Contents

Part A: Introduction
Learning Objectives
Contents Preface 1. Intercultural vs. international human resource management 1.1 1.2 2. 2.1 International vs. national personnel management Perspectives of international personnel management At home 2.1.1 Multicultural Switzerland

1
2 3 4 5 8 17 18 18

Relevance for Switzerland

2.1.2
2.2 Abroad 2.2.1 2.2.2 2.2.3

International organizations in Switzerland

Exports Swiss firms abroad Swiss direct investments abroad

19
22 22 24 28

Part B: Culture and Theory of Culture

Learning objectives 1. Culture 32 34

1.1
1.2 1.3

A selection of definitions
Conceptual delimitations of various levels of culture Cultures functions

34
37 38 I

2. 3.

Approaches in management theory: diverging views on cultures effects Comparative culture research 3.1 First order studies 3.2 Second order studies: a selection

39 42 42 59

Part C: The Organizational Context

Learning objectives
1. 2. Strategy, organizational structure and human resource management Globalization 2.1 Attempts at definition 2.2 Objects of globalization 2.3 Causes of globalization 2.4 KOF Index of globalization worldwide 2.5 Globalization and internationalization 2.5.1 Steps of internationalization

71
73 75 75 73 77 78 80 82

2.5.2
3.

Implications for organizational structure

86
93

Internationalization and human resource management

Part D:
1.

Intercultural Human Resource Management

99
101 102 105 II

Learning Objectives
Strategic international human resource management 1.1 Framework of SIHRM 1.2 Empirical Data

2.

HRM in intercultural contexts 2.1 Personnel recruitment 2.1.1 2.1.2 2.2 2.3 Company-internal recruitment Company-external recruitment

108 108 111 112 115 123

Personnel selection Personnel development

2.3.1
2.3.2 2.3.3 2.4 2.5

Aims of intercultural personnel development

Intercultural training Foreign assignment as an international personnel development measure

124
125 145 165 166 166 167 177 177

Personnel retention and motivation Employment contracts in intercultural contexts 2.5.1 2.5.2 Terms of the employment contract Remuneration in international settings Staff localization

2.6

Staff localization versus expatriates 2.6.1

2.6.2
2.6.3

Expatriates
Staff localization process

178
179

Part E: Intercultural Communication, Leadership and Collaboration

Learning objectives 1. Intercultural Communication 1.1 1.2 Definition Intercultural communication basics 184 186 186 187 III

2.

Leadership 2.1 2.1.1 Leadership basics Definition 2.1.2 2.1.3 2.2 Managers Leadership situations

193 193 193 194 195 196

Leadership styles in intercultural contexts

2.3
3. 3.1 3.2

Examples of problems arising in intercultural leadership

Intercultural negotiations Intercultural decision-making

202
206 207 216

Collaboration

Part F: Multicultural Teams and Diversity Management

Learning objectives 1. Multicultural teams 1.1 Definition of a multicultural team 222 224 224

1.2
1.3 1.4 2. 2.1 2.2 2.3

Cultural diversity and performance in teams

Assets and problems of heterogeneous teams Consequences Definition of diversity Definition of diversity management Origins of diversity management

224
225 229 231 231 232 232 IV

Introduction to diversity management

2.4 2.5 3. 3.1 3.2 4.

Different perspectives on diversity Concept of Innoversity Goals pursued by diversity Business influence of global diversity

233 235 237 237 238 239

Positive impact of diversity

Implementing diversity management

4.1
4.2 4.3 4.4 5. 6.

Management of cultural diversity

Alliant Energy: example of a successfully implemented diversity program Moving women to the top: McKinsey Global Survey results 2010 CitiGroup: example of diversity responsibilities

239
241 243 246 248 251

Survey results on diversity management Recent developments: the challenge in diversity management

Appendix
Case study: The Siebers on Safari 261

List of abbreviations
ABB AG approx. Art. ASEAN BP BRIC Asea Brown Boveri public limited company approximately Article Association of South-East Asian Nations British Petroleum Brasil, Russia, India, China e.g. exempli gratia (for example)

Ed.
Eds. ETH

Editor
Editors Eidgenssische Technische Hochschule (Swiss Federal Institute of Technology)

f.
ff. EU EUR

and the following

and the following (pl.) European Union Euro

CEO
CH CHF COL COLA cf. col.

Chief Executive Officer

Confoederation Helvetica (Switzerland) Swiss francs Cost of Living Cost-of-living allowance copyright confer column

Eurex
et al. etc. excl. ext. F FC GB

European derivatives exchange

and clearing house et alii et cetera exclusive extended France Federal Constitution Great Britain

D
DGfP ed.

Germany
Deutsche Gesellschaft fr Personalfhrung e.V. edition

VI

GLOBE

Global Leadership and Organizational Behaviour Effectiveness

NAFTA NGOs NL n.a. n.d. NZZ OPEC PCN

North American Free Trade Agreement Non-Governmental

HCN

Host Country National(s)

Organisations
Netherlands no author no date Neue Zrcher Zeitung Organisation of Petroleum Exporting Countries Parent or Home Country National(s)

HR
HRM HQ IOP i.e. incl. KOF

Human Resource(s)
Human Resource Management Headquarters Institut fr Organisation und

Personal
id est (that is) inclusive Konjunkturforschungsstelle (Research Centre for Economic Activity) Ltd. m limited company (German GmbH) million

p.
pp. PR China PWC

page
pages Peoples Republic of China PriceWaterhouseCoopers

R&D
rev. S. A. SIHRM SWX

Research and Development

revised Socit Anonyme (public limited company) Strategic Human Resource Management Swiss Exchange VII

M&A
MERCOSUR

Mergers and Acquisitions

Mercado Comn del Sur (Common Market of the South)

MNCs MNE

Multinational Companies Multinational Enterprise

TCN

Third County National(s)

TDM
UAE UK URL US/USA USD vol. vs. WP&L WTO www ZfB

Thousand German Marks

United Arab Emirates United Kingdom Uniform Resource Locator United States of America United States Dollar volume versus Wisconsin Power and Light

Company
World Trade Organization world wide web Zeitschrift fr Betriebswirtschaft (Journal of Economics) & and

VIII