Professional Documents
Culture Documents
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HRM is more complex in an international business because of differences between countries in labor markets, culture, legal systems, economic systems, and so on The HRM function must also deal with a host of issues related to expatriate managers (citizens of one country working abroad)
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THE STRATEGIC ROLE OF INTERNATIONAL HRM Success in international business requires that HRM policies be congruent with the firms strategy
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There are two advantages to the polycentric approach: the firm is less likely to suffer from cultural myopia this staffing approach may be less expensive to implement than an ethnocentric policy
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There are two disadvantages to the polycentric approach: host country nationals have limited opportunities to gain experience outside their own country and thus cannot progress beyond senior positions in their own subsidiaries. a gap can form between host country managers and parent country managers
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A staffing approach in which all key management positions are filled by parent-country nationals is called a) An ethnocentric staffing policy b) A geocentric staffing policy c) A polycentric staffing policy d) A transcentric staffing policy
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Expatriate Managers Expatriate failure is the premature return of an expatriate manager to his or her home country.
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For European firms, only one reason was found to consistently explain expatriate failure: the inability of the managers spouse to adjust to a new environment
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For Japanese firms, the reasons for failure, were: the inability to cope with larger overseas responsibility difficulties with the new environment personal or emotional problems a lack of technical competence the inability of spouse to adjust
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The components of the typical expatriate compensation package are: base salary a foreign service premium allowances of various types tax differentials benefits
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