Chapter 12
Global Human
Resource
Management
1
The international HRM wheel
Local
personnel
International
personnel
Corporate
2
3
The changing features of international managers
To
From
 Recruitment essentially
HQ in home country
 Recruitment from all over the world
 Increasingly ‘local’ contracts
 Expat package
 Possibilities for locals to
become part of the core
 Local recruits stay local
 Strong ‘corporate style’
diffused in the subsidiaries
 A lot of job rotation: regional; global
 A lot of international management
development programmes
 ‘Foreign office’ type of career
 Dual career system
 Performance appraisals
include local plus global or
regional achievement
 Performance appraisal focuses
on local performances
4
The
The international
international
manager
manager
5
The dual allegiance of international managers
Low
Low
Allegiance to parent firm
High
International managers
who see themselves as
free agents
International managers
who leave their hearts
at home
International managers
who “go native”
International managers
who see themselves as
dual citizens
Allegiance
to local firm
High
6
The dual allegiance of international managers
Pattern
Free agent
Go
native
Heart at
home
Dual
citizen
Pros
Cons
Often have superior international capabilities (e.g.
language, negotiation)
 Often somewhat less costly than traditional
international managers

Adjust well and quickly to local culture
 Usually effective in local environment including
interactions with employees, customers, suppliers,
etc.

Quick to implement directives from
headquarters
 More likely to stay with firm after repatriation








Often leave with little warning
Replacement costs may be significant
May serve self-interests more than company interests
May fight global initiatives
May be slow to implement directives from
headquarters
Likely to leave firm after repatriation
Adjusts poorly and slowly to local culture
and environment
 Likely to inappropriately implement directives from
the parent organization




Adjust well and quickly to local culture
Usually effective in local environment
Facilitates the coordination of global initiatives
Responsive to directives from head- quarters
7
Requires serious thought and commitment
from the company to develop into dual
citizen
 Are a rare breed and are attractive to other firms who
may try to steal them away

Adjustment in an international assignment: the “U-curve
hypothesis”
Honeymoon
Mastery
Adjustment/
Satisfaction
Adjustment
Culture shock
Months
0
2
4
6
8
8
10
12
The country assignment
Optimum tenure
C
A
Total benefits
Benefits
for the
company
Local impact
Global integration
X
Time
Acculturation
Productive tenure
9
B
The impact of international cultural differences for
management
Interpersonal relationships
- Communication
- Etiquette
- Decoding attitudes and behaviour
- Understanding ‘silent’ language
Hierarchical/managerial interactions
(boss/colleagues/subordinates)
- Feedback
- Control
- Reward/punishments
- Personal space
- Motivations
Multicultural teams
- International managers vs locals
- Group building/working/relationships
- Conflict resolutions
Partnerships/transactions
- Contract negotiations
- Joint ventures/partnerships
- Official meetings
- Community events/social events
10
“Local employees avoid telling their boss they think they are wrong”
– agree or disagree?
Strongly disagree
Strongly agree
Hong Kong
Japan
Korea
China
Malaysia
Thailand
Indonesia
Philippines
Singapore
Taiwan
11
“Employees and managers prefer to tell stories than admit
they made a mistake” – agree or disagree?
Strongly disagree
Strongly agree
Korea
China
Malaysia
Indonesia
Hong Kong
Taiwan
Philippines
Thailand
Japan
Singapore
12
“Telling an employee in front of others that he/she made a mistake
is not acceptable” – agree or disagree?
Strongly disagree
Strongly agree
MALAYSIA
HONGKONG
INDONESIA
CHINA
PHILIPPINES
KOREA
TAIWAN
SINGAPORE
THAILAND
JAPAN
13
International managers: culture shock
LEVEL OF
DISORIENTATION
STRESS
UNEASE
PHYSICAL
DIFFERENCES
CULTURAL
DIFFERENCES
REACTIONS
FLIGHT
FIGHT
• rejects
• retreats
• insulates
ACCEPT
• interested
• looks for contacts
• learns about culture
• hostility
• disgust
• disapproval
THE
“COLONY”
THE
COSMOPOLITAN
EXPAT
14
GOES NATIVE
• enthusiastic
• adopts local practices:
food; dress; style
• local ‘companion’
THE
LOCALIZED
EXPAT
Problems on repatriation
• The majority of international managers experience some degree of culture
shock during repatriation
• More than half of returning international managers feel their overseas
assignment had a negative impact on their careers
• 1 out of every 5 managers who finish an international assignment want to
leave the company when they return
• The majority of international managers feel their re-entry position is less
challenging and satisfying than their overseas assignment
• Most returning international managers feel there are limited opportunities
for using their newly acquired knowledge and skills, and feel their
international expertise is not appreciated by their firms
15
HRM practices which support effective
expatriation
Staffing and selection
• Communicate the value of international assignments for the company’s global mission
• Recruit employees who see international assignments as a challenging opportunity
• Recruit employees who demonstrate cultural openness
• Provide a realistic job and career preview
Training and career development
• Make international assignments a part of the career development process
• Encourage early international experience
• Provide ongoing mentoring and coaching
• Create learning opportunities during the assignment
• Use international assignments as a leadership development tool
16
HRM practices which support effective expatriation cont.
Performance appraisal and compensation
• Differentiate performance management based on international manager roles
• Align incentives with expatriation objectives
• Tailor benefits to the international manager’s needs
• Focus on equality of opportunities, not cash
• Emphasize rewarding careers rather than short-term outcomes
Expatriation and repatriation activities
• Involve the family in the orientation and repatriation program
• Establish mentor relationships between international managers and executives from the home
location
• Provide support for dual careers.
• Secure opportunities for the returning manager to use knowledge and skills learned while on the
international assignment
17
Different types of international managers according to
the stage of subsidiary development
CONSOLIDATE
GROW
BUILD
PIONEER
DEVELOPER
18
ORGANIZER
Individual skills for international managers in emerging
countries
CULTURAL
SKILLS
Understanding of and
sensitivity to etiquette,
social norms, religions,
ethnical characteristics
Knowledge and
reference to arts and
literature
Language skills can
help
RELATIONSHIP
SKILLS
Ability to build and
maintain a network
of contacts
Ability to negotiate
Ability to learn
Ability to
communicate
without arrogance
LEADERSHIP
SKILLS
Ability to motivate
Ability to inspire
Ability to teach
and coach
Ability to lead
teams
Ability to respect
Role model
Paternalistic
Ethics
19
POLITICAL
SKILLS
PROFESSIONAL
SKILLS
Ability to understand
the local political
context and subtleties
Knowledge and
expertise in product
and services
Ability to communicate
with opinion leaders
and key
decision-makers
Performance
demonstration
Ability to integrate local
national priorities into
business strategies and
practices
More pressure to localize staff
From host country government
• To accelerate transfer of technology
• To develop human resources
• To create employment
From head office
• To cut costs
• To build competences
• To keep staff
From local staff itself
• To satisfy ambition
• To develop career
• To improve conditions
20
Integrating local staff
• Career development and the ‘glass ceiling’
• Fairness
• Feedback
• Rewards
• Discipline and education
• Long-term policies
21
Skills that Chinese employees consider to be important
for international managers
• Cultural sensitivity
• Guidance
• Clarity
• Teaching orientation
• Expertise (to be tested)
• Short-term Presence (commitment?)
• Adaptability
• Fairness
• Morality
• Personal touch (paternalism)
22
Skills that international managers consider to be
important for Chinese employees
• Hard work and productivity
• Knowledge
• Language
• Desire to learn
• Loyalty
• Honesty and morality
• Initiative
• Leadership
23