Hiring

and Managing
Employee

Adityo Suryo Dwiatmono

Nanda Mustaqim
Wahid Achsan
1 International Staffing Policies

2 Plan, Recruitment, Selection

3 Training & Development

4 Compensate Managers & Workers

5 Labor – Management Relations

6 Management Case
 Step 1 Step 2
Human Resource Management (HRM) Recruiting Selecting
Process of staffing a company and
ensuring that employees are
as productive as possible Step 3
Step 6
Compensating HRM Training

Step 5 Step 4
Evaluating Developing
Human Resource Management (HRM)
Process of staffing a company and
ensuring that employees are
as productive as possible
Human Resource Management (HRM)
Process of staffing a company and
ensuring that employees are
as productive as possible
Human Resource Management (HRM)
Process of staffing a company and
ensuring that employees are
as productive as possible
Human Resource Management (HRM)
Process of staffing a company and
ensuring that employees are
as productive as possible
Human Resource Management (HRM)
Process of staffing a company and
ensuring that employees are
as productive as possible
Human Resource Management (HRM)
Process of staffing a company and
ensuring that employees are
as productive as possible
 International Staffing Policies

Ethnocentric
01 Staffing policy in which individuals form the home country manage
operations abroad

02 Polycentric
Staffing policy in which individuals from the host country manage
operations abroad
03 Geocentric
Staffing policy in which the best qualified individuals, regardless of nationality,
manage operations abroad
04 Regiocentric
Staffing policy in which individuals from various country within the geographic
region manage operations abroad
Ethnocentric International Staffing Policies

§ Locally qualified people not always available § Relocations are expensive

§ Tight control over subsidiaries Bonuses relocating + relocation expense for
§ Re-create local operations in home-office entire families
image § Give the business a “foreign” image
Example executive director of Morgan
Stanley’s operations in India “If they fail to overcome cultural barriers, they
§ Interest of home office my be better protect typically fail to understand the needs of their
local employees and those of their local
customers”
 Polycentric International Staffing Policies

“If These Companies lack integration, § Responsibility of those knowing local

knowledge sharing, and a common image business.
performance will be surely suffer” Have a better feel for the needs of
employee, customers, and suppliers
§ Avoid expensive relocations from home
nations.

§ Potentially harm perfomance, loss control

of subsidiary
§ Resemble a collection of national entities
Not be a problem when treating each
national market differently
Geocentric International Staffing Policies

§ These individuals command high salaries

§ Relocations are expensive

§ Managers who can adjust anywhere

§ Breakdown nationalistic barriers

“This policy typically reserved for top-level managers”

Regiocentric International Staffing Policies

§ Managers who can adjust anywhere

§ Breakdown nationalistic barriers

§ These individuals command high salaries

§ Relocations are expensive
 Plan, Recruitment, Selection

Human Resource Planning

Process of forecasting a company’s
human resource needs and its supply
Phase 1
Take inventory of current human resources
Collecting data on every employee including educational
background, special job skills, previous jobs, language skills,
Phase 3 experience living aboard
Develop plant to recruit and select
people for vacant and anticipated new
positions

Phase 2
Estimate firm’s future human resource needs
A firm that plans to sell its products directly to buyer in new market abroad
 Plan, Recruitment, Selection
Recruiting Human Resource
Process of identifying and attracting a
qualified pool of applicant for vacant positions
CURRENT EMPLOYEE
Finding international manager among current employees is easiest for
large company. Likely candidates within the company are managers who
NONMANAGERIAL WORKERS were involved in previous stages of an international project.
Companies typically recruit locally for nonmanagerial
positions because there is often little need for highly
specialized skills or training

LOCAL MANAGERIAL TALENT RECENT COLLEGE GRADUATES

Companies recruit among recent college graduates who
Hiring local managerial talent is common when cultural have come from other countries to attend college in
understanding is key job requirement. the firm’s home country
 Plan, Recruitment, Selection
Selecting Human Resource
Process of screening and hiring the best-
qualified applicants with the greatest
performance potential
01

Cultural sensitivity raises Important for

Ability to bridge cultural
odd for success international assigments differences

03 02

Expatriates must adapt to new

way of life
 Plan, Recruitment, Selection

Culture Shock Step to Reduce

Psychological assessment
To ensure you and family members are emotionally able to handle the
assignment

Knowledge of the local culture

Obtain this knowledge and critically examine your own culture biases
before leaving home

Visit the assigned country

Mingling with local people and getting feel for your future assignment.
STEP 1 Honeymoon (Thrilling Experience) Ask about local educational, financial, and health-care services
Optimistic about prospects for success Meet both natives and expatriates
STEP 2 Downward slide After you are inside a culture, meet with others to discuss your negative
Mocking the locals and theirs native culture as superior and positive experiences
Recovery begin Relax and humor
STEP 3 Learn and interact more, form friendship with locals Relas, be adventurous, take a worldy perspective, and keep your sense
Embrace local culture of humor.
STEP 4 Better understand and appreciate many of them
 Plan, Recruitment, Selection

Reverse Culture Shock

Psychological process of readapting to one’s home culture
For many Japanese employees and their families, reentry into Japanese culture after a work assignment
in the USA can be particularly difficult. The fast pace of business and social life in the USA, and the
realtively high degree of freedom and independence for woman, contrasts with life in Japan.

Reducing its Effects

01 Home culture orientation programs

The employer might bring the entire family for short stay several weeks before official return .This kind of trips
allows returnees to prepare for at least some of the reverse culture shock that may await them

02 Career-counseling sessions & Good career development prog.

Career development plan is worked out before the employee goes abroad and is revised before his or her return.
Some companies work with employees before they go aboard to plan career path of up to 20 years within company

03 The mentor becomes a confidant

Expatriates manager can discuss particulary problems related to work, family, and readjusting to the home culture
 Training & Development
Plan, Recruitment, Selection

Methods of Cultural Training

Language training & Field experience

Language training entails more than memorizing phrases. Learns more about why
local people behave as they do. A survey of top executives, foreign language skills
topped the list of skill to maintain a competitive edge. Field experience means
visiting the culture, walking the streets of its cities and village

Cultural assimilation & Sensitivity training

Teaches the culture’s values, attitudes, manners, and customs. Learning some
phrases in the local language. Role play exercises (respond to a situation and
understanding of other people’s feelings & emotions

Environmental breafing & Cultural orientations

Breafing information on local housing, health care, transportation,
schools, climate. Orientations offer insight into social, political, legal, and
economic institutions.
 Training & Development
Plan, Recruitment, Selection

Compiling a Cultural Porfile

Some excellent sources for cunstructing a cultural profile

CultureGrams Country Studies Area

01 02
Handbooks
03 Background Notes

Publish by ProQuest Explain how politics, Contain much relevant

(www.culturegrams.com). economics, society, and factual information on
Individualy sections profile national security issues are human rights and related
each culture’s background related to one another and issues in various countries
and its people, customs, shaped by culture in more (www.state.gov)
courtesies, and society than 70 countries
(http://lcweb2.loc.gov/frd/
cs/cshome.html)
 Plan, Recruitment, Selection
Compensate Managers & Workers

Managerial Employees Nonmanagerial Workers

1
Cost of Living
Companies must cover others cost incurred by
expatriate managers even when the cost of livig abroad Greater Cross-Border Investment
is lower than at home. One important concern is the 1 The freedom with which employer can
quality of local education relocate differs from country to country. This
2 Bonus and Tax Incentives situation is causing a trend toward greater
Hardship pay => Bonuses for managers who askes to equality in workers’ pay around the world
go into a particularly unstable country or one with a
very low standard of living 2 Greater Labor Mobility in Some Markets

3 Culture and Social Cost

Some nations offer more paid holiday than others
Many nations offer free medical care to everyone
Employers are expected to provide free/subsidized housing
and paid maternity leaves of up to one and a half years
 Labor – Management Relations

Labor-Management Relations
Positive or negative condition of relations between a company’s
management and its workers.
Good labor-management relations can help a company meet its goals and
surmount unexpected obstacles.
Affect of Labor Unions 03
1 Rooted in culture Can affect company
performance in a market 02
2 Often affected by political movement in Can affect selection
the local market of a location 01
3 Directly influence workers’ lives

Cooperative atmosphere between company

management and labor unions.
 Management Case

British Petroleum (BP) : Challenges in Global Staffing

British Petroleum ??? What Happened ???

§ 100 year old leading oil and gas § BP sued six former members of
company its energy team in Singapore
§ The world’s third-largest energy Hal ini merupakan salah satu
was a misuse of confidential
company information. dampak dari kegagalan dalam
§ Operating in more than 80 § Six former members suspected mengelola sumber daya manusia
countries & implements various of making unauthorized
staffing policies downloads form BP’s computer
networks
 Management Case

British Petroleum (BP) : Challenges in Global Staffing

What advantages did BP expect in hiring local managers in an emerging

market like Shoutheast Asia ?

Manajer lokal memiliki pengetahuan lebih baik terhadap kondisi geografis, budaya,
§ 100 year old leading oil and gas
dan regulasi terkait. Manajer
company lokal juga dapat menghilangkan barrier dengan
penduduk lokal (dapat membaur, saling memahami, dan harmonis), memberikan
§ The world’s third-largest energy
“image lokal” terhadap perusahaan. Dengan demikian diharapkan dapat
company
§ Operating in more than 80
memperlancar pencapaian tujuan bisnis perusahaan
countries & implements various
staffing policies
“Have a better feel for the needs of employee, customers, and suppliers”
 Management Case

British Petroleum (BP) : Challenges in Global Staffing

What challenges did BP face by hiring local people in its office in Singapore ?

§ Membutuhkan waktu untuk mengharmonisasikan budaya perusahaan dengan

budaya manajer lokal.
§ Pengawasan home country terhadap subsidiary yang perlu ditingkatkan.
§ Pengetahuan terhadap bisnis perusahaan (produk, proses) yang dimiliki native
employees

§ 100 year old leading oil and gas

company
“If These Companies lack integration, knowledge sharing, and a common image
§ The world’s third-largest energy
performance will be surely suffer”
company
§ Operating in more than 80
countries & implements various
staffing policies
 Management Case

British Petroleum (BP) : Challenges in Global Staffing

Suppose a company decides that it has made a mistake by hiring local personnel in a key
Asian country. What are some potential problems that it will face if it decides to install or
reinstate expatriate managers in these position?
§ Pengetahuan dan kemampuan dalam menyesuaikan diri dengan budaya lokal dan
berbaur dengan masyarakat lokal untuk menjalin hubungan yang harmonis dan
saling memahami (Manage culture shock & break cultural barriers)

“If they fail to overcome cultural barriers, they typically fail to understand the
needs of their local employees and those of their local customers”
§ 100 year old leading oil and gas
company
§ The world’s third-largest energy
company
§ Operating in more than 80
countries & implements various
staffing policies
Local Employee Government Local Customers