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HUMAN RESOURCE MANAGEMENT GLOBAL HUMAN RESOURCE MANAGEMENTHUMAN RESOURCE MANAGEMENTGLOBAL HUMAN RESOURCE MANAGEMENTDr. Dan TrotterRev 07/02/08I.IntroA. global business today is huge1.and getting bigger all the time2.this means that global HRM issues are becoming more important all the timeB. Omissions1.“The Diagnostic Model and Global HRM”2.“The Concept of Fit in Global HRM”3.“Labor Relations and the International Corporation”II.The impact of culture on global human resource managementA. the Hofstede model1.Hofstedes central argumenta. national cultural differences arent changing much at all2.five ways that cultures differ (the first four are according to Hofstede)a. individualism vs. collectivismi.personal examplea. I was told that cheating on exams by Chinese college students was a way for the stronger students to help the weaker studentsi.so the whole class would not lose face if the weaker students failedii.in the USA, the stronger students would feel resentfulA/because their grades would not look as good relative to the weaker studentsb. power distancei. cultures with a high power distance emphasize inequalitya. examplesi. large officesii. titlesii.cultures with a low power distance emphasize equalitya. examplei.giving workers much input into decisionsc.avoidance of uncertaintyi. examples of high avoidance of uncertaintya.predict the futureb. control the futurec. influence the futureii.ask: is China a “high avoidance of uncertainty” or “low avoidance of uncertainty” culture?d.masculinityi. masculine cultures have strictly defined sex rolesA/example1/Japane.long-term vs. short-term orientationi. this factor as a result of studies of Chinese valuesA/ask: is China “long-term” or “short-term” oriented?III.Sources of employees for an international assignmentA. preliminary definitions1.concerning corporate structurea. multinational corporationi. has operations in many different nationsA/but each company in each nation is a relatively separate enterpriseii.control remains with the companys HOME officesA/or, an expatriate from the home countryiii.most employees are from the HOST countryiv.the chief goal is to adopt the companys product to the HOST cultureb. global corporationi. has operations in many different nationsA/but each national operation is integrated with those of other nations1/employees hired from all over the worlda/not just the HOST country2/products are sold all over the worlda/not just the HOST countryii.control theoretically should not be dominated by home-country nationalsA/but in reality, very few companies are globalizing control1/many dont even have a significant global representation on their Boards of Directors2.concerning HRM philosophya. ethnocentrici.employees hired chiefly from the HOST countryb. geocentrici.employees hired from all over the worldA/the best person for the job, regardless of nationality3.concerning sources of workers for international assignmentsa. host country nationals (HCNs)i. employees from the local populationA/where operations are locatedb. parent country nationals (PCNs)i. sent from the HOME country where the company is headquarteredA/sent to HOST country where operations are locatedii.usually referred to as “expatriates”c. third country national (TCNs)i. works in country where operations are locatedii.two countries where TCN is NOT fromA/the HOME country where the company is headquarteredB/the HOST country where operations are locatedB. how corporate structure will affect HRM philosophy1.if corporate structure is multinationala. HRM philosophy will be ethnocentrici. whyA/multinational corporation is focused on selling product to the host country1/makes sense to hire host country nationalsa/they are the ones most familiar with the HOST country market2.if corporate structure is globala.HRM philosophy will be geocentrici. whyA/focus is not on the HOST country market1/so the labor force does not have to be from the HOST countryIV.The Expatriate Manager in the International CorporationA. Introduction1.definitiona.parent country national2.more and more international corporations are using expats3.failure rates for expatriates is very higha.one main reasoni. cross-cultural training not given4.success in domestic management position is NOT an indicator of overseas successB. Selecting the Expatriate Manager1.keys to successa.characteristics of a successful expatriate manageri. strong technical skillsii.good language skillsA/some say that fluency in host country language the greatest key to successiii.strong desire to work overseasa/a company should NEVER force a manager to work overseasiv.specific knowledge of overseas culturev. well-adjusted family situationA/domestic family problems at home become magnified overseas1/rebellious teenagers2/sick children3/educational problems for the children4/marriage problems for the parents5/what the children can do for funa/somewhat difficult when the children cant speak the native plete support of spousevii.behavioral flexibilityA/example1/foreign teachers have to get used to short-term scheduling horizonviii.adaptability and open-mindednessA/example1/an official over my department at Shangwai had a Chinese flag on her deska/this scared me at firsti/because my culture always associated the flag with communismii/I had to get over this negative reactionix.good stress management skillsA/there is a lot of stress in a foreign environment1/examplea/many foreign professors going to bed at 8:00 every nightb. characteristics of a successful company who is hiring the expatriatei. provide attractive vide predeparture trainingA/maybe even more important than good compensationiii.make sure the assignment wont hurt the expats long-term career goals at homeA/often expats are “out of sight, out of mind” as far as home company is concerned2.dual-career couplesa.issues concerning a trailing spouses career is the most-often cited reason for the turning down of an international assignmentb.the company should provide career assistance for the “trailing spouse”3.women expatriatesa.only about 13 to 14 percent of expats are womeni. possible reasons whyA/biased selection practices1/why perhaps biaseda/outdated beliefs thati/ women are less interested in overseas assignmentsii/women will not be treated with same respect in host countryC. Culture Shock and the Expatriate Manager1.cycle of adaptibilitya.first stagei. fascination and excitementA/very positiveb.second stagei. culture shockA/foreigner is constantly subjected to strange unfamiliar cues about what to do1/extremely frustrating and confusingc. third stagei. adaptationA/the foreigner has learned how to get aroundii.not as positive as initial stageA/but not as negative as culture shock in the second stageD. Training the Expatriate Manager1.three stagesa.predeparture trainingi. chief goalA/to reduce culture shockii.orientation goalsA/host country cultureB/personal and family issuesC/career planningb.overseas assignment trainingi. language tutoringii.local mentoringA/expat support groups are very important1/no expat can make it at first without other expatsa/note the downside of thisi/after a while, too much reliance on other expats insulates the expat from the host culturec.repatriationi. returning expats are much more likely to leave a company than a domestic managerA/large majorities believe the international assignment has hurt their careersB/“out of sight, out of mind” syndrome is one of the major reasonsii.career management should be the focusE. Compensating the Expatriate Mblemsa.salary levels differ among countriesi. for the same jobii.reasons whyA/fluctuating exchange rates change salary valuesB/costs for goods and services vary widely between countries1/examplea/London and Tokyo are two of worlds most expensive cities2.two major principlesa.the Home-Country Concepti. all expatriates are paid the same as home country managersA/regardless of where they are workingii.advantagesA/keeps employee thinking in terms of home country1/makes repatriation easierb.the Modular Concepti. compensation broken down into modulesA/in case something needs to be adjusted because of differences in foreign country1/examplesa/housing allowancei/might need to be adjusted upward because of shortage of housingb/medical allowancei/might need to be adjust upward because of poor medical facilities in the average hospitalc/taxesi/extra might be given to the employeeA/so employee doesnt have to pay higher taxes in a high-tax countryii.foreign service premiumA/added to base salary1/usually 10 to 25% of base payB/same idea as the “modular concept”1/which is, to adjust salary for higher overseas costs2/different in that it is not targeted for a particular area of the budgetV.Host Country Nationals in the International CorporationA.advantages to hiring HCNs1.cheaper than expatriates2.know the local host country duct marketc. can understand employees needs better3.its politically advantageous to do soa.host country governments often sensitive that more management jobs arent going to HCNsB.disadvantages to hiring HCNs1.harder for HCNs to adopt the companys corporate culture and management system2.less commitment to the company3.may not have as much expertise as expats4.concern about communication between host and home countryVI.Legal and Ethical Issues in the Global CorporationA.Introduction1.these issues arise because usually the level of development is higher in the home countrya.making it more difficult to place higher standards on host countryB.examples1.environmental restrictionsa.dilemmai. should the corporation use higher U.S. or European standards, or local standards?2.briberya.a big problem worldwidei. many countries expect payoffs to government officialsA/their salaries are so low, they cant live without the payoffsB/but in many home countries (like USA), bribery is considered illegal and unethical1/because it implies that the government official is showing favoritisma/it appears that he is not applying the law even-handedlyb.Foreign Corrupt Practices Act of 1977 (FCPA) (a USA law)i. illegal for U.S. firms doing business overseas to give bribes to foreign officialsA/but note1/it is legal to pay “grease”a/definition of “grease”i/paying an official to speedup a process that is LEGALb/definition of “bribe”i/paying an official to do something that is ILLEGALc.case examplei. charity ship bringing food for famine-relief needs a document from customs official to unload. USA charity has p

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