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international business > chapter 19 > Flashcards

chapter 19 Flashcards

1
Q

=what is human resource management

A

Activities an organization conducts to use its human resources effectively.\all related ti the global strategy of the firm

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2
Q

Human Resources is responsible for which aspects of organizational ahrchietcyure

A

structure, processes, people, incentives and controls and culture

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3
Q

what is HRM professionals role

A

they have the shape elements from arhcietcyure in a manner that is consistent with the strategy of the enterprise so that the firm can effectively implement its strategy

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4
Q

how can superior human resource management be sustained

A

with high productivity and competitive advantage in a global economy

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5
Q

what is staffing policy

A

Strategy concerned with selecting employees for particular jobs.
selecting individuals who have the skills required to do a certain job
developing and promoting the desired corporate culture of the firm

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6
Q

what is corporate culture

A

The organization’s norms and value systems.
strong corporate culture can help a firm implement its strategy

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7
Q

what are the three types of staffing policies

A

the ethnocentric approach, the poly centric approach and geocentric approach (most attractive )

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8
Q

what is the ethno centric staffing policy approach

A

A staffing approach within the multinational enterprise in which all key management positions are filled by parent-country nationals.

it’s like having the same head coach (management from the home country) for all teams (subsidiaries) in different parts of the world.

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9
Q

firms pursue an ethnocentric staffing policy for three reasons

A
  1. the firm may believe the hist country lacks qualified individuals to filll senior management positions
    common in less developed countries
  2. the firm may see an ethnocentric staffing policy as the best way to maintain a unified corporate culture
  3. if the firm is trying to create value by transferring core competences to a foreign iteration, it may believe that the best way is to transfer parent country nationals who have knowledge of that comptennacys in a foreign operation –> acquired through experience , have to transfer the appropriate managers
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10
Q

what are the issues with an ethnocentric approach

A
  1. it limits advancement opportunities in host country nationals–> can lead to lower productivity, resentment
  2. lead to cultural myopia (firms failyure to understand host country cultural differences that require different approaches to marketing and management )
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11
Q

what is the poly centric approach

A

A staffing policy in a multinational enterprise in which host-country nationals are recruited to manage subsidiaries in their own country, while parent-country nationals occupy key positions at corporate headquarters.
LOCALIZATION

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12
Q

advantages of a poly centric approach

A
  • firm is less likely to suffer from cultural myopia
  • may be less expensive
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13
Q

disvadnatgaes of the poly centric approach

A
  • host country nationals have limited ippprutnies to gain opprtunies outside their own country and thus cannot progress beyond senior positions in their own subsidiary –> nay cause resentment
  • the gap between host country managers and parent country managers –> can create isolation because of lanangue barriers and cultural differences and create a fedration
  • federation can also cause inertia
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14
Q

what is the geocentric staffing policy

A

A staffing policy where the best people are sought for key jobs throughout a multinational enterprise, regardless of nationality

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15
Q

pros of geocentric staffing policy

A
  • enables the firm to make the best use of its Human Resources
  • enables the firm to build a cadre of international executives who feel at home working in a number of cultures –> builds a strong culture and informal management network
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16
Q

ways that limit a geocentric policy

A
  • many countries want foreign subsidies to employ their citizens and they just use immigration laws and lots of documentation
  • also can be expensive
  • may also need a compensation structure with a standardized international base pay Lebel higher than national levels
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17
Q

what are expatriates

A

citizens of one country working in another country

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18
Q

inpatriates

A

used to identify a subset of expatriates who are citizens of a foreign country working in the hime country of their multinational employer

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19
Q

what is expatriate failure

A

The premature return of an expatriate manager to the home country
failure of the firms selection policies to idnetify individuals who will not thrive abroad –> could have premature return and very high costs

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20
Q

how to reduce expatriate failure rates

A

by improving selection procedures to screen out innaproriate candidates

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21
Q

wha are the four dimensions that seem to predict success in foreign posting created by MENDENHALL AND ODDOU

A
  1. self orientation
  2. others orientation
  3. perceptual ability
  4. cultural toughness
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22
Q

what is self orientation

A

self esteem self confidence mental well being have to be high in order to succeed
if people can adapt their foods, sports music, will succeed

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23
Q

what is others orientation

A
  • the ability of the expatriate to interact effeicvely with host country nationals
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24
Q

what are the two factors of others orientation

A
  1. relationship development –. creating long lasting feindships with host country nationals
  2. willingness to communicate –> using the host country language, make the effort
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25
Q

what is perceptual ability

A
  • ability o understand why people of other countries behave the way they dio
  • ability to empathize
  • have not be judgmental in interpreting behaviour
  • reliable in their management style
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26
Q

what is cultural toughness

A
  • relationship between the country of assignment and how well an expatriate adjusts to a particular posting
  • some cultures are very hard to adjust to
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27
Q

what is a fundamental attribute of a global manager

A
  • global midnset–< weakling with high levels of ambiguity, complexity and are open to the world
  • gained from early life
28
Q

what is management development

A
  • develop the managers skills
    helps reofrnce the desired culture of the firm
29
Q

what are most international business concerned with

A

training more than management development
tehy tended to focus their training efforts on preparing home country nationals for foreign postings

30
Q

what is cultural training

A
  • seeks to foster an appreciation fr the host countrys culture
  • understanding a host countrys culture will the manager empathize with the culture
  • should receive training in the host countries culture, history, poltoocs
  • maybe go visit before with the family
31
Q

what is language training

A
  • learning to communicate in the host countrys language
32
Q

what is practical training

A
  • helping the expatriate manager and family ease themselves into day to day life in the host country
  • establish a routine
    0 find a communicate
33
Q

what is an aspect that is overlooked

A

preparing the expatriate managers for the reentry of their home country org
- often will face an org coming back that is lost or may have to refund a job or might have standby positions that dont use the expatriates skills

34
Q

how to solve the issue of re entering

A

good HR planning
- have good programs to help them

35
Q

what is management development programs

A
  • deigned to increase the overall skill levels of managers throgh a mix of ongoing amangeemnt education and rotations of managers through a tuner of jobs within the firm to give them varied epxeirnce
36
Q

international businesses have been using management development as what

A

statregic tool–> trasnational statregy uses this

37
Q

what do management development programs help

A

build a unifying corporate culture by socializing new mamahgers into the norms and values of the firm
- training events
- imitation rites
- bring managers together through informal amnageemtn network

38
Q

why are performance appraisal systems used

A
  • used to evaluate the performance of managers against some criteria that the firm judges to be important for the implementation of statretgy and the attainment of compeotobve advantage globally
  • important for control systems
39
Q

what makes it hard to evaluate the performance of expatriate managers bijectively

A

unintentional bias
- host nation and home office may be bias

40
Q

how to reduce the bias in performance appraisal

A
  1. most expatriates believe more weight should eb given to an onset managers appria;s than to an offsite managers appraisal. an onsite manager os more likely to evuakaye the soft variables that re important aspects of the expatriates performance
  2. home officers should be consulted before an onsite manager completes a formal termination evukatuon–> gives the home office manager the opportunity to abalone what could be a very hostile evaluation based on a cultural misunderstanding
41
Q

what are the two issues in compensation

A
  1. how compensation should be adjusted to reflect national differences in economic circumstances and compensation practices
    2, how should expatriate managers be paid
42
Q

what question do national differences in conmpensation raise for international business ?

A

should the firm pay executives in different countries according to the prevailing standards in each country or should it equalize pay on a global basis

43
Q

where does this problem arise of compensation

A

geocentric staffing policies
arises questions like should all members of a cadre be paid the same salary

44
Q

over the past decade, firms are moving to what type of compensation structure

A

one that is based on consistent global standards, with employees being evaluated by the same grading system and having access to the same bonus pay and benefits structure no matter where they work

45
Q

what is the most common approach to expatriate pay

A

the balance sheet approach
equalizes purchasing power across countries so employees can enjoy the same living standard in their foreign posting that they have enjoyed at home
wants to provide expatriates with the same standard of living in their host countries

46
Q

what are the components of a typical expatriate compsentation package

A

base salary, foreign service premium, allowance of various types, tax differentials and benefits

may be three times more expensive than the home country

47
Q

an expatriates base salary

A

should normally be in the same range as the base salary for a similar position in the home country
paid in either home currency or local currency
developed nations may offer higher based salaries than undeveloped country

48
Q

what is a foreign service premium

A

extra pay which the expatriate receives for working outside their country for origin
because you have to adapt so much, they give you extra pay

49
Q

what are the four types of allowances included in an expatriates compassion package

A

hardship –> paid when the expatriate has to move somewhere bad
housing–> given to ensure that the expatriate can afford the same quality of housing in the foreign country that he would have at him
cost of living–> will have the same standtadd of living as home
education–> expatriates children receive adequate schooling that meets home country standards

50
Q

if there is no reciprocal tax treaty put in place, what will the expatriate have to do

A

may have to pay income tax to both the home and host countries
the firm will typically pay it

51
Q

what is the benefits?

A

firms ensure that their expatriates receive the same level of medical and pension benefits that they receive abroad
can be costly for the firm

52
Q

what is a diverse workforce

A

one that has a significant mix of all genders and in which cultural and ethnic minority groups are well represented
has been linked to superior financial performance

53
Q

why does a diverse workforce improve performance

A
  1. diverse talents bring insights into the needs of a diverse customer base that is a homogenous management group composed exclusively of one race or one gender cannot
  2. women and minority ethnic groups bring a lot
  3. when the customer set is diverse, those customers may appreciate interacting with an enterprise whose employees look like them and have a better understanding of their needs
  4. may improve brand image
  5. increases employee satisifcation= higher productivity
54
Q

why is building a diverse workforce not easy

A

because the definition of what constitutes a cultural and ethnic minority group may vary across nations, as may the acceptance of women in the workplace

55
Q

how can international businesses promote workforce diversity

A
  • senior level executives have to promote it and set clear goals
    hold managers accountable for attaining global diversity goals and reward those who hit or exceed goals
    senior management mist also lead by example by hiring and promoting people;e of diverse backgrounds
    diversity workshops–> overcoming stereotyping by role playing, focusing on differences
56
Q

what is the issue in international labor relations

A

the degree to which organized labor can limit the choices of an international business

57
Q

what do labour unions try to do

A

get better pay, greater job security and better working conditions by bargaining with management

58
Q

what is a concern of organized labour

A

company can counter its bargaining power with the power to move production to another country

an international business will keep highly skilled tasks in its home country and farm out only low skilled tasks to foreign plants

when an international business attempts to import employnent practices and contractual agreements from its home country–> organized labor is sacred that their influence and power will be reduced

59
Q

organized labor has responded to the increased bagraginibg power of multinational coropiratios by taking what three actions

A
  1. trying to establish international labor orgs
  2. lobbying for national legislation to restrict multinationals
  3. trying to achieve international regulations on multinationals through such orgs as the United Nations

HAVE NOT BEEEN VERY SUCCESSFUL

60
Q

WHAT HAPPEND with ITS

A

wanted to bargain internationally with multinational firms
organized labor believed that by coordinating union across countries through an ITS, it could counter the power of a multinational corp by threatening to disrupt production on an international scale

NOT SUCCESSFUL

61
Q

what is the main difference in different international business in their approaches to international labor relations?

A

the degree to which labor relations activities are centralized or decentralized

62
Q

are labor relations more centralize or decenyralized

A

decentralized –> labor laws and union power vary so much from one country to another

63
Q

why are labor relations becoming more centralized

A

international firms want to rationalize their global operations
a lot more competition so firms want to conyrol their costs and labor costs so much they want to move their pridciton to another country that has lower costs

64
Q

what can be a major source of compeotove advantage

A

the way work is organized within plant

65
Q

what are the new trends

A

shifting towards globalization
moving towards greater ethnic and gender diversity
there are tougher policies toward legal immigration which makes it more difficult to move talent around the world –> harder to adopt a geocentric staffing policy, may have to shift back to a poly centric approach
higher restrictions on the cross border flow ofnhuman capital continues
companies may have to grow their operations outside their

international business (15 decks)

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