After studying this chapter, you should be able to:After studying this chapter, you should be able to:
1.1. List the HR challenges of international business.List the HR challenges of international business.
2.2. Illustrate how intercountry differences affect HRM.Illustrate how intercountry differences affect HRM.
3.3. Discuss the global differences and similarities in HR Discuss the global differences and similarities in HR practices.practices.
4.4. Explain five ways to improve international assignments Explain five ways to improve international assignments through selection.through selection.
5.5. Discuss how to train and maintain international Discuss how to train and maintain international employees.employees.
HR and the Internationalization of BusinessHR and the Internationalization of Business
• The Global ChallengesThe Global Challenges
Coordinating market, product, and production plans Coordinating market, product, and production plans on a worldwide basis.on a worldwide basis.
Creating organization structures capable of Creating organization structures capable of balancing centralized home-office control with balancing centralized home-office control with adequate local autonomy.adequate local autonomy.
Extending HR policies and systems to service Extending HR policies and systems to service staffing needs abroad.staffing needs abroad.
How to Implement a Global HR SystemHow to Implement a Global HR System
• Best practices for making a global HR system Best practices for making a global HR system more acceptable to local managers:more acceptable to local managers:
1.1. Remembering that global systems are more Remembering that global systems are more accepted in truly global organizations.accepted in truly global organizations.
2.2. Investigating pressures to differentiate and Investigating pressures to differentiate and determine their legitimacy.determine their legitimacy.
3.3. Working within the context of a strong corporate Working within the context of a strong corporate culture is best.culture is best.
A Global HR System (cont’d)A Global HR System (cont’d)
• Best practices for developing a more effective Best practices for developing a more effective global HR system:global HR system: Form global HR networks that make local HR Form global HR networks that make local HR
managers a part of global teams.managers a part of global teams.
Remember that it’s more important to standardize Remember that it’s more important to standardize ends and competencies than specific methods.ends and competencies than specific methods.
• Best practices for implementing the global HR Best practices for implementing the global HR system:system: Remember, “You can’t communicate enough.”Remember, “You can’t communicate enough.”
Dedicate adequate resources for the global HR Dedicate adequate resources for the global HR effort.effort.
• Adaptability ScreeningAdaptability Screening Assessing the assignee’s (and spouse’s) probable Assessing the assignee’s (and spouse’s) probable
success in handling the foreign transfer.success in handling the foreign transfer. Overseas Assignment InventoryOverseas Assignment Inventory
A test that identifies the characteristics and attitudes A test that identifies the characteristics and attitudes international assignment candidates should have.international assignment candidates should have.
• Realistic Previews Realistic Previews The problems to expect in the new job, as well as the The problems to expect in the new job, as well as the
cultural benefits, problems, and idiosyncrasies of the cultural benefits, problems, and idiosyncrasies of the country.country.
• The “Balance Sheet Approach”The “Balance Sheet Approach”
Home-country groups of expenses—income taxes, Home-country groups of expenses—income taxes, housing, goods and services, and discretionary housing, goods and services, and discretionary expenses—are the focus of attention.expenses—are the focus of attention.
The employer estimates what each of these four The employer estimates what each of these four expenses is in the expatriate’s home country, and expenses is in the expatriate’s home country, and what each will be in the host country.what each will be in the host country.
The employer then pays any differences such as The employer then pays any differences such as additional income taxes or housing expenses.additional income taxes or housing expenses.
