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Slide multinational management 3e cullen ch11

Chapter 11
HRM in the Local Context:
Knowing When and How to Adapt

Copyright© 2004 Thomson Learning All rights reserved


Learning Objectives
•• Understanding
Understanding how
how the
the national
national context
context affects
affects HRM
HRM
practices
practices
•• Identify
Identify how
how recruitment

recruitment and
and selection
selection practices
practices differ
differ
inin various
various national
national contexts
contexts
•• Identify
Identify possible
possible host
host adaptations
adaptations inin recruitment
recruitment and
and
selection
selection practices
practices

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Learning Objectives
•• Identify
Identify how
how training
training and
and development
development techniques
techniques are
are
used
used inin different
different countries
countries
•• Identify
Identify sources
sources ofof high-quality
high-quality workers
workers inin different
different
nations
nations
•• Understand
Understand how
how training
training must
must be
be adapted
adapted toto host
host
country
country workers
workers
•• Identify
Identify how
how performance
performance evaluation
evaluation and
and compensation
compensation
practices
practices differ
differ inin various
various national
national contexts
contexts
Copyright© 2005 South-Western/Thomson Learning All rights reserved


Learning Objectives
•• Identify
Identify possible
possible host
host country
country adaptations
adaptations inin
performance
performance evaluation
evaluation and
and compensation
compensation practices
practices
for
for aa multinational
multinational company
company
•• Understand
Understand how
how labor
labor costs
costs vary
vary
•• Have
Have an
an appreciation
appreciation ofof how
how the
the national
national context
context and
and
historical
historical conditions
conditions affect
affect the
the relationship
relationship ofof
management
management and
and labor
labor

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Why Do Nations Differ in
HRM?
•• Because
Because ofof the
the national
national context
context
•• National
National culture
culture and
and social
social institutions
institutions influence
influence how
how
managers
managers make
make decisions
decisions regarding
regarding strategies
strategies
•• Countries
Countries vary
vary widely
widely with
with regards
regards toto social
social institutions
institutions
and
and national
national culture
culture
•• Multinationals
Multinationals must
must select
select and
and implement
implement practices
practices
that
that meet
meet national
national context
context
Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exhibit 11.1: How the National Context
Leads to National Differences in Local
HRM Practices

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Why Do Nations Differ in
HRM?
•• Resource
Resource pool:
pool: all
all the
the human
human and
and physical
physical resources
resources
available
available inin aa country
country
•• Both
Both from
from natural
natural and
and induced
induced factor
factor conditions
conditions
•• Include
Include quality
quality ofof labor,
labor, availability
availability ofof scientific
scientific
laboratories
laboratories

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Key Factors that Influence the
Resource Pool
••
••
••

The
The quality,
quality, quantity,
quantity, and
and accessibility
accessibility ofof raw
raw material
material
The
The quantity,
quantity, quality,
quality, and
and cost
cost ofof personnel
personnel available
available
The
The scientific,
scientific, technical,
technical, and
and market-related
market-related knowledge
knowledge
available
available toto firms
firms

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Resource Pool
•• The
The cost
cost and
and amount
amount ofof capital
capital available
available toto firms
firms for
for
operations
operations and
and expansion
expansion
•• The
The type,
type, quality,
quality, and
and costs
costs ofof supporting
supporting institutions
institutions
such
such as
as the
the systems
systems ofof communication,
communication, education,
education, and
and
transportation
transportation

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Why Do Nations Differ in
HRM?
•• Natural
Natural factor
factor conditions:
conditions: national
national resources
resources that
that occur
occur
naturally
naturally
•• E.g.,
E.g., abundant
abundant water
water supply
supply
•• Induced-factor
Induced-factor conditions:
conditions: national
national resources
resources created
created
by
by aa nation
nation
•• E.g.,
E.g., superior
superior educational
educational system
system

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Characteristics of the National
Context That Affect HRM
••
••
••
••

Education
Education and
and training
training ofof the
the labor
labor pool
pool
Laws
Laws and
and cultural
cultural expectations
expectations for
for selection
selection practices
practices
Types
Types ofof jobs
jobs favored
favored by
by applicants
applicants
Laws
Laws and
and cultural
cultural expectations
expectations regarding
regarding fair
fair wages
wages
and
and promotion
promotion criteria
criteria
•• Laws
Laws and
and traditions
traditions regarding
regarding labor
labor practices
practices

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Recruitment Strategies
••
••
••
••
••
••
••

Walk-ins
Walk-ins or
or unsolicited
unsolicited applications
applications
Newspaper
Newspaper or
or Internet
Internet advertisement
advertisement
Company
Company Web
Web site
site job
job posting
posting
Internal
Internal job
job postings
postings
Public
Public and
and private
private personnel
personnel agencies
agencies
Placement
Placement services
services ofof educational
educational institutions
institutions
Current
Current employee
employee recommendations
recommendations
Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exhibit 11.2: Steps in the
Recruiting Process

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Recruitment in the U.S.
•• U.S.
U.S. managers
managers tend
tend toto see
see newspapers
newspapers as
as one
one ofof the
the
most
most effective
effective recruitment
recruitment methods.
methods.
•• Fear
Fear that
that recruitment
recruitment by
by personal
personal contacts
contacts may
may result
result
inin bias
bias against
against some
some groups.
groups.
•• U.S.
U.S. value
value open
open and
and public
public advertisements
advertisements as
as aa
reflection
reflection ofof individualistic
individualistic culture.
culture.

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exhibit 11.3: Most Effective
Recruiting Sources for U.S.
Companies

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Recruitment in Korea
•• Backdoor
Backdoor recruitment:
recruitment: prospective
prospective employees
employees are
are
friends
friends or
or relatives
relatives ofof those
those already
already employed
employed
•• Managers
Managers are
are recruited
recruited from
from prestigious
prestigious universities
universities

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Recruitment Around the World
•• Individuals
Individuals around
around the
the world
world have
have preferred
preferred way
way toto find
find
jobs
jobs
•• International
International Social
Social Survey
Survey Program
Program data
data was
was
analyzed
analyzed
•• Looking
Looking for
for jobs
jobs through
through public
public vs.
vs. private
private agencies
agencies
•• Individuals
Individuals inin former
former communist
communist and
and socialist
socialist
societies
societies were
were more
more likely
likely toto rely
rely on
on public
public agencies
agencies
Copyright© 2005 South-Western/Thomson Learning All rights reserved


Recruitment Around the World
(cont.)
•• Advertising
Advertising inin newspapers
newspapers and
and responding
responding toto
newspaper
newspaper ads
ads
•• Both
Both very
very public
public forms
forms ofof recruitment
recruitment
•• Individualistic
Individualistic societies
societies have
have higher
higher preference
preference for
for
such
such forms
forms
•• Apply
Apply directly
directly versus
versus asking
asking friends/relatives
friends/relatives for
for job
job
•• Individualistic
Individualistic and
and high
high femininity
femininity societies
societies more
more
likely
likely toto favor
favor direct
direct application
application
•• Socialist
Socialist societies
societies rely
rely on
on asking
asking friends/relatives
friends/relatives
Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exhibit 11.4: Preferred Ways to
Look for a New Job—Public vs.
Private Agency

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exhibit 11.5: Preferred Ways to
Look for a New Job

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exhibit 11.6: Preferred Ways to
Look for a New Job

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Selection in the U.S.
••
••
••
••
••

Job
Job qualifications
qualifications
Match
Match skills
skills and
and job
job requirements
requirements
Individual
Individual achievements
achievements
Prohibitions
Prohibitions against
against nepotism—the
nepotism—the hiring
hiring ofof relatives
relatives
Forbidding
Forbidding managers
managers toto supervise
supervise family
family members
members

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exhibit 11.7: Typical Steps in
U.S. Personnel Selection

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Selection in Collectivist
Cultures
••
••
••

Based
Based on
on the
the in-group
in-group
Preference
Preference for
for family
family
Value
Value potential
potential trustworthiness,
trustworthiness, reliability,
reliability, and
and loyalty
loyalty
over
over performance-related
performance-related background
background
•• High
High school
school and
and university
university ties
ties substitute
substitute for
for family
family
membership
membership

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Implications for the
Multinational: Recruitment
and Selection
••
••

Managers
Managers must
must follow
follow local
local norms
norms toto get
get best
best workers
workers
Often
Often aa tradeoff
tradeoff between
between home
home practices
practices and
and costs
costs ofof
following
following local
local traditions
traditions

Copyright© 2005 South-Western/Thomson Learning All rights reserved


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