Chapter 15 Learning Objectives Summarize how the growth in international business activity affects human resource management. Identify the factors that most strongly influence HRM in international markets. Discuss how differences among countries affect HR planning at organizations with international operations.

Chapter 15 Learning Objectives (continued) Describe how companies select and train human resources in a global labor market. Discuss challenges related to compensating employees from other countries. Explain how employers prepare managers for international assignments and for their return home.

International Business and HR International Mergers and Acquisitions Importance of Global Human Resources Management Foreign Human Resources Global Competition Market Access Opportunities

International Business Terminology Parent Country Nationals Host-country Nationals Third-country Nationals Expatriates

Factors that influence International HRM

Hofstede’s Five Dimensions of Culture How Countries Differ 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).

Emotional Cycle Associated with a Foreign Assignment

Performing International HRM Functions A. Recruiting      1. Matching process      2. Personal qualities vs. job competence (adaptability, language skills, local knowledge, etc.) B. Selection Process      1. Interviewing - family participation

Topics for Assessing Candidates for Overseas Assignments

Performing International HRM Functions (continued) C. Training      1. Cultural training      2. Language training      3. Personal adjustments D. Performance Appraisal 1. Dual responsibility – host and home

Performing International HRM Functions (continued) E. Compensation    1. Based on length of assignment/conditions    2. Support for expenses    3. Financial support F. Repatriation

Expatriate Compensation To be effective, an international compensation program must: Provide an incentive to leave the United States. Allow for maintaining a U.S. standard of living. Facilitate reentry into the United States. Provide for the education of children. Allow for maintaining relationships with family, friends, and business associates.

Repatriation The process of an employee transitioning home from an international assignment. “Welcome home” Counseling to ease the transition Validation Post assignment feedback Cross cultural preparation