Professional Documents
Culture Documents
GARY DESSLER
Part 5 | Employee Relations
Chapter 17
172
market, product, and production plans on a worldwide basis. organization structures capable of balancing centralized home-office control with adequate local autonomy. extend HR policies and systems to service staffing needs abroad.
173
Create
Furthermore,
country generally have the luxury of dealing with relatively limited set of economic, cultural, and legal variables. A company operating in multiple units abroad have to take into consideration the laws of each unit when staffing for those unit
Special candidate selection Overseas assignment Immigration processing Cultural and language orientation and training Compensation administration and payroll processing Tax administration Career planning and development Handling of spouse and dependent matters
174
their HR practices. A study of 330 managers from China and US revealed that US managers tend to be most concerned about getting the job done whereas the Chinese mamagers were more concerned with with maintaining a harmonious environment. Furtheormore, compared to US employees, Mexican workers expect managers to keep their distance rather than to be close, and to be formal than informal. In any case, cultural factors do influence human resource policies and practices.
175
differences in human resource management policies. For example, France though a capitalist society imposes restrictions on employers right to diacharge workers and limits the number of hours an employee can work legallu work each week. Differences in labor costa are also substantial.
176
country to country. US practice of employment at will does not exist in Europe, where laying-poff workers are usually expensive. (Work councils) Codetermination is the rule in Germany and several other countries.
Codetermination means employees have the legal right to a voice in setting company policies. Workers elect their own representatives to the supervisory board of the employer, and teher is vise-presdent for labor at the top management level
178
scholars from 13 countries and regions used the Best International Human Resource Management Practice Survey to assess human resource management practices around the world The result provide us with a snapshot of the differences and similarities in a wide range of countries. Well look at some of them:
179
methods for selecting employees. (personal interview, ability to perform the technical requirements of the job, work experience etc.) Cultural differences however have some impact across countries. Eg in Mexico havingteh right connections.
countries use performance appraisal. Eg- Employers in Taiwan, US and Canada rank to determine pay as one of the top 3 reasons of PA
1710
recognize subordinates
to country. Training expenditure per employee range from as low as $241 in Asia (outside Japan), $359 in Japan and $ 724 in US. Training hours can range from 26 total training hours per employee in Asia upto 49 hours in Europe. There are usually more similarities than differences across countries.
1711
emphasis on pay for performance we would expect that US managers would place more importance on incentives. However surveys indicate that incentives pay only moderate role in US pay packages, where in China, Japan and Taiwan incentives play a relatively important role.
1712
These managers think of themselves as global in scope, therefore they can easily accept the global imperative for having a more standardized HRMS
1714
their legitimacy.
Do not try to force a change without finding out whether there may in fact be any reason for using a more locally appropriate system. Be knowledgeable about local issues and be willing to differentiate where necessary. Then market test the new method.
culture.
Companies which can create strong corporate culture find it easier to obtain agreement among far-flung employees when it comes to implement standardized practices. These managers tend to have a strong sense of shared value.
1715
Firms HR managers around the should feel that they are not merely local HR managers but a part of a greater whole. Form global teams to develop new HR systems. Treat local HR managers as equal partners, not just implementers.
While companies may strive to standardize tools globally, the critical points is to standardize what is assessed but to be flexible in how it is assessed. IBM uses a more or less standardized recruitmenta nd selection process worlwide, but the details such as who conducts the interview or prescreening by phone or in person differs from country 1716 to country.
There is need for constant contact with the decision makers in each country, as well as the people who will be implementing and using the system, Head offices must provide adequate resources to help local HR managers to implement new / additional activities / procedures.
We will now summarize these best practices for instituting global HR systems
1717
Source: Ann Marie Ryan et al., Designing and Implementing Global Staffing Systems: Part 2Best Practices, Human Resource Management 42, no. 1 (Spring 2003), p. 93. 1718
Source: Ann Marie Ryan et al., Designing and Implementing Global Staffing Systems: Part 2Best Practices, Human Resource Management 42, no. 1 (Spring 2003), p. 93. 1719
Source: Ann Marie Ryan et al., Designing and Implementing Global Staffing Systems: Part 2Best Practices, Human Resource Management 42, no. 1 (Spring 2003), p. 93. 1721
Polycentric
Geocentric
1722
managers:
Expatriates still represent a minority of multinationals managers. Most managerial positions are filled by locals rather than
1723
subsidiary for a limited period they may over-emphasize on shortterm results than long-term tasks
Using Expats there are also several reasons for using expatriates either home-country or third country nationals
Main reason is technical competency employers often cant find
local candidates with the required technical qualifications. Multinationals also view successful terms abroad as a required step in developing top managers. Another reason is control home country managers are more likely to apply headquarters way of doing things. 1724
domestic employees previously did in-house. Offshoring is in important inernational staffing issue. Mostly used in manufacturing jobs.
Issues in offshoring
Having an effective supervisory and management
structure in place to manage the workers. Screening and required training for the employees receive the that they require. Ensuring that compensation policies and working conditions are satisfactory.
1725
expats?
Ideally rational reasons like cost and competency will prevail. However, companys top executives valuse also play a role Experts clssify top executives values as:
Ethnocentric The notion that home-country attitudes, management style, knowledge, evaluation criteria, and managers are superior to anything the host country has to offer. E.g.- At Royal Dutch Shell most financial officers aroudn the world are Dutch nationals.
1726
1728
foreign positions have many similarities. However foreign assignment are also different.
There is the need to cope with collegaues whose culture may be drastically different, the stress of being alone in a foreign land, complextities and pressures the families will have to confront etc.
Not all are equally important on the foreign assignees success Family situation was generally found to the most important factor A recent review shows strong support for interpersonal skills and family adjustment
1729
1730
Realistic previews
The problems to expect in the new job as well as about the cultural benefits, problems, and idiosyncrasies of the country.
1731
differences and on raising the trainees awareness of such differences and of their impact on business outcomes. Level 2: aims at getting participants to undertand how attitudes (both negative and positive) are formed and how they influence behavior. Level 3: training provides factual knowledge about the target country, and Level 4: provde skills building in areas like language and adjustment and adaptation skills.
1733
than providing just predeparture cross-cultural training, more firms are providing continuing , in-country cross cultural training during early stages of an overseas assignment. Use of returning managers as resources to cultivate the global mind-sets of their home-office staff. Use of software and the Internet for cross-cultural training.
E.g. Bridging Cultures is a self-training multimedia package for people whi will be traveling and/or living overseas.
1734
Compensating Expatriates
Determining equitable wage rates imn many countries is no simple matter. One of the greatest difficulties in managing multinational compensation is establishing consistent compensation measures between cuntries. Some MNCs conduct their own local annual compensation surveys. The employers then use this information for things like annual salary increases and proposed changes in benefits.
1735
Compensating Expatriates
The most common approach to formulating expatriate pay is to equalize purchaing power across countries, the technique is known as: Balance Sheet Approach
Home-country groups of expensesincome taxes,
housing, goods and services, and discretionary expensesare the focus of attention. The employer estimates what each of these four expenses is in the expatriates home country, and what each will be in the host country. The employer then pays any differences such as additional income taxes or housing expenses. E.g. Table 17-2, pg- 711
1736
Compensating Expatriates
Incentives firms also use performance based incentives abroad. There are various incentives offered to get expatriates to accept and stay on international assignment. Foreign service premiums
Financial payments over and above regular base pay, and typically range between 10% and 30% of base pay. Appears as weekly or monthly salary supplements.
Hardship allowances
Payments to compensate expatriates for exceptionally hard living and working conditions at certain foreign locations. Lump-sum payments to reward employees for moving from one assignment to another.
1737
Mobility premiums
The procedure may be to use criteria / factors such as profits, market share etc. However, local factors/ event (such as political instability) may affect the managers performance while remaining invisible to home office staff. 1738
adapt the performance criteria to the situation. 2. Weigh the evaluation more toward the on-site managers appraisal than toward the home-site managers. 3. If the home-office manager does the actual written appraisal, use a former expatriate from the same overseas location for advice.
1739
sending employees abroad is that 40% - 60% of them will probably quit within three years of returning home. Reasons include:
Expatriates fear theyre out of sight, out of mind No career planning The repatriate and his/her family often have trouble readjusting to the home lifestyle.
Solutions
Making sure that the expatriate and his or her family dont feel that the company has left them adrift. Ensure that expatriates are kept informed of happenings in home office. Prepare expatriates for next career move in company. Provide formal repatriation services. 1740
and rubber estates in Malaysia. Others worked in UK, US and other Western countries.
In recent years, the flow within Asia has increased because of rapid economic growth in Hong Kong, Japan, Malaysia, Singapore, South Korea and Taiwan.
Some countries are both exporters and importers of labor.
1741
Brunei Darussalam
Brunei has a small population. It depends on foreign workers from neighboring countries (e.g. Philippines, East Malaysian states of Sabah and Sarawak).
Foreign workers need work permits. There is a quota by sector to ensure that foreigners
1742
China
Chinese workers abroad
1. Engineering projects for other governments on
Foreigners in China
1. Professionals in areas needed by China
filled by locals
1743
Hong Kong
Depends on foreign workers and professionals
Supplementary Labor Scheme monitored by
Labor Advisory Board to allow entry of more foreigners Admission of Talents Scheme to allow mainland professionals Foreign domestic helpers from Philippines, Thailand and Indonesia
1744
Indonesia
Many Indonesians work in neighboring Malaysia
Similar language and culture
1745
Japan
Foreigners need resident visas to stay
Type A for working purposes Type B for recognized partial work
1746
Malaysia
Both exporter and importer of labor
Import: from Indonesia, Bangladesh, Philippines,
Thailand Export: to Singapore (mainly from Johor), Japan, Taiwan, Middle East
1747
Philippines
Millions work overseas
Middle East, Hong Kong, Singapore and other Asian
countries
Pre-departure seminar
1748
Singapore
Highly dependent on foreign workers
Government controls number by
Foreign worker levy Industry-specific quota
Contact Singapore
1749
South Korea
Employment of foreign workers is restrictive
Employment is offered in specific industries or
professions.
Immigration law does not allow entry of unskilled workers except as trainees.
1750
Thailand
Both exporter and importer of labor
Export to
Middle East, other Asian countries Wworkers are mostly from Northern provinces Cambodia, Laos, Myanmar
Import from
1751
Vietnam
In 1980s, many Vietnamese worked in Soviet Bloc countries. With collapse of USSR, workers now go to other countries such as Korea and Japan.
Recent years, some go to Liberia and Kuwait
1752