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International Business

Environments and Operations

Part 6

Managing International

Operations

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Chapter 13

Human

ResourceManagement

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Factors Influencing HRM in International

Business

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The Strategic Function of InternationalHRM

Strategizing HRM

The Perspective of Expatriates

HRM Frameworks in the MNE

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The Perspective of Expatriates

Trends in Expatriate Assignment

The Young, The Old, and The Restless

The Impact of Market Disruption

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HRM Frameworks in the MNE

Three perspectives anchor an MNEs staffing

policy:

Ethnocentrism

Polycentricism

Geocentricism

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Managing Expatriates

Selecting Expatriates

Expatriate Failure

Preparing Expatriates

Compensating Expatriates

Repatriating Expatriates

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Selecting Expatriates

Technical Competence

Adaptiveness

Self-Maintenance

Satisfactory Relationships with Host Nationals

Sensitivity to Host Environments

Leadership Ability

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Expatriate Failure

Costs of Failure

Preventing Failure

Dealing with Adjustment and Stress

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Preparing Expatriates

Focusing on Adaptiveness and Related

Characteristics

General Country Understanding

Cultural Sensitivity

Practical Skills

Approaches: Specialized Knowledge versusCultural Sensitivity

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Compensating Expatriates

The Pay-Performance Link

Types of Compensation Plans

Home Based, Headquarter Based, and Host

Based Methods

Complications Posed by Nationality Differences

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Key Aspects of Expatriate Compensation

In designing compensation packages for

expatriates, HRM considers the following topics

Base Salary

Foreign Service Premium

Allowances

Fringe Benefits Tax Differentials

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Repatriating Expatriates

Returning home from a foreign assignment, the

act of repatriation, is fraught with difficulties.

Readjustment to Home Country Organization

Changes in Personal Finances

Readjusting to Life

Managing Repatriation

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International Labor Relations

How Labor Sees MNEs

How Labor Responds to the MNE

Labors Struggle: Barriers to International

Unanimity

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Future: Which Countries Will Have the

Jobs of the Future?

Worker populations will grow faster in developing

countries

Wealthier countries will continue to grow in the numberof retirees

Adjustments for developed economies:

Nationalism

Men versus Machines Brains: Drains, Recycle, or Halt