Chapter 17: Managing Human Resources in a Global Business

Question 1

Workplace mobility

Answer 1

managing recruitment, relocation and retention of employees who complete work-related task and activities outside of the core or primary head office or region of the company

Question 2

Expatriate

Answer 2

citizens of the parent company country, who are sent to work in another country

Question 3

Locals

Answer 3

Citizens of a country who have jobs in the home country

Question 4

Global Staffing Policy

There are three international staffing policies.

Answer 4

• ethnocentric staffing policy
• polycentric staffing policy
• geocentric staffing policy

Question 5

enthnocentric staffing policy

Answer 5

is based on the attitude that home-country managers are superior to those in the host country, and all key management positions are filled by parent-country nationals.

Question 6

polycentric staffing policy

Answer 6

is based on the belief that only host-country managers can understand the culture and behaviour of the host-country market, and therefore foreign subsidiaries should be staffed with host-country nationals and its home office headquarters with parent-country nationals.

Question 7

geocentric staffing policy

Answer 7

assumes that management candidates must be searched for globally, on the assumption that the best manager for any specific position anywhere on the globe may be found in any of the countries in which the firm operates.

Question 8

Intercountry differnces: Factors to consider in selecting, training, and managing employees

Answer 8

• cultural factors and values demand corresponding differences in HR practices
• economic systems varies amongst countries
• legal systems
• labour cost factors- can be high and a need to focus on employee performance
• industrial relations factors

Question 9

Global Relocationchallenges and considerations for success

Answer 9

1. candidate identification and selection ( cultural sensitivities, interpersonal skills and flexibility, adaptabilty, knowledge)
2. cost projections ( between 3 and 5 times the employee’s pre-departure salary)
   3, assignment letters ( well documented- pay, benefits, T and C’s)
3. compensation, benefits, tax programs (home-based pay plus a supplement)
4. relocation assistance ( average cost 50 to 100K CAD)
5. family support ( cultural orientation, education, emergency provisions, health care, security)

Question 10

Reducing the early return of an expatriate:

Answer 10

• select expatriates carefully
• help spouses get jobs abroad
• provide ongoing support to family- most prevalent
• formal “global buddy” program

Question 11

Reasons to use expatriates:

Answer 11

• technical competence
• step in leadership development
• corporate control

Question 12

International Compensation

Answer 12

• balance sheet approach
• variable pay
• International EAP

Question 13

international compensation : balance sheet approach

Answer 13

-equalizes purchasing power for expatriate, salary usually based from home country salary plus compensation COLA (cost of living allowance)

Question 14

international compensation : Variable pay

Answer 14

-focus on individual performance rewards

Question 15

international compensation: international EAP

Answer 15

employee assistance program to help deal with culture shock.

Question 16

expatriates

Answer 16

employees who are citizen of the country where the parent company is based who are sent to work in another country

Question 17

immigrant

Answer 17

a person residing in Canada who was born outside of Canada (excluding temporary foreign workers, Canadian citizens born outside of Canada, and those with student or work visas)

Question 18

global nomads

Answer 18

employees who continuously more from country to country on multiple assignments.

Question 19

expatriate assignment failure

Answer 19

early return of an expatriate from a global assignment

Question 20

repatriation

Answer 20

the process of moving the expatriate and his or her family back home from the foreign assignment