International Business

Delivered in: Islamia University Bahawalpur

Presented By: Tasawar Javed

IHRM

A Process– Selecting– Training– Developing– & compensating personnel in overseas positions

Types– Home nationals– Expatriates– Host country nationals– Third country Nationals

IHRM Strategy

Selection and Repatriation– Selecting qualified people for overseas assignments and

then effectively repatriating them into workforce when they return

– Example If NADRA or any other multinational business send their

employees to work in any other country When they come back from any assignment then repatriating

them into the country

IHRM Strategy

International Screening Criteria and Selection Procedures– Adaptability

Cultural change adaptation; if no then it results in decline in job satisfaction MNE examine a number of characteristics

– Work experience with culture– Pervious overseas travel– Knowledge of foreign language– The ability to solve problems– Overall sensitivity to the environment

– Self-reliance Managers must be self-reliance because they need to make decisions on the

spot

– Age, experience, and education Young managers are eager for international assignments Older are more experienced and mature as well Graduated? Are their degree is related to the assignment; logical thinking

IHRM Strategy

Health and family status– Good physical and emotional health– Physical problem will limit their activities– Emotionally problem may let them to take wrong decision– Family situation as well for expatriates– Examples::????

Motivation and leadership– Unhappy with their position; desire for adventure; promotions; reward system– Factors associated with employee willingness to work overseas

Unmarried employee are more willing to accept expat assignments Married couples with out children or non-teenage are willing to move as well Prior international experience appears associated with willingness to work as an

expatriate Individuals most committed to their professional career Careers and attitude of spouses will likely have a significant impact on employee

willingness to move overseas

IHRM Strategy

Selection procedure– Interview– Could be both manager and spouse– Candidate alone– Knowledge about assignment or experience

– Selection procedure depends on the MNE; every employer introduces their own selection procedure

IHRM Strategy

Repatriation of Expatriates– A process of returning home at the end of an overseas assignment– Usually assignments are two or three years– Some of them gets very good benefits in terms of allowances and

wages; so they adapt the culture and don’t come back– Some of them prefer to come back after particular assignment and

then companies give them space in home country operationsReasons of repatriation– Assignment is completed– Desire to have their children in home country for education– May be un happy overseas– May be more gain when they come back– Manager performed poorly so its better to take him/her down

IHRM Strategy

Training and Development– The process of altering employee behavior and attitudes the probability of

goal attainment– Mangers obtain necessary skills– Experiences– Attitude they need to be successful– Training programs– Could be anywhere in the worldTypes of Training– Environmental briefing used to provide information about climate, housing– Cultural institutions and value systems of the host country– Learning approaches designed to provide the participants with intercultural

encounters– Language training– Sensitivity training designed to develop attitudinal flexibility– Field experience; emotional stress of living and working with different

people

IHRM Strategy

Strategic management and IHRM strategy Number of strategies currently getting attention from MNE

– Language Training English is primary language but it is preferred to learn more or local language to

interact with operational core or workers more effectively Allow the manager to monitor the competition more effectively MNE if setup their business in China, Japan, they give training about languages Recruiting local talent Good relation with local organization Supplier New development, local news papers or News channels It also helps to lean culture of that particular country

Strategic Management & IHRM Strategy

Cultural adaptation– MNEs use three basic approaches

Design program that provides cultural orientation Provide training; if time any money allows then visit the country Fairly expensive but has received high marks for its value is the use of cultural

assimilators– Programmed learning technique designed to expose members of one

culture to some of the basic concepts, attitudes, role perceptions, customs, and values of another culture

– Developed countries UK, Germany, US designed this techniquesThree critical issues why training is necessary:– The expatriate will be interacting with a host nation– May be misinterpreted or mishandled if manager don’t understand properly– Event is relevant to the expatriate’s task or mission requirements

Strategic Management & IHRM Strategy

Competitive Compensation– MNEs are much more careful the cost of sending people overseas

because of cost– They want to keep their cost low to gain more profit– But at the same time they want to hire competent staff; some times it is not

compatible– Compensation cost are widely because goods and services in some

countries of the world are sharply higher than other– Food, cloth & entertainment in US are inexpensive rather than Japan, Hong

kong Or GB– Other major area is to hire and retain top management Talent

Strategic Management & IHRM Strategy

Specially designed programs– Five factors

Structural empowerment Accelerated resource development Employee welfare emphasis Efficient emphasis (encourage and monitor) Long termism (long term results)

Thank You!!!!

Q&A