Ghrm Notes

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Effective political influencer: focus on an elite set of top managers and expatriates, to manage internal labour market for global managers and influence managers to implement IHRM as it is intended.

Performance Management: job design, training and career planning, staffing and compensation – aligns individual and team behaviour with organizational goals and is and effective control mechanism for implementing MNC’s strategy

Priorities for Global Performance Management: Upstream (linked to corporate strategy and competitiveness – strategic integration and coordination & workforce alignment & organizational learning and knowledge management) and Downstream (local performance management – responsiveness to local conditions & sensitivity to cross cultural differences & establishment of performance management relationships & comprehensive training)

Performance Appraisal for Expatriates: 1. Accuracy of expatriate assignment purposes; 2. Rater selection (sensitivity to cross-cultural challenges in order to provide accurate interpretation); 3. Balance qualitative and quantitative criteria; 4. External environment variables; 5. Local conditions; 6. Timing and distance (learning curve. Distance implies less communication and interaction with supervisor).

Role of Training and Development: Quality and customer satisfaction; decreasing costs; organizational learning and knowledge management; global alignment; building global talent.

Designing effective cross-cultural training programs: 1. Type of global assignment (technical, functional, developmental; strategic/executive); 2. Cross-cultural training analysis (organizational analysis, expatriate analysis, assignment analysis); 3. Establish CCT goals and measures (short term – cognitive, affective, behavioural - or long term); 4. Develop and deliver the CCT (content – general or specific -; instructional methods – didactic or experiential -; sequence of training sessions); 5. Evaluate CCT

Development: global competencies for international professionals: business acumen/knowledge (functional areas and strategic management); paradox management/managing ambiguity (uncertainties and complexities); self-management/learning and adapting (personal adaptation); cultural acumen/managing relationships (appreciation and sensitivity to cross cultural differences).

How to develop these competencies? Transfer; Training; Travel; Teams

Knowledge Management

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Single loop learning (optimizing skills and acquiring knowledge) → knowledge exploitation (doing it cheaper and more efficient)

Double loop learning (rethink the task; reflect on single loop and understand necessary change) → exploration (randomness; chance and risk taking)

Role of corporate culture: Cognitive domain (explicit); affective domain (tacit)

Normative integration: intrinsic form of global alignment for the MNC

General guidelines: short term missions (following patterns of home country + specific costs + family visits); permanent assignments (staying for very long term in subsidiary – host country as compensation basis and incentives); expatriates (long-term, non-permanent – complex)

Global compensation pressures: drive organizations to integrate and globalize compensation and benefits programs (achieve economies of scale, gain alignment and build unique firm capability).

Compensation model for Latin America: expatriates paid at least the same as home country (better of home or host model).

Subsidiary strategy and expatriation

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Coordination and control roles of expatriates: complement HQ centralization of DM and direct surveillance of subsidiaries; control based on socialization and creation of informal communication networks; weaving an information communication network.

Expatriate assignment can be costly for MNC and there is a high risk of failure.

MNCs need to: study external trends; look internally; succession planning

Internal recruitment: time and cost saving; performance background and progress available; enhancement of motivation and morale (retention); reduced training costs; easier to persuade.

External recruitment: new ideas and viewpoints; may be technically trained (reduce training costs); adequate for growth stages; greater flexibility and selection objectives BUT lack of valid information on past experiences, lack of knowledge on company’s culture and strategy and no trust develop at HQ.

Global selection of expatriates: selection (triangulation, job relevant criteria, cultural differences). Factors: technical ability, cross cultural suitability, family requirement, MNC requirements, language, country cultural requirements.

Costs of expatriation: for MNCs – training costs, compensation costs, relocation costs, risk of failure.

Expatriation assignment: phase 1 – pre-departure preparation; phase 2 – foreign experience phase (initial international adjustment and on going support – mentoring and communication)

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Expatriate adjustment determinants: work adjustment; interaction adjustment; general adjustment

Advantages for expatriates: opportunity to develop managerial skills; deep understanding of similarities and differences; acquisition of knowledge; importance of multicultural team; new approaches; better understanding of the organization.

Disadvantages for expatriates: not framed in career plan; lack of communication; family conflicts; administrative and logistic issues; lack of interest from the company in the employee’s satisfaction; no repatriation program; lack of support from company; no evaluation of results; no recognition or rewards.

Employee willingness to accept expatriate assignments: prior international experience; small kids; individual interest; ethnocentric attitudes reduces willingness; higher career commitment increases likelihood; organizational commitment; organizational support.

Global virtual teams: challenges: miscommunication and conflict, difficulties for members of high context