Chapter 15

Learning Objectives
1. Summarize how the growth in
international business activity affects
human resource management.
2. Identify the factors that most strongly
influence HRM in international markets.
3. Discuss how differences among countries
affect HR planning at organizations with
international operations.
 Chapter 15
Learning Objectives (continued)

4. Describe how companies select and train

human resources in a global labor
market.
5. Discuss challenges related to
compensating employees from other
countries.
6. Explain how employers prepare
managers for international assignments
and for their return home.
 International Business and HR
International
International
Mergers
Mergersandand
Acquisitions
Acquisitions

Importance
Importanceof
of
Foreign Global
GlobalHuman
Human
ForeignHuman
Human Global
Global
Resources
Resources Resources
Resources Competition
Competition
Management
Management

Market
MarketAccess
Access
Opportunities
Opportunities
 International Business Terminology

Parent Country Nationals

Host-country Nationals

Third-country Nationals

Expatriates
Factors that influence International HRM
 Hofstede’s Five Dimensions of Culture
How Countries Differ

1. Individualism/Collectivism Describes the strength of the relation

2. Power Distance
3. Uncertainty Avoidance
4. Masculinity/Femininity
5. Long-term/Short-term
Orientation
between an individual and other individuals
in the society.
Concerns the way the culture deals with
unequal distribution of power and defines
the amount of inequality that is normal.
Describes how cultures handle the fact that
the future is unpredictable.
The emphasis a culture places on practices
or qualities that have traditionally been
considered masculine or feminine.
Suggests whether the focus of cultural
values is on the future (long term) or the
past and present (short term).
Emotional Cycle Associated
with a Foreign Assignment
 Performing International
HRM Functions
A. Recruiting
     1. Matching process
     2. Personal qualities vs. job competence
(adaptability, language skills, local
knowledge, etc.)
B. Selection Process
     1. Interviewing - family participation
Topics for Assessing Candidates for
Overseas Assignments
 Performing International
HRM Functions (continued)
C. Training
     1. Cultural training
     2. Language training
     3. Personal adjustments

D. Performance Appraisal
1. Dual responsibility – host and home
 Performing International
HRM Functions (continued)
E. Compensation
   1. Based on length of assignment/conditions
   2. Support for expenses
   3. Financial support

F. Repatriation
 Expatriate Compensation
• To be effective, an international
compensation program must:
– Provide an incentive to leave the United
States.
– Allow for maintaining a U.S. standard of living.
– Facilitate reentry into the United States.
– Provide for the education of children.
– Allow for maintaining relationships with family,
friends, and business associates.
 Repatriation
The process of an employee transitioning
home from an international assignment.

• “Welcome home”

• Counseling to ease the transition

• Validation

• Post assignment feedback

• Cross cultural preparation