Cross-Cultural Management 1 GLOBAL HUMAN RESOURCES

Cross-Cultural Management 2 Global Staffing Pressures –Candidate selections –Assignment terms –Relocation –Immigration –Culture and language –Compensation –Tax administration –Handling spouse and dependent matters

Cross-Cultural Management 3 Sources of Human Resources Host-Country Nationals –Local managers who are hired by the MNC –Used in middle- and lower-level management positions –Nativization Requirement of host-country government that mandates employment of host-country nationals

Cross-Cultural Management 4 Sources of Human Resources Third-Country Nationals (TCNs) –Citizens of countries other than the one in which the MNC is headquartered or the one in which the managers are assigned to work by the MNC

Cross-Cultural Management 5 Failure Rates of International Assignments International assignment failure can cost hundreds of thousands of euros

Cross-Cultural Management 6 Why International Assignments Fail Personality Person ’ s intentions Family pressures Lack of cultural skills Other non-work conditions like living and housing conditions, and health care

Cross-Cultural Management 7 Improving Failure Rates/Solutions Provide realistic previews Have a careful screening process Improve orientation Provide good benefits Test employees fairly Shorten assignment length

Cross-Cultural Management 8 Selecting International Managers Test for traits that predict success in adapting to new environments Job knowledge and motivation Relational skills Flexibility and adaptability Extra-cultural openness Family situation Predictive trait breakdown

Cross-Cultural Management 9 The New Workplace: Sending Women Abroad In the US, only 6% filled overseas positions compared to 49% domestic One survey found inaccurate stereotypes: –Not as internationally mobile –Might have a tougher time building teams

Cross-Cultural Management 10 Culture Shock!  Disorientation upon entering a new cultural environment Normal use of own cultural filter fails –interpretation of perceptions –communication of intentions All people experience culture shock... Past experience and training can shorten its length

Cross-Cultural Management 11 Symptoms –homesickness –boredom –withdrawal (reading is an obsession, focus on home nationals, avoid host nationals) –excessive sleep need, compulsive eating and drinking –irritability –exaggerated cleanliness

Cross-Cultural Management 12 Symptoms (cont.) –marital stress, family tension, conflict –stereotyping host nationals –hostility towards host nationals –loss of ability to work effectively –fits of weeping –psychosomatic illnesses

Cross-Cultural Management 13 Repatriation of Expatriates Repatriation –Return to one ’ s home country from an overseas management assignment Reasons for returning –Formally agreed-on tour of duty is over –Expats want their children educated in the home country –Unhappiness with foreign assignment –Failure to perform well Readjustment problems –Permanent position upon return constitutes a demotion –Lack opportunity to use skills learned abroad upon return –Salary and benefits may decrease upon return

Cross-Cultural Management 14 Repatriation Problems Finding former colleagues promoted Reverse culture shock