Managing Global HR Flashcards
How does HR operate in a global environment?
Organizations rapidly operating in a global environment. Foreign countries provide new markets, overseas operations = lower labor costs. Tech and Comms methods make it easy for companies to spread work across the globe.
What combination of people are hired for overseas operations?
Born and work out of HQ, born and work in new country or are from another country completely. Expatriates - Employees assigned to work in another country that is different from their “native country.”
What must Trans-National Human Resource Management Systems do?
Try to instill common corporate ethics and values, difficult since countries vary on this. Follow HR laws of host country: pay within country’s standards, hours (varies by culture/standards), work conditions (breaks, days off, holidays), labor & management relations.
What is culture and how does it affect laws?
Community’s set of shared assumptions about how the world works and what ideals are worth striving for. Greatly affects law, way members of an org. behave towards one another, influences what people value (affects economic sys and educational investment) and determines HRM practices, those common in US are not the template for those used in other countries.
How does Europe vary in terms of work culture? Japan?
11 hours of rest/24 hours, can’t work more than 48 hrs/week, one day off each week 4 weeks paid vacation/year. Represented by work councils, not labor unions. In Japan, dismissal must be based on objective and reasonable grounds. This is very dishonorable so employers try to persuade employees to leave with monetary incentives. Let’s them save face.
A bit closer to home; how does Mexico vary in terms of work culture?
If an employee thinks they were unjustifiably dismissed they are entitled to request reinstatement or three months’ salary at the proper “Conciliation and Arbitration Board.” If employer cannot justify reason for dismissal in court, employee also gets back wages from time of dismissal to date of payment. Employment relationships based on “Principle of Employee Stability,” if employee requests reinstatement and obtains a favorable court resolution, employer must comply and reinstate the employee unless the employee was there less than a year or they are an Executive or Site Leader.
How is the US work culture unique?
Employment at will - Employer may terminate an employment at any time without reason; only country in the world with this. Labor courts in other countries do not accept it nor is it accepted in a legal document. Employers elsewhere must have valid reasons.
What must a company do when it expands internationally? What is the easiest way to comply with other countries’ requirements?
Must gain expertise in host country’s legal requirements and how to deal with its legal system. Hire HR professionals from that country that speak English. Organizations will hire one or more host-country nationals to help in ops and support processes (like HR).
What emotional cycles are associated with a foreign assignment?
1) Honeymoon - All is exciting and wonderful, the relationship and future are upbeats and has positive anticipation.
2) Culture shock - Disillusionment and discomfort that occurs during adjustment to new culture, and a new reality of work that is not used to how we are used to it being.
3) Recovery and Adjustment - Learning to cope with new surroundings, employees, and cultural differences; adapting and surviving in a new business reality.
What factors/traits will predict success in an overseas assignment? (In order)
1) Comfort level of employee’s spouse and family.
2) Outgoing and extroverted.
3) Cooperative and tolerant.
4) Dependable and achievement oriented.
What are the criteria selection of employees for foreign assignments?
1) Competency in employee’s area of expertise.
2) Ability to communicate verbally and nonverbally in foreign country.
3) Flexibility, tolerance of ambiguity, sensitivity to cultural differences.
4) Motivation to succeed, enjoys challenges.
5) Willingness to learn about foreign country’s culture, language and culture.
6) Support of assignment from family members left behind.
What is cross-cultural preparation?
Training to prepare employees and family members for an assignment in a foreign country. Covers all 3 areas of international assignment: preparation for departure (old and new home), assignment itself (duration, education, hours), preparing to return home (re-adjustment).
What are international workforce concerns?
Level of medical care must be maintained, need to be educated and have a knowledge of labor relations difference; supplemented with this by locals with LR experience, vacation packages usually in line with what locals receive. Trips to home, can discuss alternatives such as trips back to States (home?), other regional countries or travel within host country.
How are expatriates prepared?
Pre-assignment visit (with spouse). Orientations (job, country, culture). Language training (common terms and usage), compensation/benefits/tax obligation clarification. Housing counseling, healthcare, schools, shopping, recreation counseling, diet & food. Counseling by returning expatriates. Local sponsorship from host country, best contacts to use, “Go To!” info and support.
How are expatriates compensated?
A “balance sheet approach” is used; manager’s compensation is adjusted so the manager has the same purchasing power as in the home country plus extra pay for the inconvenience of relocating overseas. An effort to make expatriate “whole.” After setting total pay, the organization divides this package into “four separate components of employee’s total pay package:
1) Base salary - Home country salary.
2) Tax Equalization - Home and Host country taxes.
3) Employee benefit costs that are equal to home $$.
4) Allowances - Offset the “above items” to allow them to live in a similar lifestyle to what they were accustomed in home country.
