Basics of international human resource managementInternational

Basics of IHRM

1. Refers to the process of selecting employees for staffing international operations of an MNC MNCs can be staffed using three different sources. Home country or Parent Country National (PCN) Host Country Nationals (HCN) c . Third Country Nationals (TCN) International staffing

2. An expatriate is an employee working in a unit or plant who is not a citizen of the country in which the unit or plant is located but is a citizen of the country in which the organization is headquartered . A host-country national is an employee working in a unit or plant who is a citizen of the country in which the unit or plant is located, but where the unit or plant is operated by an organization headquartered in another country . A third-country national is a citizen of one country, working in a second country, and employed by an organization headquartered in third country. Each of these individuals presents some unique HR management challenges. Because in a given situation each is a citizen of a different country, different tax laws and other factors apply. Types of International Employees

3. Several types of expatriates may be differentiated by job assignment: Volunteer expatriates Traditional expatriates Career development expatriates Global expatriates Expatriates

4. International human resource management is an imperative aspect of MNE's international strategies and the difficulty of managing international operations. The determination of this study is to gain a better understanding of how multinational enterprises (MNE) select their expatriate managers Recruiting and Selecting Staff for international Assignments

5. A multinational enterprise (MNE) takes a worldwide view of markets and production." (Daniels 2009, 63) In simple terms, a Multinational enterprise (MNE) will produce and market their products anywhere in the world . Operations can also take place in multiple countries, for example, in the wholesale trade Nestle is an excellent example of an MNE . Multi National Enterprise

6. A multinational enterprise (MNE) is an organization that holds a hefty equity share; usually fifty percent or more of another organization, functioning In an overseas country. The multinational enterprise (MNE) can be formed when an organization in one country makes an impartiality investment in an organization, in another country . " According to (Schuler et al. 1992,419-459), The most influential factor that determines the success of the organization, is the way in which the Multinational Enterprise differentiates its operating units internationally and, at the same time, assimilates, control and coordinate its activities. Multi National Enterprise

7. Global Strategy. Multi-Domestic Strategy. Transnational Strategy. International Strategy. International Staffing Approaches

8. Ethnocentric policy Polycentric policy Geocentric policy Regiocentric policy Staffing Approaches .

9. Ethnocentric policy "Home country's culture is to be imposed on subsidiaries“ MNC's exports its HR Policy from Home country to foreign location. Strategic decisions are made at headquarters Key positions in domestic and foreign operations are hold by headquarters . Three factors are to be considered in the staff: 1. Should be able to adjust in family, cultures and personality problems to avoid failure. 2. To succeed, should enjoy local entertainment, develop local relationships and communicate with locals. 3. To achieve success, expatriates to have open attitude and take training towards host-country. Staffing Approaches .

10. Polycentric "MNC's seeks to adapt to the local cultural needs of subsidiaries“ Each subsidiary is a distinct national entity with some decision making autonomy Host-country nationals manage subsidiaries who are seldom promoted to HQ positions Parent company nationals hold key headquarter positions Poly-centric: Here primary positions are filled by nationals from host country( HCNS) Staffing Approaches .

11. Advantages of Polycentric It eliminate the high cost of relocating expatriate manager and families. Offer a great degree of autonomy in decision making to subsidiary heads. Better local knowledge Reduce personal problems Host country managers can protect a MNC from hostile treatment by host Government. Here subsidiary is allowed some autonomy but financial controls are kept. Top people are limited to subsidiary and not for corporate position. Staffing Approaches

12. Examples- in international manufacturing and processing facilities in Mexico, companies recruit with a sign announcing job openings outside the facility or by employees introducing family members who are looking for jobs. Another example is Hungary, where government attempts to combat unemployment have led to the requirement that an organization must get permission from the Ministry of Labor before hiring an expatriate Staffing Approaches

13. Geocentric A global approach-worldwide integration View that each part of the organization makes a unique contribution Nationality is ignored in favor of ability: - Best person for the job -Color of passport does not matter when it comes to rewards, promotion and development Staffing approaches

14. Regiocentric Reflects a regional strategy and structure; Regional autonomy in decision making Staff move within the designated region, rather than globally Staffing approaches

15. An expatriate is an employee who is working and temporarily residing in a foreign country. Expatriate work as an agent between two countries Interview-structured interview The monitoring and targeting of disadvantaged group-(staffing practices are strongly influenced by norms and values that are not covered by the law ) Psychological Testing- mentally fit for international assignment Assessment center-Competency assessment Criteria for selecting expatriates.

16. Screening the applicant's background on the basis of work experience with cultures other than one's own, previous overseas travel, knowledge of foreign language and overall Performance. Testing the candidate's ability to adapt to the new culture and environment. Testing the ability of the spouse and family members of the candidates to the foreign culture and environment. Predicting the adjustment of the candidate Testing the skill of adjustment with the host nationals. Job duties and responsibilities Selection Techniques in General

17. They must be willing and motivated to go overseas They must be technically able to do the job They must be adaptable They must have good inter personal skills and able to form relationship They must have good communication ability and They must have supportive families Expatriate must meet 6 basic criteria

18. Rosalie Tung studied the factors that contributed to expatriate success and identify different variables that affect success. She groups them into 4 general categories Job competence Personality traits Relational abilities Environmental variables and family variables F urther divided into two heads: i.General factors ii.Specific ones Expatriate's Success factors

19. In this topic ,we learned about various staffing practices in international human resource management, Types of international employees Expatriate selection criterion Recap

20. Daily Quiz What does TCN stands for? Host country national Expatriates Home country national Third country national To be effective in international environment HRM policies must ? Reflect an international view Focus on domestic issues Accommodate differences in management style Effectively transplant HRM policies and practices from home country to all other offices

21. Daily Qui z Which of the following factors is least likely to be directly related to success of an expatriate assignment? What type of organisation is desired The personality of the expatriate The intentions of the expatriate The inability of the spouse to adjust The type of product produced by the organization Expatriate failure is best defined as: A failure to recoup the costs of investment in an expatriate Early return of the expatriate repatriation Re assimilating the expatriate

22. Daily Qui z ___ is an approach to international business in which management believes that managers from a particular country know best how to achieve results in that cultural context Polycentric Ethnocentric Geocentric None of the above Understanding the behaviour and culture of host country market by host manager in corporation orientation is known to be Ethnocentric Polycentric Geocentric Expat- centric

23. Noida Institute of Engineering and Technology Staffing & Compensation Practices in Global Context Ms.Nishu Chauhan MBA Department Unit II Topic 2 International transfer and repatriation strategies Training and development in international context MBA IV Sem

24. Basic knowledge of Staffing practices in IHRM, Recruitment and selection in overseas assignments. Pre-requisite

25. Topic Objective Topic No. Topic Objective 1 Students will learn about International transfer and repatriation strategies Students will gain an insight into Training and development in international context

26. Topic Mapping S.No. Topic Course Outcome 1 International transfer and repatriation strategies Training and development in international context CO2

27. A transfer involves the shifting of an employee from one job to another without changing the responsibilities or compensation Purpose- To increase the effectiveness of the organization. To increase the versatility and competency of key positions. To deal with fluctuations in work requirements. To correct incompatibilities in employee relations. To correct, erroneous placement. To relieve monotony. To adjust workforce. To punish employees. International Transfer and Repatriation strategies

28. A good transfer policy should specifically clarify the types of transfers and the conditions under which these will be made. Locate the authority in some officer who may initiate and implement transfers. Indicate whether transfers, Le, whether it will be based on seniority or on the skill and competency or any other factor. Decide the rate of pay to be given to the transfer. Intimate the fact of the transfer to the person concerned well in advance. Be in writing and duly communicated to all concerned. Not be made frequently and forsake of transfer only. Types of Transfers

29. A successful repatriation not only secures the continued employment of the expat, but results in an advocate who thrives and becomes a positive promoter of the program. This requires planning before the expat goes on assignment as well as a mutual understanding of what his or her return will look like and the commitments the company is willing to make upon the expat's return. Six primary areas of planning repatriation: 1 Educate and engage others 2. Compensation 3. Career development 4. Ongoing Support 5. Families 6. Continuous improvement International Repatriation strategies

30. Reasons for the failure of an assignment abroad

31. After careful screening of employee and spouse, a cross-cultural preparation program should be designed that includes three stages: Preparation, Acclimation and Repatriation Preparation Preparation takes place before the employee is sent overseas. This training includes training on the language, culture and customs of the country. The employee, spouse and children are briefed on housing, shopping, healthcare, education and other information needed for general daily life. Reasons for the failure of an assignment abroad

32. Acclimation The employee and family receive more comprehensive training once they arrive in the host country. The host family enters a mentoring program that helps them assimilate into their new environment. Repatriation Coming back home can sometimes be a traumatic experience. While the employee and family have been away, sometimes for several years, significant changes in their community and in the company may have occurred. Colleague managers and other confidants may have left the company during their time away, employees should be encouraged to stay current and build relationships with changes at home. Reasons for the failure of an assignment abroad

33. In this topic ,we learned about various International transfer and repatriation strategies. Recap

34. Daily Quiz Which of the following factors is least likely to be directly related to success of an expatriate assignment? What type of organisation is desired The personality of the expatriate The intentions of the expatriate The inability of the spouse to adjust The type of product produced by the organization The process of training, planning, reassignment of employees to their belonging countries is called Repatriation Foreign advancement Distant assignment Expatriate

35. Daily Quiz Human resource management function does not involve: Recruitment Selection Cost control Training The factors included in expatriation process are Technical ability and language cross cultural sustainability Organization specific requirements All of the above

36. Basic knowledge of International compensation and performance management. Pre-requisite

37. Topic Objective Topic No. Topic Objective 1 Students will learn about Different performance management approaches in international context. Different approaches to international compensation and benefits.

38. Topic Mapping S.No. Topic Course Outcome 1 Different performance management approaches in international context. Different approaches to international compensation and benefits. CO2

39. Performance appraisal in MNEs can also often involve assessment by the immediate manager, where a narrative report is prepared by the manager annually regarding the expatriates work quality and output . Measurement techniques like simple rankings, behavioral checklist, and comparison with objectives are used. This is likely to be based on the appraisal practices within the host country, which can involve certain cultural issues. Performance Management in International Organization

40. Approaches to international Compensation and Benefits

41. Approaches to international Compensation and Benefits

42. There are two basic approaches to determine the international compensation package Going Rate Approach This is based on the local market rates. It relies on comparisons of survey of the local nationals, expatriates of same nationality and expatriates of all nationalities' pay packages. In this approach, the compensation is based on the selected survey comparison . The advantages of Going Rate Approach are- Equality with local nationals Simplicity Identification with the host country Equity amongst different nationalities Approaches to Determine the international compensation package

43. D isadvantages of Going Rate Approach are:- Variation between assignments for the same employees Rivalry between expatriates of the same nationality in getting assignments to some countries Potential re-entry problems in the home country Approaches to Determine the international compensation package

44. 2. Balance Sheet Approach: The Balance Sheet Approach ational compensation is a system designed to equalize the purchasing power of employees at comparable position levels living abroad and in the home country and to provide incentives to offset qualitative differences between assignment locations. Objectives Goods and Services: Outlays incurred in the home country for food, personal care, clothing household furnishing, recreation, transportation and medical care. Housing All major costs associated with housing in the host country. Income Taxes: Parent country and host country income tax expenditures. Reserve: Contribution to savings, payments for benefits, pension contributions, investments, education expenses, social security taxes etc. Approaches to determine international compensation package

45. Advantages of the Balance Sheet Approach are: 1. Equality between assignments and between expatriates of the same nationality. 2. Facilitates expatriate re entry- Easy to communicate to the employees D isadvantages of the Balance Sheet Approach are: 1. It can result in considerable disparities between the expatriates of different nationalities and between expatriates and local nationals. 2. It can be quite complex to administer due to changing economic conditions, taxation etc. Cont.

46. Case Study CASE Study Cocacola IHRM - Essays, UK. (November 2018). International Human Resource Theories: Coca - Studocu

47. Daily Quiz The compensation given to expatriates for exceptionally hard, working and living conditions, at certain locations is classified as ___. Ethnocentric allowances mobility premiums leadership allowances Foreign service premiums By whom is the performance appraisal mostly done Colleagues Immediate boss Top management None of the above

48. Daily Quiz Which of the following factors is least likely to be directly related to success of an expatriate assignment? What type of organisation is desired The personality of the expatriate The intentions of the expatriate The inability of the spouse to adjust The type of product produced by the organization Expatriate failure is best defined as: A failure to recoup the costs of investment in an expatriate Early return of the expatriate repatriation Re assimilating the expatriate

49. Video Link https://youtu.be/Tgu4WhHzRBU https:// youtu.be/1LgoJaK_t80 https://youtu.be/7ea8l0vM0OU https://youtu.be/r1WzcxtEUps https://youtu.be/6lRJPG4c8lE https://youtu.be/z19o73uaz1g https://youtu.be/Tgu4WhHzRBU https://youtu.be/1LgoJaK_t80 https://www.youtube.com/watch?v=i9RyE9-ZGKE https://www.youtube.com/watch?v=11irCzsdip4

50. 1 Which is the main objective of recruitment process a Recruit the right candidate b. Meet the high labour turnover c. Meet the high labour turnover d. None of the above 2. The factors included in expatriation process are a. Technical ability and language b. cross cultural sustainability c. Organization specific requirements d. All of the above MCQs

51. 3. Which of the following is a global mindset? Focus on domestic issues b. Minimize differences between international and domestic environments c. Transferability between domestic and international HRM practices d. To formulate and implement HR policies that develop globally oriented staff 4. As foreign subsidiaries matures the local HR activities: Have broadening responsibilities Revert to the home office decrease as government relations are understood Stay largely the same MCQs

52. 4. Understanding the behavior and culture of host country market by host manager in corporation orientation is known to be Ethnocentric Polycentric Geocentric Expat- centric 6) High labour costs in an overseas assignments can require a focus on HRM practices aimed at improving: Employee performance Employee turnover Selection process Absenteeism rates MCQs

53. Q1 . Define cross cultural differences. Q2 . State the role of family members in success of expatriate Q3 . Suggest criteria for performance appraisal of subsidiary staff. Q4.Elaborate the concept of International Transfers and Repatriation Strategies. Q5. Describe the Global Compensation Practices. Q6. Write a detailed on International Performance Management. Q7. Describe the staffing practices in IHRM. Glossary

54. Assignment 1 . Discuss ethnocentric, geocentric and polycentric staffing strategies that multinational companies adopt while setting up a new unit in a host country Give the advantage and disadvantage of each strategy 2. Describe the criteria that need to be kept in mind while selecting an expat for a foreign assignment. Discuss any one model used to select the best candidate for foreign assignment. 3. Define repatriation? Discuss the challenges that returning expats face? Also explain how can repatriation be managed? 4. Explain about training and development in International context? 5. Briefly explain international transfer and repatriation strategies?

55. Old Question Papers

56. Old Question Papers

57. Old Question Papers

58. Write briefly about various approaches of compensation in global assignments. Discuss global staffing practices. Discuss performance management in international context. Discuss performance criteria used in evaluating expatriate performance and what precautions have to be taken while using them? The EPRG model of staffing is very important for MNCs establishing, controlling and developing subsidiaries. Explain each category of model and discuss both advantages. Expected Questions for University Exam

59. Recap of Unit This unit summarizes the various staffing practices, performance management in global context and different compensation approaches.

60. References Peter J Dowling, Marion Fosting, Allen D Engle St- internationalHuman Resource Management (Cengage learning)Anne- WilHarzing , Ashly H Pinnington -international Human Resource Management (Sage Publication)PL Rao-International Human Respource Management (Excel Books) P SubbaRao -International Human Resource ManagementBooks )(Himalaya Publishing) K Ashwathappa&Sadhna Dash-International Human Resource Management (McGraw Hill Education)

61. Thank You