OBHR chapter 15
Economic system
Free enterprise Socialism Communism
Transnational representation
reflect the multinational compositions of a company's managers
Parent company
the country in which a company's corporate headquarters is located
Host country
the country in which the parent-company organization seeks to locate or has already located a facility
Transnational process
the extent to which a company's planning and decision-making processes include representatives and ideas from a variety of cultures
Education
- human capital Productivity Capabilities KSAO's
Four levels of global participation
Domestic, International, Multinational, Global
Political-legal system
Laws Societal norms How business works - payoffs & bribes
Three types of country status
Parent company, Host country, third country
Selection of expatriate managers on 3 key adaptive skills
Self-dimension, relationship-dimension, perception-dimension
Practices that support effective expatriation
Staffing and selection, training and career development, performance appraisal and compensation
Self-dimension
positive self image
Validation
recognition for your efforts abroad
Global
state-of-art products top-quality products - Leather from Italy, cloth from India etc.
Compensation of expatriates has four components
•Base salary •Tax equalization allowances •Benefits •Additional allowances to make the assignments more attractive
Staffing and selection
•Communicate the value of international assignments for the company's global mission •Ensure that those with the highest potential move internationally •Provide short term assignments to increase the pool of employee's international experience
Performance appraisal and compensation
•Differentiate performance management based on expatriate roles •Align incentives with expatriation objectives •Taylor benefits to the expatriate's needs •Focus on equality of opportunities, not cash •Emphasize rewarding careers rather than short-term outcomes
Recent global changes in HR
•European union and BREXIT •North American Free Trade Agreement (NAFTA) to USCMA - the purpose was to create freer and fairer trade among the countries •Tax Cut and Jobs Act - TCJA - Changed global taxation •Growth of Asia •General agreement on tariffs and trade (GATT)
Expatriation and repatriation activities
•Involve the family in the orientation program at the beginning and end of the assignment •Establish mentor relationships between expatriates and executives from the home location •Provide support for dual careers •Secure opportunities for the returning manager to use knowledge and skills learned while on the international assignment
Training and career development
•Make international planning part of the career development process •Encourage early international experience •Create learning opportunities during the assignment •Use international assignments as a leadership development tool
Training and development of expatriates
•Work environment •Language •Job or task characteristics •Leisure time •Urbanity •Work-life balance •Living quarters •Family life •Local friendships Contact to those left behind
Transnational scope
a company's ability to make HRM decisions from an international perspective
Relationship-dimension
ability to foster relationships with host-country nationals
Perception dimension
ability to perceive and evaluate the host environment
Communication
ability to recognize changes in your home country
Multinational
companies that build facilities in numerous countries to leverage costs - identical products
Third country
A country other than the host or parent country
Re-Acculturation of expatriates
Communication, Validation
International
Companies expanding from their home country
Factors affecting HRM in global markets
Culture, Education, Political-legal system, Economic System, Immigration
Expatriate
employee sent by his or her company to manage operations in a different country
Host-company nationals (HCNs)
employees born and raised in a host, not parent, country
Third-country nationals (TCNs)
employees born in a country other than a parent or host country
Parent-company nationals (PCN's)
employees who were born and live in a parent country
Types of international employees
expatriate, parent-company nationals, host-company nationals, third-country nationals
Domestic
home country
