1. CHAPTER 14: INTERNATIONAL/ GLOBAL HUMAN RESOURCE MANAGEMENT
Copyright © 2005 South-Western. All rights reserved. footer

2. International Imperative
Why organizations expand internationally
To capture enhanced market opportunities that foreign countries may present
To achieve economies of scale in production and administration by expanding scope and volume of operations to international markets
Keeping up with industry leaders may require organization to enter foreign markets
Acquiring ownership of foreign-based organization or subsidiary
Copyright © 2005 South-Western. All rights reserved.

3. How International & Domestic HRM Differ
International HRM requires
Managing broader range of functional areas
Becoming more involved in employees’ personal lives
Setting up several different HRM systems for different geographic locations
Dealing with more complex external constituencies
Participating in international assignments that have heightened exposure to personal risk
Copyright © 2005 South-Western. All rights reserved.

4. International Expansion
Strategies for expanding internationally
Exporting locally produced goods to host country
Subcontracting or licensing production of certain goods or services to foreign partner
Entering into joint venture with foreign partner
Setting up operations (making a direct investment) in form of foreign branch or subsidiary
Copyright © 2005 South-Western. All rights reserved.

5. Assessing Culture: Hofstede’s Cultural Differences Dimensions
Individualism or collectivism
Individualistic societies value development of, and focus on individual
Collective societies value group relationships
Power distance
Extent to which society is hierarchical, and how power is distributed among its members
Uncertainty avoidance
Extent to which society feels comfortable with ambiguity, and values and encourages risk-taking
Quantity versus quality of life (masculinity/femininity)
Emphasis on assertiveness and achievement, as compared to interpersonal relationships
Copyright © 2005 South-Western. All rights reserved.

6. Exhibit 14-1 Assessing Culture
Copyright © 2005 South-Western. All rights reserved.

7. Hall’s Model of Cultural Differences
Time
Importance or sense of time in daily activities
Space (distance)
Amount of physical distance individuals attempt to maintain between themselves & others
Material goods
Emphasis or inferences on possession of goods to signify power, success and status
Friendships
Importance of friendships in conferring status
Agreements
Considers how agreements are reached
Copyright © 2005 South-Western. All rights reserved.

8. Strategic HR Issues in Global Assignments
Approaches to sending employees abroad
Administrative approach
Assisting employee destined for international assignment with paperwork and minor logistics
Tactical approach
Managing “risk or failure” factor of overseas assignment by providing paperwork assistance and modest amount of training
Strategic approach
Extensive support and coordination of international assignment, and strategized repatriation program at the end of the assignment
Copyright © 2005 South-Western. All rights reserved.

9. Strategic HR Issues in Global Assignments
Strategic management of global assignments
Establish specific purpose for assignment
Select appropriate employee for assignment
Organizational and individual purposes for assignment must be identified and matched
Assess adaptability to host culture of both employee and any family members who will be accompanying employee
Provide appropriate training for employee and family members
Simultaneous training should be conducted for headquarters staff
Copyright © 2005 South-Western. All rights reserved.

10. Exhibit 14-2 Strategic Issues
Copyright © 2005 South-Western. All rights reserved.

11. Exhibit 14-3 Strategic HR Issues
Copyright © 2005 South-Western. All rights reserved.

12. Determining Expatriate Compensation
Balance sheet method
Expatriate salary based on home country pay
Additional expenses associated with relocation and assignment
Hardship and incentives to determine overall reimbursement and compensation level
Higher-of-home-or-host method
Employee’s salary at home adjusted upward to account for higher cost of living (localization approach)
Salary converted to host country’s equivalent when employee is on permanent assignment
Copyright © 2005 South-Western. All rights reserved.

13. Four Approaches to IHRM
Make strategic decision as to level of standardization desired across locations
Ethnocentric approach
Exporting organization’s home country practices and policies to foreign locations
Polycentric approach
Allowing each location to develop own practices and policies
Regiocentric approach
Developing standardized practices and policies by geographic region
Geocentric approach
Developing one set of global practices and policies applied at all locations
Copyright © 2005 South-Western. All rights reserved.

14. Exhibit 14-4 Setting Strategic HR Standards
Copyright © 2005 South-Western. All rights reserved.

15. Exhibit 14-5 Repatriation
Copyright © 2005 South-Western. All rights reserved.

16. Reading 14.1 (Roberts et al.) Managing Global Workforce: Challenges and Strategies
Deployment in getting right skills to right place in organization, regardless of geographic location
Knowledge and innovation dissemination and transfer, where all business units concurrently receive and provide information
Talent identification and development of those employees with abilities and skills to function effectively in global organization
Copyright © 2005 South-Western. All rights reserved.

17. Reading 14.1 Managing Global Workforce: Challenges and Strategies
Strategies for managing global workforce
Develop aspatial careers for employees to provide rich contextual knowledge of environments and cultures. Provide specific awareness building assignments that develop cross-sensitivity in high potential employees in short time
Utilize expert SWAT teams deployed on short-term basis for operational problems technical projects
Adopt virtual solutions by using electronic communication technologies to connect local employees to distant problems
Copyright © 2005 South-Western. All rights reserved.

18. Reading 14.1 Diagnosing Challenges
Deployment challenge
Contact time required
Extent to which skills can be applied out of cultural context
Knowledge and innovation dissemination challenge
Choosing among four strategies depends on technical complexity of information to be shared, and extent to which it must be culturally embedded
Talent identification and development challenge
Organizations should select well, then develop
Copyright © 2005 South-Western. All rights reserved.

19. Reading 14.2 (Hallowell et al.) Four Seasons Goes to Paris
Model of corporate culture consists of four components
Underlying assumptions, such as subordinates should fulfill job requirements
Values
“Espoused values”
“Enacted values”
Copyright © 2005 South-Western. All rights reserved.

20. Reading 14.2 Four Seasons Goes to Paris
Employee perceptions of management practices – culture is what employees perceive management believes
Cultural artifacts
If espoused values are enacted, culture may emerge in which senior management and employees share similar service-relevant thoughts, feelings, and patterns of behavior
Potential to enhance customer value and contribute to competitive advantage
Flexibility versus consistency
Copyright © 2005 South-Western. All rights reserved.

21. Reading 14.3 (Sanchez et al.) Adapting to a Boundaryless World
90% of companies base international selections on technical expertise, downplaying other areas
Openness to profound personal transformation is most fundamental sign of expatriate readiness
Personality aspects that impede adaptation
Authoritarianism
Rigidity
Ethnocentrism
Clarification of expectancies beforehand
Copyright © 2005 South-Western. All rights reserved.

22. Reading 14.3 Adapting to a Boundaryless World
Need to provide on-going, hands-on training, rather than just pre-departure awareness training
Training is opportunity to provide social support
Executives should learn to view identification with host as compatible with identification with parent culture
Expatriates need to become aware of consequences that old repertoire of coping responses has in host culture
Copyright © 2005 South-Western. All rights reserved.

23. Reading 14.3 Adapting to a Boundaryless World
Employer should facilitate integration into a local or regional network of other expatriates
Delicate equilibrium among multiple stakeholders calls for skills similar to those possessed by political diplomats
Parent organization should not create additional role conflict for the expatriate with policies that are insensitive to cultural differences
Copyright © 2005 South-Western. All rights reserved.

24. Reading 14.3 Adapting to a Boundaryless World
Repatriation
Feeling that others do not share multicultural identification can create sense of isolation
Frequent loss of autonomy
Unrealistic expectations about being promoted upon return
Copyright © 2005 South-Western. All rights reserved.