You are on page 1of 44

International Human

Resources Management

The Challenges of Human Resources Management

11
2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Chapter Objectives
After studying this chapter, you should be able to

LEARNING OUTCOME 1 Explain the economic, political, and cultural factors in


different countries that HR managers need to consider.

LEARNING OUTCOME 2 Identify the types of organizational forms used for


competing internationally.

LEARNING OUTCOME 3 Explain how domestic and international HRM differ.

LEARNING OUTCOME 4 Discuss the staffing process for individuals working internationally.

LEARNING OUTCOME 5 Identify the unique training needs for international assignees
and their local employees.

LEARNING OUTCOME 6 Identify the characteristics of a good international compensation plan.

LEARNING OUTCOME 7 Reconcile the difficulties of home- and host-country


performance appraisals.

LEARNING OUTCOME 8 Explain how labor relations differ around the world.

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
2 of 41
36
The Global Environment

Global Similarities
1. Free trade
2. Service-based business
3. Integrated technology platforms
Global Differences
Political and cultural differences
Property rights are poorly protected
Civil unrest
Intellectual property rights have been little protected

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
3 of 41
36

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
4 of 41
36
Managing Across Borders

International corporation Global corporation


Domestic firm that uses its Firm that has integrated
existing capabilities to move worldwide operations through
into overseas markets. a centralized home office.

Multinational corporation Transnational corporation


(MNC) Firm that attempts to balance
Firm with independent local responsiveness and
business units operating in global scale via a network of
multiple countries. specialized operating units.

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
5 of 41
36
Types of Organizations

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
6 of 41
36
Domestic versus International HRM

Issues in international HRM in helping


employees adapt to a new and different
environment outside their own country:
Relocation
Orientation
Translation services

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
7 of 41
36
Staffing Internationally

Expatriates, or Home-country Nationals


Employees from the home country who are
on international assignment.
Host-country Nationals
Employees who are natives of the host country.
Third-country Nationals
Employees who are natives of a country other
than the home country or the host country.

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
8 of 41
36
Changes in International Staffing over Time

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
9 of 41
36
Recruiting Internationally

Work Permit, or Visa


Government document granting a foreign individual
the right to seek employment.
Guest Workers
Foreign workers invited to perform needed labor.
Apprenticeships
Vocational training programs in skilled trades.
Transnational Teams
Teams composed of members of multiple nationalities
working on projects that span multiple countries.

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
10 of 41
36
Selecting Employees Internationally

Selecting employees in a foreign country


environment can be difficult
Get to know the local market and customs in hiring
In India, much of the effective hiring was done through
family ties and friendship networks
To better understand the local market there are a few
things firms can do
International HR managers should get to know the
universities, technical schools, and primary schools
in the area
International HR managers should develop network
in the business and government communities
International HR managers must understand the
employees of the firms competitors

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
11 of 41
36
Selecting Global Managers

Global Manager
A manager equipped to run an international business
Skills Categories for Global Managers
Ability to seize strategic opportunities
Ability to manage highly decentralized organizations
Awareness of global issues
Sensitivity to issues of diversity
Competence in interpersonal relations
Community-building skills

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
12 of 41
36

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
13 of 41
36
Selecting Global Managers (cont.)

1. Begin with self-selection.


2. Create a candidate pool.
3. Assess core skills.
Skills considered critical to an employees
success abroad.
4. Assess augmented skills and attributes.
Skills helpful in facilitating the efforts of
expatriate managers

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
14 of 41
36
Skills of Expatriate Managers

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
15 of 41
36
Expatriate Selection Criteria

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
16 of 41
36
Causes of Expatriate Assignment Failure

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
17 of 41
36
Expatriate Adjustment Factors

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
18 of 41
36
Training and Development

Essential training program content to prepare


employees for working internationally:
Language training
Cultural training
Assessing and tracking career development
Managing personal and family life
Repatriation
Culture shock
Perpetual stress experienced by people who
settle overseas.

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
19 of 41
36
Content of Training Programs

Those working internationally need to know as


much as possible about:
The country where they are going, that
countrys culture
That countrys culture, and
The history, values, and dynamics of their
own organizations

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
20 of 41
36
Preparing for an International Assignment

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
21 of 41
36

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
22 of 41
36
Cultural Training

Reviewing available information about the host


company: books, magazines, video tapes.
Conversations with host country natives.
Sensitivity training to become familiar with
the customs and overcome prejudices.
Temporary assignments to encourage
shared learning.

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
23 of 41
36

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
24 of 41
36
Assessing and Tracking Career Development

Developmental and Career Advantages of an


International Assignment:
Increases the expatriates responsibilities and
influence within the corporation
Provides a set of unique experiences beneficial to
both the individual and the firm
Enhances understanding of the global marketplace
Offers the opportunity to work on a project important
to the organization

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
25 of 41
36
Selected Foreign-Born Executives

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
26 of 41
36

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
27 of 41
36
Compensation

Different countries have different norms for


employee compensation:
Financial (money) incentives versus nonfinancial incentives
(prestige, independence, and influence)
Individual rewards versus collectivist concerns for internal
equity and personal needs
General rule:
Match the rewards to the values of the local culturecreate
a pay plan that supports the overall strategic intent of the
organization but provides enough flexibility to customize
particular policies and programs to meet the needs of
employees in specific locations.

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
28 of 41
36
Compensation of Host-Country Employees

Hourly wages can vary dramatically from country


to country.
Pay periods are different.
Seniority may be an important factor.
High pay rates can upset local
compensation practices.
Bonuses, profit-sharing, benefits and paid leave
may be more extensive and legally required.

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
29 of 41
36

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
30 of 41
36
Compensation of Host-Country Managers

Global Compensation System


A centralized pay system whereby host-country
employees are offered a full range of training
programs, benefits, and pay comparable with a firms
domestic employees but adjusted for local differences

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
31 of 41
36
Compensation of Expatriate Managers

An effective international compensation program must:


1. Provide an incentive to leave the United States
2. Allow for maintaining an American standard of living
3. Provide for security in countries that are politically unstable or present
personal dangers
4. Include provisions for good health care
5. Reimburse the foreign taxes the employee is likely to have to pay (in
addition to having to pay domestic taxes) and help him or her with tax
forms and filing
6. Provide for the education of the employees children abroad, if necessary
7. Allow for maintaining relationships with family, friends, and business
associates via trips home and other communication technologies
8. Facilitate the expatriates reentry home
9. Be in writing

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
32 of 41
36
Compensation of Expatriate Managers (cont.)

Home-Based Pay
Pay based on an expatriates home countrys
compensation practices
Balance-Sheet Approach
A compensation system designed to match the
purchasing power in a persons home country
1. Calculate base pay
2. Figure cost-of-living allowance (COLA)
3. Add incentive premiums
4. Add assistance programs

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
33 of 41
36
Compensation of Expatriate Managers (cont.)

Split Pay
A system whereby expatriates are given a portion of
their pay in the local currency to cover their day-to-day
expenses and a portion of their pay in their home
currency to safeguard their earnings from changes in
inflation or foreign exchange rates
Host-Based Pay
Expatriate pay is comparable to that earned by
employees in a host country to which the expatriate
is assigned.

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
34 of 41
36
Compensation of Expatriate Managers (cont.)

Localization
Adapting pay and other compensation benefits
to match that of a particular country
Reduces resentment among local staff members
if they are earning significantly less.
Other Issues
Adequacy of medical care
Personal security
Compensation policies of competitors

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
35 of 41
36
Performance Appraisal

Who Should Appraise Performance?


Home-country evaluations
Host-country evaluations
Home versus Host-Country Evaluations
Local managers with daily contact with the person are more likely to
have an accurate picture of his or her performance.
Performance Criteria five steps:
1. Defining the assignments objectives.
2. Agreeing on the quantifiable measurements for the assignment.
3. Developing an equation that converts qualitative behavior into
quantifiable measurements.
4. Evaluating the expatriates performance against these measurements.
5. Calculating the ROI. This can be a complex cost accounting or a simple
calculation to see if the expatriate covered the cost of keeping them on
assignment.
Providing Feedback

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
36 of 41
36
The Labor Environment Worldwide

International Differences in Unions:


The level at which bargaining takes place
(national, industry, or workplace)
The degree of centralization of
union-management relations
The scope of bargaining (parties and issues)
The degree to which government intervenes
The degree of unionization and union strength
The political affiliations of unions

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
37 of 41
36
Collective Bargaining in Other Countries

Collective Bargaining in Other Countries


When we look at other countries, wefind that the
process can vary widely, especially with regard to
the role of government.
International Labor Organizations
The most active of the international union
organizations has been the International Trade
Union Confederation (ITUC), which has its
headquarters in Brussels.
Another active and influential organization is the
International Labour Organization (ILO), a specialized
agency of the United Nations created in 1919.

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
38 of 41
36
Labor Participation in Management

Labor Participation in Management


In many European countries, provisions for employee
representation are established by law.
A higher form of worker participation in management is
found in Germany, where representation of labor on
the board of directors of a company is required by law.
This arrangement is known as codetermination

Each of these differences makes managing


human resources in an international context
more challenging.

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
39 of 41
36
Key Terms

augmented skills host-based pay


balance sheet approach host country
codetermination host-country nationals
core skills international corporation
cultural environment localization
culture shock multinational corporation
expatriates, or home-country (MNC)
nationals repatriation
failure rate split pay
global compensation system third-country nationals
global corporation transnational corporation
global manager transnational teams
guest workers work permit, or visa
home-based pay

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
40 of 41
36
Chapter 15 - Learning Outcomes

Learning Outcome Statements Related Outcomes from Body of the Text

1 Explain the economic, political, and cultural factors in


different countries that HR managers need to
What environmental factors should Quiznos consider in its move to Kuwait? How do
economics, politics, and culture impact the way Quiznos manages its employees in Kuwait?
consider.

2 Identify the types of organizational forms used for


competing internationally.
If you were a global HR manager, you would want to make sure your HR practices match the
structure of the organization. What is the ideal organizational structure in a global
environment?

3 Explain how domestic and international HRM differ. What is the best way to make HR practices transnational?

4 Discuss the staffing process for individuals working


internationally.
Why would PepsiCo want to send as few U.S.-based managers as possible to run operations
in Peru?

5 Identify the unique training needs for international


assignees and their local employees.
If you were going to send a new manager to South Korea, what specific types of training would
you provide her before she left?

6 Identify the characteristics of a good international


compensation plan.
Should compensation packages be equal across the world, or should they be adapted to the
local cultures and economies?

7 Reconcile the difficulties of home- and host-country Assume you are working for GE in Afghanistan. The power often goes out in your building,
business deals take longer than in the United States, and you experience a great amount of
performance appraisals.
stress due to the unstable political environment. Would you want your performance to be
assessed in relation to the difficulty of doing business in Afghanistan?

8 Explain how labor relations differ around the world. Do you think there should be some international standard for labor rights? If so, what should
that standard be and how should it be enforced?

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
41 of 41
36

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
42 of 41
36

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
43 of 41
36

2012
2012Cengage
CengageLearning. All Rights
Learning. Reserved.
All Rights May not
Reserved. Maybe not
copied, scanned,scanned,
be copied, or duplicated, in whole or in
or duplicated, in whole
part, except
or in for useexcept
part, as for use as
permitted
permittedinina alicense distributed
license withwith
distributed a certain product
a certain or service
product or otherwise
or service on a password-protected
or otherwise website for classroom
on a password-protected use.
website for classroom use.
44 of 41
36

You might also like