International Management: Global Human Resource Management

2. HOME COUNTRY
NATIONALS
HOST COUNTRY
NATIONALS
THIRD COUNTRY
NATIONALS
INPATRIATED

3. Adaptability
Experience
Education
Leadership
Age
Independence
SELECTION
CRITERIA FOR
INTERNATIONAL
ASSIGNMENTS :
MANAGERS
Support of
spouse &
children
Knowledge
of local
language
Self-reliance
Physical &
emotional
health
Motivation

4. Skills MNCs Seek Within Countries

5. • Anticipatory Adjustment
– Training
– Previous experience
• In-country Adjustment
– Individual’s ability to adjust effectively
– Ability to maintain a positive outlook, interact well with host nationals, and to
perceive and evaluate the host country’s cultural values and norms correctly
– Clarity of expatriate’s role in the host management team
– Expatriate’s adjustment to the organizational culture
– Non-work matters

6. The Relocation Transition Curve

7. • Compensating expatriates can be difficult
because there are many variables to
consider
• Most compensation packages are
designed around four common elements:
• Allowances
Taxes
•
Base Salary
Benefits

8. • Tailoring the compensation package
• Balance-sheet approach
– Ensure the expatriate doesn’t lose money on the assignment
• Complementary approach
– Negotiate to work out an acceptable ad hoc arrangement
• Localization
– Pays the expatriate a salary comparable to local nationals
• Lump sum method
– Gives the expatriate a lump sum of money
• Cafeteria approach
– Gives the individual a series of options
• Regional system
– Sets a compensation system for all expatriates who are assigned to a
particular region

9. Candidate motivations
Why do individuals accept foreign assignments?
Greater demand for their talents abroad than at home
Host-country desires
Whom would it like to see put in managerial
positions?
Host countries prefer a managerial style similar to
that of their country

10. Ethnocentric
MNC
• Stresses
nationalism
• home-office
people for
key
international
management
positions
Polycentric
MNC
Regiocentric
MNC
Geocentric
MNC
• local
nationals in
key positions
• allows
managers to
appoint and
develop their
own people
• local
managers
from a
particular
geographic
region to
handle
operations in
and around
that area
• integrate
diverse
regions of the
world
through a
global
approach to
decision
making

11. Cross Cultural Training Of Expatriates
(Ericcson)

12. Learning
organization
Teaching
organization
Focused on
training and
development
Ensure that top
management
personnel passes
the learning to
others
Ex: Coca-Cola,
General Electric

13. Corporate Reasons for
Training
Personal reasons
Ethnocentrism
Improve ability to interact
effectively with local people and
with their personnel in particular
programs focus on dispelling myths
and stereotypes by replacing them
with facts about the culture

14. Environmental
Briefings
Cultural
Orientation
Sensitivity
Training
Major types of
cross-cultural
training
programs
Cultural
Assimilators
Field
Experience
Language
Training

15. Standardize
Tailor-made

16. Expatriates and host national
interact in the situation
The situation is puzzling or likely
to be misinterpreted by the
expatriate
Choice of content
of the assimilators
Situation can be interpreted
accurately if sufficient
knowledge about the culture is
available
The situation is relevant to the
expatriate’s task or mission
requirements

17. Definition
•The term “Expatriation” defines the process of
sending home company employees to a host
company -in most cases to a foreign subsidiary,
during a pre-defined period of time.
•The word “Repatriation” defines as the process of
returning to home country after being working in a
foreign country over a defined period of time

18. Most of them are formally agreed-on
tour of duty is over
Some want their children educated in
a home-country school
Some are not happy in their overseas
assignment
Some return because they failed to do
a good job

19. Organizational
changes
Technological
advances
Adjusting to the
new job back home

20. Repatriation Agreements
• Firm agrees with individual how long she or he will be posted
overseas and promises to give the individual, on return, a job
that is mutually acceptable
Some of the main problems of repatriation include:
• Adjusting to life back home
• Facing a financial package that is not as good as that overseas
• Having less autonomy in the stateside job than in the overseas
position
• Not receiving any career counseling from the company