managing human resource globally Flashcards
nature of hrm in global environment
rapidly becoming global one. foreign countries provide businesses with new markets. lower labour costs. technology makes spreading work easier around the globe
types of employees in international workforce and explain*
1.parent-country national(PCN)
employee who was born and work in the country in which the organisation’s headquarters is located.
2.Host-country nation(HCN)
employee who is a citizen of a country(other than parent country) in which an organisation operates a facility.
3.third-country nation(TCN)
employee who is a citizen of a country that is neither the parent country or host country of the employer.
what is expatriates
employee who is assigned to perform work in another country
what are the types of organisations in a global marketplace
1.international oganisation
set up one or few facilities in one or few foreign countries
2.multinational company
build facilities in a number of different countries with the goal of minimising production and distribution costs
3.global organisation
locate facility based on the ability to effectively,efficiently and flexibly produce a product/service using cultural differences as an advantage
what are the factors affecting hrm in international markets*
- education
- economic system
- culture
- political-legal system
how does culture affects hrm in international market
how to handle this
- refers to community’s shared assumptions on how the world works and what ideals are worth striving for
- greatly affect a country’s laws
- influences what people value,affects people’s economic systems and efforts to invest in education
- determines the effectiveness of various hrm practices
prepares managers to recognise and handle culture differences:
- recruit managers with knowledge of different cultures
- provide training
for expatriates,conduct an extensive selection process to identify individuals who can adapt to new environments.
how does education and skills levels affects hrm in international market
education and skills levels of a country’s labour force affects how and the extent to which companies want to operate there.
poorly educated population prompts the business to limit their activities to low-skill,low-wage jobs.
how does economic system affects hrm in international market
- provides many incentives or disincentives for developing the value of labour force.
- In developed countries with great wealth,labour costs is relatively high. this impacts compensation and staffing practices.
- income tax differences between countries make pay structures even more complicated when they across national boundaries.
how does political-legal system affect hrm in international market
country’s laws often dictate the requirements for hrm practices:training,compensation,hiring,firing and layoffs.
must gain expertise in the host country’s legal requirements and ways of dealing with its legal system.
hire on or more host-country nationals to help in the process.
what are the criteria for selection of employees for foreign assignments
- ability to communicate verbally and non-verbally in foreign country
- motivation to succeed and enjoyment of challenges
- support from family membes
what are the emotional cycle associated with foreign assignment
- honeymoon
- culture shock
- recovery
- adjustment
what is cross-cultural preparation*
- prepare employees and their family members for an assignment in foreign country
- training should cover 3 phases of an international assignment:
- preparation for departure
- assignment itself
- preparation for return home
when establishing performance management methods in other countries what to consider?*
- legal requirements
- local business practices
- national cultures
what are the differences may include when establishing performance management across national boundaries?
- which behaviours are rated
- how feedback is required
- who performs rating
- which performance is measured
- how and the extent to which performance is measured
what are ways to prepare expatriates*
- job orientation
- culture orientation
- language training
- pre-assignment site visit
- counselling by returning expatriates
