Chapter 19- Global Human Resource Management Flashcards
all key management positions are filled by parent company nationals
ethnocentric approach
why might you choose an ethnocentric approach
if you have core competencies that can only be absorbed in the home country or transferred by home country nationals; also it is easier to keep the company culture intact; if the value of the company comes from transferring core competencies
staffing recruits from host country nationals to operate subsidiaries
polycentric approach
pros to the polycentric approach
addresses the cultural norms and problems for each country; knows the language;
cons to the polycentric approach
may not always get the best people because someone can only go as high as their subsidiary
seek the best people who can perform from all over the world
geocentric approach (ex. Coca Cola)
citizens of one country who are working and living in another country
expatriates
HRM
human resource management
what is extremely important when you decide to use expatriates
training for expatriate managers; want to get them and their family acclimated through the language and culture
what do you have to understand about performance appraisals
some areas are harder to work in and have tougher markets than other areas of the world so need to take that into account when looking at the performance
base salary
the base amount that a company will pay an employee adjusted for the cost of living in each country they are working in
foreign service premium
pay the expatriate extra compensation due to them going to a new country to work for the company
allowance
can also pay extra things for the expatriate such as housing, the difference in cost of living, education costs, or hardship compensation
a company’s activities that include compensation, performance evaluations, staffing, and labor relations
human resource management
what are tasks of the HRM function
compensation and staffing policy
a citizen of one country who is working abroad in one of the firm’s subsidiaries
expatriate manager
an organization’s norms and value systems
corporate culture
the three types of staffing policies
ethnocentric, polycentric, and geocentric
what international staffing policy seeks the best people for key jobs regardless of nationality
geocentric
when a manager is sent to work in a subsidiary in a foreign country but is not happy and prematurely returns to the home country
expatriate failure
a manager who demonstrates cognitive complexity and a cosmopolitan outlook has a
global mindset
As the final step in training their expatriate team, Jill’s company is holding a seminar which will focus on what to expect when the expatriates return to the US after their two years of work in Indonesia. This training is an example of
repatriation
The ______ approach to expatriate compensation seeks a balance of purchasing power between the two countries
balance sheet
an incentive to encourage employees to take the expatriate position
foreign service premium
when an expatriate is sent to a country where basic amenities such as health care, schools, and retail stores are grossly deficient, a company will often provide the expatriate with a
hardship allowance
what type of allowance will ensure that an expatriate will enjoy the same standard of living in a foreign post as he or she would at home
cost of living
what is the most common reason why US multinationals experience expatriate failure
inability of spouse (then manager) to adjust
Jacob’s company assigned him to work in Indonesia for three years. He and his family moved from their home and quickly adapted to their new living arrangements. Jacob demonstrates excellent
cultural toughness
