A9 - Internat'l HR and Comp Mgmt Flashcards
(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
- free trade
- service-based business
- integrated tech. platforms
Factors that have increased the
econ. integration across countries
Free Trade
- 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)
Factors that have increased the
econ. integration across countries
service-based business
- 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
Factors that have increased the
econ. integration across countries
Integrated Tech.
- 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
global factors that can act as major obstacles
- political differences - country’s labor laws, property rights, and patents
- cultural differences - communications, religion, values and ideologies, educ., and social structure
a country in which an internat’l corp. ops.
host country
cultural environ. of internat’l business
EDUCATION/HUMAN CAPITAL
- primary/secondary
- vocational
- prof.
- literacy
cultural environ. of internat’l business
SOCIAL STRUCTURE
- kinship/fam
- mobility
- nationalism
- urbanization
- social stratification
- paternalism/materialism
cultural environ. of internat’l business
COMMUNICATION
- language(s)
- dialects
- nonverbal
- media
- tech.
cultural environ. of internat’l business
RELIGIOUS BELIEFS
- denominations
- totems/taboos
- rituals
- holy days
cultural environ. of internat’l business
VALUES/IDEOLOGIES
- work ethic time orientation
- individualism/collectivism
- risk propensity
- achievement
(4) basic types of orgs w/ internat’l activity
- internat’l corporation
- multinat’l corporation (MNC)
- global corporation
- transnat’l corporation
- 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
internat’l corporation
- 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
multinat’l corporation (MNC)
- 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
global corporation
- 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
transnat’l corporation
(3) ways a company can staff a new internat’l company
- expatriates (home-country nat’ls)
- host-country nat’ls
- third-country nat’ls
- 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
expatriates (home-country nat’ls)
- 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
host-country nat’ls
(3) major adv. for hiring host-country nat’ls
- 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
- 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.
3rd-Party Nat’ls
recruiting internationally
- 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
- 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
work permit (or visa)
- foreign workers invited to perform needed labor
- often used to recruit workers for entry-level positions in hotels and restaurants during peak travel seasons
guest workers
Apprenticeships
- 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.
- 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
transnat’l teams
selecting EEs internat’lly
- 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
a mgr equipped to run internat’l business
global mgr