A9 - Internat'l HR and Comp Mgmt Flashcards

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1
Q

(3) factors that have increased the econ. integration across countries and the need for HRM practices and systems to be more globally integrated and consistent across countries

A
  1. free trade
  2. service-based business
  3. integrated tech. platforms
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2
Q

Factors that have increased the

econ. integration across countries

Free Trade

A
  • WTO - 1995; cooperative forum for countries’ leaders to come together and increase free trade
    • negotiate new agreements in order to increase their econo. activity and power
  • EU - 27 member countries; facilitates the flow of goods, services, capital, and HRs across nat’l borders in Europe
  • NAFTA - 1994; world’s largest free mkt; free trade b/t U.S, Can., Mex.
  • Assoc. of Southeast Asaian Nations (ASEAN)
  • East Asia Econo. Group
  • Asia-Pacific Econo. Coop. (APEC)
  • South Asian Assoc. for Rgional Coop. (SAARC)
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3
Q

Factors that have increased the

econ. integration across countries

service-based business

A
  • due to tech advances - # of manufacturing jobs is decreasing in relation to the # of service-based jobs
  • service-based jobs are harder to replace w/ tech. than manuf. jobs
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4
Q

Factors that have increased the

econ. integration across countries

Integrated Tech.

A
  • this represents common operating systems such as Microsoft Windows that can be used across multiple PCs connected through the Internet
  • tech. increased the rate at which these serv. can be traded across countries
  • 1995 - AOL went public to start the integrated tech. platforms that could be shared instantaneously across the world
  • work has become less specific to partic. companies and countries
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5
Q

global factors that can act as major obstacles

A
  • political differences - country’s labor laws, property rights, and patents
  • cultural differences - communications, religion, values and ideologies, educ., and social structure
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6
Q

a country in which an internat’l corp. ops.

A

host country

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7
Q

cultural environ. of internat’l business

EDUCATION/HUMAN CAPITAL

A
  • primary/secondary
  • vocational
  • prof.
  • literacy
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8
Q

cultural environ. of internat’l business

SOCIAL STRUCTURE

A
  • kinship/fam
  • mobility
  • nationalism
  • urbanization
  • social stratification
  • paternalism/materialism
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9
Q

cultural environ. of internat’l business

COMMUNICATION

A
  • language(s)
  • dialects
  • nonverbal
  • media
  • tech.
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10
Q

cultural environ. of internat’l business

RELIGIOUS BELIEFS

A
  • denominations
  • totems/taboos
  • rituals
  • holy days
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11
Q

cultural environ. of internat’l business

VALUES/IDEOLOGIES

A
  • work ethic time orientation
  • individualism/collectivism
  • risk propensity
  • achievement
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12
Q

(4) basic types of orgs w/ internat’l activity

A
  1. internat’l corporation
  2. multinat’l corporation (MNC)
  3. global corporation
  4. transnat’l corporation
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13
Q
  • a domestic firm that uses its existing capabilities to move into overseas mkts
  • exp = Honda, GE, P&G
  • adapted existing prods. for overseas mkt w/o changing much else about their normal ops
A

internat’l corporation

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14
Q
  • a firm w/ independent bus. units operating in multiple countries
  • several subsidiaries operating as stand-alone, automonous business units in multiple countries
  • more complex form
  • exp = Shell, Philips, and ITT
  • give subsidiaries a great deal of latitude to address local issues such as consumer preferences, political pressures, and econ. trends
  • little integration with subsidiaries
A

multinat’l corporation (MNC)

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15
Q
  • a multinat’l firm that maintains control of its internat’l units through a centralized home office
  • a firm that has integrated worldwide ops through a centralized home office
  • exp = Matsushita, NEC
  • treat world mkt as a unified whole
  • combine activities in each country to max their efficiences on a global scale
  • operate much like a domestic firm, except they view world as their mktplace
A

global corporation

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16
Q
  • a firm that attempts to balance local responsiveness and global scale via a network of specialized operating units
    • local responsivieness of a multinat’l corp. and the efficiences of a global firm
  • uses network structure that coord. specialized facilities positioned around the world
  • provides autonomy to its ops. in foreign countries but brings these separate activities together into an integrated whole
  • more of a idea than a reality
A

transnat’l corporation

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17
Q

(3) ways a company can staff a new internat’l company

A
  • expatriates (home-country nat’ls)
  • host-country nat’ls
  • third-country nat’ls
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18
Q
  • EEs from the home country who are on internat’l assignment
  • company sends ppl from its home country to work in another country
  • in early stages of internat’l expansion, orgs usually send them to estab. activities and work w/ local gov’t (costly)
  • trend is moving away from them, unless for a specific set of skills or indiv. in host country require development
A

expatriates (home-country nat’ls)

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19
Q
  • EEs who are natives of the host country
  • some countries - required to use them due to laws and regs and also tax incentives, tariffs, and quotas implemented to encourage local hiring
A

host-country nat’ls

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20
Q

(3) major adv. for hiring host-country nat’ls

A
  • generally less costly than relocating expatriates
    • know local culture and politics
    • more likely to gain support of local staff
  • local gov’ts usually want good jobs for their citizens, foreign ERs may be required to hire locally
  • most cust. want to do business w/ companies (and ppl) they perceive to be local versus foreign
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21
Q
  • EEs who are natives of a country other than the home country or the host country
  • trend is moving toward them
  • often multilingual and already acclimated to host country’s culture
  • less costly to relocate and better able to cope culturally w/ foreign environ.
A

3rd-Party Nat’ls

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22
Q

recruiting internationally

A
  • usually subj. to more gov’t reg. than in U.S.
  • improved telecomms. and travel have made it easier to match up ERs and EEs of all kinds worldwide
  • HR depts. must be particularly responsive to the cultural, political, and legal environ. both domestically and abroad when recruiting internationally
  • reg. environ. outside U.S. differs substantially concerning recruiting and screenings, conditions, pay, and retirement
  • exec. level - usually use exec. recruiting firms
  • lower level - need to advertise their firms and employment “brand” to recruits who are not familiar w/ it, using radios and referrals due to lack of reading or writing skills
  • use internat’l recruiting firms
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23
Q
  • a gov’t doc. granting a foreign indiv. the right to seek employment in that govt’s country
  • need to be applied for early in the relocation process
A

work permit (or visa)

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24
Q
  • foreign workers invited to perform needed labor
  • often used to recruit workers for entry-level positions in hotels and restaurants during peak travel seasons
A

guest workers

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25
Q

Apprenticeships

A
  • major source of trained labor in Europe
  • dual-track system of ed. directs a lg # of youths into vocational training
  • Germany
    • one of best in EU
    • 3-way contracts b/w apprentice, parents, and org.
    • can stay with ER or go to another when finished w/ program, but usually given seniority if they stay with the same org.
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26
Q
  • teams composed of members of multiple natonalities working on projs. that span multiple countries
  • increasing in popularity
  • useful for performing tasks that the firm as a whole is not yet structured to accomplish
  • useful for sending members temporarily abroad to break down cultural barriers b/w internat’l divisions or disseminate new ideas and tech. to other regions
A

transnat’l teams

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27
Q

selecting EEs internat’lly

A
  • internat’l HR mgrs should get to know local mkt and customs in hiring to get to know what to look for in an EE
    • get to know local universities, tech. schools, and primary schools
    • develop networks in the bus and gov’t communities in order to find the right EEs for the job
    • must understand EEs of the firm’s competitors in order to know what to look for in other EEs while building up a new pool of apps to recruit in the future
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28
Q

a mgr equipped to run internat’l business

A

global mgr

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29
Q

adv. of hiring Host-Country Nationals MGRs

A
  • less costly
  • preferred by host-country gov’ts
  • intimate knowledge of environ. and culture
  • language facility
30
Q

adv. of hiring Home-Country Nationals (expatriates) MGRs

A
  • talent available w/in company
  • greater control
  • company experience
  • mobility
  • experience provided to corporate
31
Q

adv. of hiring Third-Country Nationals MGRs

A
  • broad experience
  • internat’l outlook
  • multilingualism
32
Q

skills considered critical to an EE’s success abroad

A

core skills

33
Q

skills helpful in facilitating the efforts of expatriate mgrs

A

augmented skills

34
Q

steps involved w/ selecting indiv. for an internat’l assignment

A
  1. begin w/ self-selection
  2. create a candidate pool
  3. assess candidates’ core skills
  4. assess candidates’ augmented skills and attributes
35
Q

steps involved w/ selecting indiv.

for an internat’l assignment

Step 1: Begin w/ self-selection

A
  • the EE determines whether or not they would want to work internationally
  • companies can avoid the probs. of forcing otherwise promising EEs into international assignments that are a bad fit for them
  • using tools to help predict their chances of success living abroad such as helping them consider the pros and cons
  • some companies assess the spouse too
36
Q

steps involved w/ selecting indiv.

for an internat’l assignment

Step 2: Create a candidate pool

A
  • build database of candidates
  • info in database may include - availability, languages, country preferences, and skills
37
Q

steps involved w/ selecting indiv.

for an internat’l assignment

Step 3: Assess candidates’ core skills

A
  • assess candidate in terms of their technical and managerial readiness relative to the needs of the assignment
38
Q

steps involved w/ selecting indiv.

for an internat’l assignment

Step 4: Assess candidates’ augmented skills and attributes

A
  • additional technical and also prof. and internat’l experience
  • indiv’s ability to adapt to different environ.
39
Q
  • the percentage of expatriates who do not perform satisfactorily
  • Causes:
    • poor culture fit - major reason
    • lack of expatriate support from HQs - major reason
    • family adjmnt
    • lifestyle issues
    • work adjmtn
    • bad selection
    • poor perf.
    • other opps arise
    • bus. reasons
    • repatriation issues
A

failure rate

40
Q

ways to improve the success of expatriate assignments

A
  • must find a way to adjust to the demands of:
    • their company
    • the country environ.
    • their family needs
41
Q

preparing for internat’l assignment

A

become acquainted w/:

  • social and bus. etiquette
  • history and folklore
  • current affairs, including relations b/w host country and U.S.
  • cultural values and priorities
  • geography
  • sources of pride and great achievements of the culture
  • religion and the role of religion in daily life
  • political structure and current players
  • practical matters such as currency, transportation, time zones, and hrs of bus.
  • language
42
Q

(5) essential elements of training and developnment progs. for those working internationally

A
  • language training
  • cultural training
  • assessing and tracking career development
  • managing personal and family life
  • repatriation - critical step
43
Q

Language training

A
  • language barriers is among the biggest probs with foreign bus. work
  • students who plan international bus. careers should start now in one or foreign languages as early as possible
  • provided by a school or even the company itself
  • English is still almost universally accepted as the primary language for internat’l bus.
44
Q

exps of language and/or comm. differences that exist among cultures and impact on mgmt practices w/in these cultures

A
  • to table a subj.
    • ENG = to put it on the table for present discussion
    • US = to postpone discussion
  • Info flow
    • US = EEs can go directly to Mgrs
    • EUR, S. Africa, other centralized cultures = mgrs must take the initiative to seek out info from EEs
  • Direct comm.
    • Arabs, Europeans = resent US tendency to be direct and to the point in conversations
  • 16 ways to say “no” in Japan
  • “Inconvenient” to Chinese = impossible
  • expressions of public anger
    • unacceptable in some coutnries
    • other countries = taboo
  • silence during conversation
    • most foregin countries = ‘comm. space’ that belongs to message sender
    • US = not discourteous to break silences
  • gesturing w/ hands
    • US = acceptable
    • many foreign countries = not acceptable; rude
45
Q

Cultural Training

A
  • ppl’s attitudes are influenced by the culture and society in which they have been educ. and trained
  • can help mgrs ID and understand work attitudes and motivation in other cultures
  • must realize that the way things are normally done and to recognize that changes cannot be made abruptly w/o considerable resistance and antagonism on the part of nationals
46
Q

EE work attitudes and motivations vary b/w countries

A
  • Japan = EEs have tended to be highly loyal to their ER (but trend is changing)
  • Latin America = tend to be loyal to their indiv. mgrs rather than employing firm or job
  • US = competition has been the name of the game
  • Japan, Taiwan, and other Asian countries = cooperation is the underlying philosophy
47
Q

assessing and tracking career development

content of training progs.

A
  • provide some definite developmental and career adv.
    • increase a person’s responsibilities and influence w/in corp
    • provides a set of experiences that are uniquely beneficial to both indiv. and firm
    • enhance a person’s understanding of the global mktplace
    • offer opp. to work on a proj. important to org.
    • increases a person’s creative prob-solving skills and receptivity to new ideas
48
Q

Managing Personal and Family Life

A
  • experiencing culture shock - little things than pile up to become catastrophic issues
49
Q

perpetual stress experienced by ppl who settle overseas

A

culture shock

50
Q
  • the process of transition for an EE home from an internat’l assignment
  • not all companies have this prog. or have effective progs. for it.
  • even when successful, companies rarely fully utilize the knowledge, understanding, and skills developed on their assignments
A

repatriation

51
Q

Internat’l Compensation

A
  • most complex areas
  • other cultures are more likely to emphasize respect, family, job security, a satisfying personal life, social acceptance, advancement, or power
  • match the reward with the culture
  • “think globally and act locally” - try to create a pay plan that supports the overall strategic intent of the org., but provides enough flex. to customize particular policies/progs. to meet the needs of EEs in specific locations
52
Q

Compensation for Host-Country EEs

A
  • generally paid on the basis of productivity, time spent on the job, or a combo of these factors
  • industrialized countries - by hr
  • developing countries - by the day
  • benef. also vary from country to country
    • EE benef. in foreign countries are usually higher than those provided in U.S.
    • some awarded by company and some awarded by the gov’t
53
Q

Compensation of Host-Country MGRS

A
  • in past - based on local slry levels; lower than expatriate levels
  • NOW - due to competition, made comparable to domestic EEs in terms of offering full range of training progs, benefits, and pay (global comp. systems)
  • Centralized - tends to have higher effectiveness and saisfaction levels w/ comp systems
  • benefits are seen more and more due to ppl becoming mobile across borders
54
Q

a centralized pay system whereby host-country EEs are offered a full range of training programs, benef., and pay comparable w/ a firm’s domestic EEs but adjusted for local differences

A

global comp system

55
Q

Compensation of Expatriate MGRS

A
  • usually in a manner consistent w/ overal comp. policy of ER
  • to be successful, must be competitive, cost-eff., motivating, fair, easy to understand, consistent w/ internat’l fin. mgmt, relatively easy to admin., and simple to communicate
  • provide security benefs. for those in unstable countries, good health care, and reimbursement for foreign taxes
  • if S/T assignment - frequently given per day copm.
  • if L/T assignment - use either the home-based pay base it on balance sheet approach or host-based pay based on localization
56
Q
  • pay based on an expatriate’s home country’s comp. practices
  • based on the balance sheet approach designed to equalize the purchasing power of EEs at comparable positions living overseas and in the home country
  • provide incentives to offset qualitative differences b/w assignment locations
A

home-based pay

57
Q

a comp. system designed to match the purchasing power in a person’s home country

A

balance sheet approach

58
Q

steps to balance sheet approach

for calculating home-based pay for expatriate MGRs

A
  1. Calc. base pay: homebased gross income (including bonuses) - taxes, SS, and pension contribs.
  2. figure cost-of-living adjmt: +COLA to the base pay in Step 1. and add any housing allowance
  3. add incentive prem.: +general mobility prems, and hardship prem. (usually 15% of slry) and may have hazardous duty or harsh conditions pay
  4. add assistance progs.: added costs for moving, sotrage, automobile, and educ. expenses
59
Q

this type of comp agreement allows expatriates to opt-out of state-sponsored benefit progs. in their host country (such as SS) as long as they are cov’d by similar progs. back in home country

(U.S. follows this)

A

bilateral agreement

60
Q

a system whereby expats. are given a portion of their pay in the local currency to cover their day-to-day expenses and a portion of their pay in their home currency to safeguard their earnings from chgs in inflation or foreign exchg. rates

A

split pay

61
Q
  • expat. pay comparable to that earned by EEs in a host country (through localization)
  • generally less costly (becoming more popular)
  • incentive prem. are generally phased out
  • EEs pays only local taxes and falls under the social benef. progs. estab’d by local gov’t
A

host-based pay

62
Q

adapting pay and other comp. benef. to match that of a particular country

A

localization

63
Q

localization

A
  • usually depends on whether the EE will ultimately remain abroad or return home
  • also depends on whether the EE or the ER is the driving force behind the localization
  • if not localizing - can breed resentment among local (lower-paid) staff which affects the amt of cooperation they are likely to give expat.
64
Q

other issues for expats

A
  • medical care
    • provide the expat. w/ a global health benef. plan such as Cigna Internat’l Expat. Benef.
    • transfer the EE to a global employment company that can provide these types of benef.
  • security
    • provide private drivers; purch. traveling insurance; hire local security firm
65
Q

Performance Appraisals

A
  • very difficult for the home office to eval. the perf. of EEs working abroad
  • can contrib. to failure rates among expats. and derail an indiv’s career rather than enhance it
  • Who? - usually a 360-degree appraisal since there are different ‘eyes’ on the expat.
    • need to understand the host-country ‘feel’ for appraisals
66
Q

(5) steps for calc. ROI of an assignment

A
  1. define the assignment’s objs.
  2. agreeing on the quantifiable measurements for the assignment
  3. developing an equation that converts qualitative behavior into quantifiable measurement
  4. eval. the expat’s perf. against these measurements
  5. calc. ROI - complex cost acctg or a simple calc to see if the expat cov’d the cost of keeping them on assignment
67
Q
  • type of interview used when an indiv. returns to their home country to address general and tech. issues
    • reestab. old ties w/ the home org. and engage in career path reevals.
    • address technical issues related to the foreign job assignment itself
    • address general issues regarding the firm and its overseas commitments
    • document insights of the interviewees and incorporate them into training prog. for expatriates
A

debriefing interview

68
Q

foreign labor environment

A
  • wages, benefs., child labor laws, legal regs = differ b/w foreign countries
  • labor unions
    • EU - prohibits discrim. against workers in unions
    • countries in C. Am. and Asia = labor unions are illegal
    • EU - labor unions usually have great deal of political power and allied w/ particular political party
69
Q

Internat’l Trade Union Confederation (ITUC)

A
  • most active internat’l union orgs. located in Brussels
  • over 300 nat’l trade union centers in about 155 countries and territories
  • mission: to promote worker rights and interests through internat’l coop. b/w trade unions, campaigning, and advocacy w/ gov’t and global instit.
  • cooperates w/ the European Trade Union Confed (ETUC) - reps trade workers in 83 trade unions in 36 western, central, and easter European countries
70
Q

Internat’l Labour Org. (ILO)

A
  • specialized agency of the UN (1919) that engages in research on an internat’l basis and endorses standards for various working conditions set forth w/in the Internat’l Labor Code
  • has had the greatest impact on the rights of workers throughout the world
  • promotes the rights of workers to organize, the eradication of forced and child labor, and the elim. of discrim.
  • involves nation-states as well as workers and their ERs
  • based on mission of “Decent Work Agenda” - promotes the idea that there is an ethical dimension of work
71
Q
  • representation of labor on the BoD of a company
  • this higher form of worker participation in mgmt is found in Germany
    • company s/h’s and EEs are required to be represented in equal #s on the supervisory boards of large corporations
A

codetermination

72
Q

internat’l federations of nat’l trade unions operating in the same or related industries

A

Internat’l Trade Secretariats