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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