PART FIVE EMPLOYEE RELATIONS CHAPTER Seventeen Managing Global Human Resources 17 Lecture Outline Strategic Overview The Manager’s Global Challenge Adapting HR Activities to Intercountry Differences Cultural Factors Economic Systems Legal, Political, and Labor Relations Factors Ethics and Codes of Conduct HR Abroad: The European Union HR Abroad: China Staffing the Global Organization International Staffing: Home or Local? Offshoring Management Values and International Staffing Selecting Expatriate Managers Avoiding Early Expatriate Returns Training and Maintaining Employees Abroad Orienting and Training Employees on International Assignment Appraising Managers Abroad Compensating Managers Abroad Labor Relations Abroad Terrorism, Safety, and Global HR Repatriation: Problems and Solutions Improving Productivity Through HRIS Managing HR Locally: How to Put into Practice a Global HR System Developing a More Effective Global HR System Making the Global HR System Acceptable Implementing the Global HR System In Brief: This chapter outlines some of the HR problems and issues involved with international businesses. The subjects covered include understanding intercountry differences, using selection to improve international assignments, and training and maintaining international employees. Interesting Issues: Many companies desire to rotate managers through international assignments but find that work visa requirements of the host countries (including the U.S.) can sometimes greatly hinder these efforts. Federal anti-terrorism laws also make moving employees across borders more challenging. LEARNING OUTCOMES 1. List the HR challenges of international business. 2. Illustrate with examples how intercountry differences affect HRM. 3. List and briefly describe the main methods for staffing global organizations. 4. Discuss some important issues to keep in mind in training, appraising, and compensating international employees. 5. Explain with examples how to implement a global human resource management program. ANNOTATED OUTLINE The Manager’s global challenges include deployment, knowledge, and innovation dissemination, as well as identifying and developing talent on a global basis. Complicating these decisions are the cultural, political, legal, and economic differences among countries and their peoples. I. Adapting Human Resource Activities to Intercountry Differences - A company operating multiple units abroad does not have the luxury of dealing with a relatively limited set of economic, cultural, and legal variables. A. Cultural Factors – Countries differ widely in their cultures, which are the basic values to which their citizens adhere. Cultural differences from country to country necessitate corresponding differences in management practices among a company’s subsidiaries because local cultural norms can undermine employer’s attempts to have uniform codes of conduct. B. Economic Systems – Differences in economic systems translate into differences in HR practices. Differences in labor costs are substantial. C. Legal, Political, and Industrial Relations Factors – Such factors vary dramatically from country to country. In many European countries, work councils replace the informal or union-based worker-management mediations typical in U.S. firms. In Germany and several other countries that adhere to codetermination, employees have a legal voice in setting company policies. D. Ethics and Codes of Conduct – Employers should have set policies on things like discrimination, harassment, bribery, and Sarbanes-Oxley. E. HR Abroad: The European Union (EU) – The EU refers to the unification of separate European countries in the 1990s into a common market for goods, services, capital, and labor. EU directives are binding on all member countries, which necessitate adjustments to both EU directives and individual country laws. Variances in HR practices affect minimum EU wages, working hours, and employee representation. F. HR Abroad: China – There are relatively scarce employment services, and there is an active union movement in China. The ownership of the firm affects how these issues need to be handled. Sporadic labor shortages are fairly widespread. Employees tend to gravitate toward employers that can provide the best career advancement training and opportunities. Employees are primarily selected on the basis of their resumé and an interview. The need to save face and avoid confrontation can make employee appraisal very sensitive. Compensation issues also exist. China implemented a new labor contract which adds numerous new employment protections for employees and makes it correspondingly more expensive for employers to implement certain personnel actions. * NOTES Educational Materials to Use II. Staffing the Global Organization A. International Staffing: Home or Local? Multinational companies (MNCs) employ several types of international managers. Locals are citizens of the countries where they are working. Expatriates (“expats”) are non-citizens of the countries in which they are working. Home-country nationals are citizens of the country in which the multinational company has its headquarters. Third-country nationals are citizens of a country other than the parent or the host country. More flexible expatriate assignments involving no formal relocation are becoming increasingly popular and are aided by technological advances. B. Offshoring – Having local employees abroad perform jobs that the firm’s domestic employees previously did in-house is growing by leaps and bounds. The idea of offshoring jobs is very controversial. In the 1980s and 1990s, it was mostly manufacturing jobs that employers shipped overseas. C. Management Values and International Staffing Policy – Ethnocentric-run firms staff foreign subsidiaries with parent-country nationals because they believe that home country attitudes, management styles, and knowledge are superior to the host country. Polycentric-run firms staff foreign subsidiaries with host-country nationals because they are the only ones that can really understand the culture and the behavior of the host country market. Geocentric-run firms staff foreign subsidiaries with the best people for key jobs regardless of nationality because they believe that the best manager for any specific position anywhere on the globe may be in any of the countries in which the firm operates. D. Selecting expatriate managers is similar to selecting domestic managers, but firms need to determine whether managers for foreign assignments can cope internationally. E. Avoiding Early Expatriate Returns – International assignments fail for various reasons including personality, the person’s intentions, and non-work factors. Family pressures are frequent. Three things help the adjustment: language fluency, having preschool age children rather than school-age or no children, and a strong bond between spouse and ex-pat partner. * NOTES Educational Materials to Use III. Training and Maintaining Employees Abroad Orienting and Training Employees on International Assignment – Some claim there is generally little or no systematic selection and training for assignments overseas. Some recommended programs provide the following: (1) the basics of the new country's history, politics, business norms, education system, and demographics; (2) an understanding of how cultural values affect perceptions, values and communications; and (3) examples of why moving to a new country can be difficult, and how to manage these challenges. Appraising Managers Abroad – The appraisal process can be improved by: 1. Stipulating the assignment’s difficulty level; 2. Weighing the evaluation more toward the on-site manager’s appraisal than toward the home-site manager’s distant perceptions of the employee’s performance; and 3. If the home-office manager does the actual written appraisal, having him or her use a former expatriate from the same overseas location for advice. Compensating Managers Abroad – Compensation presents some tricky problems due to the question of whether or not to maintain companywide pay scales and policies. 1. The Balance Sheet Approach – This common approach to expatriate pay refers to equalizing purchasing power across countries. Incentives – Many firms offer overseas managers long-term incentives that are tied more closely to performance at the foreign subsidiary level. Steps in Establishing a Global Pay System – The steps are as follows: set pay strategy, identify crucial executive behaviors, create a global philosophy framework, identify gaps, systemize pay systems, and adapt pay policies. Labor relations abroad differ from those in the U.S. Four issues have been identified as characteristics of European labor practices: 1) centralization, 2) employer organization, 3) union recognition, and 4) content and scope of bargaining. Terrorism, Safety, and Global HR – New federal anti-terrorism laws are affecting an employer’s ability to import and export workers. 1. Taking Protective Measures – Many firms retain crisis management team services. Firms face resistance from employees who are reluctant to accept foreign assignments. Kidnappings have been on the rise. 2. Kidnapping and Ransom (K&R) Insurance – The insurance itself typically covers several costs associated with kidnappings, abductions, or extortion attempts. These costs might include, for instance, hiring a crisis team, the actual cost of the ransom payment to the kidnappers or extortionists, ensuring the ransom money in case it’s lost in transit, legal expenses, and employee death or dismemberment. Repatriation: Problems and Solutions – Some common repatriation problems arefearing that out of sight is out of mind; returning to mediocre or makeshift jobs; returnees are taken aback when the trappings of the overseas job are lost upon return; being overlooked for promotions; and experiencing culture shock. Some possible solutions are written repatriation agreements, sponsors, career counselors, open communications, and reorientation programs. Improving Productivity through HRIS: Taking the HRIS Global – As a company grows relying on manual HR systems to manage activities like worldwide safety, benefits administration, payroll, and succession planning becomes unwieldy. For global firms, it makes particular sense to expand the firm’s human resource information systems abroad. IV. Managing HR Locally: How to Put into Practice a Global HR System A. Developing a More Effective Global HR System 1. Form global HR networks. 2. Remember that it’s more important to standardize ends and competencies than specific methods. B. Making the Global HR System More Acceptable 1. Remember global systems are more accepted in truly global organizations. 2. Investigate pressures to differentiate and determine their legitimacy. 3. Try to work within the context of a strong corporate culture. C. Implementing the Global HR System 1. Remember, “You can’t communicate enough.” 2. Dedicate adequate resources for the global HR effort. * NOTES Educational Materials to Use DISCUSSION QUESTIONS 1. You are the president of a small business. What are some of the ways you expect “going internationally” will affect your business? Answer: Being involved internationally can affect virtually every aspect of your business. It can affect the growth of your business due to additional markets, it can affect costs of doing business, and it can affect every aspect of HRM as outlined in the chapter. 2. What are some of the specific uniquely international activities an international HR manager typically engages in? Answer: 1) Formulating and implementing HR policies and activities in the home-office of a multinational company. This HRM manager would engage in selecting, training, and transferring parent-company personnel abroad and formulating HR policies for the firm as a whole and for its foreign operations. 2) Conducting HR activities in the foreign subsidiary of an MNC is another form. Again, local HR practices are often based on the parent firm's HR policies, fine-tuned for local country practices. 3. What intercountry differences affect HRM? Give several examples of how each may specifically affect HRM. Answer: 1) Cultural Factors – U.S. managers may be most concerned with getting the job done. Chinese managers may be most concerned with maintaining a harmonious environment. Hispanic managers may be more concerned with establishing trusting, friendship relationships. 2) Economic Factors – U.S. economic systems tend to favor policies that value productivity, while more socialistic countries like Sweden would favor policies that prevent unemployment. 3) Labor Cost Factors – Mexican labor costs (low) can allow inefficiencies of labor, while German labor costs (high) might require a focus on efficiency. 4) Industrial Relations Factors – German law requires that workers have a vote in setting policies while in Japan the employees do not have a say, but the government may have a say in establishing policies. 5) The European Community – The EC will gradually reduce the differences between member countries. 4. You are the HR manager of a firm that is about to send its first employees overseas to staff a new subsidiary. Your boss, the president, asks you why such assignments fail, and what you plan to do to avoid such failures. How do you respond? Answer: Estimates say that 20% to 25% of all overseas assignments fail. Reasons include spouse’s inability to adjust, managers' inability to adjust, other family problems, and managers' inability to cope with responsibility. We will need to select a manager that displays adaptability and flexibility, cultural toughness, self-orientation, others-orientation, perceptual ability, and who has a family with adaptability. 5. What special training do overseas candidates need? In what ways is such training similar to and different from traditional diversity training? Answer: It is suggested that a four-step training approach be taken: 1) training focused on the impact of cultural differences and their impact on business outcomes; 2) training focused on attitudes that are aimed at getting participants to understand how attitudes (both positive and negative) are formed and how they influence behavior; 3) training focused on factual knowledge about the target country; and 4) skill building in areas like language, adjustment, and adaptation skills. This training is different from traditional diversity training in the last two steps, which are not normally part of diversity training. In addition, traditional training and development is needed as with any other manager 6. How does appraising an expatriate's performance differ from appraising that of a home-office manager? How would you avoid some of the unique problems of appraising the expatriate's performance? Answer: A major difficulty is: Who actually appraises the performance? (Cultural differences could affect it.) There are five suggestions: 1) Stipulate the assignment's difficulty level; 2) Weight the evaluation towards the on-site manager's appraisal; 3) Have a former expatriate advise the home-site manager in his or her evaluation; 4) Modify the normal performance criteria to fit the position and characteristics of the locale; 5) Attempt to give credit for insights, not just measurable criteria 7. As an HR manager, what program would you establish to reduce repatriation problems of returning expatriates and their families? Answer: The programs listed in the chapter give a good summarization of the types of programs and activities that should be established to assure a smooth repatriation. As an HR manager, to reduce repatriation problems for returning expatriates and their families, I would establish a comprehensive Repatriation Support Program that includes the following key components: 1. Pre-Repatriation Preparation: • Reintegration Workshops: Conduct workshops before the expatriates return to provide information on the repatriation process, changes in the home country, and adjustments they might face. • Career Counseling: Offer career counseling to help expatriates transition smoothly back into their roles or explore new opportunities within the company. 2. Family Support: • Family Transition Assistance: Provide support for family members, including help with finding local schools, housing, and adjusting to the home culture. • Counseling Services: Offer access to counseling services to address any emotional or psychological challenges faced by the family during the transition. 3. Reintegration Plan: • Customized Reintegration Plans: Develop personalized reintegration plans for each expatriate, including role adjustments, professional development opportunities, and clear career paths. • Mentorship Program: Pair returning expatriates with mentors who have experience in repatriation to offer guidance and support during the transition. 4. Ongoing Support: • Regular Check-Ins: Schedule regular check-ins with returning expatriates to monitor their adjustment and address any issues that arise. • Feedback Mechanism: Implement a feedback mechanism to gather insights from returning expatriates about their repatriation experience and continuously improve the program. 5. Cultural Reorientation: • Cultural Reorientation Sessions: Provide sessions on cultural differences and updates on significant changes in the home country to ease the transition back into the home culture. • Networking Opportunities: Facilitate opportunities for expatriates to connect with local professional and social networks to help them reestablish connections and integrate into the community. By implementing these elements, the Repatriation Support Program aims to ease the transition for returning expatriates and their families, reduce repatriation problems, and ensure a smooth and successful reintegration into both their personal and professional lives. INDIVIDUAL AND GROUP ACTIVITIES 1. Working individually or in groups, outline an expatriation and repatriation plan for your professor, who your school is sending to Bulgaria to teach HR for the next three years. Answer: In developing their expatriation and repatriation plan, the students should use Internet resources to find information on various cultural, economic, and legal factors that could affect their professor. They should include a description of the type of training program their professor should take prior to leaving for Bulgaria, the pay structure while on the international assignment, and particulars for how the repatriation plan will work for the professor’s return. 2. Give three specific examples of multinational corporations in your area. Check on the Internet or with each firm to determine in what countries these firms have operations. Explain the nature of some of their operations, and whatever you can find out about their international HR policies. Answer: The examples will vary according to what companies have operations in your area. This can be an exciting opportunity for students to find out more about companies and what they are doing beyond your immediate geographic area. Here are three examples of multinational corporations and their international operations: 1. IBM: Operates in over 170 countries, providing IT services, cloud computing, and consulting. IBM's international HR policies focus on global talent management and diversity, ensuring consistency in employee practices across various countries. 2. Coca-Cola: Has operations in more than 200 countries, producing and distributing beverages. Coca-Cola's HR policies emphasize local adaptation of benefits and employment practices, while maintaining global standards for ethics and performance. 3. Unilever: Operates in over 190 countries, manufacturing consumer goods such as food, beverages, and personal care products. Unilever's HR policies include global talent development programs and standardized practices for employee engagement and sustainability. These firms demonstrate the diverse nature of multinational operations and the importance of balancing global consistency with local adaptation in HR practices. 3. Choose three traits useful for selecting international assignees, and create a straightforward test to screen candidates for these traits. Answer: There are an infinite number of responses that you might get to this question. First, make sure that the traits either are on the list in the chapter, or are reasonable and logical traits that would be useful. Second, assure that the tests that the students develop are ones that will actually identify the presence of these traits 4. Use a library or Internet source to determine the relative cost of living in five countries as of this year, and explain the implications of such differences for drafting a pay plan for managers being sent to each country. Answer: The most common approach is to equalize purchasing power across countries, a technique known as the balance sheet approach. The basic idea is that each expatriate should enjoy the same standard of living he or she would have had at home. 5. The HRCI “Test Specifications” appendix at the end of this book lists the knowledge someone studying for the HRCI certification exam needs to have in each area of human resource management (such as in Strategic Management, Workforce Planning, and Human Resource Development). In groups of four to five students, do four things: (1) review that appendix now; (2) identify the material in this chapter that relates to the required knowledge the appendix lists; (3) write four-multiple choice exam questions on this material that you believe would be suitable for inclusion in the HRCI exam; and (4) if time permits, have someone from your team post your team’s questions in front of the class, so the students in other teams can take each other’s exam questions. Answer: The material from this chapter that is applicable to the HRCI certification exam would include: the HR challenges of international business, how intercountry differences affect HRM, global differences and similarities in HR practice, how to implement a global HR system, staffing the global organization, and training and maintaining expatriate employees. 6. An issue of HR Magazine contained an article titled “Aftershocks of War,” which said that soldiers returning to their jobs from Iraq would likely require HR’s assistance in coping with “delayed emotional trauma.” The term “delayed emotional trauma” refers to the personality changes such as anger, anxiety, or irritability and associated problems such as tardiness or absenteeism that exposure to the traumatic events of war sometimes trigger in returning veterans. Assume you are the HR manager for the employer of John Smith, who is returning to work next week after one year in Iraq. Based on what you read in this chapter, what steps would you take to help ensure that John’s reintegration into your workforce goes as smoothly as possible? Answer: There are several suggestions in the section “Repatriation: Problems and Solutions.” At minimum, you should arrange for a sponsor/mentor, career counseling, and a reorientation program. You need to also make sure that there are clear and open doors for him to communicate with you. It would be a good idea to have some counseling available as well. To ensure a smooth reintegration for John Smith, I would: 1. Provide Counseling Services: Offer access to professional counseling to help address any emotional trauma and support mental health. 2. Develop a Reintegration Plan: Create a tailored plan that includes gradual reentry into work responsibilities and flexible scheduling if needed. 3. Offer Peer Support: Pair John with a mentor or peer who understands veterans’ challenges to provide guidance and support. 4. Communicate Openly: Maintain open lines of communication to address any concerns and adjust workloads as necessary. 5. Implement Training: Educate staff on veterans' issues to foster a supportive and understanding workplace environment. EXPERIENTIAL EXERCISES & CASES Experiential Exercise: A Taxing Problem for Expatriate Employees This exercise forces students to think realistically about the compensation problems with expatriate employees. The rankings will vary, but students should be prepared to defend their rankings with reason and logic. Similarly, while the described “effects on compensation” may vary, they should be reasonable and logical. When discussing the problems that the higher level of compensation might create, do not forget: 1) jealousy of other employees, 2) problems of adjustment when repatriation occurs, and 3) whether even this level will be adequate to entice employees to take the foreign assignments. Application Case Incident: “Boss, I Think We Have a Problem” 1. Based on the chapter and case incident, compile a list of 10 international HR mistakes Mr. Fisher has made so far. Answer: Among his mistakes, Fisher has not properly identified candidates; cultural sensitivity, interpersonal skills, and flexibility have not been included as required job skills; there is no system in place to assess candidates for proper skills; the company does not have realistic cost projects for cross-border operations; the company has not determined whether it would be cost effective to have an expatriate manager; there are no assignment letters documenting the scope of the job; there is no international compensation system in place; the company has not taken into account differences in foreign expenses; the company has not taken into account foreign taxes; there is no formal relocation assistance program in place; the company has not considered the importance of family support; and there is no cultural orientation program in place for expatriate managers or their family members. 2. How would you have gone about hiring a European sales manager? Why? Answer: I would have investigated the market to determine the appropriate level of compensation and benefits. Expatriate compensation packages should consider tax equalization clauses or other measures for dealing with differing costs of living. The company should also have retained counsel on European labor laws/practices. The location of the office should be carefully selected for favorable labor and tax laws. Like Fisher, I would have wanted a large pool of potential applicants, but given Fisher’s inexperience, he may have benefited from the use of an outside agency (search firm). Finally, Fisher’s stereotypes of European managers may have clouded his judgment with his existing pool of applicants. 3. What would you do now if you were Mr. Fisher? Answer: Fisher needs to seek legal counsel in regard to his labor situation. He is likely in the wrong, in which case, he will need to reinstate the employees and apologize. He will in all likelihood need to start over and find an appropriate sales manager with knowledge of the local culture and business practices. Continuing Case: Carter Cleaning Company – Going Abroad 1. Assuming they began by opening just one or two stores in Mexico, what do you see as the main HR-related challenges he and Jennifer would have to address? Answer: The students will not only need to incorporate their learnings from this chapter to answer this question, they should also include information from all the chapters in the text to come up with the main HR-related implications and challenges Carter Cleaning Company will face as a result of opening the Mexican stores. If opening stores in Mexico, the main HR-related challenges would include: 1. Cultural Differences: Adapting to local work culture and management styles while respecting Mexican customs and practices. 2. Legal Compliance: Navigating Mexican labor laws and regulations, including employment contracts, benefits, and termination procedures. 3. Recruitment and Training: Finding and training local talent to meet company standards and integrate them effectively into the corporate culture. 4. Compensation and Benefits: Aligning compensation packages with local market conditions while maintaining fairness and competitiveness. 5. Language Barriers: Addressing potential communication issues between English-speaking management and Spanish-speaking employees. 2. How would you go about choosing a manager for a new Mexican store if you were Jack or Jennifer? For instance, would you hire someone locally or send someone from one of your existing stores? Why? Answer: The students should use the information in the chapter on selecting international managers. The students are likely to differ in their choices as to which type of international manager they would suggest for the London operation; just look for them to justify their responses. If choosing a manager for a new Mexican store, I would: 1. Hire Locally: Prefer hiring a local candidate who understands the cultural, legal, and market nuances, which can facilitate smoother operations and better integration with the local workforce. 2. Assess Skills and Experience: Ensure the candidate has relevant retail management experience, strong leadership skills, and familiarity with the company’s values and practices. 3. Provide Training: Offer training to align the local hire with the company’s standards and practices, ensuring they understand the company culture and operational procedures. 4. Consider Internal Transfers: If a suitable local candidate is not available, consider transferring an experienced manager from an existing store, providing them with cultural training to handle the new environment effectively. Balancing local expertise with company standards ensures effective management and successful store operations. 3. The cost of living in Mexico is substantially below that of where Carter is now located. How would you go about developing a pay plan for your new manager if you decided to send an expatriate to Mexico? Answer: The students should use information from chapters 11, 12, and 13, and the Internet sources presented in those chapters to formulate their response to this question. To develop a pay plan for an expatriate manager in Mexico, I would: 1. Base Salary Adjustment: Set a competitive salary adjusted for the lower cost of living in Mexico, ensuring it reflects the manager’s experience and the local market rate. 2. Cost-of-Living Allowance (COLA): Include a COLA to compensate for any additional costs incurred due to relocation and to maintain the expatriate's purchasing power. 3. Housing and Relocation Benefits: Provide allowances or reimbursements for housing, relocation expenses, and other adjustments necessary for living in a new country. 4. Tax Equalization: Implement tax equalization to ensure that the expatriate is not unfairly taxed due to the move and to avoid any discrepancies between home and host country tax obligations. 5. Repatriation Benefits: Offer a repatriation package to cover relocation back to the home country at the end of the assignment. This approach balances fair compensation with cost considerations and supports the expatriate's transition and well-being. 4. Present a detailed explanation of the factors you would look for in your candidate for expatriate manager to run the stores in Mexico. Answer: The students should include information presented in chapters 1 through 15, in addition to the information presented in this chapter, to develop their list of HR-related functions that Carter Cleaning Company needs to do in selecting their expatriate employee for Mexico When selecting an expatriate manager for stores in Mexico, I would evaluate candidates based on the following factors: 1. Cultural Adaptability: Assess the candidate’s ability to adapt to and respect Mexican cultural norms, customs, and business practices. Experience working in diverse environments or international settings is a plus. 2. Language Skills: Proficiency in Spanish is highly advantageous for effective communication with local employees, customers, and stakeholders. If not fluent, the candidate should be willing to undergo language training. 3. Relevant Experience: Look for candidates with proven experience in retail management, particularly in international or cross-cultural settings. Experience in managing multi-national teams and understanding different market dynamics is crucial. 4. Leadership Skills: Strong leadership qualities, including the ability to motivate and manage a diverse team, resolve conflicts, and implement company policies effectively. The candidate should demonstrate adaptability and resilience. 5. Knowledge of Local Market: While local knowledge is secondary, having some understanding of the Mexican retail market, consumer behavior, and economic conditions is beneficial. This helps in making informed decisions and strategies. 6. Financial Acumen: Proficiency in managing budgets, financial planning, and cost control. The candidate should be able to handle financial responsibilities and ensure profitability in the new market. 7. Relocation and Adjustment Readiness: Willingness to relocate and adjust to living in Mexico, including handling logistical, personal, and professional challenges associated with expatriate assignments. 8. Compliance and Legal Awareness: Understanding of or willingness to learn about Mexican labor laws, tax regulations, and business practices to ensure legal compliance and smooth operations. 9. Training and Development: Ability to train and develop local staff, aligning them with the company’s values and operational standards. This includes implementing training programs and fostering local talent. 10. Crisis Management Skills: Experience in managing crises or unexpected challenges, ensuring the ability to navigate any operational disruptions or issues that may arise in a new market. These factors ensure the selected expatriate manager is well-equipped to handle the complexities of operating in a new country and contribute to the success of the stores in Mexico. Translating Strategy into HR Policies and Practices Case: The Hotel Paris Managing Global Human Resources – In this case Lisa Cruz, the HR manager, has turned her attention to developing the HR policies her company needs to be able to more effectively do business internationally. 1. Provide a one-page summary of what individual hotel managers should know in order to make it more likely that incoming employees from abroad, like those in the Hotel Paris’ management development program, will adapt to their new surroundings. Answer: Hotel managers need to know all the issues facing ex-pats and be prepared to assess the job fit and other items required to make a foreign assignment successful. Figure 17-1 will be helpful in developing answers. Summary: Ensuring Successful Adaptation of International Employees at Hotel Paris To facilitate the smooth adaptation of international employees in Hotel Paris’ management development program, individual hotel managers should focus on the following key areas: 1. Cultural Sensitivity: Managers should educate themselves and their teams about the cultural backgrounds of incoming employees. Understanding cultural norms, communication styles, and social practices will help avoid misunderstandings and foster a respectful work environment. Managers should also promote cultural awareness training for all staff to enhance integration. 2. Effective Onboarding: Implement a comprehensive onboarding process tailored to international employees. This includes orientation sessions about company policies, job expectations, and local customs. Providing resources such as a local guide, language support, and a mentor or buddy system can ease the transition. 3. Clear Communication: Establish clear and open channels of communication. Regular check-ins and feedback sessions can help international employees express concerns and adapt more quickly. Managers should encourage feedback on the onboarding process and be approachable for addressing any issues. 4. Support Systems: Develop support systems to assist international employees with practical aspects of relocation, such as housing, transportation, and local services. Providing assistance with visa processes and other legal requirements is also crucial for a smooth transition. 5. Integration Programs: Organize social and team-building activities to help international employees build relationships with their new colleagues. This not only improves morale but also helps employees feel more connected and integrated into the company culture. 6. Cultural Adjustment Resources: Offer resources such as language classes, cultural adjustment workshops, and counseling services. These resources can support employees in overcoming personal and professional challenges related to their move. 7. Feedback and Evaluation: Continuously assess the adaptation process through surveys or feedback mechanisms. Use this information to make improvements to the support programs and address any emerging issues proactively. By focusing on these areas, hotel managers can create a welcoming environment that supports international employees in adapting to their new roles and surroundings, ultimately contributing to their success and the overall effectiveness of the management development program. 2. In previous chapters you recommended various human resource practices Hotel Paris should use. Choose one of these, and explain why you believe they could take this program abroad, and how you suggest they do so. Answer: Answers will vary widely. Instructors should look for solid, text-based justification of answers given Expanding the Employee Wellness Program Abroad at Hotel Paris Program Choice: Employee Wellness Program Reason for Selection: The Employee Wellness Program is a critical component for maintaining high employee morale, reducing absenteeism, and enhancing overall productivity. Its benefits—such as promoting physical health, mental well-being, and work-life balance—are universally valuable, making it a suitable candidate for international expansion. Wellness programs also support employee retention and satisfaction, which are crucial in any global setting. Implementation Strategy: 1. Local Adaptation: • Cultural Sensitivity: Customize wellness program components to reflect local cultural practices and health norms. For example, offer wellness activities that align with local preferences, such as yoga in India or tai chi in China. • Health Regulations: Ensure the program complies with local health regulations and standards. Consult local experts to understand specific health issues and regulations in each country. 2. Localized Resources: • Partnerships: Collaborate with local healthcare providers and wellness experts to deliver relevant services. This could include partnerships with local gyms, nutritionists, or mental health professionals. • Language Support: Provide program materials and communications in the local language to ensure clear understanding and accessibility for all employees. 3. Pilot Program: • Initial Rollout: Start with a pilot program in one or two international locations to evaluate its effectiveness and gather feedback. Use this phase to make necessary adjustments based on employee responses and regional needs. • Feedback Mechanism: Implement feedback tools to collect input from employees about the program’s relevance and effectiveness, and use this data to refine the program. 4. Training and Communication: • Local Managers: Train local HR managers and wellness coordinators on the program’s goals and execution. Ensure they are equipped to handle program implementation and employee inquiries. • Awareness Campaign: Launch an awareness campaign to educate employees about the benefits of the wellness program. Use local communication channels to reach employees effectively. 5. Integration with Local Practices: • Custom Programs: Integrate the wellness program with existing local wellness initiatives or traditions, such as incorporating local health practices or celebrating regional health awareness days. • Consistency: Maintain a consistent core structure of the wellness program while allowing for regional adaptations to ensure coherence and effectiveness across all locations. By thoughtfully adapting the Employee Wellness Program for international contexts, Hotel Paris can ensure that its global workforce benefits from improved well-being and engagement, aligning with the company’s broader strategic goals. 3. Choose one Hotel Paris human resources practice that you believe is essential to the company achieving its high-quality-service goal, and explain how you would implement that practice in the firm’s various hotels worldwide. Answer: Answers will vary widely. Instructors should look for solid, text-based justification of answers given. Essential HR Practice: Employee Training and Development Importance to High-Quality Service Goal: Employee training and development are crucial for achieving and maintaining high-quality service standards at Hotel Paris. Well-trained employees are better equipped to deliver exceptional service, handle guest requests, and uphold the hotel's reputation for excellence. Consistent and high-quality training ensures that all staff members are aligned with the company’s service standards, regardless of their location. Implementation Strategy for Global Hotels: 1. Global Training Framework: • Core Competencies: Develop a global training framework that outlines core competencies and service standards expected at all Hotel Paris locations. This should include customer service excellence, handling complaints, and upholding brand values. • Standardized Training Modules: Create standardized training modules that cover essential skills and knowledge relevant to the hospitality industry, tailored to the roles of front desk staff, housekeepers, and other key positions. 2. Local Adaptations: • Cultural Sensitivity: Adapt training materials and approaches to reflect local cultural norms and customer expectations. For example, incorporate region-specific hospitality practices and etiquette into the training program. • Language and Communication: Provide training materials in local languages and ensure that training sessions are conducted in a manner that is understandable and engaging for all employees. 3. Training Delivery Methods: • Blended Learning: Use a blended learning approach that combines online modules, in-person workshops, and on-the-job training. This method accommodates different learning styles and ensures that employees can access training resources conveniently. • Local Trainers: Train local HR managers and supervisors to deliver training and provide ongoing support. Ensure they are well-versed in both the global standards and local adaptations. 4. Onboarding and Continuous Development: • Comprehensive Onboarding: Implement a robust onboarding program for new hires that introduces them to the company’s service standards, culture, and expectations. Include both global and local content. • Ongoing Training: Establish a system for continuous learning and development. Offer regular refresher courses, advanced training, and career development opportunities to help employees advance their skills and career paths. 5. Monitoring and Evaluation: • Performance Metrics: Develop performance metrics to evaluate the effectiveness of the training program. Use guest feedback, employee performance reviews, and service quality assessments to measure the impact of training. • Feedback Mechanism: Create channels for employees to provide feedback on the training process. Use this feedback to make improvements and ensure the training program remains relevant and effective. 6. Best Practices Sharing: • Knowledge Exchange: Facilitate knowledge exchange between locations by encouraging high-performing hotels to share best practices and successful training strategies with other sites. This helps ensure consistency and continuous improvement across all properties. By implementing a comprehensive and culturally adapted training and development program, Hotel Paris can ensure that all employees are equipped to provide high-quality service, thus supporting the company's goal of delivering exceptional guest experiences worldwide. Solution Manual for Human Resource Management Gary Dessler 9780132668217, 9780134235455, 9780135172780
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