Human Resource Management International Human Resource Management Business Management & Administration Lesson Plan
Performance Objective  Upon completion of this lesson, the student will be able to analyze future global considerations impacting human resources. Specific Objectives  Explain how human resources addresses managing across borders.  Identify the difficulties and solutions for recruiting and selecting employees internationally.  Discuss how to deal with compensation issues for management and employees in a host‐country environment.  Identify the problems and solutions for addressing international employee evaluations and appraisals.  Explain the international organized labor environment and different national approaches to labor participation in management. Terms  International Human Resource Management (IHRM)‐ International HRM examines the way in which international organizations manage their human resources across these different national contexts.  Domestic Market‐ one in which a product or service is only sold within the borders of the country.  International Market‐ one in which a company may find that it has saturated the domestic market for the product, so it seeks out international markets in which to sell the product.  Global Organization‐ one in which a product is being sold globally, and the organization looks to the world as its market.  Transnational Company‐ a complex organization with a corporate office, but the difference is that the onus of the decision making, research and development, and marketing is left up to the individual foreign market. Time When taught as written, this lesson should take approximately 55‐65 minutes to teach. Preparation TEKS Correlations This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed.  130.119. (c) Knowledge and Skills (11) The student analyzes the future global considerations impacting human resources. The student is expected to: Copyright © Texas Education Agency, 2013. All rights reserved.
1
(A) explain how human resources addresses managing across borders; (B) identify the difficulties and solutions for recruiting and selecting employees internationally; (C) discuss how to deal with compensation issues for management and employees in a host country environment; (D) identify the problems and solutions for addressing international employee evaluations and appraisals; and (E) explain the international organized labor environment and different national approaches to labor participation in management. Interdisciplinary Correlations English‐English I  110.31(b) Knowledge and Skills (1) Reading/Vocabulary Development. Students understand new vocabulary and use it when reading and writing. (11) Reading/Comprehension of informational text/procedural texts. Students understand how to glean and use information in procedural texts and documents. Occupational Correlation (O*Net – www.onetonline.org/) Job Title: Labor Relations Specialist O*Net Number: 13.1075.00 Reported Job Titles: Employee Manager Tasks  Mediate discussions between employer and employee representatives in attempt to reconcile differences.  Monitor company or workforce adherence to labor agreements. 
Negotiate collective bargaining agreements. Soft Skills: Active Listening, Critical Thinking, Speaking Accommodations for Learning Differences It is important that lessons accommodate the needs of every learner. These lessons may be modified to accommodate your students with learning differences by referring to the files found on the Special Populations page of this website. Preparation  Presentation software  Internet  Download or Upload the HRM Assignment 1 – Case Study  Rubric for HRM Assignment 1 – Case Study Copyright © Texas Education Agency, 2013. All rights reserved.
2
References •Portolese Dias, L. (2011). Human resource management. Irvington, NY: Flatworld Knowledge Publishers. Instructional Aids  Presentation software  Internet  HRM Safety at Work Assignment 1 – Case Study  Rubric for HRM Safety at Work Assignment 1 – Case Study Introduction Ask students to pair up and give them the following instructions: 1. Research the country of your choice. 2. Discuss at least five of the aspects you should know as an HRM professional about doing business in the country. 3. Share your findings with the class. Copyright © Texas Education Agency, 2013. All rights reserved.
3
Outline Outline
MI
I. The Global Environment Although the terms international, global, multinational, and transnational tend to be used interchangeably, there are distinct differences (Dias, 2011). A. A domestic market is one in which a product or service is only sold within the borders of the country. B. An international market is one in which a company may find that it has saturated the domestic market for the product, so it seeks out international markets in which to sell its product. C. A global organization is one in which a product is being sold globally, and the organization looks at the world as its market. D. A transnational company is a complex organization with a corporate office, but the difference is that the onus of the decision making, research and development, and marketing is left up to the individual foreign market. II. When discussing HRM from the global perspective, there are many considerations. Culture, language, management styles, and laws would all be considerations before implementing HRM strategies
Multiple Intelligences Guide Existenti
alist International business and International human resource management (IHRM) are not recent occurrences. Explain that Hofstede’s contributions have also been criticized. Logical/ Mathema Musical/Rhyt Natura Verbal/Ling
hmic uistic list tical Copyright © Texas Education Agency, 2013. All rights reserved.
4
Interpers
onal Intrapers
onal Kinesthe
tic/ Bodily Instructor Notes
Visual/Sp
atial MI
Outline
Culture is a key component to managing HRM on a global scale. Understanding culture but also appreciating cultural differences can help the HRM strategy be successful in any country. Geert Hofstede, a researcher in the area of culture, developed a list of five cultural dimensions that can help define how cultures are different. A. Individualism‐Collectivism B. Power distance C. Uncertainty avoidance D. Masculinity and femininity E. Long term and short term orientation III. A major decision when a company decides to operate overseas is how the overseas operation will be staffed. There are three main staffing strategies that organizations can adopt while staffing. A. Home‐country national strategy B. Host‐country national strategy C. Third country national strategy Instructor Notes
Explain each type and enumerate the advantages and disadvantages of all types of staffing. Multiple Intelligences Guide Existenti
alist Logical/ Mathema Musical/Rhyt Natura Verbal/Ling
hmic uistic list tical Copyright © Texas Education Agency, 2013. All rights reserved.
5
Interpers
onal Intrapers
onal Kinesthe
tic/ Bodily Visual/Sp
atial MI
Outline
Instructor Notes
IV. Recruitment and Staffing The ideal candidate for an overseas assignment normally has the following characteristics (Dias, 2011): A.
Managerial competence: technical skills, leadership skills, knowledge specific to the company operations. B.
Training: The candidate either has or is willing to be trained on the language and culture of the host country. C.
Adaptability: The ability to deal with new, uncomfortable, or unfamiliar situations and the ability to adjust to the culture in which the candidate will be assigned. V. Compensation and Rewards There are a few options when choosing compensation for a global business A.
The first option is to maintain pay scales and policies across the entire company. This does not take into account the fact that there are differences in the cost of living among different places. B. The second option is called localized compensation strategy. It provides a good balance between cost of living considerations. C. The final option is called the balance sheet approach. In this approach expatriates are offered a similar base salary companywide or region wide and are given an allowance based on specific market conditions in each country. There are also other competencies that need to be considered, besides the skills for a particular job overseas: viz., experience working internationally, extroverted, stress tolerance, language skills, and cultural experiences. There are also other competencies that need to be considered, besides the skills for a particular job overseas – viz., experience working internationally, extroverted, stress tolerance, language skills, and cultural experiences. Multiple Intelligences Guide Existenti
Logical/ Musical/Rhyt
Verbal/Ling
Natura
Mathema
Copyright © Texas Education Agency, 2013. All rights reserved.
6
Interpers
Intrapers
Kinesthe
tic/ Visual/Sp
alist MI
onal onal Bodily Outline tical hmic VI. Performance Evaluations It is a challenge to determine who should rate the performance of the expatriate. While it makes sense for host country managers and employees to rate the expatriate, cultural differences may make this process ineffective. If a home‐country manager rates the performance, they might not have a clear indication of the performance. The solution could be a balanced set of raters from host and home countries and more frequent appraisals relate positively to the accuracy of performance evaluations. HR also needs to determine the criteria for evaluating the expatriate. A performance appraisal also offers a good opportunity for the organization to obtain feedback about how well the assignment is going and to determine whether enough support is being provided to the expatriate (Dias, 2011). VII. International Labor Environment Understanding of laws that relate to host country employees and expatriates can vary from country to country. Some of the laws that need to be taken into account are (Dias, 2011): A. Worker safety laws B. Worker compensation laws C Safety requirements
list uistic Instructor
Notes atial Multiple Intelligences Guide Existenti
alist Logical/ Mathema Musical/Rhyt Natura Verbal/Ling
hmic uistic list tical Copyright © Texas Education Agency, 2013. All rights reserved.
7
Interpers
onal Intrapers
onal Kinesthe
tic/ Bodily Visual/Sp
atial Instructor Notes
Outline
MI
D. Working age restrictions E. Maternity/paternity leaves F. Unionization laws G. Vacation time requirements H. Average work week hours I. Privacy laws J. Disability laws K. Multiculturalism and diverse workplace, antidiscrimination law L. Taxation Another important consideration is the logistical implications of international assignments, including: 
Visa 
Housing Moving belongings 

Possibility of return trips home 
Schooling 
Spousal job Multiple Intelligences Guide Existenti
alist Interpers
onal Intrapers
onal Kinesthe
tic/ Bodily Logical/ Mathema
tical Musical/Rhyt
hmic Natura
list Verbal/Ling
uistic Copyright © Texas Education Agency, 2013. All rights reserved.
8
Visual/Sp
atial Application Guided Practice Using the presentation, the teacher will explain international human resource management. Discuss how HR processes are different or similar while considering their impact globally. HRM Assignment 1 – Case study: Ask students to read the case study and answer the questions. Summary Review  In the global environment, there are distinct differences between the terms international, global, transnational and multinational.  Understanding IHRM also means understanding culture.  There are three types of staffing strategies for an international business.  Compensation is another aspect of a global business. There are different factors to consider before an organization makes a decision about how to pay expatriates.  Performance should be evaluated by both host‐country and home‐country managers and employees. The criteria should be determined ahead of time.  Laws of the host country need to be carefully examined and evaluated from an IHRM strategic perspective.  Logistical help can be important to ensuring expatriate success. Evaluation Informal Assessment 1. Instructor will observe students during Independent Practice. 2. Instructor will assist students as needed. Formal Assessment Use the assigned rubric to evaluate the projects assigned for Independent Practice. Enrichment Extension Invite a local HR professional from a multinational company to discuss some of his/her experience with IHRM while working with the multinational company. Copyright © Texas Education Agency, 2013. All rights reserved.
9
Case study analysis
HRM – International Human Resource Management Independent Practice Assignment #1 Case study – Fish to Go is going places From Human Resource Management, v. 1.0, by Laura Portolese Dias, Flatworld Knowledge Publishers. Your company, Fish to Go, is a quick service restaurant specializing in fish tacos. Your success in the United States has been excellent, and your company has decided to develop an international strategy to further develop your market share. As the vice president for human resources, you have been asked to develop an international staffing strategy. The organization has decided that it makes the most sense to hire host‐country nationals to manage the restaurants. Your current Fish to Go managers earn upwards of $45,000 per year, plus 2 percent profit sharing. The organization is also looking to you to determine and develop a comprehensive training program for your host‐country managers. A training program is also needed for employees, but you have decided to wait and develop this with input from the host‐country managers. Fish to Go has identified Mexico and the UK as the first two countries that will be entered. Perform the necessary research to prepare a PowerPoint presentation to the board of directors. 1. What are the advantages of choosing a host‐country national staffing strategy? 2. Develop a compensation plan for each of the two countries, revising the current compensation for managers in the United States, if necessary. The compensation plan should include salary, benefits, and any fringe benefits to attract the most qualified people. The plan should also address any legal compensation requirements for both countries. Develop an outline for a training plan, making reasonable assumptions about the information a new manager would need to know at Fish to Go. Copyright © Texas Education Agency, 2013. All rights reserved.
10
Case study analysis
HRM – International Human Resource Management Independent Practice Assignment #1 Rubric Student Name: ________________________________________
CATEGORY Exemplary ‐ 20 Acceptable ‐ 15 Unacceptable ‐ 10 or less Issues Recognizes multiple Recognizes one or more problems in the case. key problems in the case. Indicates some issues are more important than others and explains why. Perspective Clearly describes the unique Considers the perspectives Does not recognize the perspectives of multiple key of individuals who are perspectives of any characters. related to the problems. characters in the case. Knowledge Excellent research into facts Good research and of the case with clearly documented links to the documented links to class material read. (and/or outside) readings. Actions Proposed actions seem to deal with the most important issues. More than one reasonable No action proposed or action proposed. proposes infeasible action(s). Consequences Consequences are tied to the issues deemed most important. Positive and negative consequences for each action are discussed. Does not recognize a problem or mentions problems that are not based on facts of the case Simply repeats facts listed in case and does not discuss the relevance of these facts. No positive and negative consequences are identified. Total Score___________ Maximum 100 Points Copyright © Texas Education Agency, 2013. All rights reserved.
11