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Inter-country DifferencesAffecting HRM

Cultural factors

Economic systems

Legal and industrial relations factors

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How to Implement a GlobalHR System

Making the global HR system moreacceptable

Remember that global systems are moreaccepted in truly global organizations.

Investigate pressures to differentiate anddetermine their legitimacy.

Try to work within the context of a strongcorporate culture.

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How to Implement a GlobalHR System

Develop a more effective global HR system

Form global HR networks.

Remember that its more important to standardize

ends and competencies than specific methods.

Implement the global HR system

Remember, You cant communicate enough.

Dedicate adequate resources for the global HReffort.

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Staffing the GlobalOrganization

International staffing: Home or local?

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Staffing the GlobalOrganization

Offshoring

Having local employees abroad do jobs that thefirms domestic employees previously did in-house.

Issues in offshoring

Having an effective supervisory and managementstructure in place to manage the workers.

Screening and required training for the employeesreceive the that they require.

Ensuring that compensation policies and workingconditions are satisfactory.

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Staffing the GlobalOrganization

Values and International Staffing Policy

Geocentric

The belief that the firms whole management staffmust be scoured on a global basis, on theassumption that the best manager of a specificposition anywhere may be in any of the countriesin which the firm operates.

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Staffing the GlobalOrganization

Why International Assignments Fail

Personality

Personal intentions

Family

Inability of the spouse to adjust

Inability to cope with larger overseasresponsibility.

Lack of cultural skills

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Staffing the GlobalOrganization

Selecting International Managers

Adaptability screening

Assessing the assignees (and spouses)probable success in handling the foreigntransfer.

Overseas Assignment Inventory

A test that identifies the characteristics andattitudes international assignment candidatesshould have.

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Staffing the GlobalOrganization

Selecting International Managers

Realistic previews

The problems to expect in the new job as well asabout the cultural benefits, problems, andidiosyncrasies of the country.

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Training and MaintainingExpatriate Employees

Training Employees on InternationalAssignments

There is little or no systematic selection and training

for assignments overseas. Training is needed on:

The impact of cultural differences on business outcomes.

How attitudes (both negative and positive) are formed and

how they influence behavior. Factual knowledge about the target country.

Language and adjustment and adaptation skills.

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Training and MaintainingExpatriate Employees

Trends in Expatriate Training

Continuing, in-country cross-cultural training

Use of returning managers as resources to cultivate

the global mind-sets of their home-office staff. Use of software and the Internet for cross-cultural

training.

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Compensating Expatriates

Balance Sheet Approach

Home-country groups of expensesincome taxes,housing, goods and services, and discretionary

expensesare the focus of attention. The employer estimates what each of these four

expenses is in the expatriates home country, andwhat each will be in the host country.

The employer then pays any differences such asadditional income taxes or housing expenses.

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Compensating Expatriates

Incentives

Foreign service premiums

Financial payments over and above regular base pay, and

typically range between 10% and 30% of base pay. Hardship allowances

Payments to compensate expatriates for exceptionally hardliving and working conditions at certain foreign locations.

Mobility premiums Lump-sum payments to reward employees for moving from

one assignment to another.

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Appraising ExpatriateManagers

Challenges in appraising overseasmanagers

Determining who should appraise themanager.

Deciding on which factors to base theappraisal.

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Appraising ExpatriateManagers

Improving the expatriate appraisal process

Stipulate the assignments difficulty level, andadapt the performance criteria to the

situation.

Weigh the evaluation more toward the on-sitemanagers appraisal than toward the home-

site managers. If the home-office manager does the actual

written appraisal, use a former expatriatefrom the same overseas location for advice.

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Repatriation: Problems andSolutions

Problem

Expatriates fear theyre out of sight, out of mind

Solutions

Making sure that the expatriate and his or her familydont feel that the company has left them adrift.

Ensure that expatriates are kept informed ofhappenings in home office.

Prepare expatriates for next career move in company.

Provide formal repatriation services.