Does the idea of working in a foriegn country appeal to you? Why? What would it take

1. Does the idea of working in a foriegn country appeal to you? Why? What would it take to change your mind

2. 4-2 Global Human Resource Management (GHRM) • Refers to the policies and practices related to managing people in an internationally oriented organization • Includes the same functions as domestic HRM and many aspects unique to international organizations See Exhibit 4-2

3. 4-3 Maquiladoras • Refer to Mexican assembly plants • Used by international companies for routine production processes • Attempts to gain manufacturing and labor cost advantages • Sometimes called “twin plants”

4. 4-4 Culture and the Workplace:Hofstede’s Theory of Cultural Relativity • Individual versus Collectivism • Power distance • Avoidance of uncertainty • Masculinity • Long-term versus short-term orientation FIVE DIMENSIONS

6. 4-5 Concept of “Fit” in Global HRM Fit is the degree to which policies and practices are congruent with: • The firm’s international strategy • Internal fit • Work-related values of foreign cultures • External fit

7. Early stage of international strategy Has operations in many nations Viewed as separate enterprises Control remains with home office 4-6 Multinational and Global Corporations GCs MNCs • Staffs based on expertise • Operate wherever cost effective • World is labor source and marketplace

8. 4-7 Sources of Employees forInternational Assignments HCN TCN PCN Parent Country Nationals (PCNs) are employees sent from the home country (expatriates) Third Country Nationals (TCNs) are employees from a country other than the parent & host countries Host Country Nationals (HCNs) are workers from the local population (local nationals)

9. CORPORATE STRUCTURE PHILOSOPHY Ethnocentric Multinational Geocentric Global 4-8 International Orientation

10. 4-9 The Expatriate Manager Managing the expatriate’s adjustment is a primary focus of GHRM functions like: • Selection for expatriate assignments • Comprehensive pre-departure training • Compensation and benefits packages that consider situational factors like family • Development and career planning

11. 4-10 Culture Shock • Feelings of frustration and confusion • Results from being constantly subjected to strange and unfamiliar cues about what to do and how to get it done

12. 4-11 Phases of Expatriate Training PREDEPARTURE • Language skills • Nation and culture orientation • Personal and family orientation • Career planning ASSIGNMENT • Stress training • Business issues • Language Skills • Local mentoring REPATRIATION • Financial management • Reentry shock • Career management

13. 4-12 Resistance to Using Locals (HCNs) • Locals will not adopt the parent company’s culture and management style. • The level of commitment that locals may have to the organization. • The host country nationals may not have the expertise that expatriates have. • Effective communication will be impaired between the host country and home offices.

14. Legal and Ethical Climate of Global HRM Legal Issues Ethical Issues • Employee participation • Labor relations • Profits versus basic human rights ( Sweat Shops) • Political and legal considerations • “Gift giving” • Employment discrimination • American laws typically more stringent • Civil Rights Act of 1991 applies to American firms operating abroad

21. Expatriate Assignments How much do they cost? Are they worth it?

22. Foreign service incentive Cola Housing Travel Cost of maintaining 2 homes Tax make up Education allowances Household staff Automobile Vacation premium Repatriation Tax preparation Financial counseling Expatriate Costs

23. Expatriate Risks *Out of the loop *Repatriation Problems

24. How might you be impacted by globalization?

33. Why Companies Stay Onshore