You are on page 1of 20

OHT 12.


Roll #
17 23 24 30 34

OHT 12.2

Human Resource Management Strategy

OHT 12.3

Introduction Training and development Compensation Labor relations Strategic management and IHRM strategies

OHT 12.4


H.M.Fahad Shahzad

OHT 12.5

International human resource management (IHRM): The process of selecting, training, developing, and compensating personnel in overseas positions Three basic sources of personnel talent that MNEs can tap for these positions:

Home country nationals (expatriates) Host country nationals Third country nationals

OHT 12.6

OHT 12.7

International screening criteria:

Adaptability Self-reliance Age, experience, and education Health and family status Motivation and leadership Interviews (often including spouse) Tests

Selection procedure:

OHT 12.8

Reasons for repatriation:

The predetermined time assignment is completed Expatriates desire to have their children educated in the home country Expatriate might be unhappy overseas Expatriate might have performed poorly

OHT 12.9

Expatriates might find it difficult to adjust back to the home environment. A number of reasons can be cited: The home office job lacks the high degree of authority and responsibility that expatriates had in their overseas job A feeling that the company does not value international experience they may no longer be well known among people at headquarters their old job may have been eliminated or drastically changed technological advances at headquarters may have rendered their existing skills and knowledge obsolete

OHT 12.10

the move from foreign to domestic assignments The

repatriation agreement.

Transition strategies: are designed to help smooth

To rent or maintain the expatriates home during the overseas tour To assign a senior executive as a sponsor for each manager who is posted abroad To maintain ongoing communications with expatriate managers, thereby ensuring that they are aware of what is happening in the home office

OHT 12.11


M.Faisal Rashid

OHT 12.12

Training: The process of altering employee behavior and attitudes in a way that increases the probability of goal attainment . Managerial development: The process by which managers obtain the necessary skills, experiences, and attitudes that they need to become or remain successful leaders

OHT 12.13

Standardized training programs: Generic programs that can be used with managers anywhere in the world Tailor-made training programs: Designed to meet the specific needs of the participants and typically include a large amount of culturally based input

OHT 12.14

Environmental briefings used to provide information about such things as geography, climate, housing, and schools Cultural orientation designed to familiarize the individual with cultural institutions and value systems of the host country Cultural assimilators using programmed learning approaches designed to provide the participants with intercultural encounters Language training Sensitivity training designed to develop attitudinal flexibility Field experience, which sends the participant to the country of assignment to undergo some of the emotional stress of living and working with people from a different culture.

OHT 12.15

OHT 12.16

Base salary: the amount of cash compensation that an individual receives in the home country Benefits Allowances
Cost-of-living allowance: payment to compensate for

differences in expenditures between the home country and the foreign location Hardship allowance: is a special payment made to individuals who are posted to areas that are regarded as less desirable

Tax protection and/or tax equalization

OHT 12.17

Due to the high costs of expatriates, MNEs are: not sending expatriates to overseas positions unless there is a need for their specific services increasingly replacing permanent relocation and long-term assignment with as-needed short trips that typically last less than a year a growing number of MNEs are now dropping bonuses or premiums for overseas assignments and replacing them with lump-sum premiums many companies are beginning to phase out incentive premiums

OHT 12.18


Waqas Anwar

OHT 12.19

Industrial democracy. The legally mandated right of employees to participate in significant management decisions. Forms of industrial democracy

Codetermination: A legal system that requires workers and their managers to discuss major strategic decisions before companies implement the decisions Work councils: Groups that consist of both worker and manager representatives and are charged with dealing with matters such as improving company performance, working conditions, and job security. Shop floor participation

OHT 12.20

There are a number of human resource management (HRM) strategies currently receiving attention from MNEs, including: Language training Cultural adaptation Cultural assimilator Competitive compensation Specially designed HRM programs Structural empowerment Accelerated resource development Employee welfare emphasis Efficiency emphasis Long-termism