BA 4216 Cross-cultural Studies in Organizations International human resource management Instructor: Ça ğ rı Topal 1

Key terms Home-country nationals/expatriates Host-country nationals Third-country nationals Inpatriates 2

Factors to consider Cultural factors Economic and ideological factors Labour factor costs Industrial relations factors 3

Staffing philosophies Ethnocentric-reasons Control Readily available personnel Personnel with the company knowledge Personnel known by the company Company loyalty Foreign image Centralized structure Low-cost commodity production Perceived political threat Lack of knowledge of the host country 4

Staffing philosophies Ethnocentric-problems Unfamiliarity of expatriates Lack of adaptability Problems in intercultural communication Highly expensive salary packages Not always the best qualified people Productivity problems in the early part of the international assignment 5

Staffing philosophies Polycentric-reasons Smaller firms without resources Familiarity of host country nationals Less expensive Company image 6

Staffing philosophies Polycentric-problems Coordination problems between the subsidiary and the parent Loyalty to the host country not to the company Communication problems Inability and reluctance to move Lack of perspective on the corporate culture 7

Staffing philosophies Regiocentric Global market divided into regions Selection of staff within regions Similar products Regional marketing 8

Staffing philosophies Geocentric Global bureaucracy Training and relocation costs Documentation requirements 9

Selection criteria Technical ability Managerial skills acquisition Cross-cultural sensitivity Adaptability and flexibility Diplomatic skills Foreign language aptitude Positive attitude Emotional stability and maturity Adaptability of family 10

Selection of female employees Clients refusal Conservative image Glass-ceiling Assumption of prejudice 11

Cross-cultural training Ethnocentric: headquarters-based Polycentric/regiocentric: subsidiary-based Geocentric: headquarters/subsidiary-based Environmental briefings Cultural orientation Cultural assimilators Language training Sensitivity training Field experience 12

Performance appraisal-1 Purpose Compensation and promotion Development and improvement Policy Ethnocentric: headquarters criteria Polycentric/regiocentric: sensitive to local Geocentric: supposedly universal Biases: host vs. home 13

Performance appraisal-2 Assignment’s difficulty level On-site manager’s vs. home-site manager’s evaluation Use of a former expatriate that worked in the same overseas location Cultural modification of the criteria Qualitative vs. quantitative criteria 14

International compensation Same salary plus varying allowances Localized compensation surveys Long-term incentive programs 15