Terms Flashcards
HCT Host Country National
employee who is a citizen of the country he works at
Parent Country National
EE who works at a country other than his own. Expat
Independent Variable
What you change in order to conduct your experiment. Ex: give training to a group
Dependent variable
What changes: their productivity
Control Group
The group that gets the placebo, the one you leave alone
Incubator
Open, High Tech, US, UK, Canada, No chain of Command, Encourage people to be creative and collaborative
Guided Missile
Silo, Nasa, task oriented different groups each have a task.
Eiffel Tower
Bureaucratic, central command, low skill
Family
Face to Face, relationship oriented
Single Focus
can work on one thing at a time, no deviation. Germany
Multi Focus
The plan can change as we go along. Italy, Spain
High Context
Implicit. There’s a lot more to what I say verbally. Collective. China. Relationship oriented. Tone of the message. Japan, France, Spain, Brazil
Low Context
Explicit. I mean what I say. UK, Australia, US
Trompenaars
Universalism/Particularism, Neutral/Affective,
Achievement/Ascription,
Specific/Diffuse
Universalism/particularism
Universalism - one law for everyone. Contract, standard. US
Particularism - Contract can change according to circumstances. China
Neutral/Affective
Neutral - Low key, don’t display emotions (Japan)
Affective - Relations, warm. Mexico, Russia
Achievement/Ascription
Achievement - I got what I got because of my achievement. US
Ascriptive - I am where I am because of where I was born, who I know, what caste I belong to. India.
Specific/Diffuse
Specific - Work and Personal lives are separate. US, UK, Germany.
Diffuse - relationships are fused between work and personal. Argentina, Spain, Russia
Hofstede (four dimensions)
Power Distance
Uncertainty Avoidance
Individual/Collectivism
Femininity/Masculinity
Laws app outside the US
Title VII, ADA, ADEA. US ee working for a US company outside the US can bring suit in US.
Four T Framework (to develop Global mindset)
Travel Team Work Training Transfer \+ Mentoring and Coaching
Retirement
US - Social Sec, EE and ER put in $ UK - State Pension Act (ER) Canada - State Sponsored India - Provident Fund (ee and ER 12% - all belongs to EE) Largest in the world China - State sponsored
Totalizaton
Social security related
Three R of leadership
Recognize
Respect
Reconcile
Outsourcing
One specific task - payroll, security, IT
Offshoring/Nearshoring
Offshoring - sending to another country
Nearshoring - sending to a border country
Orientation
Short time
Onboarding
Can take months, years
Ascriptive
India. I am ascribing to you your status based on your race, sex, caste, etc.
Acculturation
Exchange of cultural features. Groups remain distinct
Acquired Rights Directive
Safeguards the rights of European workers
Same terms and conditions
Can’t fire UNLESS: economic, technical, or organizational reason entailing change in the workforce
Alien Corporation
A company that is incorporated under the laws of another country
APEC
Asia-Pacific economic cooperation
Assessment center
Not a place!
Used to determine managerial potential of an employee
Assignment letter
Describes terms and conditions, length of assignment, components of compensation, vacation and home leave
Balance sheet approach
Assignee retains same standard of living. Base salary is made up of: Housing, income taxes, goods and services, reserves (pension, savings, investments) Uses cost of living index
Build up
Same as balance sheet approach
Danger Pay
Paid in addition to hardship premium
Civil war, revolution, terrorism
Decline stage
Profits and sales are falling Wages decline, training budgets slash, Layoffs Hiring freeze Top employees seek employment elsewhere
Delphi technique
Different viewpoints of experts are presented
Final product is blended version of the others
Destination services
Assistance to assignees
EPI
Effective purchaser Index
Buying generic
Cost of living index, less generous than the standard
Equalization
An expatriate will not be negatively or positively impacted
Egocentrism
Your own culture is superior
Ethnocentrism
Your ethnicity is superior
Euro pay
Trend to pay employees the same throughout Europe
Foreign Services Premium
Same as mobility premium
Paid monthly, tax free, over and above salary
Geocentric corporation
Height of globalization- headquarters employees can come from anywhere on the globe
Global corporation
An org which has operations across geographies
One country’s operations affect other areas
Global regions structure
Make allowances for certain regions
Globalist
The height, international employee, sr level, works in any country
Go Native
The employees is totally immersed in their host country’s culture
Growth stage
Profits and sales are growing steadily, hiring is up
Training budget increases
Pay higher salaries
Hardship allowance
A percentage of base salary addiction, assignment involves harsh conditions
HQ based balance Sheet approach
Assignee is paid according to HQ pay. Any differences are calculated compared to the HQ pay
Home based balance sheet approach
Assignee is paid according to home country compensation
Any differences are made in comparison with home pay
Hypothetical tax
What the ee would have paid had they stayed in their home country
Inpatriate
Alien employees brought in to work in headquarters location
ILO
A UN agency
International labor organization
Promote social justice, workers, human rights
Job specification
Detailed statement of skills knowledge and abilities
Kaizen
Japanese for “continuous improvement”
Multi domestic corporation
Control is decentralized
Decision making is on local level
Global vs multi domestic
Global is centralized decision making
Unified performance goals
Multinational corporation
Multi national enterprise
Operates in many countries
Nearshoring
Moving business to a bordering state/nation
Nominal group technique
All ideas are considered by all members and formal evaluation is done
Offshoring
Moving business to another country
India, China, Philippines
OECD
Organization for economic cooperation and development
Countries that share principles of market economy, democracy and human rights
Outsourcing
Having a vendor do something that the corporation used to do in-house
Particularism
Right or wrong is based on changing circumstances
Ie Chinese and contracts: a starting point
Polycentrism
Org leaders come from either HQ employees or local employees
Provident fund
Compulsory pension program
Workers must contribute to their retirement fund
India is the largest
Regio centric
Each regional area is self governed
Split pay
Paying the ee what they need in local currency and the rest in home currency
Tax equalization
Tax reimbursement system
Expat neither loses or gained
Hypotax is deducted, if there is more to pay- the company pays it
Tax protection
No hypo tax!
Company pays the tax bill.
If it’s in Switzerland (more) the company pays more
If it’s in Mexico, the employee pockets the difference
Totalization agreement
Social security arrangements between countries
Prevent double social se unity deductions
Universalism
It IS possible to determine what is true and good. It’s not up to circumstances
Opposite of particularism
Applies to every situation
Black and white vs Chinese gray
Xenocentrism
Other cultures are superior to your own
