for Intl Business
Human Resource considerations for International Business Management
used in the following courses taught by Prof. Richardson
including material from Chpt 16
Global Human Resource Management
Global Business Today
Hill, McKaig ... and Richardson
|2nd Edition||3rd Edition||4th Edition|
Human Resource considerations become so important in International Business
The environments within which international business is carried out in the first decade of the new millenium is increasingly competitive.
Therefore one of the key things for companies in the "new new" economy is to focus on the people in the company, and the customers they serve - ergo, Human Resource Management has become a "big issue" for international business.
|Prof. Chris Bovaird (UTSC),
very experienced in international business management issues, commenting
on the importance of "having the best people" to allow a company to have
a competitive advantage in the second decade of the new millenium.
Bovaird explains that for economies where the majority of the business is the provision of services, "the one single key differentiator for corporations over the next generation or two will the ability to attract and retain clever, innovative, flexible, willing, intelligent people - people will be the outstanding resource which will make the west succeed"
|KEY POINTS||Although Dilbert has many
jokes about Catbert, the "Evil H.R. Director", fact is, morale of employees
is increasingly important, especially in international business,
(see witiger.com/marketing/motivation.htm )
since companies are more and more challenged to cut expenses, and the # 1 expense cut is staff cuts - meaning, more productivity out of fewer people.
The way to get more productivity is partly by enhancing morale.
simply defined as a citizen of one country working abroad in another country
Another slang expression often used is "the expat community" to describe a group of foreign country nationals, most often educated executives with good jobs, benefits and privelages, who can sometimes be seen by the local population as behaving in a way that is "elite".
Things that make it difficult for companies to manage Human Resources situations in other countries.
Software development in India
costs $15-$20/ hour including the cost of the hardware, software and a
satellite link. Compare this with $60-$80/ hour in the US
Mexican auto industry wages and benefits average $4.00 hr, vs. $30 hr in the US
Japanese companies can hire 3 Chinese software engineers for the price of one in Japan (Thomas L. Friedman, "Doing our homework", Pittsburgh Post Gazette, 6/25/04).Despite seemingly low wages and wretched conditions, Mexico is losing garment assembly jobs to Central America, call centers to Argentina, data processing to India, and electronics manufacture to China
Vietnamese Nike workers earn $1.60/ day, while three simple meals cost $2.00
Jeffrey Hays explains
"One of Chinaís problems is that while it produces lots of low skill factory jobs it isnít creating enough good job for college graduates."
reliable figures - there
2010 Beijing city government raised the minimum wage by 20 percent to $141 a month.
2012 Shanghai, China's richest city, increased the wage by 13 percent to 1,450 yuan ($230) a month starting in April 2012,
Yingyan X. in MRK460 in March 2014 provided some updates on wage rates
which is in turn sourced from the National Bureau of Statistics of China
- validity - generally speaking, students should appreciate that any time statistics are provided by a government agency the degree of accuracy is always effected by the "political environment".
Yingyan summarizes saying
in various major cities of the world compared
- based on U.S. dollars per hour
supplied by student Ashok S from MGTC44 in March 2010
in various countries compared to South Korea
|Labour costs in various European countries compared to Germany|
|Labour costs in various countries compared to Canada|
|Labour Laws, Rules and Regulations||Labour Laws,
Rules and Regulations
Minimum wage in Mexico is $0.50/ hour. In one US auto plant in Mexico, the workers went on strike. The Mexican police shot several and put the strikers back to work-and cut their wages 45%.
Nobody has ever been shot
by police for being on strike in Canada !!!
o Language issues
o Religious practices
- Christmas & New Years & Canada Day
+ Chinese New Year
+ Jewish High Holidays
o Gender issues
o Vacations and holidays
operating Canadian companies overseas
operating in large "multi-cultural" cities in Canada
managers operating Foreign Companies in Canada
Environment - "Managing Diversity"
"Programs or corporate environments that value multiculturalism must answer hard questions about managing diversity."
Antidiscrimination laws in Canada and other OECD countries require that employers do not treat applicants for jobs, and employees, differently.
Treating people "equally" can be both a positive and negative for ethnic minorities and those who laud and "celebrate diversity".
For example - If we treated people "equally", we'd have just one written drivers test - in Englishfrom http://www.referenceforbusiness.com/encyclopedia/Mor-Off/
Environment - "Managing Diversity"
"On the other hand, treating people differently often creates resentment and erodes morale with perceptions of preferential treatment."
Some employees resent other employees who gets special consideration for holidays, or prayer times, or special food considerations.
"Other questions to be answered are: Will the company emphasize commonalities or differences in facilitating a multicultural environment? Should the successful diverse workplace recognize differentiated applicants as equals or some as unequals? How does the company achieve candor in breaking down stereotypes and insensitivity towards women and minority groups?"
How do you make decisions about managing situations where it might be considered "favourtism" to make allowances or considerations for a special category of "diversity"?
- do you?
|This web site discusses
HRM issues specific to the Asia Pacific region.
There are a number of good articles available herein which would be useful for you to read.
K. in MGTC46 at UTSC in mid-March 2011 emailed to say
This past year I was the Curriculum Manager for LIVE Conference 2010 and there were times when the morale of our team was very low.
During this time team members were constantly bickering with each other, efficiency was at an all time low and nobody was motivated to do anything! This was a very big problem since it was crunch time and the conference was quickly approaching. Eventually once the problem was sorted out, you could just feel a different vibe throughout the whole team. When morale was high, we all worked harder and just simply cared more. Just wanted to share my thoughts regarding this topic, and how morale is not only important in a workplace, but across all aspects of life as well.
permission to quote Jeff
Hays received by email 2012 Dec 4 and copy put in the permissions binder
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