Copyright ©2014 Pearson Education, Inc. 10-1

Chapter Learning Goals 1. Emphasize the critical role of expatriates in managing in host subsidiaries and in transferring knowledge to and from host operations. 2. Acknowledge the importance of international assignments in developing top managers with global experience and perspectives. 3. Recognize the need to design programs for the careful preparation, adaptation, and repatriation of the expatriates and any accompanying family, as well as programs for career management and retention. 1. Emphasize the critical role of expatriates in managing in host subsidiaries and in transferring knowledge to and from host operations. 2. Acknowledge the importance of international assignments in developing top managers with global experience and perspectives. 3. Recognize the need to design programs for the careful preparation, adaptation, and repatriation of the expatriates and any accompanying family, as well as programs for career management and retention Copyright ©2014 Pearson Education, Inc.

Chapter Learning Goals 4. Become familiar with the use of global management teams to coordinate cross- border business. 5. Recognize the varying roles of women around the world in international management. 6. Understand the variations in host-country labor relations systems and the impact on the manager’s job and effectiveness. 4. Become familiar with the use of global management teams to coordinate cross- border business. 5. Recognize the varying roles of women around the world in international management. 6. Understand the variations in host-country labor relations systems and the impact on the manager’s job and effectiveness Copyright ©2014 Pearson Education, Inc.

Opening Profile: The Expat Life Is it an adventure or a hardship? Experiences of those who have done a stint abroad are mixed. Experiences vary by job type, and especially by location. Adjustment is easier for those who go to places where the culture and business practices are similar Most expect the assignment to be career- broadening Is it an adventure or a hardship? Experiences of those who have done a stint abroad are mixed. Experiences vary by job type, and especially by location. Adjustment is easier for those who go to places where the culture and business practices are similar Most expect the assignment to be career- broadening 10-4 Copyright ©2014 Pearson Education, Inc.

10-5 Chapter Learning Goals Emphasize the critical role of expatriates in managing in host subsidiaries and in transferring knowledge to and from host operations.

Copyright ©2014 Pearson Education, Inc The Expat Life Could include a nanny, driver, or even a bodyguard Tax-free income? Round trips home every year? Language classes, fees for private schools? Being laid-off in a foreign country 26% of ex-pats opt to continue their overseas assignment Could include a nanny, driver, or even a bodyguard Tax-free income? Round trips home every year? Language classes, fees for private schools? Being laid-off in a foreign country 26% of ex-pats opt to continue their overseas assignment

Essentials of IHRM 10-7 Copyright ©2014 Pearson Education, Inc. Maximize long-term retention and use of international cadre through career management to develop a top- management team with global experience. Develop effective global management teams. Understand value, and promote the role of women in international management to maximize those underutilized resources. Work with the host- country labor relations systems to help implementation and employee productivity.

Copyright ©2014 Pearson Education, Inc Chapter Learning Goals Acknowledge the importance of international assignments in developing top managers with global experience and perspectives.

Expatriate Career Management Preparation, adaptation, and repatriation The role of the expatriate spouse Expatriate retention 10-9 Copyright ©2014 Pearson Education, Inc.

10-10 Chapter Learning Goals Recognize the need to design programs for the careful preparation, adaptation, and repatriation of the expatriates and any accompanying family, as well as programs for career management and retention.

Copyright ©2014 Pearson Education, Inc HRM Practices Most Frequently Associated with Successful Repatriation Visible signs that the company values international experience Career planning sessions Communications with HQ about repatriation process Continuous communications with HQ Agreement about position upon repatriation Visible signs that the company values international experience Career planning sessions Communications with HQ about repatriation process Continuous communications with HQ Agreement about position upon repatriation

Preparation, Adaptation, and Repatriation Reintegration is difficult Expatriates are often “out of sight, out of mind” Feelings of alienation from “home” Reverse culture shock occurs because Means fewer will be willing to take assignments Poor management of expatriates Copyright ©2014 Pearson Education, Inc.

Elements of Successful Repatriation Programs Mentor programs Career planning and guidance units A system for maintaining contact with expatriates Copyright ©2014 Pearson Education, Inc.

The Role of Expatriate Spouse Employment status 54 percent of expatriate spouses are employed before the assignment, but only 12 percent are employed during the assignment. Spouse adjustment more likely: Intercompany networking to find spouse a position Language training and cultural familiarization Copyright ©2014 Pearson Education, Inc.

Expatriate Retention Exit from the home country Quality of preparation Entry to the host country Monitoring and support Entry back to the home country Reverse culture shock depends on preparation and support Exit from the home country Quality of preparation Entry to the host country Monitoring and support Entry back to the home country Reverse culture shock depends on preparation and support Copyright ©2014 Pearson Education, Inc.

Expatriates: “Handle with Care”? Expatriates are highly marketable and receive more attractive offers from other employers. Overseas compensation packages are more generous than those at home. Expatriates feel unappreciated at home and on assignment Copyright ©2014 Pearson Education, Inc.

The Role of Repatriation in Developing a Global Cadre Successful expatriates acquire skills: Managerial skills Tolerance for ambiguity Multiple perspectives Ability to work with and manage others Leading companies Booz, Allen, Hamilton’s KOL intranet Best practices: Focus on knowledge creation/leadership development Use assignees with high technical and cross-cultural skills Have a deliberate repatriation process Copyright ©2014 Pearson Education, Inc.

10-18 Knowledge Acquired Retention of manager in firm Manager’s willingness to share Variables Influencing Success of Knowledge Transfer from Repatriated Manager

Firm value placed on knowledge transferOrganizational knowledge transfer process Level of integration of knowledge/repatriated manager  knowledge management/Org value added Copyright ©2014 Pearson Education, Inc Variables Influencing Success of Knowledge Transfer from Repatriated Manager

Copyright ©2014 Pearson Education, Inc Under the Lens: Expatriates’ Careers Add to Knowledge Casio Calil returned to Sao Paulo to head up JP Morgan Asset Management Expats returning to Libya after Gaddafi hoping business would improve “Fly-jins” in Japan after disasters in 2011 Casio Calil returned to Sao Paulo to head up JP Morgan Asset Management Expats returning to Libya after Gaddafi hoping business would improve “Fly-jins” in Japan after disasters in 2011

Copyright ©2014 Pearson Education, Inc Chapter Learning Goals Become familiar with the use of global management teams to coordinate cross-border business.

Copyright ©2014 Pearson Education, Inc Global Management Teams A collection of managers in or from several countries who must rely on group collaboration Whirlpool Int’l: US-Dutch JW with administrative HQ in Italy; management team = Swedish, Italian, Dutch, American, Belgian, German Teams must provide the means to communicate corporate culture, develop a global perspective, coordinate and integrate the global enterprise, and be responsive to local market needs A collection of managers in or from several countries who must rely on group collaboration Whirlpool Int’l: US-Dutch JW with administrative HQ in Italy; management team = Swedish, Italian, Dutch, American, Belgian, German Teams must provide the means to communicate corporate culture, develop a global perspective, coordinate and integrate the global enterprise, and be responsive to local market needs

Operational Challenges for Global Virtual Teams Geographic dispersal: the complexity of scheduling communications across multiple time zones, holidays, and so on Cultural differences: variations in attitudes and expectations Language and communication: translation difficulties, variations in accents, semantics, and so on Technology: variations in availability, speed, acceptability, and so on Virtual Teams’ Challenges Copyright ©2014 Pearson Education, Inc.

Virtual Teams’ Future Needs How to lead a virtual team meeting How to coach and mentor virtually How to monitor team progress How to use communication technologies How to manage team boundaries How to lead a virtual team meeting How to coach and mentor virtually How to monitor team progress How to use communication technologies How to manage team boundaries Copyright ©2014 Pearson Education, Inc.

Managing Transnational Teams Tasks for Global Business Teams Cultivating trust among members Overcoming communication barriers Aligning goals of individual team members Obtaining clarity regarding team objectives Ensuring that the team possesses necessary knowledge and skills Copyright ©2014 Pearson Education, Inc.

10-26 Managing Transnational Teams Advantages: Greater opportunity for global competition Opportunities for cross cultural understanding Exposure to different view points Disadvantages: Problems resulting from differences in languages Complex decision making processes Personality conflicts Advantages: Greater opportunity for global competition Opportunities for cross cultural understanding Exposure to different view points Disadvantages: Problems resulting from differences in languages Complex decision making processes Personality conflicts

Management Techniques to Deal with the Cross-Cultural Collaboration Challenges Draw upon individual tolerance and self-control Trial-and-error processes coupled with personal relationships Setting up transnational cultures Copyright ©2014 Pearson Education, Inc.

10-28 Chapter Learning Goals Recognize the varying roles of women around the world in international management.

Management Focus: The Role of Women in International Management Indra Nooyi—CEO, Pepsi Soha Nashaat Head of Barclays Bank, Middle East Indra Nooyi—CEO, Pepsi Soha Nashaat Head of Barclays Bank, Middle East Copyright ©2014 Pearson Education, Inc.

Management Focus: The Role of Women in International Management Women are increasingly making their way into the international management cadre. Different opportunities for women may reflect the cultural expectations of the host countries. In Spain and Italy, top boardrooms remain almost exclusively male. Women occupy 32 percent of board seats in Norway and 27 percent in Sweden Copyright ©2014 Pearson Education, Inc.

Management Focus: The Role of Women in International Management North American women working as expatriate managers in countries around the world showed that they are—for most part—successful. Women and minorities represent a significant resource for overseas assignments—whether as expatriates or as host- country nationals Copyright ©2014 Pearson Education, Inc.

The Role of Women in International Management: Japan Opportunities for women are tied to cultural values and expectations regarding the role of women Working married women = loss of face for husband – women were only allowed clerical positions Only 9% of Japanese women are in managerial positions “Japan has gone as far as it can go with a social model that consists of men filling all of the economic management and political roles” Opportunities for women are tied to cultural values and expectations regarding the role of women Working married women = loss of face for husband – women were only allowed clerical positions Only 9% of Japanese women are in managerial positions “Japan has gone as far as it can go with a social model that consists of men filling all of the economic management and political roles” Copyright ©2014 Pearson Education, Inc.

10-33 Chapter Learning Goals Understand the variations in host- country labor relations systems and the impact on the manager’s job and effectiveness.

Working Within Local Labor Relations Systems The Impact of Unions on Business Organized Labor Around the World Convergence Versus Divergence in Labor Systems Adapting to Local Industrial Relations systems The NAFTA and Labor Relations in Mexico Copyright ©2014 Pearson Education, Inc.

The Impact of Unions on Business Labor Relations and Collective Bargaining The process through which managers and workers determine their workplace relationship Three Dimensions to Consider The participation of labor in firm affairs The role and impact of unions Human resource policies Labor Relations Constraints Wage levels set by unions Limits on the firm’s ability to vary employment levels Limitations on the global integration of operations Copyright ©2014 Pearson Education, Inc.

Organized Labor Around the world Union membership is in decline in the U.S. Industrial, craft, conglomerate, and general unions Labor unions must be understood within their given contextual environment Copyright ©2014 Pearson Education, Inc.

10-37 Under the Lens: Vietnam the union role in achieving manufacturing sustainability and global competitiveness The U.S. is Vietnam’s seventh largest FDI country From 1986: doi moi; 2000: stock market established; member of ASEAN, AFTA and WTO; trade relations with U.S. normalized in 2006 Footwear and apparel manufacturing are offshored operations from Taiwan and South Korea The U.S. is Vietnam’s seventh largest FDI country From 1986: doi moi; 2000: stock market established; member of ASEAN, AFTA and WTO; trade relations with U.S. normalized in 2006 Footwear and apparel manufacturing are offshored operations from Taiwan and South Korea

Copyright ©2014 Pearson Education, Inc Under the Lens: Vietnam the union role in achieving manufacturing sustainability and global competitiveness 10,000 workers in some buildings, but grounds, infrastructure, cleanliness similar to western parks Wages remain low; 20 day holiday Satisfactory living arrangement, not inhumane or depressing Better Work Vietnam 10,000 workers in some buildings, but grounds, infrastructure, cleanliness similar to western parks Wages remain low; 20 day holiday Satisfactory living arrangement, not inhumane or depressing Better Work Vietnam

Labor Systems Convergence in Labor systems Divergence in Labor systems Copyright ©2014 Pearson Education, Inc Forces for convergence: Global competiveness Political change New market economies Free trade zones Forces for convergence: Global competiveness Political change New market economies Free trade zones Competition for jobs Collective bargaining methods The role of political ideology, overall social structure, and history of industrial practices Competition for jobs Collective bargaining methods The role of political ideology, overall social structure, and history of industrial practices

Adapting to Local Industrial Relations Systems Considerable pressure for MNCs to adapt their practices largely to the traditions of national industrial relations systems MNCs are subject to local and country regulations and practices. Considerable gap exists between the labor laws and the enforcement of those laws— in particular in less developed countries Copyright ©2014 Pearson Education, Inc.

NAFTA and Labor Relations in Mexico Labor issues subject to review under NAFTA: Hiring Mexican nationals for 90% of workforce Workers believe MNCs use blacklists, intimidation, and economic pressure to oppose union organization. Mexico’s digardis are working with MNCs to undermine workers rights? Copyright ©2014 Pearson Education, Inc.

Comparative Management in Focus: Labor Relations in Germany Copyright ©2014 Pearson Education, Inc Codetermination law (mitbestimmung) is coming under pressure. Union works councils are “co-managers”. German unions are increasingly willing to make concessions. Termination costs are very high Codetermination law (mitbestimmung) is coming under pressure. Union works councils are “co-managers”. German unions are increasingly willing to make concessions. Termination costs are very high The German model holds that competition should not be based on cost. Conflicting opinions over the value of codetermination The German model holds that competition should not be based on cost. Conflicting opinions over the value of codetermination

Copyright ©2014 Pearson Education, Inc Conclusions Ex-pat career management necessitates plans for retention during/after assignments Ex-pat’s spouse plays a crucial role Global management teams offer greater opportunities for competition Virtual global teams enable cost effective rapid knowledge sharing and collaboration Women represent an underutilized resource Labor relations environment, system processes vary around the world Ex-pat career management necessitates plans for retention during/after assignments Ex-pat’s spouse plays a crucial role Global management teams offer greater opportunities for competition Virtual global teams enable cost effective rapid knowledge sharing and collaboration Women represent an underutilized resource Labor relations environment, system processes vary around the world

44 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2014 Pearson Education, Inc. Copyright © 2014 Pearson Education, Inc.