2008 Pearson Prentice Hall 9

Transcription

1 2008 Pearson Prentice Hall 9

2 Staffing for Global Operations Ethnocentric staffing approach Used at internationalization stage of strategic expansion, with centralized structure Parent-country nationals (PCNs) Advantage: familiarity with company goals products, technology, policies, and procedures Polycentric staffing approach Often used with multinational strategy Host-country nationals (HCNs) Advantage: to act local, Disadvantage: difficulty coordinating activities and goals conflicting loyalties from local managers headquarters managers do not gain overseas experience Pearson Prentice Hall 9-4

3 Staffing for Global Operations Global staffing approach Third country nationals (TCNs) Transpatriates Regiocentric staffing approach Can produce a mix of PCNs, HCNs, and TCNs 2008 Pearson Prentice Hall 9-5

4 Expatriate Selection Five categories of success: job factors, relational dimensions, motivational state, family situation, and language skills Predictors of expatriate success: Stress tolerance and extraversion 2008 Pearson Prentice Hall 9-6

5 Expatriate Performance Management Selection based on headquarters criteria Inadequate preparation, training, orientation Alienation or poor support from headquarters Inability to adapt to the local culture 2008 Pearson Prentice Hall 9-7

6 Expatriate Performance Management Problems with spouse and children Insufficient compensation and financial support Poor programs for career support and repatriation 2008 Pearson Prentice Hall 9-8

7 Expatriate Training and Development China: Eating duck tongue and pigeon head Brazil: Home phones don t work India: Pervasive poverty Indonesia: Rent paid 2-3 years in advance Japan: Doctors reveal little to patients Global Relocation Survey indicates only 20% of companies have formal cross-cultural training for expatriates. Many assume that managerial skills and processes are universal Pearson Prentice Hall 9-9

8 Expatriate Training and Development Japanese expatriate planning: Selection based on long-term knowledge of executives and their families Use of longer assignments (e.g., 5 years) Extensive headquarter support 2008 Pearson Prentice Hall 9-10

9 Training Techniques Area studies Sensitivity training Culture assimilators Field experiences Language training Host-family surrogate 2008 Pearson Prentice Hall 9-12

10 Corporate Programs to Develop Global Managers ABB rotates 500 managers to different countries every 2-3 years Pepsi brings foreign managers to the US for one-year assignments British Telecom uses informal mentoring between expatriates and potential assignees 2008 Pearson Prentice Hall 9-13

11 Management Focus: Citibank Gives Advice on Career Planning Two-thirds of Citibank s management team have international experience Options include expatriate assignment, shortterm assignments, jobs with cross-border interactions, and global task forces 2008 Pearson Prentice Hall 9-14

12 Factors Helping Integration of Expatriates and Local Staff Forming close working relationships Learning local language Transferring technical/business knowledge Integrating into local life 2008 Pearson Prentice Hall 9-19

13 Factors Hindering Integration of Expatriates and Local Staff Not using team concept Not learning local language Arrogance Spouse/family adjustment problems 2008 Pearson Prentice Hall 9-20

14 Compensating Expatriates DuPont s Global Transfer Center of Expertise creates perceptions of equity and goodwill Companies are looking for ways to cut the costs of expatriate assignments The Wall Street Journal: sending a $100,000-a-year manger to London can cost the organization $300,000 per year. Stockholm or Tokyo - $1 million. The need to reconcile parent- and host-country practices adds complexity (eg.g European v.s. American) 2008 Pearson Prentice Hall 9-21

15 Compensating Expatriates The balance sheet approach: to equalize the standard of living between the host and home country and to add some compensation for inconvenience or qualitative loss. to create a standard of living that is comparable to host-country managers Tax equalization the company pays any taxes due on any type of additional compensation that the expatriate receives for the assignment. the expatriate pays in taxes only what she or he would pay at home. Tax planning can lessen the tax burden for the company. For example, a company can save on taxes by renting an apartment for the employee rather than providing a cash housing allowance Components of the compensation package: Salary, taxes, allowance, benefits 2008 Pearson Prentice Hall 9-22

16 Management Focus: Success! Starbucks in Beijing Challenges recruiting, motivating, and retaining Beijing managers Chinese recruits want training and advancement opportunities more than money 2008 Pearson Prentice Hall 9-24

17 Management Focus: Success! Starbucks in Beijing Recruits are trained in management and in Starbucks culture Three months in Seattle Make coffees in a real store Training, and resulting trust and participation, also serve as motivators 2008 Pearson Prentice Hall 9-25

18 Compensating HCNs Research by Mercer indicates that most firms have a global pay structure in place that includes policies on position pay relative to the market, short- and long-term incentives, and methodologies for job grading. Eastern Europeans require more cash than Americans Hungarians, Poles, and Czechs spend about 35-40% of their disposable incomes on food and utilities. Russians may spend as much as 75%. ) Compensation in Japan is becoming more Westernized base pay on performance, rather than seniority, and are making people responsible for their own retirement fund decisions Chinese workers resist pay for performance leading many Western companies to use salary increases. Companies also set up housing schemes, such as investing in 2008 Pearson Prentice Hall 9-26 apartments, as a way to compete for good managers.

19 Comparative Management in Focus: Compensation Best Practices Incentives not too large, pay based on individual performance, reduce seniority pay Regional Clusters Asian and Latin countries use more seniority pay, group/team pay, and pay for future goals Country Specific US uses less incentives than expected, China and Taiwan use more 2008 Pearson Prentice Hall 9-28

20 Comparative Management in Focus: Selection Best Practices Getting along with others and Fit with corporate values Regional Clusters Anglo cluster focuses on technical skill, work experience; Korea, Japan, and Taiwan focus on work experience Country Specific Japan looks at a person s potential; Korea relies on employment tests; Taiwan relies on interviews 2008 Pearson Prentice Hall 9-29

21 Comparative Management in Focus: Performance Appraisal Best Practices Could be better in all countries; emphasis on development and documentation Regional Clusters Expression used little in Asian countries; in Latin America the administrative purpose is important Country Specific In Taiwan the administrative purpose is important 2008 Pearson Prentice Hall 9-30

22 Comparative Management in Focus: T&D Best Practices Used to improve technical skills and, increasingly, team building Regional Clusters Softer practices used in Anglo cluster but more use is desired; Latin cluster desires more use of all practices Country Specific In Mexico, T&D is a reward; US is outsourcing more; Korea uses team building extensively 2008 Pearson Prentice Hall 9-31

23 Comparative Management in Focus: Relation to Strategy Best Practices T&D and performance appraisal most closely linked to organizational capability Regional Clusters Low cost and differentiation strategies linked to HRM in Asian cluster Country Specific No linkages between organizational capability and HRM in Mexico 2008 Pearson Prentice Hall 9-32

24 The Role of the Expatriate Spouse 60% of expatriate spouses are employed before the assignment, but only 21% are employed during the assignment Spouse adjustment is more likely when: The firm seeks the spouse s opinion The spouse initiates predeparture training 2008 Pearson Prentice Hall 10-4

25 The Expatriate Transition Process Exit from the home country Entry to the host country Entry transition Adjustment (adaptation) Exit transition Entry back to the home country Entry transition Adjustment 2008 Pearson Prentice Hall 10-5

26 The Role of Repatriation in Developing a Global Cadre Successful expatriates acquire skills: Managerial skills Tolerance for ambiguity Multiple perspectives Ability to work with and manage others Ability to do business overseas 2008 Pearson Prentice Hall 10-7

27 Global Management Teams The effects of multicultural teams: Domestic: Mostly internal operations International: Relationships among buyers, sellers and other intermediaries Multinational: Internal, across culturally diverse managers and technical people 2008 Pearson Prentice Hall 10-8

28 Challenges for Virtual Global Teams Geographic dispersal Cultural differences Language and communication Technology 2008 Pearson Prentice Hall 10-10

29 Criteria for Evaluating Transnational Team Success Do members work together with a common purpose? Has the team developed a common language or procedure? Does the team build on what works, learning to identify the positives? 2008 Pearson Prentice Hall 10-11

30 Criteria for Evaluating Transnational Team Success Does the team spell out matters within the limits of the cultural differences involved? Do members recognize the impact of their own cultural programming on individual and group behavior? Does the team have fun? 2008 Pearson Prentice Hall 10-12

31 The Role of Women in International Management 2008 Pearson Prentice Hall 10-13

32 The Role of Women in International Management Even US managers are reluctant to give women expatriate assignments Evidence suggests foreigners are viewed first as foreigners 2008 Pearson Prentice Hall 10-17

33 Working with Local Labor Relations Systems Labor relations and collective bargaining Three dimensions to consider: The participation of labor in firm affairs The role and impact of unions Human resource policies 2008 Pearson Prentice Hall 10-18

34 Working with Local Labor Relations Systems Labor relations constraints: Wage levels set by unions Limits on the firm s ability to vary employment levels Limitations on the global integration of operations Example: Europe 2008 Pearson Prentice Hall 10-19

35 Management Focus: China Empowers Unions The iron rice bowl China is adopting a new law to empower unions and protect workers rights Foreign companies operating in China are protesting this move 2008 Pearson Prentice Hall 10-21

36 NAFTA and Labor Relations in Mexico Labor issues subject to review under NAFTA: minimum wages, child labor, and safety Workers believe MNCs use blacklists, intimidation and economic pressure to oppose union organization Example: General Electric 2008 Pearson Prentice Hall 10-24

37 Comparative Management in Focus: Labor Relations in Germany Codetermination law (mitbestimmung) is coming under pressure Union works councils are co-managers German unions are increasingly willing to make concessions Linde and IG Mettal 2008 Pearson Prentice Hall 10-25

38 Comparative Management in Focus: Labor Relations in Germany The influence of Daimler-Chrysler and the US The German model holds that competition should not be based on cost What is the value of codetermination? 2008 Pearson Prentice Hall 10-26

39 The Meaning of Work Germany Israel Belgium Japan Britain Netherlands USA Former Yugoslavia 2008 Pearson Prentice Hall 11-5

40 The Perceived Utility of the Functions of Work 2008 Pearson Prentice Hall 11-6

41 The Islamic Work Ethic Laziness is a vice Dedication to work is a virtue Good work benefits one s self and others Justice and generosity in the workplace are necessary for society s welfare 2008 Pearson Prentice Hall 11-7

42 The Needs Hierarchy in an International Context Managers around the world have similar needs, but derive different levels of need satisfaction from their jobs e.g., Koreans vs. Germans Variables other than culture may be at play e.g., Russian managers 2008 Pearson Prentice Hall 11-8

43 The Needs Hierarchy in an International Context The ordering of needs in the hierarchy also varies A proposed Chinese hierarchy (ascending): Belonging Physiological needs Safety Self-actualization in the service of society 2008 Pearson Prentice Hall 11-9

44 Reward Systems Five categories: Financial, social status, job content, career, and professional Japan: Focus on seniority, bonuses, and permanent workers; competition discouraged China: Focus on social benefits, shift to payfor-performance and equity-based rewards 2008 Pearson Prentice Hall 11-15

45 The Global Leader s Role and Environment Global business and organizational savvy Leaders affect motivation and behavior of employees, organizational climate The content and context of leadership 2008 Pearson Prentice Hall 11-16

46 Leadership in a Digital World Three key differences between e-businesses and traditional organizations: Making decisions fast (e.g., ebay) Maintaining flexibility (e.g.kfc) Focusing on the vision (e.g., Apple) 2008 Pearson Prentice Hall 11-17

47 Cross-Cultural Research on Leadership Effective leadership varies across cultures People have accepted images of what a leader should be 2008 Pearson Prentice Hall 11-18

48 Status and Influence Differences Across Countries The Dutch are skeptical about the value of leadership Arabs worship their leaders as long as they are in power! Malaysians expect their leaders to be humble, modest, and dignified The French expect leaders to be cultivated 2008 Pearson Prentice Hall 11-20

49 Universal Facilitators of Leadership Effectiveness Trustworthiness Visionary Inspirational and motivating Communicative 2008 Pearson Prentice Hall 11-21