Professional Documents
Culture Documents
ORGANIZATIONS
Sonja Treven*
In the paper, the author first presents various approaches to the management and
recruitment of employees in subsidiaries that the company has established in
different countries. Then, she turns her attention to the basic functions of
international human resource management, among them recruitment and selection
of new employees, development and training of employees, assessment of work
efficiency, as well as remuneration of employees. As the expatriates are often
given special attention by their work organizations, she concludes the paper with
the description of the additional challanges occurring in the management of these
employees.
1. INTRODUCTION
*
Sonja Treven, PhD, Assistant Professor, University of Maribor, School of Economics and
Business, Razlagova 20, 2000 Maribor, Slovenia, Phone: 386 2 2290244, E-mail:
sonja.treven@uni-mb.si
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When the organization sends its employees to some other country, it takes
over the responsibilities besides the basic functions of human resource
management. For example, the functions of staffing, training and development
are especially emphasized in this organization. They do not deal merely with the
selection of the best employees for work in foreign countries but also have to be
aware of the needs of the whole family that will accompany the employee to the
new cultural environment. A lot of individuals taking on international
assignments are unsuccessful since their spouces or families can not adjust to
their new surroundings. Hence, it is necessary to organize training in the foreign
language for the employee and his family some months before departure.
Everything necessary for the journey, including visas, have to be provided for
on time. It is also necessary to prepare their residence in the new surroundings,
as well as to assure health services and enrolment into schools for the children
of the employees.
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and that employees from other parts of the world can and should follow it.
Managers from headquarters develop practices and hold key positions in the
subsidiaries to ensure consistency.
Advantages Disadvantages
• Lower labor costs • Makes it difficult to balance local
• Demonstrates trust in local demands and global priorities
citizenry • Leads to postponement of difficult
• Increases acceptance of the local decisions until they are
company by the local community unavoidable, when they are more
• Maximizes the number of options difficult, costly, and painful than
available in the local environment they would have been if
• Leads to recognition of the implemented earlier
company as a legitimate • May make it difficult to recruit
participant in the local economy qualified personnel
• Effectively represents local • May reduce the amount of control
considerations and constraints in exercised by headquarters
the decision-making process
Advantages Disadvantages
• Cultural similarity with parent • Creates problems of adaptability to
company ensures transfer of foreign environment and culture
business/management practices • Increases the »foreigness« of the
• Permits closer control and subsidiary
coordination of international • May involve high transfer and
subsidiaries salary costs
• Gives employees a multinational • May result in personal and family
orientation through experience at problems
parent company • Leads to high failure rate
• Establishes a pool of • Has disincentive effect on local-
internationally experienced management morale and
executives motivation
• May be subject to local
government restrictions
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Most companies use expatriates only for such key positions as senior
managers, high-level professionals, and technical specialists. Since expatriates
tend to be very costly, it makes little financial sense to hire expatriates for
positions that can be competently filled by foreign nationals. In addition, many
countries require that a certain percentage of the work force be local citizens,
with exceptions usually made for upper management.
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The labor relations function identifies and defines the roles of management
and workers in the workplace. The concept of labor relations varies greatly in
different parts of the world. In the United States, for example, labor relations
are often a formal relationship, sometimes antagonistic, between labor and
management defined by a union contract. In Japan, the relationship between
management and unions is cooperative, and management often appoints union
leaders (Hodgetts, Luthans, 1994).
4. MANAGEMENT OF EXPATRIATES
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Expatriates and their families need time to become familiar with their new
environment and to become comfortable living there. When they arrive, the
newness of the experience is exciting. A few months later, when they have had
more experience with the culture, expatriates might begin to feel frustrated or
confused as they try to make sense of their new living situation. This feeling is
“culture shock.” As expatriates get comfortable and understand more about the
culture, usually three to six months after arrival, the culture shock will wear off,
and they will experience a more normal feeling (Adler, 1997).
After the expatriate completes his assignment and returns home, he must
adjust in the same way as when going abroad. The work, people, and general
environment are no longer familiar. The expatriate and his company are usually
unprepared to deal with this situation. The disorientation experienced by a
returning expatriate is known as reverse culture shock.
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A successful expatriate must be able to both do the job and handle a new
cultural environment. Hence, the expatriate must do his job competently, learn
to live comfortably in a new culture, and ensure that his family adapts as well.
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5. CONCLUSIONS
REFERENCES:
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Sažetak
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