Prof.
Preeti Bhaskar
Symbiosis Centre for Management Studies, Noida
Global Human Resource Management (GHRM)
Refers
to the policies and practices related to managing people in an internationally oriented organization
the same functions as domestic HRM and many aspects unique to international organizations
Includes
Difference between Domestic Vs. International HRM
More HR activities
Need for broader perspectives
More involvement in employee personal lives Changes in emphasis as the workforce mix of expatriate and local people Risk exposure
Broader external influence
Differences between Domestic HRM and IHRM
More HR activities: taxation, culture orientation, administrative services The need for a broader perspective: cater to multiple needs More involvement in employees personal lives: adjustment, spouses, children Changes in emphasis as the workforce mix of expatriates and locals varies: fairness Risk exposure: expatriate failure, terrorism Broader external influences: government regulations, ways of conduct
Sources of Employees for International Assignments
HCN
Host Country Nationals (HCNs) are workers from the local population (local nationals)
PCN
Parent Country Nationals (PCNs) are employees sent from the home country (expatriates)
TCN
Third Country Nationals (TCNs) are employees from a country other than the parent & host countries
Expatriate
An
expatriate is an employee who is working and temporarily residing in a foreign country. Expatriate work as an agent between two countries
The Expatriate Manager
Managing the expatriates adjustment is a primary focus of GHRM functions like:
Selection for expatriate assignments Comprehensive pre-departure training Compensation and benefits packages that consider situational factors like family Development and career planning
Expatriate Training
PREDEPARTURE
Language
skills Nation and culture orientation
Personal
and family orientation Career planning
ASSIGNMENT
Language
Skills Local mentoring
Stress training Business issues
REPATRIATION
Financial
management Reentry shock
Career
management
Expatriate Assignments
How much do they cost? Are they worth it?
Expatriate Costs
DIRECT COST Airfare charges Relocation expenses Salary Training Expenses INDIRECT COST Loss of market share Difficulties with government officials, Difficulty in maintaining relation with other organization
If Expatriate fails -:
looses self esteem Self confidence Prestige among peers Lack of motivation Lack of promotion Future performance appraisal become doubtful Security for the job
Expatriate Risks
Selection error Ineffective expatriate management policies
Expatriate may not be able to adjust in foreign country environment
Unable to handle new responsibility
Not able to cope up with overseas assignment
Cultural shock
Characteristics of expatriate manager
High Probability of Success
Strong technical competence Good language skills Strong desire to work Specific knowledge of overseas culture Well adjusted family situation Complete support of spouse Behavioral flexibility Adaptability and open-minded Good relationship maintaining ability Good stress management skill
Reasons for Expatriate Failure
Inability of spouse to adjust Managers inability to adjust Other family problems Managers personal or emotional maturity
Inability to cope with larger overseas responsibility
Lack of technical competence Difficulties with new environment
TRAINING
The
extent of effort by trainees and trainers required to prepare the trainees for expatriate positions
LOW RIGOR TRAINING
1. 2. 3.
HIGH RIGOR TRAINING
1.
2. 3.
4.
Short time period Lectures Videos on local culture Briefings on company operations
4.
Lasts over a month Experiential learning Extensive language training Often includes interactions with host
country nationals
Culture Shock
Its
a phenomenon experienced by people who move across cultures It leads to negative Feelings about the host country and its people
Feelings of frustration, loneliness confusion, irritability, insecurity, and helplessness Unstable temperament and hostility Paranoia Criticism of local people, culture, and customs Excessive concern over drinking water, food dishes, and bedding Fear of contact with locals Oversensitivity and overreaction to minor difficulties Changes in eating and sleeping habits
Repatriation: Reverse Culture-shock
JOB RELATED FACTORS
SOCIAL FACTORS
Out of sight ,out of mind International experience devalued Loss of status and pay relatively peaking Changes in the HQ
Expat assignment - different type of social interaction (going from a very close expat community to where everyone is very busy with their own lives) Problems of spouse returning to the workforce Lack of peer support for teenagers
Repatriation
Refers to the termination of the overseas assignment and coming back to the home country to the country where the HQ is located or to the home country subsidiary from where he/she was expatriated.
Reasons for repatriation
Period of posting got over Expatriate wishes to return on account of desire for children to study at the home country
Need for the expat to move to another global assignment
Inability to adjust/ not happy in the overseas assignment Failure to do a good job on the global assignment
Benefits of returnees
Imbibed global culture, openness to another culture Extensive exposure to how the company is perceived in another country Understanding of the operations of the corporate HQ as well as a subsidiary Value-add to their personal life and professional career
Managing Repatriation
Treat as re-expatriation :
similar to expatriation plan and execute systematically
Repatriation program :
provide mentoring for finding a new role, information on the challenges as a result of the repatriation, provide assistance
Repatriation strategies :
time-bound expatriation helps provide better preparedness where the expat is aware from the beginning when his/her assignment ends and can plan for next steps supported by the organization
WOMEN EXPATRIATES: TWO IMPORTANT "MYTHS"
Myth
1: women do not wish to take international assignments 2: women will fail in international assignments because of the foreign culture's prejudices against local women
Myth
SUCCESSFUL WOMEN EXPATRIATES
Foreign not female emphasize nationality not gender The woman's advantage strong in relational skills wider range of interaction options
