GPHR Certification Exam

Rotational Assignment

A temporary transfer across national borders that requires the assignee to work for a designated number of consecutive days in the host country , followed by a designated number of consecutive days leave (taken in the home country, host country, or another 'leave location').

Unaccompanied Assignment

A temporary transfer across national borders where the employee's immediate family remains in the home country. These types of assignment often provide for additional trips to and from the home and host countries for the separated family members. Host location assignment benefits are normally based on those of a single person. Usually, a short-term assignment is unaccompanied.

Interregional Assignment

A temporary transfer across national borders where the home and host countries are both within a defined regional area (e.g., Western Europe)

Long-term (Standard) Assignment

A temporary transfer across national borders, normally lasting between one and five years, though often extended.

International Assignment

A temporary transfer across national borders, normally lasting more than three months.

Centralization

A term applied to organizations where essential decision-making and policy formulation is done at one location (for example, headquarters).

Short-term Assignment

A term employed by companies to describe assignments, which last over three months but less than a year. Sometimes known as 'extended business trips' or 'expatriate assignments.'

White Goods

A term that includes most household merchandise such as bed sheets and curtains and/or large household appliances such as ovens and refrigerators.

Cost of Living Allowance

An allowance or withholding to cover the differential in day-to-day living costs between the home and host countries. The allowance is calculated by applying a cost of living index to the spendable income.

Start-up/Pioneer Premium

An allowance paid to an expatriate to set up a company in a country in which their organization has had no established operations.

Flexible Benefits

An alternative approach to the traditional provision of expatriate allowances and benefits. A value is assigned to the usual expatriate benefits, such as accommodation and children's education, but the expatriate may spend this 'allowance' as he/she wishes.

Transfer of Knowledge

Knowledge developed in one part of a company can benefit another part if it is shared, moved or transferred from the other part.

KSA

Knowledge, Skill, and Abilities

Succession Planning

Like replacement planning, but tends to be longer term, more developmental, and offers more flexibility.

Local-Country-National (LCN)

Local citizens hired by a local subsidiary or branch to work in that country of operation.

Utilization Analysis

Process of determining the number of women and minorities in different jobs within an organization to determine whether suitable representation exists.

Hypothetical Tax

The approximate amount of tax, calculated on home country base salary and bonus, where applicable, that would have been paid by the expatriate if he had remained din the home country.

Host-Based Approach

The assignee is placed in a host country salary structure.

Headquarters-based Balance Sheet Approach

The assignee is placed into the headquarters compensation structure and receives allowances for differences in cost of living between the headquarters and host countries.

Higher of Home or Host

The assignee receives the higher of home-based balance sheet or host-based compensation package.

Home-based Balance Sheet Approach

The assignee remains in the home country compensation structure and receives allowances for differences in cost of living between the home and host countries.

Egocentrism

The assumption that your own culture is correct.

Decline Stage

The final stage of the business life cycle when profits and sales are falling. Usually, wages decline, training budgets are slashed, layoffs are common, freezes on hiring, and top employees seek other employment opportunities.

Growth Stage

The stage of the business-life cycle model, where the profits and sales of the firm are increasing at a rapid rate. Hiring is up. The ability to pay higher salaries is up. The ability to train more is up.

Global Environment

This encompasses local, national and multinational conditions.

Trait-based Criteria

This is a performance appraisal process that focuses on personal characteristics such as loyalty and dependability.

Balance Sheet Approach

This is an approach that retains the expatriate in the home-country salary structure and provides allowances to enable the expatriate to maintain a standard of living broadly similar to that enjoyed at home. Base salary is analyzed into four main expenditure categories - income taxes, housing, goods and services, and reserve (pension contributions, savings and investments).

Housing Offset/Norm/Notional Expense/Contribution

This is an approximation of typical home country housing costs that would normally be borne by employees of the same base salary and family size in the home location.

Non-immigrant Visas

Under specific circumstances, a visa will allow a non-US citizen to work in the US.

Tax Protection

Under this system, the expatriate pays no more in income tax than if they had remained a home. The company meets the host tax bill in excess of the assumed home country liability. No hypothetical tax deductions are made, thereby allowing the expatriate to pocket the gain where the host country tax liability is lower than the home country assumed liability.

Equalization

A pay philosophy intended to ensure that an expatriate on a foreign assignment of limited duration, typically 2 to 4 years, will not be better or worse off in terms of income merely because of differences in costs between his or her home country and assignment location.

Relocation/Disturbance/Miscellaneous Expense/Settling in Allowance

A payment made to cover the costs of settling into a residence overseas, often a lump sum based on a company's past experience in the location or an arbitrary amount, such as one month's salary.

Foreign Service Premium (or Mobility Premium)

A payment over and above base salary made to an expatriate for undertaking a foreign assignment. This is paid on an ongoing basis (usually monthly) and is usually tax free to the expatriate (i.e., the company pays any income tax on the premium).

Furnishings/Appliance Allowance

A payment to an assignee to purchase or rent certain household furniture, white goods, etc., for their host-country accommodation, if such items are either absent or of unacceptable quality in the host country.

Hardship Allowance

A payment, usually calculated as a percentage of base pay, given to recognize that an assignment involves a harsh environment, isolation, political unrest, or special health problems and/or undesirable cultural, social, physical or other condition.

Rest and Recreation (R&R) Leave

A period of leave, usually in addition to the normal vacation entitlement, given to employees posted to certain locations which are considered 'challenging' enough to require brief periods away from the assignment location.

Home Leave

A period of vacation granted an expatriate to return to the home country in order to renew social, professional, corporate and family contacts.

Judgmental Forecast

A personnel planning forecasting technique that relies on the personal judgments of selected experts.

Regional Policy

A policy which is specific to assignments within a particular region.

Egalitarianism

A political doctrine that holds that all people should be treated as equals and have the same political, economic, social, and civil rights.

International Cadre/Career Expatriate Premium

A premium paid to international cadre/career expatriates as an incentive to remain mobile.

Quality of Working Life (QWL)

A process by which all members of the organization through appropriate channels of communication set up for this purpose, have some say about the design of their jobs in particular and the work environment. These measures are designed to enhance employee engagement and improve employee satisfaction between their work and personal lives.

Mentoring

A process in which one individual provides advice and guidance for career development to another individual, often the junior of the two people.

Development/Training Assignment

A temporary transfer across national borders that is primarily aimed at providing the employee with skills and experience judged necessary to progress within the organization. These types of assignments usually provide limited ongoing assignment-related benefits.

M-2 Visa

Visa for the dependents of vocational students.

V-1 Visa

Visa for the spouses of lawful permanent residents traveling to the US to reside here while they wait for the final completion of their immigration process.

H-3 Visa

Visa for trainees other than medical or academic

E-2 Visa

Visa for treaty investors.

E-1 Visa

Visa for treaty traders.

M-1 Visa

Visa for vocational students (non-academic).

SWOT/SWOT Analysis

The analysis of this combination of factors - strengths, weaknesses, opportunities and threats.

Principle 2: Top Management Commitment

Always seek and obtain top management support prior to launching any new proposal.

Completion Bonus

A bonus/lump sum given after the successful completion of an assignment to an expatriate. The objective is to provide incentive for the expatriate to continue with the assignment until its completion.

Bilingual Differential

A cash differential that is paid in addition to base salary for language skills that are required in a job. The differential provides a constant reminder to the employee that he or she is compensated for this ability in addition to performance of the job.

Career Mentor/Sponsor

A colleague, usually based in the home country, who is responsible for maintaining contact with the expatriate and actively helping to plan/manage the expatriate's career whilst on assignment.

Domestic Corporation

A company located in and doing business in the state/country in which it was incorporated.

Temporary/Long-term Assignments

A company specific definition for an assignment duration, with the expectation that the expatriate will return at the end of the assignment. This type of assignment usually lasts longer than 12 months.

Alien Corporation

A company that is incorporated under the laws of another country.

Paired Comparison Method

A comparative approach in which the superior compares each subordinate with every other subordinate in order to evaluate the subordinate's performance.

Foreign Corporation

A corporation, which was incorporated under the laws of a foreign country, also called an alien corporation. Also, a corporation doing business in a state other than the one in which it is incorporated, also called an out-of-state corporation.

Customized Cost of Living Index

A cost of living index that has had specific items or groups of items included or excluded (e.g., utilities, electrical goods, etc.) in order to suit the needs of the company policy or expatriate.

Works Councils

A council representing employer and employees of a plant or business to discuss working conditions and other matters of interest to both parties. May also be a committee representing the workers elected to negotiate with management about grievances and wages, etc. Most commonly found in the European Union.

Quasi-experimental Design

A design of moderate rigor to assess the impact of a training program.

Job Specification

A detailed statement of the skills, knowledge, and abilities required of a person doing a given job.

Residence Permit

A documented form of official approval for a foreign national to live in the host country for a defined period of time. In some cases, a foreign national must obtain a Residence Permit before they are able to conduct day-to-day matters, such as leasing property or opening a bank account. This is generally issued after a foreign national has been approved for a visa and work permit, and following their initial entry to a country.

Tax

A fee charged ('levied') by a government on a product, income, or activity. If tax is levied directly on a personal or corporate income, then it is a direct tax. If a tax is levied on the price of goods or services, then it is called an indirect tax.

Per-diem

A fixed cash payment to an employee to cover certain living expenses, usually meals, hotel, and incidental expense, expressed as a daily rate.

Work Permit

A form of official approval for a foreign national to perform work related activity for a specified period of time.

Cross-cultural Training

A formal educational program designed to enhance expatriation success by improving expatriates' understanding of and level of comfort with the differences in culture, living conditions, and business environment in a foreign location. Education in the customs, practices, languages, etc., of the host country for the assignee and/or family to familiarize them with the new environment in which they will live.

Assignment-Related Benefits

A general term covering all elements of remuneration provided in connection with a temporary transfer across national borders.

Expatriate Ghetto

A geographical concentration of residents, businesses and community institutions of a single expatriate group or country located in a foreign culture. These areas may help some assignees acclimate and adjust to the new assignment by giving them a comfortable area of known culture, language, social customs, food and people to retreat to when the local culture becomes overwhelming for a short time but are not healthy long-term.

Globalist

A globalist is a truly international employee, usually very senior in grade, who is expected to work in, and adapt to, any country. The remuneration package is driven more by the seniority of the position rather than the home and host country conditions of employment.

Principle 6: Communication

A great communications program drives business results; keeping people engaged and empowered starts with keeping them informed.

US Permanent Resident Alien Status

A green card holder who is considered such. They are entitled to all the rights, privileges and obligations of an American citizen except the right to vote.

European Union (EU or EEU)

A group of European countries that have chosen to integrate many of their economic activities, including forming a customs union and harmonizing many of their rules and regulations.

Virtual Work Team

A group of workers who meet and accomplishes its tasks without everyone being physically present in the same place or even at the same time.

Local Market Rate

A host country approach that pays according to local market practice. The expatriate may be slotted into the salary structure of the foreign subsidiary and paid as if they were local. Often, expatriate premiums and some benefits (e.g., housing assistance) are paid in addition to the local salary.

Tax Gross Up

A mathematical calculation to determine the final obligation to the taxing authorities when the company pays a tax liability on behalf of the assignee. Generally, the employee is responsible for paying the hypothetical tax amount while the organization 'grosses up' or pays the remainder of the tax obligation.

Sensitivity Training

A method of training and development conducted in a group setting that aims to give individuals insight into how and why they and others feel and act the way they do.

Delphi Technique

A number of experts take turns at presenting a forecast statement. As the process continues, the forecast is subject to other members' revisions until a vial forecast emerges that is a blended version of the various experts' opinions.

Family Size

A number that includes the assignee and any dependents who accompany the assignee to the host country.

Lump Sum

A one-time payment of at least two ore more international assignment-related allowances or expenses, combined to replace separate or itemized payments.

Permanent Assignment/Transfer

A one-way transfer across national borders. The employee terminate their contract of employment with their home company, and transfers to the host company's terms and conditions on a permanent basis.

Socialization

A process of bringing an individual into an organization and of transmitting norms, values and skills to that individual. The general process of acquiring culture as one grows up in a society. During socialization, workers learn the language and acceptable practices of the culture as well as the roles they are to play in the culture. They also learn and usually adopt their culture's norms through the attendant process.

Exchange Rate Reconciliation

A process whereby the employer, when paying expatriates only in home-country or host-country currency, reviews the assignees' local exchange rate transactions, on a regularly schedule basis, and makes adjustments as necessary so that the assignees' pay is not adversely affected by currency fluctuations.

Cost of Living Index

A ratio of costs of goods and services in the home country compared with the host country (generally provided by outside vendors) used in calculating the cost of living allowance. It incorporates differences among nationalities with regard to spending and purchasing patterns.

Reversible/International Standard Index

A ratio of costs of goods and services in the home country compared with the host country that does not incorporate the assumption that different nationalities will spend differently.

Skills Inventories

A record or file of the skills possessed by the workforce.

Strategy

A set of integrated and coordinated commitments and actions intended to achieve a stated goal. the direction and scope of an organization over the long term, which matches its resources to its changing environment, an din particular to its markets, customers or clients, so as to meet stakeholder expectations.

Culture

A shared system of symbols, beliefs, attitudes, values, expectations, and norms of behavior. Members of a group or society share a distinct way of life with common values, attitudes, and behaviors that are transmitted over time in a gradual, yet dynamic process. Examples: corporate or country.

Dual Career

A situation where both the prospective assignee and his/her spouse/partner are fully employed professionals, often forcing the couple to choose between the assignment opportunity and the spouse's/partner's job.

Offshore Pension Plan

A special pension plan for expatriates or certain types of employees.

Immigration Prevailing Wage Rates

A special set of definitions exist for determining the competitive rates of pay that should be paid to immigrants who hold temporary work permits in the United States. These rules are spelled out in General Administrative Letter 2-98.

Global Integration

A strategy that standardizes one set of values and culture for the whole global corporation.

Nominal Group Technique

A structured group process where several individuals list and identify their ideas. All ideas are considered by all members and action is decided upon after a structured evaluation is completed.

Tax Equalization

A tax reimbursement system intended to ensure the expatriate neither gains nor loses, with regard to income tax, from undertaking an expatriate assignment. A hypothetical tax amount is deducted and the company then meets any additional host country tax liability on the entire package.

Didactic

A teaching method that follows a consistent scientific approach or educational style to engage the student's mind. Also, it can be a form of instructing or advising whether the recipient wants to hear the message.

Indefinite Assignment

A temporary transfer across national borders that does not have an anticipated end date, but which is still intended as a temporary (rather than permanent) assignment.

Project-contract Specific Assignment

A temporary transfer across national borders that is on the completion of one specific task or deliverable. The relative generosity of assignment benefits is often dependent upon the financial terms of the contract or project budget.

Programmed Instruction

A training model that employs a systematic and stepwise presentation of skills and tasks broken down into 'phases' where each 'phase' must be successfully completed before going into the next. feedback concerning the correctness of response for each 'phase' is provided immediately and allows individuals to pace themselves.

Pre-assignment Visit/Trip

A trip to the host country for the assignee (and possibly other accompanying family members) prior tot he start of the assignment, to make certain arrangements and view the possible new surroundings.

Equal Purchaser Index (EPI)

A type of cost of living index, less generous than a 'Standard' index, used to calculate a cost of living allowance. This index assumes that the expatriate will adjust their purchasing behavior in the host country by buying local product and brands, in place of name-brand and more expensive products with which they are familiar in their home country.

H-1B Visa

A visa designed for a foreign national who is or will be employed in a "specialty occupation." A specialty occupation is a rare resource (hard to find) position which requires 1) the theoretical and practical application of a body of highly specialized knowledge to fully perform the occupation, and 2) the completion of a baccalaureate degree or higher in that specific occupational specialty. It requires a Petitioner or Sponsor. The beneficiary or employee may only work for the specific Petitioner unless he/she has additional, independent work authorization or a concurrent Petitioner. Holders are also entitled have both "immigrant and non-immigrant intent," meaning that USCIS and the Department of State support their intent to be here either temporarily or permanently. There is a 6-year total time limit, however the initial time period request to USCIS cannot exceed three years.

Global Mindset

A way of thinking that combines an openness to and awareness of diversity across cultures and markets with a propensity and ability to synthesize across this diversity.

Vertical-loading

Adding duties to a job that are different from those already in the job and that require different skills, knowledge, and abilities.

Central Europe

Albania, Bosnia, Czech Republic, Croatia, Greece, Hungary, Macedonia, Poland, Serbia Montenegro, Slovakia, and Slovenia

Company/Employment/Organization - Source Income

All compensation paid to the assignee by his or her employer.

Spousal Income

All earning attributable to the assignee's spouse/partner.

Personal Income

All earning realized by the assignee (and spouse/dependent family members) from sources other than the assignee's employer.

Expatriate

Also known as an international assignee or international staff, this is an individual who has been assigned to a country other than his or her home base for an extended, non-permanent, period of time.

ADR

Alternative Dispute Resolution

Housing Differential

An amount equal to the difference between the costs of housing, usually including utilities, in the assignment location and in the home country.

Housing Benefit/Allowance

An amount paid by the company, either to the expatriate or direct to the property landlord, to enable the expatriate to rent or lease housing in the host country. Sometimes expressed as the total cost of foreign housing, or alternatively as the foreign housing cost net of a home country housing norm.

Global Firm

An an organization which has operations across geographies and where operations in on country affects or has strategic impact on the company or its operations in other areas.

Expatriate Market Rate

An approach that provides a remuneration package according to the prevailing market rate for expatriates in the host country. The package would typically include expatriate benefits such as housing assistance, leave passages, etc.

Maquiladoras

An assembly plant in Mexico, especially one along the border between the United States and Mexico, to which foreign materials and parts are shipped and from which the finished product is returned to the original market.

Assignee

An employee of the organization who leaves his or her original country of employment to work in another country for a temporary period of time, normally longer than 90 days.

Joint Venture

An entity formed between two or more parties to undertake economic activity together. The parties agree to create a new entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise. The venture can be for one specific project only, or a continuing business relationship. This is in contrast to a strategic alliance, which involves no equity stake by the participants, and is a much less rigid arrangement.

Transnational Structure

An essentially matrixed structure in a global environment.

Net-to-Net

An expatriate pay system where the base pay is typically reduced by a hypothetical home-country tax, with the 'net' salary paid to the expatriate. Home-country net pay is adjusted for any cost-of-living differences, then grossed up for local/state taxes and housing costs.

Mobility Premium

An incentive paid to encourage an employee to accept a foreign assignment, to transfer to another foreign country, or to return home. This incentive is similar to the Foreign Service premium, except that it is commonly paid in a lump sum at the time of transfer or repatriation instead of on an ongoing basis.

Social Security System

An income protection program provided by the federal government that provides retirement benefits, disability and unemployment insurance to qualified workers. Funding is provided by equal contributions from the employee and employer.

Parent Country National (PCN)

An individual working for a multinational corporation of the same nationality.

Host-Country-National (HCN)

An individual working in the foreign branch of a multinational corporation that is the home of the individual.

Big Mac Index

An informal way of measuring the purchasing power parity (PPP) between two currencies and provides a test of the extent to which market exchange rates result in goods costing the same in different countries. The test is the cost of a single Big Mac in one country versus the cost in another.

World Trade Organization (WTO)

An international organization which sets rules for the global trading system and resolves disputes between its member states. The WTO states that its aims are to increase international trade by promoting lower trade barriers and providing a platform for the negotiation of trade.

Strong Culture

An organization is said to have this when the more observable cultural elements project a single, consistent message.

Polycentrism

An organizational leadership model where the foreign subsidiaries of an MNE are staffed with either HQ nationals or local country nationals. While there is an openness towards the local culture, opinions and way of life, this openness is limited to the parent country or the local country. The workforce is usually made up of host country nationals.

Multinational Pooling

An underwriting approach where group insurance coverage from more than one country are combined for experience rating purposes and treated as if they were a single coverage. This is an important financial vehicle used by employee benefit managers and risk managers worldwide to reduce the escalating costs of insurance. It also helps to coordinate employee benefits plans within an organization.

Salary Cap

An upper limit or ceiling, usually expressed in terms of base salary, to be used in the determination of allowances, or a limitation of the maximum value of an allowance.

Reimburse Expenses Against Receipts

As an alternative to providing a per diem, an employee's living expenses while on assignment may be reimbursed through receipted expenses.

Accompanying Spouse/Partner

As determined by the assignee's home country organization's policies, a companion to the assignee who is included in the definition of family for purposes of international assignment benefts.

Brownout

Assignees who are ineffective while on assignment. These individuals neither return early nor try to adopt the native lifestyle. They cope with the assignment, counting the says until returning to their home. They usually perform to the bare minimum in their jobs and usually spend the majority of their off-duty time in their homes or some other safe haven.

Commuter Assignments

Assignment arrangements whereby an employee commutes from their home country to a place of work in another country, usually on a weekly or bi-weekly basis, while their family remains in the home country.

Destination Services

Assistance provided to the assignee and family upon arrival in the host country to help them settle into their new surroundings. Usually includes assistance in finding a residence, arranging schooling for the dependent children, and guidance regarding shopping, transportation, drivers' licenses, etc.

Refugee or Political Asylee

Asylum and/or Refugee Status may be granted to anyone outside of his or her own country of Nationality who is 'unable or unwilling to return because of persecution or a well-founded fear of persecution on account of race, religion, nationality, membership in a particular social group, or political opinion.' The most important difference between Refugee and Political Asylum is that the Refugee status application is done outside the applicant's home country as opposed to the Asylee who can apply while in the United States. Political Asylum allows you to stay and work in the US temporarily. There is no quota limit on the number of people who may obtain political asylum. However, there is an annual limit of 10,000 on the number of people who may obtain permanent residency based on political asylum. They may file for Permanent Residency after one year.

Eastern Europe

Belarus, Bulgaria, Cyprus, Estonia, Latvia, Lithuania, Moldova, Romania, Russia, Turkey, and Ukraine

Ethnocentrism

Belief in the superiority of one's own ethnic group and culture. Such companies usually judge their multinational holdings as inferior to their won particular ethnic group or culture, especially with concern to business decisions, language, behavior, customs, and religion.

Most Favored National Principle

Businesses operating in World Trade Organization (WTO) countries know that concessions offered to on WTO member country will automatically apply to all other WTO members.

TN Visa

Canadian or Mexican citizen who entered the US as a NAFTA professional. The status permits the individual to work in certain categories of professions.

Third Country National (TCN)

Citizens of one country who are employed by a company headquartered in a second country to work in a third country.

Born Global

Companies that conduct business globally from inception.

North American Free Trade Act/Agreement (NAFTA)

Creates a freed trade zone among the three member countries (US, Canada, and Mexico) by removing numerous trade barriers such as tariffs, quotas and licensing requirements. It was replaced by the more recent USMCA.

Visa

Describes the large sticker that the US consulate puts into a passport. The stamp will usually indicate the status the holder will have when they begin their stay in the United States. The stamp will also have an expiration date. The holder may stay in the US beyond the expiration date on the stamp. However, if they leave the US and and wish to return after the stamp has expired, then a new stamp must be obtained.

Assignment Letter

Describes the terms and conditions of an international assignment. An assignment letter usually stipulates the length of the assignment, components of the compensation package, vacation and home leave policies, reassignment, repatriation, and various other employment conditions.

North American Industry Classification System (NAICS)

Developed by the US, Canada, and Mexico to provide comparable statistics of industrial production across the three countries and replaces the Standard Industrial Classification (SIC) code. It also provides for increased comparability with the International Standard Industrial Classification system.

Regiocentric

Each regional area is self-determined and directed. Local regional workers make up the workforce and the leadership team. Regions may be as broad as Latin America, North America, etc. However, while parent-country nationals are commonly assigned to the regional host countries, not many regional workers are promoted to HQ.

Diversity Lottery

Each year, the US makes 55,000 permanent resident visas (green cards) available by random selection through the diversity visa lottery. Deadlines for applying are usually in the fall. Decisions usually come the following spring or summer, and green cards are available the following fall.

Extended Business Travel

Employee does not relocate but travels extensively ot the location of the assignment. It is commonly associate with short-term assignments.

Foreign Employees

Employees that are employed in a country other than that of their permanent residency.

Inpatriate

Employees, who are aliens, brought from another country to work at the HQ location. A foreign-national employee on assignment in the headquarters country.

I-9

Employment Eligibility Verification Form, to be completed for any person hired in the United States, including US citizens.

Assignee-Requested Assignment

Employment provided by the organization in another country at the request of the employee for a limited period of time that is solicited/initiated by the employee. This type of policy normally offers minimal benefits and is often used when the employee's spouse/partner is offered an assignment by his or her employer. Also known as an "accommodation assignment."

Global Succession Planning

Ensures that demonstrated talent, performance, and adaptability are the paths to top leadership. Proactive planning leaves the organization well prepared for expansion, the loss of key employees, or the filling of new and needed jobs through employee promotions from within.

EMEA

Europe, Middle East & Africa

J-1 Visa

Exchange visitor (may be in 'student' category, or may be in "professor, researcher, or scholar' category.

Transnational Management

Focuses on management's challenge associated with developing strategies, designing organizations and managing operations of companies whose activities stretch across national boundaries.

Stretch Goals

Goals or objectives that are deemed hard to attain and are attainable only with significant stretch beyond normal levels of effort.

Inner Directed

Guided in thought and behavior by one's own set of values rather than societal standards or norms. It is about thinking and personal judgment, 'in our heads.' It assumes that thinking is the most powerful tool and that carefully considered ideas and intuitive approaches are the best way.

Immigrant = Green Card Holder = Primary Resident = Resident Alien

Has all the rights and obligations of a citizen, except that of voting or carrying a U.S. Passport. Recent legislation limits eligibility for some public benefits. They may, after certain residence requirements, apply for citizenship.

Global Product Structure

Here the firm gains economies of scale through a more rationalized, centralized approach to decision-making.

Principle 5: Most Valuable Assets

Human capital (employee's collective talents, expertise and qualifications) is an organization's most valuable commodity, and should be extended every courtesy and empathy when transgressions arise. Human beings are a strategic advantage for organizations and significant investments of time, training, and money made in them.

Multidomestic vs. Global Firms

If a firm follows a Global strategy, it will have a centralized control with little decision-making authority left in the local level. Multidomestic firms may contain many subsidiaries which are often left on their own at the regional level in terms of governance structure and performance goals. A global firm has more unified performance goals.

Umbrella Pension Plan

If an arrangement made for the employee's occupational pension plan coverage are considered unsatisfactory, the employer may make a commitment regarding the level of benefits at retirement. The difference between the benefits from each pension plan to which the employee benefits at retirement. The difference between the benefits from each pension plan to which the employee has belonged and the amount promised by the employer is made up by the employer's umbrella plan.

Home Country Expenses

If the principal residence will remain empty while the expatriate is on assignment (either because the expatriate lives alone, or will be accompanied on assignment), he or she may incur expenses for items such as home repairs, gardening services, pool maintenance care and managing agent's fees. Families remaining n the home country may incur more expenses in running and maintaining a residence, which they may expect the company to meet.

Base Country (or Home Country)

In international compensation, this is the country upon which an expatriate's compensation is based. It is usually the expatriate's home country or the country in which the employee's headquarters is located.

Provident Fund

In many countries, it is a compulsory program that requires workers to contribute to a Social Security type system that provides benefits to the worker after retirement or to dependents in case of early death.

Multidomestic Firm

In multidomestic firms, the control is generally decentralized and the decision-making is done on a local level.

Functional Strategy

In organizations with strong, centralized functional departments, each department may develop a plan to support the business strategy.

Key Money

In some locations, these are payments made to a landlord as an inducement to assure a rental.

ADDIE Model

Instructional systems design (ISD) framework consisting of five steps that guide the design and development of learning programs. Analyze, Design, Develop, Implement, Evaluate

International Structure

Involves having a separate group in the company responsible for all the international activity.

International Human Resource Mangement

Managers facilitate the interaction between international business planning and strategic human resource decision-making. It must manage employees in a multinational context.

Qualitative Measures

Measures that are more subjective, less easy to quantify (although some attempts can be made to do so, for example, customer satisfaction is at 90%). These measures are concerned with the degree of success towards the absolute goal.

Global Labor markets

Potential job applicants in countries throughout the world.

Domestic Labor Markets

Potential job applicants in the local country only.

Laissez Faire Tax Approach

Noninvolvement of a company in the income tax obligations of its expatriate employees. The organization takes no stand and offers no assistance to the employee in tax matters, including the filing and payment of taxes.

International Joint Ventures (IJV)

One type of strategic alliance. Alliance partners form a joint venture when they create a separate legal organizational entity representing the partial holdings of two or more parent firms. The two (or more) organizations come together for a specific project and share the proceeds of that project but do not take ownership in each other's firms.

Principle 3: HR Alignment

Organizational effectiveness begins with the alignment of an organization's workforce and human resource capabilities with the business objectives. This includes coordinating all aspects related to employee talent and performance to the accomplishment of the strategic business plan.

Split Pay

Payment of an expatriate's estimated local living costs in local currency and the remainder in home-country currency.

3 P's

Performance, Productivity, and Profits

US Citizen

Person born or naturalized in the US who is entitled to carry a US passport. A permanent resident, or green-card holder, is not a US citizen, but an immigrant who still carries a passport from their home country. Immigrants may apply for citizenship after they have had a green card for 3 or 5 years. Permanent residents are not required to become US citizens, and many choose to retain their foreign citizenship.

Non-immigrant

Person in the US who is not a US citizen, who is authorized to stay for a limited time, and who is expected to leave the US upon completion of the approved stay period. They must meet certain reporting requirements, and there are restrictions on work and study. F-1 and J-1 students are considered such, and does not include permanent residents.

Xenocentrism

Preferring ideas, concepts, and objects from other cultures over ideas, concepts and objects from one's own culture. At the heart of it, it is an assumption that other cultures are superior to your own.

Outsource

Retaining the services of a vendor to perform a function that was previously performed within the organization. It typically involves having other companies perform a company's HR activities (and many other activities) instead of relying on in-house resources. Typical HR activities that are commonly given over to this practice include payroll and benefits.

Acquired Rights Directive

Safeguards the rights of European workers by ensuring that workers are entitled to continue working for the transferee employer on the same terms and conditions as those agreed with the transferor employer. Whenever a transfer is with the Directive, contracts of employment run with the undertaking; the transferee cannot take or acquire the business without the employees and must take those employees subject to existing employment rights and obligations. Further a transfer cannot constitute grounds for dismissal, whether carried out by the transferor or transferee, unless there is an economic, technical, or organizational reason entailing changes in the workforce.

US Department of State

Runs the J-1 Exchange visitor Program and all US Embassies and Consulates worldwide.

Multinational Corporations (MNE)

Service providers with offices in many countries, which enable them to serve a global market of clients and tap the labor arbitrage available by offshoring certain types of work. It operates in several countries of the world.

Property Management

Services of a vendor to maintain and/or rent the assignee's home country residence (usually restricted to the assignee's primary residence) during the assignment.

Area Differential

Several definitions: 1) Allowance paid to compensate expatriate employees for medium-term cultural and hardship factors present in his or her country of assignment as compared to the base country (this is also known as a hardship allowance). 2) Allowance paid to domestic employees in some geographic areas, which is based on different average pay levels and or cost of living.

Totalization Agreements

Social Security arrangements between countries intended to protect the Social Security benefits of employees who move between countries and ensure single country Social Security coverage for employees on assignment The US has agreements with several countries which eliminates the need to pay the foreign SS payment (often very high dollars). Only the US taxes the workers' payroll for Social Security contributions. Totalization treaties are designed to prevent double taxation on the worker and the organization.

Incentive/Mobility Premium

Sometimes known as a Foreign Service premium or expatriate premium, it is a payment made as an incentive to accept and complete a foreign assignment. Usually calculated as a percentage of base salary, it is intended to compensate for the cultural, personal and work adjustments necessary when undertaking a foreign assignment. Payment may be made either in lump sum(s) or as an ongoing payment throughout the assignment.

Quantitative Measures

Specific, objective indicators or indices that can be quantified.

B-1/B-2 Visa

Standard business visa notation in a passport. When a foreign visitor enters the US, the immigration official may mark the I-94 as B-1 (temporary visitor for business), B-2 (Tourist temporary visitor for pleasure), or B-1/B-2 at their discretion. This notation on the I-94 controls a visitor's status in the US regardless of what the visa stamp in the passport says.

Ascription

Status is attributed to you by things like birth, kinship, gender, age, interpersonal connections, or educational record.

Principle 1: Needs Analysis

Step back, slow down, and study the situation prior to committing company resources when a change is mandated.

F-1 Visa

Student visa.

L-1 Intracompany Transferee Visa

Such visas are not subject o annual quotas. Another advantage of an L-1 intracompany transferee visa is that it is easier for transferees to bring along family members. A very common document which employers utilize to bring its foreign employees to the United States.

DHS

The Department of Homeland Security is responsible to preserve and protect the freedom of America. It has broad powers that includes many formerly separate US agencies (INS, etc.) under one agency head. The USCIS is a sub-department to DHS.

Kaizen

The Japanese word meaning "continuous improvement."

International Labor Organization (ILO)

The UN specialized agency which seeks the promotion of social justice and internationally recognized human and labor rights. It was founded in 1919 and became the first specialized agency of the UN in 1946. It formulates international labor standards in the form of Conventions and Recommendations setting minimum standards of basic labor rights: freedom of association, the right to organize, collective bargaining, abolition of forced labor, equality of opportunity and treatment, and other standards regulating conditions across the entire spectrum of work related issues.

Intercultural Adaptability

The ability of an expatriate to adapt to, and cope with, the demands associated with living in a cultural environment significantly different to their own.

Cost of Living

The aggregate of goods and services prices that enables comparisons among locations.

Base Salary

The amount of pay, as determined by job level, excluding bonus and any other benefits paid in the home country. This is usually the basis for build or balance sheet calculations.

Tax Reimbursement Methodology

The compensation philosophy used to calculate the assignee's share of their worldwide tax burden (e.g., laissez-fair, tax equalization, or tax protection).

Globalization

The concept of a business wanting to do business on a global stage.

Australasia

The countries included in this region are Australia and New Zealand

Assignment Location

The country in which an expatriate lives and works during an assignment.

Headquarters Country

The country where the center of operations is located for a particular employer.

Validity

The degree to which a predictor or criterion measures what it purports to measure or demonstrates the job-relatedness of a test by showing how well an applicant will perform based on the test predictions.

Ethical Relativism

The doctrine that the moral rightness and wrongness of actions varies from society to society. This belief rejects formal fixed moral rules. What is acceptable in one society may not be in another. Often, the result is what is important, not the means of obtaining the result and the ethics used.

Localized Transfers

The employee is assignee a cross-border position with the idea they will become a permanent resident of the assignment location.

acculturation

The exchange of cultural features that results when groups come into continuous firsthand contact; the original cultural patterns of either or both groups may be altered, but the groups remain distinct.

Host Country Pension Plan

The existing pension plan in the host country for eligible employees.

Home Country Pension Plan

The existing pension scheme for eligible employees in their home country.

Home Country

The expatriate's normal country of employment. The location where the assignee worked prior to the international assignment, and to where it is intended he or shew will repatriate at the end of the assignment(s).

Principle 4: The Bottom Line

The goal or driving purpose of every action that HR takes should be to advance the business objectives and ensuring the profitability of the company.

North America

The northern landmass of the Americas that is made up of the countries of the United States of America, Canada and Mexico.

Geocentric

The organization is seen as one worldwide business. HQ employees can come from any location. This is the height of globalization.

International Assignment Policy

The organization's formal statement of the terms and conditions of the international assignment and its related compensation, benefits, prerequisites, and logistical and other assistance.

Principle 7: Employee Participation

The path to ingenuity, efficiency, productivity, motivation and commitment starts and ends with employee involvement.

Pre-assignment

The period of time after a candidate for assignment has been identified, but prior to his or her departure from the home country.

Temporary Living

The period of time between the assignee leaving permanent accommodation in the home country and moving into permanent accommodation in the host country.

Spendable Income

The portion of base salary that is typically spent on goods/commodities and services, i.e., day-to-day living. The amount may vary according to family size and salary level.

Home Country Housing Norm

The portion of the base salary typically spent in the home country on housing. The norm may vary depending on family status and salary level.

Home Country Utility Norm

The portion of the base salary typically spent in the home country on utilities.

Career Management

The proactive step taken to enhance the career of the assignee while on assignment (both during and after assignment).

Repatriation

The process or act of returning the expatriate from assignment to their home country.

Currency Exchange Rates

The rate at which a certain country's currency exchanges with another. Distinctive changes in currency rates, relative to the base country currency, cause the fluctuation of relative payroll costs of expatriates.

Exchange Rate

The rate of exchange (also known as the foreign-exchange rate, forex rate, or FX rate) between two currencies specifies how much one currency is worth in terms of the other.

Culture Shock

The reaction to new cultural experiences that causes psychological disorientation. When a sojourner is unfamiliar with the social conventions of the new culture, or if familiar with them, unable or unwilling to perform according to these rules.

Tax Reimbursement Calculation

The reconciliation of the assignee's tax contribution (via a tax norm) versus his or her obligation as defined by the tax reimbursement methodology.

South East Asia

The region includes the following countries: Brunei, Cambodia, Hong Kong, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Taiwan, Thailand and Vietnam.

International Cadre/Career Expatriates

The term given to expatriates who will complete several consecutive international assignments as part of their employment tenure with the company.

Gross Domestic Product

The total market value of all the goods and services produced within the borders of a nation during a specified period.

Offshoring

The transfer of business or IT processes to other countries. Dominant locations include India, China and the Philippines.

Nearshoring

The transfer of business or processes to companies in a nearby country, often sharing a border with your own country. In the US, it describes work sent to Canada and Mexico. It is a popular model for companies that don't want to deal with the cultural, language or time zone differences involved in offshoring.

Europay

The trend to pay employees throughout Europe, especially managers, the same general amount of compensation.

Single Predictor Approach

The use of one test or piece of information to choose an applicant for the job.

Human Resource Management (HRM)

The use of several activities to ensure that human resources are used effectively for the benefit of the individual, the organization, society, and all other stakeholders.

Valence

The value that an individual attaches to an outcome or reward.

International Workforce

The workforce that is working, or available for working, which is located around the world. It is the global equivalent of a domestic labor force.

Asia-Pacific Economic Cooperation (APEC)

This is regional association that promotes open economic cooperation and open trade.

Prevailing Wage

This is the average salary for the geographic area for the occupation in which the foreign national beneficiary will be paid.

National Home Salary (Reference Salary)

This is the home country base salary that is used as a basis for balance sheet/build up calculations. It may reflect the assignee's increased responsibility in the host location and issued for the calculation of ongoing pension contributions.

Global Employment Company (GEC)

This kind of company is an offshore, separate legal entity, which would act as an employer for expatriates working in certain host locations, where it is beneficial for tax and Social Security reasons not to have a local host or home country employer. For this purpose, employment contracts would be concluded between the company and the expatriate and thus the company would become the legal employer of the individual.

Indian Subcontinent

This region includes the following countries: Bangladesh, India, Nepal, Pakistan and Sri Lanka.

Western Europe

This region is made up of the countries of: Andorra, Austria, Belgium, France, Germany, Ireland, Italy, Liechtenstein, Luxembourg, Malta, Monaco, Netherlands, Portugal, Spain, Switzerland, and the United Kingdom.

Global Regions Structure

This structure enables the company to be very sensitive to local conditions.

Greater Cost of Home or Host

This system compares a standard balance sheet/build up calculation with the local market salary for an equivalent job. The expatriate receives the greater of the two amounts.

Secondment Agreement

This takes place when an employee (or group of employees) is temporarily assigned to work for another organization or a different part of the parent employer.

Expatriate Premium

This term is used to describe any number of supplemental payments which is made to an international assignee/expatriate employee in order to compensate for any hardship, education of dependent children in their mother tongue or other conditions that may be specific to the location.

"Grandfather" Out Allowances

This term is used to describe the method adopted by some companies wishing to introduce new policy changes. New expatriates are put onto the new terms and conditions while existing expatriates remain on the exiting terms and conditions. This means that two different policies co-exist until there are no longer any expatriates on the previous terms and conditions.

Cultural-general Assimilator

This tool was designed to develop self-awareness of one's own culture and prepare people for interaction with other cultures, and subsequent research has shown it to be effective.

Western World

Those nations dominated by European derived culture. The Western World today includes Europe, the Americas, Australia, New Zealand, and a few other countries.

Stakeholders

Those who have a vested interest in a given decision. Stakeholders will possess unique perceptions and expectations of the outcome since they have a 'stake' in the action.

Localization

To become local. To become fixed in one area or part. Example: The expatriate went 'local' while on assignment and identified with the area's customs and norms. Also, companies can go 'local' by targeting their product offerings to exploit the regional marketplace.

Balance Sheet/ Build Up

Two approaches of ensuring the expatriate can live to broadly the same standard in the host country as enjoyed at home. These approaches apply a cost of living index to the home disposable income to arrive at the cost of living allowance. There are minor differences between these two approaches.

V-2 Visa

Visa for the children of spouses of lawful permanent residents as described in V-1 Visas.

Assessment Center

Used to determine managerial potential of employees; evaluates individuals as they take part in a large number.

Danger Pay

Usually paid in addition to a hardship premium, this pay is often given to expatriates who are required to live and work in a foreign country where a civil war, revolution, or some kind of terrorism could threaten the physical well-being of the expatriate.

E-3 Visa

Visa for Australian specialty occupations.

K-3 Visa

Visa for US citizen's foreign citizen spouse who is traveling to the US to complete the process of immigration.

J-2 Visa

Visa for a dependent of a J-1 visa holder.

F-2 Visa

Visa for a dependent of an F-1 student.

H-4 Visa

Visa for a dependent of an H-1 visa holder.

R Visa

Visa for a religious worker (temporary).

P-3 Visa

Visa for artists or entertainers who perform under a program that is culturally unique.

P-2 Visa

Visa for artists or entertainers who will perform under a reciprocal exchange program.

K-1 Visa

Visa for fiancés.

A Visa

Visa for foreign government officials.

I Visa

Visa for foreign media.

P-1 Visa

Visa for individual or team athletes, or members of an entertainment group.

G Visa

Visa for officials and employees of international organizations and NATO.

Q-1 Visa

Visa for participants in an international cultural exchange program for the purpose of providing practical training, employment, and the sharing of the history, culture and traditions of the alien's home country.

O-2 Visa

Visa for persons accompanying an O-1 visa holder.

O-1 Visa

Visa for persons who have extraordinary ability in the sciences, arts, education, business or athletics, or extraordinary achievements in the motion picture and television field.

H-2A Visa

Visa for temporary or seasonal agricultural workers.

H-2B Visa

Visa for temporary or seasonal nonagricultural workers.

K-4 Visa

Visa for the children of a foreign citizen spouse as described in a K-3 Visa.

K-2 Visa

Visa for the children of fiancés.

WB

Waived Business visitor under visa Waiver Program; equivalent to a B-1 visa.

Go Native

When an expatriate embraces the local culture more than their home country. Their value set changes to align with local norms and mores.

Aquisition

When one organization purchases another with the surviving organization being the purchaser. Acquisitions may be of two types - purchase of assets or purchase of stock. The later includes purchase of all liabilities, including retirement and welfare plans. The former often does not include these liabilities.

Strategic Human Resource Management

When the management of a firm's human resources is based upon an understanding of the entire company, its environments and its multiple stakeholders, it becomes 'strategic.'

International Commuting

Where an employee transitions regularly from their home country to a specified other country for purposes of performing work. The employee commutes to and from these countries on a weekly or bi-weekly basis while the family stays home.

Universalism

Where people think they can discover everything that is true and good. As opposed to particularism. In universal societies, such as the US, rules and contracts are developed which can apply to any situation. There is a belief that what is good or true can be discovered, defined, and applied to every situation.

Particularism

Where the unique circumstances and relationships are more important than the abstract rules concerning what is right or wrong. Example: China is a particularistic culture where people look at relationships and circumstances in a specific situation to decide what is right. For the Chinese, the legal contract communicates a starting point for an agreement. As circumstances change, so too should the terms of the agreement.

Values

the strong enduring beliefs and tenets that the company holds dear that helps define the company and differentiate it from other companies.