Chapter 17 International HRM MGT 3513 “It is a good thing for an uneducated man to read books of quotations... The quotations, when engraved upon the memory, give you good thoughts. They also make you anxious to read the authors and look for more.” Winston Churchill

ANNOUNCEMENTS

CLASS ACTIVITY FORM groups 1.FIND as many items as you can from other countries, only listing each country once 2.Write down each item and country Ex. Pen/China Notebook/Canada GOAL = longest list of items

International Involvement Multinational corporations Why do organizations enter the global market? ______________

Global Employees - - Terminology Expatriate Host-country national (local) Third-country national

Global Employees - - Terminology Expatriate – An employee working in a unit who is not a citizen of the country where the unit is located, but is a citizen of the country in which the organization is headquartered Host-country national – Employee working in a unit who is a citizen of the country where the unit is located, but where the unit is operated by an organization headquartered in another country Third-country national – A citizen of one country, working in a second country, and employed by an organization headquartered in a third country

Global Trends Increasing number of _______ companies conducting business internationally Shortage of ____________is worldwide Greater attention to ______ assessment Terrorism, safety, and security Disaster recovery plans Increase in __________ HR functions

Offshoring Twenty-nine percent of HR professionals report that their organizations presently offshore one or more business units. Source: Esen, E. (2005). SHRM 2005 offshoring survey report. Alexandria, VA: Society for Human Resource Management. Common offshore locations India Mexico China

National Culture “particular set of economic, political, and social values that exist in a particular nation” Hofstede’s model - 5 dimensions of culture Individualism/collectivism Power distance Masculinity/Femininity Uncertainty Avoidance Long-Term/Short-Term Orientation

Individualism/collectivism Commitment to ______________ vs. organization High individualism - ex. United States _________ turnover High collectivism - ex. South Korea _________ turnover

Power Distance Hierarchical structure that emphasizes __________ differences High power distance - ex. Mexico Hierarchical __________ systems Low power distance - ex. Switzerland Egalitarian-based __________ systems

Masculinity/Femininity Masculine - ex. United States Value: __________________ Being “the best” Feminine- ex. Sweden Value: __________________ Caring & quality of life

Uncertainty Avoidance Extent to which society values reducing _________ High uncertainty avoidance More _____________ policies and procedures. Low uncertainty Less _____________ policies and procedures.

Long-Term/Short-Term Orientation Values oriented toward ___________ vs. past or present Long-term orientation - ex. Japan _____________ Short-term orientation - ex. U.S. _____________

American National Culture High individualism Low power distance Masculine Low uncertainty avoidance Short-term orientation

Going Global What is a wholly owned subsidiary? What is a joint venture?

Approaches to Global Expansion & How HR differs in each Ethnocentric Polycentric Geocentric

Going Global Describe some of the advantages and disadvantages of hiring Employing “locals” Employing “expatriates”

Challenges Faced by Expatriates Discuss reasons why international assignments often end in failure What are difficulties expatriates are likely to face upon return to a home country?

HR Issues and Expatriate Assignments What does cross-cultural training attempt to do? What guidelines should HR follow when determining expatriate compensation?

HRM and Exporting Firms Discuss common misconceptions about women and international assignments How does the US compare to other industrialized nations in terms of exports? What are potential ethical issues associated with globalization?