IHR
Employee Value Proposition
the balance of the rewards and benefits that are received by employees in return for their performance at the workplace
Expatriate failure
the premature return of an expatriate before the period of assignment is completed.
problems in acquisitions and mergers
top management leaves,personal issues are neglected,don't produce long term results, Hr is brought in too late
Polycentric
treating each subsidiary as a distinct national entity with some decision making autonomy, managed by HCN who are seldom promoted to positions at headquarters and PCNs rarely transferred to foreign subsidiary operations
Network builder
using a person to develop social capital by fostering interpersonal relationships for informal control and information purposes.
Third-country nationals
when firms establish lead operations abroad, third-country nationals often have the competencies needed to get new, regional operations up and running
Types of foreign ownership
while firms may secure staff for foreign operations through acquisitions and joint ventures, they may do so at the price of serious conflicts with their existing staffing policies
stages of internationalization
Export Licensing / subcontracting, Subsidiary, Foreign production
power distance
Gap between powerful positions and inferiors, how much people expect inequality in social institutions
Advantages of regiocentric
Interaction between managers from regional headquarters and PCNs in regional headquarters, and reflects sensitivity to local conditions
Advantages of ethnocentric
Lack of qualified HCN, and maintain good communication with corporate headquarters
Advantages of polycentric
Less expensive, and avoids language barriers and adjustment problems
Disadvantages of ethnocentric
Limits promotion opportunities of HCNs which reduces productivity and increases turnover, and expatriate managers often take a long time to adapt which can lead to poor decisions
Subsidiary
if staffed by PCN this would have staffing, training compensation implications
HCN Disadvantages
limited career opportunity outside subsidiary, communication problems with PCN
indirect costs of expatriate failure
loss of market share, difficulties with host government officials, demands that expatriates be replaced with HCN.
Export
minimal to no HR involvement as no staff is relocated
Informal
personal relationships and informal communication, corporate culture
High context
rely heavily on situational cues for meaning
Collectivism
society go along with the group, shared goals care about others opinions of them "we and us" culture
Regiocentric
staff is hired to stay inside particular geographic regions
national culture
The set of norms, behaviors, beliefs and customs that exist within a nation
executives' attitudes/assumptions shape staffing in MNEs
Types of foreign ownership, Third-country nationals, Ethnocentric staffing policy
global
a firms competitive position in one country is significantly influenced by its position in other countries.
roles of the expatriate
agent of direct control, agent of socialization, network builder
direct costs of expatriate failure
airfare and relocation costs, salary, and training.
disadvantages of genocentricC
an create issues with HCNs for not enough HCN employed, and expensive to implement because of increased training and relocation costs
layers of culture
artifacts, values, and assumptions
Agent of socialization
assist in the transfer of shared values and beliefs, attempts to instill corporate values and norms ritualized in the form of certain expected behaviors
multi domestic
ccompetition in each country is essentially independent of competition in other countries
PCN Disadvantages
difficulty adapting in foreign country, excessive cost, may not understand culture
Formal control mechanisms
structure- results in hierarchy, training standards reporting systems, budgets, performance targets, formal communication
Foreign production
if leadership team consists of PCNs same implications as above
Guanxi
(personal connections) Chinese business people place relationships on high importance, favors are always remembered and returned so it may be hard to negotiate a deal with a business if you have no history with them
Shehui dengji
(social status) they value their social status and are a high power distance society, sending a low level rep to a high level negotiation can kill the deal
Jiejian
(thrift) they bargain intensely over price and expect to haggle and to make concessions but if a person didn't know this they may either be offended or offend the Chinese person they are negotiating with and kill the negotiation
Low context
-meaning is derived from the written and spoken word, what I say is what I mean
the rationale/benefits of using international assignments
1) Position Filling-Skills gap, launch of new endeavor, technology transfer 2) Management development- Training and development purposes, assisting in developing common corporate values (socialize HCNs) Strengthen self-confidence, make it "on my own" 3) Organizational development- Need for control, transfer of knowledge, competence, procedures and practices
alternatives to the traditional expatriate international assignment?
1) Virtual assignments- saves money, not having to relocate. Role conflict, group trust 2) Commuter assignments- save money. Stress buildup 3) Contractual assignments- short so there is an end in sight. Harder to connect with term
barriers for female managers
1) common preconception that men in some cultures don't like reporting to females 2) attitudes of HR directors 3) gaining credibility with local clients/ self-imposed barriers
policies to help dual couples
1) place the accompanying spouse in a suitable job with another multinational 2) help with job hunting in the host country 3) send the couple to the same foreign facility, perhaps the same department
SME challenges to internationalize
1) shortage of working capital to finance exports 2) inadequate quantity of and/or untrained personnel for internationalization 3) difficulty in managing competitors prices 4) excessive transportation/insurance costs
selection criteria
1) technical ability- can they perform the required tasks of a particular job 2) ability to adjust to foreign culture 3) capacity to internalize and provide training to local personnel 4) language knowledge
common causes of expatriate failure
1) the employees inability to adapt to the new culture 2) problems coping with higher responsibilities in the position abroad 3) family concerns 4) poor candidate selection
advantages of virtual assignments A- 1 cost containment 2 immobile families don't have to be moved 3 it helps with the shortage of staff prepared to accept longer term positions D- 1 role conflict 2 identification issues between the group and the person at home 3 how much time should be devoted to virtual work and real work
1)cost containment 2) immobile families don't have to be moved 3) it helps with the shortage of staff prepared to accept longer term positions
disadvantages of virtual assignments
1)role conflict 2) identification issues between the group and the person at home 3) how much time should be devoted to virtual work and real work
Disadvantages of polycentric
Bridging gap between PCN managers and HCN employees is hard, and HCN managers have limited opportunities to gain experience and cant progress
Disadvantages of regiocentric
Can hinder a global perspective, and puts barriers at regional level
advantages of geocentric
Creates an international executive team and creates a global perspective, and supports cooperation
challenges in IJV formation
Not being able to retain top management, Not having the same ideals as your partner, Not understanding cultural differences, Trouble during negotiation of the deal
issues in development of an established IJV
diversity is good but may make it hard for individuals to work together effectively, management and strategic styles have to be balanced out from the different parent firms, employees may have a strong allegiance to their parent company leading to role conflict and divided loyalty
Agent of direct control
ensuring compliance through direct supervision, reaching strategic objections for local operations
PCN Advantages
familiarity with goals and practicies, easy control, international exposure to promising managers
HCN Advantages
familiarity with the situation in host country, makes HCNs happy, no language barrier
Ethnocentric
few foreign subsidiaries have any autonomy and strategic decisions are made at headquarter, key positions in operations held by managers from headquarters.
Ethnocentric staffing policy
fills all key management positions with home-country nationals. An ethnocentric policy can result in a narrow perspective of foreign operations.
Individualistic
freedom of choice, assertiveness, successful individual, "I and Me" culture, personal responsibility
benefits of IJV
gain or transfer knowledge, increased economies of scale, gain local knowledge,share financial risks,obtain vital raw materials
Geocentric
hires globally and nationality is less important than ability