Chapter 15: International Human Resources Management Flashcards
Analyzing International Environment
- Political Factors
- Economic Factors
- Sociocultural Factors
- Technological Factors
Economic Factors
- Currency fluctuations
- Economic forecasts
- Trade cycles
Technological
- Information systems
- Intellectual property
- Production technology
Sociocultural
- National culture
- Human Rights
- Population demographics
Political
- Political stability
- Country laws
- Property rights
International Corporation
Domestic firm that uses its existing capabilities to
penetrate overseas markets
Multidomestic Corporation
Firm with independent business units operating in
multiple countries
Global Corporation
Firm that has integrated worldwide operations through a centralized home office
Transnational Corporation
Firm that attempts to balance local responsiveness and global scale via a network of specialized operating units
Staffing Internationally
- Expats
- Host-country nationals
- Third-country nationals
Expatriates
Employees from the home country who are on
international assignment
Host-Country Nationals
Employees who are natives of the host country
Third-Country Nationals
Employees who are natives of a country other than the home country or the host country
Major benefits of sending expats on shorter project-based assignments and hiring host-country nationals
– Hiring locals is generally less expensive than relocating expats.
– Because local governments usually want good jobs for their citizens, foreign employers may be required to hire locally.
– Most customers want to do business with companies (and people) they perceive to be local versus foreign
What do you need to recruit internationally?
- Work permit or visa
- Guest workers
- Apprenticeships
- Transnational teams
Work permit
– document issued by a government granting authority to a
foreign individual to seek employment in that country
Guest workers
– Foreign workers invited to perform needed labour
Transnational teams
Teams composed of members of multiple nationalities working on projects that span multiple countries
To better understand local market
- Get to know universities and schools
- Develop networks in private and government communities
- Adulting phase
Essential’s to work internationally
- Language training
- Cultural training
- Assessing and tracking career development
- Managing personal and family life
- Repatriation
Compensation general rule for International HR
- Match the rewards to the value of the local culture
- Create a pay plan that supports the overall strategic intent of the organization but provides enough flexibility to customize particular policies and programs to meet the needs of employees in specific locations
Compensation of Host-Country Employees
GLOBAL COMPENSATION SYSTEM
- A centralized pay system whereby host-country employees are offered a full range of training programs, benefits, and pay comparable with a firm’s domestic employees but adjusted for local differences
International Differences in Unions Worldwide
- The level at which bargaining takes place
(national, industry, or workplace) - The degree of centralization of union-management
relations - The scope of bargaining (parties and issues)
- The degree to which government intervenes
- The degree of unionization and union strength
- The political affiliations of unions
