickets.


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Alternatively, couples may move to jobs in

adjoining countries, or within the same

geographical region.

For instance, one may work in HongKong(the original posting), the other in

Bangkok.

This makes commuting (relationship

maintaining, transform ,exchange) easier

than from the USA.


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MNCs adjust the compensation benefits to fit

with the agreed arrangements.

(b)Family-friendly policies:

Inter-company networking. Here the MNC attempts to place the

accompanying spouse or partner in a suitable jobwith another MNC some times in a reciprocal

arrangement.


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Ex-

a US MNC may enter into an agreement with

a German MNC also operating in China,

That they find a position within theirrespective Chinese facilities for each others

accompanying partner.

(i.e.) you find my expatriates spouse a joband work visa and I will do likewise for you.


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( c)Job-hunting assistance:

Provides assistance with the employment search in

the host country.

(d)Onassignment career support: Thus, if the spouse is unable to find suitable

employment, the time can be sent on career

development activities.

However, MNCs are attempting to address theissue and create solutions to what is a real barrierto mobility.


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Are female expatriates different?

Are female expatriates different?

Researches have attempted to discoverwhy so few expatriates are female.

Is it because they were unwilling to relocate?

Is it attitudinal?


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Does it reflect a somewhat externalized belief

that ---------men in some cultures,

such as certain Asian countries ,do not like

reporting to female managers. Particularly foreign women and therefore

women should not be posted overseas.

That has been referred to as the glassborder that supports the glass ceiling


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The dual-careerissue may prove to be agreater barrier for female mobility

as males are more reluctant to accompanytheir spouse/partner.

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