Challenges Ihrm

8/13/2019 Challenges Ihrm

1/38

Submitted by:Parul DuttaMBA(Retail)Majors: HR


2/38

CHALLENGE 1

HIGH EXPAT

FAILURE RATE..


3/38

What is an expatriate? An employee who is working and temporarilyresiding in a foreign country Some firms prefer to use the term international

assignees Expatriates are PCNs from the parent country

operations, TCNs transferred to either HQ or anothersubsidiary, and HCNs transferred into the parent

countryGlobal f low of HR: more complexity in activitiesand more involvement in employees' lives

13


4/38

Overseas Recruitment Issues Work Permit or Work Certificate

Government document granting a foreign

individual the right to seek employment.Guest Workers

Foreign workers invited to perform needed labor.

Transnational teamsTeams composed of members of multiplenationalities working on projects that span multiplecountries.


5/38

Reasons for Expatriate Failure1. Inability of spouse to adjust2. Managers inability to adjust 3. Other family problems

4. Managers personal or emotional immaturity5. Inability to cope with larger overseas responsibility6. Lack of technical competence7. Difficulties with new environment

15


6/38

ExpatriateSelectionCriteria


7/38

2. Training and DevelopmentGlobal Manager

A manager equipped to run an international business.

Skills of a Global Manager Ability to seize strategic opportunities(TATAS) Ability to manage highly decentralized organizations Awareness of global issues (MARUTI)Sensitivity to issues of diversityCompetence in interpersonal relations


8/38

Training Programs forInternational Managers

Essential training program content to prepareemployees for working internationally:

Language trainingCultural training Assessing and tracking career developmentManaging personal and family life

Culture shockPerpetual stress experienced by people who settleoverseas.


9/38

3.CULTURAL DIFFERENCES..The communication patterns,religion,

valuesideologies,education,social structureof a host country influence how HR is conducted inthat country.


10/38

Rank: 1 Company: NetApp

Business: Specializes in proprietary network

storage and data management.Reach: Has over 130 offices worldwide,including US, Canada, Europe, South America, Asia, Pacific and Australia.


11/38

NETAPP:WORLDS BEST EMPLOYER.. Why: The essence of what fuels the quality of the workplace at NetApp is the high trust culture .Leaders reach out to employees, sharinginformation, support and assist the employees ina variety of ways. This generosity of spirit isreciprocated many times over, creating within NetAppits own version of a fail-safe networkedorganization


12/38

Rank: 2 Company: Edward Jones

Business: Offers financial products at anindividual investor level. Currently servesmore than 7 million clients.Reach: Over 10,800 offices in the UnitedStates, Canada and United Kingdom


13/38

ADEQUATE TRAINING Why: Employees receive a whopping 149 hours oftraining on average a year, more than three times the100 best averages of 45.But Edward Jones doesnt just train people for the jobtheyre doing. The managements philosophy is thatemployees who are passionate about their jobs willmake the company a better place, so managersencourage people to develop skills even whenthey know the new skills may lead to a different job.


14/38

Rank: 3 Company: Boston

Consulting Group

Business: Global managementconsulting firm and a leadingadvisor on business strategy.

Reach: BCG is a private company with 66 offices in 38 countries,including the US. They also haveoffices in North America, South America, Asia Pacific, Europe andthe Middle East


15/38

TRAINING Why: BCG prides itself on its employee focused culture.Training opportunities abound, even for senior partners. All employees are encouraged to continuously learn ,

accept responsibility and take on challenges. BCG is viewed as an apprenticeship and most trainingactually takes place within the project team. Associates who commit to returning to the companyafter receiving an MBA are fully reimbursed fortuition, given a promotion and a raise . (BIG BAZAAR ) Administrative staff may be reimbursed up to two job-related courses per semester


16/38

4.Performance Appraisal ofInternational Managers

Who Should Appraise Performance? Home-country evaluations

Host-country evaluations Former expat who served in country could be involved inthe appraisal

Adjusting Performance Criteria Individual learning Organizational learning

Providing Feedback Debriefing interview


17/38

5. COMPENSATIONHow should compensation be adjusted ?? According to prevailing host country standards orequalizing pay on a global basis?

How should expatriate managers be paid ?Ethnocentric how much home country managers areto be paidPolycentric pay can be kept country specificGeocentric pay the international executives the samebasic salary regardless of country of origin orassignment


18/38

Forces Driving Global Pay Cultural Preferences

Importance of status Role of individual vs.

organization vs.government

Equality vs. disparity Achievement vs.

relationships Economic Conditions

Size of economy Types of industries, natural

resources Inflation, unemployment

Personal Preferences Attitudes toward riskQuality of life vs. workShort- vs. long-term

Competitiveness vs. solidarity

Social ConstraintsIncome tax rates, social costsLaws and regulationsCollective bargaining, workerparticipationSkills, education of work force


19/38

COMPENSATION Contd.Customizedpackages :Incentive pay

important in ChinaIncentive pay lessimportant in USA

Balance sheet approachto expat payequalizes purchasingpower across countries


20/38

Compensation of Expatriate

Managers contd.To be effective, an international compensationprogram must:

Provide an incentive to leave the home country. Allow for maintaining a home country standard ofliving.Facilitate re-entry into the home country.

Provide for the education of children. Allow for maintaining relationships with family, friends,and business associates.

Presentation Slide 15 7


21/38

6.Diversity as HRChallenge inMNCs

121Source : Marilyn Loden and Judy B. Rosener, Workforce America: Managing Employee Diversity as a Vital Resource , p. 20.


22/38


23/38


24/38


25/38


26/38


27/38


28/38

Rank: 4 Company: Google Business: Focused on Internet search services. Alsooffers advertising, business solutions, online mapping,blogging, e-mail, social networking and video sharing.Last year, they launched their own browser, GoogleChrome.Reach: United States, Canada, Europe, Asia Pacific,Latin America, Middle East


29/38

GOOGLE : MANAGING DIVERSITY

THROUGH ITS WORK CULTURE Why: The company slogan is Dont be evil . Google isfamed for going all out to keep their employees happy.Professional development opportunities include classes on

individual and team presentation skills, contentdevelopment, business writing, executive speaking,delivering feedback and management/leadership.Google engineers are encouraged to spend 20% of

their work time (one day per week) on projects thatinterest them. Some of Googles newer services, such asGmail, Google News, Orkut, and AdSense originated fromthese independent endeavors.


30/38

Rank: 5 Company: Cisco Systems

Business: Cisco hardware, softwareand service offerings are used tocreate the Internet solutions thatmake networks possible providing easy access to informationanywhere, at any time.Reach: US, Africa, North America,South America, Asia Pacific, Europe


31/38

COMMUNICATION AND SUPPORT Why: Cisco managers are trained to ensure employees have asuccessful work-life balance, by working flexi-time ifneeded. Its leadership development system is aimed at developing keycapabilities, competencies and expectations for its employees.Cisco employees have access to assistance programmes thatprovide confidential support for various personal issues . Italso provides short-term, emergency resources to helpemployees facing difficult personal situations . It has localonsite emergency response teams made up of trainedemployees and a global, cross-functional crisiscommunication team that helps evaluate crisis situations andcommunicate important information.


32/38

7.INTERNATIONAL LABOUR RELATIONS AREAS OF CONCERN FOR DOMESTIC UNIONS :company can counter its bargaining power with the power to movethe plant to another countryInternational business will keep highly skilled tasks in the homecountry & farm out low-skilled tasks to the foreign plantsInternational business will attempt to import employment practices& contractual agreements from its home country

ORGANISED LABOUR HAS RESPONDED BY:Trying to establish international labor organizationsLobbying for national legislation to restrict MNEs Achieve international regulations on MNEs through UN


33/38

INTERNATIONAL LABOUR

RELATIONS Contd.Not very successful because..Unions want to cooperate but compete with eachother for jobs Wide variation in union structureDivergent ideologies about role of union in society &class conflict


34/38

Rank: 6 Company: Wegmans Food

Market Business: Regional supermarket chain

Reach: Seventy-nine stores in the mid- Atlantic region including New York,Pennsylvania, New Jersey, Northern Virginia and Maryland in the UnitedStates


35/38

EMPLOYEE LABOUR RELATIONS Wegmans employs a web-based system known as thelabor resource manager to ensure no employee isoverburdened and that every employee has thesupport of colleagues at the busiest times. Having a resource dedicated to staffing enablesemployees the flexibility to care for sick familymembers, pursue degrees, or enjoy a summer off topursue a passion.


36/38

Rank: 7 Company: Nugget Market Business: Family owned, upscale supermarket chainReach: Owns and operates nine Nugget Markets andthree Food 4 Less stores in the Northern Californiaregion, United States


37/38

Nugget Market CONTD. Why: Nugget Market, which was founded in 1926, hasnever had a layoff .Since its launch, it has had a progressive, employee-friendly attitude, providing its associates with some ofthe top wage and benefit packages in the industry . Nugget also has excellent healthcare benefits,

including long-term disability and sick pay . It encourages associates to balance their work andpersonal life through flexible schedules and five weeksof paid vacation.


38/38

Challenges Ihrm

Documents