MGMT5609 - International Human Resources Management

bheobhe

5 Oct 201503:00

Summary

TLDRThe video explains the importance of global human resource management in companies, highlighting cultural differences such as the significance of business cards in Japan and sauna invitations in Finland. It outlines three key HR steps: recruitment, payment, and training. Recruitment can be ethnocentric, polycentric, or geocentric to bridge cultural gaps. Payment includes base salary, foreign service premium, and various allowances. Training ensures employees adapt to new environments and develop within the company, emphasizing the need for effective HR management to foster growth and avoid assignment failures.

Takeaways

🎓 Graduating marks the beginning of job search in the international market, which requires cultural awareness.
🌏 Cultural norms vary greatly; for instance, showing up on time and business card etiquette in Japan, and post-meeting saunas in Finland signify respect.
🧩 Global human resource management involves bridging cultural gaps to create a more homogeneous working environment.
📝 Companies use different recruitment ethics: ethnocentric, polycentric, and geocentric approaches to staffing.
💼 Geocentric recruitment is efficient for global human resource management and helps build strong intercultural relationships.
💰 Compensation for international positions includes base salary, foreign service premium, and various allowances.
🏡 Allowances may cover hardship, housing, education, and cost of living, ensuring a comfortable adjustment to a new country.
🏥 Employees may receive the same level of medical and pension benefits abroad as in their home country.
✈️ Leave policies for overseas assignments include regular vacation, annual home leave, and restaurant leave.
📚 Training is crucial for integration into the new position, offered through customized or standardized procedures.
📈 Human resources nurture employee growth by setting goals, analyzing performance, and avoiding assignment failures.

Q & A

What is considered disrespectful when showing up for a meeting in Japan?
-Playing with your business card during a meeting is seen as disrespectful in Japan.
How does a sauna invitation after a meeting reflect respect in Finland?
-Being invited to join business partners in a sauna after a meeting is a sign of respect in Finland, indicating a more personal connection.
What are the three steps that human resource managers go through to ensure the company resonates equality?
-The three steps are recruitment, payment, and training, which are crucial for establishing a homogeneous working environment and respecting cultural diversity.
What is an ethnocentric approach in recruitment?
-An ethnocentric approach in recruitment involves companies placing their home country employees into host country positions.
What is the opposite of an ethnocentric approach in recruitment?
-The opposite of an ethnocentric approach is a polycentric view, where companies look to directly employ locals in the host country.
What is geocentric recruitment and how does it benefit a company?
-Geocentric recruitment is a mix of both ethnocentric and polycentric staffing approaches, allowing companies to use their global human resource management efficiently and build strong relationships between different cultures.
What are the three parts of payment for an employee working internationally?
-The three parts of payment include base salary, foreign service premium, and allowances.
What is a foreign service premium and how does it help an employee abroad?
-A foreign service premium is a percentage of the base salary paid to help employees live in an unfamiliar country, deal with new cultures and languages, and adapt to new work habits.
What are the four types of allowances an employee may receive while working internationally?
-The four types of allowances are hardship, housing, education, and cost of living allowances.
What kind of benefits can an employee expect to receive abroad that are similar to those in their home country?
-An employee can expect to receive the same level of medical and pension benefits abroad as they do in their home country.
What are the different types of training methods that a company might use for an international employee?
-Training methods can include passive methods like classroom instruction or seminars, and active methods such as simulations.
Why is it important for human resources to nurture an employee's growth within the company?
-Nurturing an employee's growth is important to help them reach their goals, analyze their performance, and avoid assignment failures, thus ensuring the success of international assignments.
What role does international human resource management play in the overall success of a company?
-International human resource management is integral to a company's holistic approach, driving its growth and development by effectively managing a diverse workforce.

Outlines

00:00

🌐 Global HR Management and Cultural Sensitivity

This paragraph introduces the complexities of global human resource management and the importance of cultural awareness in the international job market. It highlights how certain behaviors, such as handling a business card in Japan or being invited to a sauna in Finland, can be interpreted differently across cultures. The paragraph also outlines the three-step process that HR managers go through to ensure equality within a company: recruitment ethics, geocentric recruitment strategies, and the importance of adapting to new cultural environments. It emphasizes the need for companies to bridge cultural gaps to create a more homogeneous working environment.

💼 Compensation and Benefits in International Positions

This section delves into the specifics of how international employees are compensated, including base salary, foreign service premium, and various allowances. The base salary is equivalent to a similar position in the employee's home country but is paid in local currency. The foreign service premium is a percentage of the base salary, designed to assist with living in a new country and adapting to its culture and work habits. Allowances cover hardships, housing, education, and cost of living. Additionally, international employees can receive the same level of medical and pension benefits as they would at home, along with various types of leave, including regular vacation, annual home leave, and restaurant leave for those sent overseas.

📚 Training and Development in Global HR

The final paragraph focuses on the training aspect of global human resource management. It discusses how employees are trained to integrate fully into their new positions, either through customized training or standardized procedures. Training methods can be passive, such as classroom instruction or seminars, or active, such as simulations. The paragraph stresses the importance of HR in nurturing employee growth, setting goals, analyzing performance, and avoiding assignment failures. It concludes by emphasizing the integral role of international human resource management in a company's holistic approach to growth and development.

Mindmap

Keywords

💡International Market

The term 'International Market' refers to the global business environment where companies operate across different countries and cultures. In the video, it is the context in which the job search is taking place, emphasizing the importance of understanding cultural nuances in the global job market.

💡Business Etiquette

Business etiquette encompasses the customary code of polite behavior in business settings. The script mentions specific examples such as showing up on time and not playing with a business card in Japan, which are seen as disrespectful, highlighting the importance of being aware of cultural differences in business practices.

💡Cultural Traits

Cultural traits are the characteristic patterns of behavior and thought that are common within a culture. The video script discusses how different cultures have unique traits, such as the Finnish custom of inviting business partners to a sauna as a sign of respect, underscoring the diversity in global business interactions.

💡Global Human Resource Management (GHRM)

Global Human Resource Management is the approach that companies take to manage their workforce across different countries and cultures. The script explains that GHRM aims to create a more homogeneous working environment by considering cultural differences and ensuring fair treatment of employees worldwide.

💡Ethnocentric Approach

An ethnocentric approach in HR refers to a company's strategy of placing their home country employees into foreign positions. The video script contrasts this with a polycentric approach, illustrating the different staffing philosophies companies may adopt in their international operations.

💡Polycentric View

A polycentric view is the opposite of an ethnocentric approach, where companies prioritize hiring local employees for their host country positions. The script suggests that this approach helps companies to better adapt to local cultures and business practices.

💡Geocentric Recruitment

Geocentric recruitment is a staffing strategy that combines both ethnocentric and polycentric approaches. The script describes it as an efficient way to manage global human resources, fostering strong relationships between different cultures within a company.

💡Compensation

Compensation in an international context includes base salary, foreign service premium, and allowances. The script details how these components make up an employee's pay, taking into account the cost of living and other factors in a foreign country.

💡Allowances

Allowances are additional payments made to employees working abroad to cover specific expenses. The script lists hardship, housing, education, and cost of living allowances as examples, showing how companies support their employees financially in international assignments.

💡Training

Training is a crucial part of integrating employees into their new roles, especially in international assignments. The script mentions both customized and standardized training procedures, including passive and active methods, to ensure employees are well-prepared for their positions.

💡Performance Analysis

Performance analysis is the process of evaluating an employee's work to ensure they are meeting their goals and contributing to the company's success. The script emphasizes the role of human resources in nurturing employee growth and avoiding assignment failures through regular performance reviews.

Highlights

Graduation marks the beginning of job search in the international market.

Cultural etiquette varies widely; for instance, showing up on time or playing with a business card in Japan is considered disrespectful.

In Finland, an invitation to a sauna after a meeting is a sign of respect.

Global human resource management is crucial for bridging cultural gaps in a diverse working environment.

Three steps in ensuring company equality: recruitment, payment, and training.

Ethnocentric approach places home country employees into host country positions.

Polycentric approach employs locals directly, opposite of ethnocentric.

Geocentric recruitment combines both ethnocentric and polycentric approaches for efficient global HR management.

Payment for international employees includes base salary, foreign service premium, and allowances.

Base salary is determined by the home country's range but paid in local currency.

Foreign service premium is a percentage of base salary, aiding in adaptation to a new country.

Allowances cover hardship, housing, education, and cost of living.

Overseas employees can receive the same level of medical and pension benefits as in their home country.

Leave benefits include regular vacation, annual home leave, and restaurant leave for those sent overseas.

Training is essential for integration into the position, with customized or standardized procedures.

Training methods can be passive, like classroom learning, or active, such as simulations.

Human resource management ensures employee development and performance analysis to prevent assignment failures.

International human resource management is integral to a company's holistic approach and growth.