Chapter 11 Flashcards
What is an international organization?
Firm using existing capabilities to expand into foreign markets
What is a multinational corporation?
Subsidiaries operating as fully autonomous units in different countries.
What is a global corporation?
Many subsidiaries but control stays in home office, view the world market as a unified whole.
What is a transnational corporation?
Specialized facilities positioned around the world, autonomy to different country operations but brings all separate activities together as an integrated whole.
What are the 3 factors that need to be considered in international HRM and explain them.
- economic: trade agreements affect jobs around the world
- political-legal: poorly protected property rights give less incentives to invest and locate factories
- Cultural environment: communication, religion, values, education and social structure
To what a company’s good reputation is positively related?
measurable outcomes such as:
- innovation
- social responsibility
- financial soundness
- global competitiveness
What countries are part of what is called BRICS, countries considered to have the fast-growing economies?
- Brazil
- Russia
- India
- China
- South Africa
What are the differences between Canadian and International HRM?
- more emphasis on relocation, orientation and translation services
- decisions on currency for compensation
- security measures (terrorists, natural disasters…)
What are the three sources of employees to staff international operations?
- Expatriates (home-country nationals)
- Host-Country nationals
- third-country nationals
What is usually used as a staffing source for multinational operations?
A mix of all 3 sources
What is the main disadvantage of sending Expatriates for an organization?
it is very costly
What is called a short-term assignment?
assignment of 6 to 12 months
What are the main advantages of hiring host-country nationals?
- less costly
- sometimes required by local government to create jobs
- customers like to encourage businesses that helps local economy (local vs foreign)
What are the advantages of hiring third-country nationals?
- often multilingual
- less costly
- able to cope culturally with foreign environment
What restriction all countries have regarding the employment of foreigners?
need of work permit or visa
What are guest workers?
foreign workers who come to perform needed labour
To attract and retain global talent, organizations need to focus on:
- Brand: reputation
- compensation: competitive reward Program
- development of skills
- Culture: understand environment and offer support
What are the two major source of trained labour in international HRM?
- apprenticeships
- transnational teams
What are transnational teams?
group composed of members of multiple nationalities working on projects over multiple countries.
What is the fundamental task when forming a transnational team?
assemble the right group of people who can work effectively.
on what basis does other countries usually tend to hire?
- family ties, social status and common origins
What is the main factor we need to look at when selecting candidates for expatriation?
the person’s tolerance of culture differences
What are the steps to select expatriate managers?
1- self-selection
2- create candidate pool
3- assess core skills relative to assignment
4- assess augmented skills and attributes
What are the technical competences locked at in the expatriate selection criteria?
- country experience
- language skills
- family flexibility
- professional experience
- international experience
- interpersonal skills
