Professional Documents
Culture Documents
Resources Management
11
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Chapter Objectives
After studying this chapter, you should be able to
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 8 Explain how labor relations differ around the world.
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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
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2012
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Managing Across Borders
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Types of Organizations
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Domestic versus International HRM
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Staffing Internationally
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Changes in International Staffing over Time
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Recruiting Internationally
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Selecting Employees Internationally
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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
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Selecting Global Managers (cont.)
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Skills of Expatriate Managers
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Expatriate Selection Criteria
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Causes of Expatriate Assignment Failure
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Expatriate Adjustment Factors
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Training and Development
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Content of Training Programs
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Preparing for an International Assignment
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Cultural Training
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Assessing and Tracking Career Development
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Selected Foreign-Born Executives
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Compensation
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Compensation of Host-Country Employees
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Compensation of Host-Country Managers
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Compensation of Expatriate Managers
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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
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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.
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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
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Performance Appraisal
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The Labor Environment Worldwide
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Collective Bargaining in Other Countries
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Labor Participation in Management
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Key Terms
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Chapter 15 - Learning Outcomes
3 Explain how domestic and international HRM differ. What is the best way to make HR practices transnational?
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?
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