1. (c) 2007 by Prentice Hall17-1 International International HRM Challenge HRM Challenge Chapter 17

2. (c) 2007 by Prentice Hall17-2 Specify the HRM strategies that are most appropriate for firms at different stages of internationalizationSpecify the HRM strategies that are most appropriate for firms at different stages of internationalization Identify the best mix of host-country and expatriate employees given the conditions facing the firmIdentify the best mix of host-country and expatriate employees given the conditions facing the firm Explain why international assignments often fail and the steps a firm can take to ensure success in this areaExplain why international assignments often fail and the steps a firm can take to ensure success in this area Chapter 17 Overview

3. (c) 2007 by Prentice Hall17-3 Understand reintegrating returning employees into the firm after they have completed an international assignmentUnderstand reintegrating returning employees into the firm after they have completed an international assignment Develop HRM policies and procedures that match the needs and values of different culturesDevelop HRM policies and procedures that match the needs and values of different cultures Consider ethical implications of HRM policies and procedures on a global basisConsider ethical implications of HRM policies and procedures on a global basis Chapter 17 Overview (cont’d)

4. (c) 2007 by Prentice Hall17-4 The Stages of International Involvement

5. (c) 2007 by Prentice Hall17-5 Expatriate – A citizen of one country living and working in another country.Expatriate – A citizen of one country living and working in another country. Multinational corporation (MNC) – A firm with assembly and production facilities in several countries and regions of the world.Multinational corporation (MNC) – A firm with assembly and production facilities in several countries and regions of the world. Transnational corporation – A firm with operations in many countries and highly decentralized operations. The firm owes little allegiance to its country of origin and has weak ties to any given country.Transnational corporation – A firm with operations in many countries and highly decentralized operations. The firm owes little allegiance to its country of origin and has weak ties to any given country. The Stages of International Involvement

6. (c) 2007 by Prentice Hall17-6 Wholly owned subsidiaryWholly owned subsidiary Joint ventureJoint venture Ethnocentric approachEthnocentric approach Polycentric approachPolycentric approach Geocentric approachGeocentric approach Determining the Mix of Host-Country and Expatriate Employees

7. (c) 2007 by Prentice Hall17-7 Sufficient local talent is not availableSufficient local talent is not available An important part of the firm’s overall business strategy is the creation of a corporatewide global visionAn important part of the firm’s overall business strategy is the creation of a corporatewide global vision International units and domestic operations are highly interdependentInternational units and domestic operations are highly interdependent The political situation is unstableThe political situation is unstable There are significant cultural differences between the host country and the home countryThere are significant cultural differences between the host country and the home country Determining the Mix of Host-Country and Expatriate Employees

8. (c) 2007 by Prentice Hall17-8 Why International Assignments End in Failure Career blockageCareer blockage Culture shockCulture shock Lack of pre-departure cross-culture trainingLack of pre-departure cross-culture training Overemphasis on technical qualificationsOveremphasis on technical qualifications Getting rid of a troublesome employeeGetting rid of a troublesome employee Family problemsFamily problems The Challenges of Expatriate Assignments

9. (c) 2007 by Prentice Hall17-9 The Challenges of Expatriate Assignments Difficulties on Return Lack of respect of acquired skillsLack of respect of acquired skills Loss of statusLoss of status Poor planning for return positionPoor planning for return position Reverse culture shockReverse culture shock

10. (c) 2007 by Prentice Hall17-10 Selection Emphasize cultural sensitivity as a selection criterionEmphasize cultural sensitivity as a selection criterion Establish a selection board of expatriatesEstablish a selection board of expatriates Require previous international experienceRequire previous international experience Explore the possibility of hiring foreign- born employees who can serve as “expatriates” at a future dateExplore the possibility of hiring foreign- born employees who can serve as “expatriates” at a future date Screen candidates’ spouses and familiesScreen candidates’ spouses and families Effectively Managing Expatriate Assignments with HRM Policies and Practices

11. (c) 2007 by Prentice Hall17-11 Training

12. (c) 2007 by Prentice Hall17-12 Career Development Position the international assignment as a step toward advancement within the firmPosition the international assignment as a step toward advancement within the firm Provide support for expatriatesProvide support for expatriates Provide career support for spouseProvide career support for spouse

13. (c) 2007 by Prentice Hall17-13 Compensation Provide the expatriate with a disposable income that is equivalent to what he or she would receive at homeProvide the expatriate with a disposable income that is equivalent to what he or she would receive at home Provide an explicit “add- on” incentive for accepting an international assignmentProvide an explicit “add- on” incentive for accepting an international assignment Avoid having expatriates fill the same jobs held by locals or lower-ranking jobsAvoid having expatriates fill the same jobs held by locals or lower-ranking jobs

14. (c) 2007 by Prentice Hall17-14 Effectively Managing Expatriate Assignments with HRM Policies and Practices Role of HR DepartmentRole of HR Department Women and International AssignmentsWomen and International Assignments

15. (c) 2007 by Prentice Hall17-15 National Culture, Organizational Characteristics, and HRM Practices 1.Power distance 2.Individualism 3.Uncertainty avoidance 4.Masculinity/femininity 5.Long-term/short-term orientation Developing HRM Policies in a Global Context

16. (c) 2007 by Prentice Hall17-16 EEO in the International ContextEEO in the International Context Important CaveatsImportant Caveats “National culture” may be an elusive concept“National culture” may be an elusive concept Corporate headquarters sometimes blame international personnel problems on cultural factors without careful studyCorporate headquarters sometimes blame international personnel problems on cultural factors without careful study Hard data on the success and failure of different HRM practices as a function of national culture are practically nonexistentHard data on the success and failure of different HRM practices as a function of national culture are practically nonexistent Different cultures often have very different notions of right and wrongDifferent cultures often have very different notions of right and wrong The business laws of other countries often force companies to change their practicesThe business laws of other countries often force companies to change their practices Developing HRM Policies in a Global Context

17. (c) 2007 by Prentice Hall17-17 Key impediments to exporting: Lack of knowledge of international markets, business practices, and competitionLack of knowledge of international markets, business practices, and competition Lack of management commitment to generating international salesLack of management commitment to generating international sales Human Resource Management and Exporting Firms

18. (c) 2007 by Prentice Hall17-18 The stages of international involvementThe stages of international involvement Determining the mix of host-country and expatriate employeesDetermining the mix of host-country and expatriate employees The challenges of expatriate assignmentsThe challenges of expatriate assignments Developing HRM policies in a global contextDeveloping HRM policies in a global context Human resource management and exporting firmsHuman resource management and exporting firms Summary and Conclusions