Chapter 15 MANAGING HUMAN RESOURCES GLOBALLY Fundamentals of human resource management 5th edition By R.A. Noe, J.R. Hollenbeck, B. Gerhart, and P.M. Wright Chapter 15 MANAGING HUMAN RESOURCES GLOBALLY

Employees in an International Workforce Parent-country national – employee who was born and works in the country in which an organization’s headquarters is located. Host-country national – employee who is a citizen of the country (other than parent country) in which an organization operates a facility. Third-country national – employee who is a citizen of a country that is neither the parent country nor the host country of the employer.

Employers in the Global Marketplace International organization –sets up one or a few facilities in one or a few foreign countries. Multinational company –builds facilities in a number of different countries in an effort to minimize production and distribution costs. Global organization –chooses to locate a facility based on the ability to effectively, efficiently, and flexibly produce a product or service using cultural differences as an advantage.

Factors Affecting HRM in International Markets Global HRM Culture Education Economic Systems Political-Legal Systems

Culture Culture – a community’s set of shared assumptions about how the world works and what ideals are worth striving for. greatly affect a country’s laws. influences what people value, so it affects people’s economic systems and efforts to invest in education. determines effectiveness HRM practices.

Hofstede’s Five Dimensions of Culture 1. Individualism/Collectivism Describes the strength of the relation between an individual and other individuals in the society. 2. Power Distance Concerns the way the culture deals with unequal distribution of power and defines the amount of inequality that is normal. 3. Uncertainty Avoidance Describes how cultures handle the fact that the future is unpredictable. 4. Masculinity/Femininity The emphasis a culture places on practices or qualities that have traditionally been considered masculine or feminine. 5. Long-term/Short-term Orientation Suggests whether the focus of cultural values is on the future (long term) or the past and present (short term). :

Performance Management Across National Boundaries When establishing performance management methods in other countries, consider: Legal requirements Local business practices National cultures Differences may include: Which behaviors are rated How and the extent to which performance is measured Who performs the rating How feedback is required

Compensating an International Workforce Market pay structures can differ substantially across countries in terms of both pay level and relative worth of jobs. Dilemma for global companies: Should pay levels and differences reflect what workers are used to in their own countries? Should pay levels and differences reflect the earnings of colleagues in the country of the facility, or earnings at the company headquarters?

Assessing Candidates for Overseas Assignments Motivation Health Language ability Family Considerations Resourcefulness Adaptability Career Planning Financial

Managing Expatriates: Preparing Expatriates Pre-assignment site visit Job orientation Country orientation Culture orientation Language training Compensation / benefits / taxes counseling Housing counseling Health care / schools / shopping / recreation counseling Counseling by returning expatriates Local sponsorship from host country