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