© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.

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© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. International Human Resources Management 1–1 The Challenges of Human Resources Management

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2 of 41 Chapter Objectives Chapter Objectives After studying this chapter, you should be able to Explain the economic, political, and cultural factors in different countries that HR managers need to consider. Identify the types of organizational forms used for competing internationally. Explain how domestic and international HRM differ. Discuss the staffing process for individuals working internationally. Identify the unique training needs for international assignees and their local employees. Identify the characteristics of a good international compensation plan. Reconcile the difficulties of home- and host-country performance appraisals. Explain how labor relations differ around the world. LEARNING OUTCOME 1 LEARNING OUTCOME 2 LEARNING OUTCOME 3 LEARNING OUTCOME 4 LEARNING OUTCOME 5 LEARNING OUTCOME 6 LEARNING OUTCOME 7 LEARNING OUTCOME 8

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 3 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 3 of 41 The Global Environment Global SimilaritiesGlobal Similarities 1.Free trade 2.Service-based business 3.Integrated technology platforms Global DifferencesGlobal Differences  Political and cultural differences  Property rights are poorly protected  Civil unrest  Intellectual property rights have been little protected

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4 of 41

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 5 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 5 of 41 Managing Across Borders International corporationInternational corporation –Domestic firm that uses its existing capabilities to move into overseas markets. Multinational corporation (MNC)Multinational corporation (MNC) –Firm with independent business units operating in multiple countries. Global corporationGlobal corporation –Firm that has integrated worldwide operations through a centralized home office. Transnational corporationTransnational corporation –Firm that attempts to balance local responsiveness and global scale via a network of specialized operating units.

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 6 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 6 of 41 Types of Organizations

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 7 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 7 of 41 Domestic versus International HRM Issues in international HRM in helping employees adapt to a new and different environment outside their own country:Issues in international HRM in helping employees adapt to a new and different environment outside their own country:  Relocation  Orientation  Translation services

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 8 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 8 of 41 Staffing Internationally Expatriates, or Home-country NationalsExpatriates, or Home-country Nationals  Employees from the home country who are on international assignment. Host-country NationalsHost-country Nationals  Employees who are natives of the host country. Third-country NationalsThird-country Nationals  Employees who are natives of a country other than the home country or the host country.

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 9 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 9 of 41 Changes in International Staffing over Time

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10 of 41 Recruiting Internationally Work Permit, or VisaWork Permit, or Visa  Government document granting a foreign individual the right to seek employment. Guest WorkersGuest Workers  Foreign workers invited to perform needed labor. ApprenticeshipsApprenticeships  Vocational training programs in skilled trades. Transnational TeamsTransnational Teams  Teams composed of members of multiple nationalities working on projects that span multiple countries.

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11 of 41 Selecting Employees Internationally Selecting employees in a foreign country environment can be difficultSelecting employees in a foreign country environment can be difficult  Get to know the local market and customs in hiring  In India, much of the effective hiring was done through family ties and friendship networks  To better understand the local market there are a few things firms can do – International HR managers should get to know the universities, technical school’s, and primary schools in the area – International HR managers should develop network in the business and government communities – International HR managers must understand the employees of the firm’s competitors

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 12 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 12 of 41 Selecting Global Managers Global ManagerGlobal Manager  A manager equipped to run an international business Skills Categories for Global ManagersSkills Categories for Global Managers  Ability to seize strategic opportunities  Ability to manage highly decentralized organizations  Awareness of global issues  Sensitivity to issues of diversity  Competence in interpersonal relations  Community-building skills

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 13 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 13 of 41

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 14 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 14 of 41 Selecting Global Managers (cont.) 1.Begin with self-selection. 2.Create a candidate pool. 3.Assess core skills. Skills considered critical to an employee’s success abroad. 4.Assess augmented skills and attributes. Skills helpful in facilitating the efforts of expatriate managers

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 15 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 15 of 41 Skills of Expatriate Managers

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 16 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 16 of 41 Expatriate Selection Criteria

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 17 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 17 of 41 Causes of Expatriate Assignment Failure

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 18 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 18 of 41 Expatriate Adjustment Factors

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 19 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 19 of 41 Training and Development Essential training program content to prepare employees for working internationally:Essential training program content to prepare employees for working internationally:  Language training  Cultural training  Assessing and tracking career development  Managing personal and family life  Repatriation Culture shockCulture shock  Perpetual stress experienced by people who settle overseas.

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 20 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 20 of 41 Content of Training Programs Those working internationally need to know as much as possible about:Those working internationally need to know as much as possible about:  The country where they are going, that country’s culture  That country’s culture, and  The history, values, and dynamics of their own organizations

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 21 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 21 of 41 Preparing for an International Assignment

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 22 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 22 of 41

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 23 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 23 of 41 Cultural Training Reviewing available information about the host company: books, magazines, video tapes.Reviewing available information about the host company: books, magazines, video tapes. Conversations with host country natives.Conversations with host country natives. Sensitivity training to become familiar with the customs and overcome prejudices.Sensitivity training to become familiar with the customs and overcome prejudices. Temporary assignments to encourage shared learning.Temporary assignments to encourage shared learning.

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 24 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 24 of 41

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 25 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 25 of 41 Assessing and Tracking Career Development Developmental and Career Advantages of an International Assignment:Developmental and Career Advantages of an International Assignment:  Increases the expatriate’s responsibilities and influence within the corporation  Provides a set of unique experiences beneficial to both the individual and the firm  Enhances understanding of the global marketplace  Offers the opportunity to work on a project important to the organization

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 26 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 26 of 41 Selected Foreign-Born Executives

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 27 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 27 of 41

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 28 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 28 of 41 Compensation Different countries have different norms for employee compensation:Different countries have different norms for employee compensation:  Financial (money) incentives versus nonfinancial incentives (prestige, independence, and influence)  Individual rewards versus collectivist concerns for internal equity and personal needs  General rule: – Match the rewards to the values of the local culture—create a pay plan that supports the overall strategic intent of the organization but provides enough flexibility to customize particular policies and programs to meet the needs of employees in specific locations.

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 29 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 29 of 41 Compensation of Host-Country Employees Hourly wages can vary dramatically from country to country.Hourly wages can vary dramatically from country to country. Pay periods are different.Pay periods are different. Seniority may be an important factor.Seniority may be an important factor. High pay rates can upset local compensation practices.High pay rates can upset local compensation practices. Bonuses, profit-sharing, benefits and paid leave may be more extensive and legally required.Bonuses, profit-sharing, benefits and paid leave may be more extensive and legally required.

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 30 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 30 of 41

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 31 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 31 of 41 Compensation of Host-Country Managers Global Compensation SystemGlobal Compensation System  A centralized pay system whereby host-country employees are offered a full range of training programs, benefits, and pay comparable with a firm’s domestic employees but adjusted for local differences

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 32 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 32 of 41 Compensation of Expatriate Managers An effective international compensation program must:An effective international compensation program must: 1.Provide an incentive to leave the United States 2.Allow for maintaining an American standard of living 3.Provide for security in countries that are politically unstable or present personal dangers 4.Include provisions for good health care 5.Reimburse the foreign taxes the employee is likely to have to pay (in addition to having to pay domestic taxes) and help him or her with tax forms and filing 6.Provide for the education of the employee’s children abroad, if necessary 7.Allow for maintaining relationships with family, friends, and business associates via trips home and other communication technologies 8.Facilitate the expatriate’s reentry home 9.Be in writing

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 33 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 33 of 41 Compensation of Expatriate Managers (cont.) Home-Based PayHome-Based Pay  Pay based on an expatriate’s home country’s compensation practices Balance-Sheet ApproachBalance-Sheet Approach  A compensation system designed to match the purchasing power in a person’s home country 1.Calculate base pay 2.Figure cost-of-living allowance (COLA) 3.Add incentive premiums 4.Add assistance programs

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 34 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 34 of 41 Compensation of Expatriate Managers (cont.) Split PaySplit Pay  A system whereby expatriates are given a portion of their pay in the local currency to cover their day-to-day expenses and a portion of their pay in their home currency to safeguard their earnings from changes in inflation or foreign exchange rates Host-Based PayHost-Based Pay  Expatriate pay is comparable to that earned by employees in a host country to which the expatriate is assigned.

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 35 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 35 of 41 Compensation of Expatriate Managers (cont.) LocalizationLocalization  Adapting pay and other compensation benefits to match that of a particular country  Reduces resentment among local staff members if they are earning significantly less. Other IssuesOther Issues  Adequacy of medical care  Personal security  Compensation policies of competitors

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 36 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 36 of 41 Performance Appraisal Who Should Appraise Performance?Who Should Appraise Performance?  Home-country evaluations  Host-country evaluations Home versus Host-Country EvaluationsHome versus Host-Country Evaluations  Local managers with daily contact with the person are more likely to have an accurate picture of his or her performance. Performance Criteria – five steps:Performance Criteria – five steps: 1. Defining the assignment’s objectives. 2. Agreeing on the quantifiable measurements for the assignment. 3. Developing an equation that converts qualitative behavior into quantifiable measurements. 4. Evaluating the expatriate’s performance against these measurements. 5. Calculating the ROI. This can be a complex cost accounting or a simple calculation to see if the expatriate covered the cost of keeping them on assignment. Providing FeedbackProviding Feedback

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 37 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 37 of 41 The Labor Environment Worldwide International Differences in Unions:International Differences in Unions:  The level at which bargaining takes place (national, industry, or workplace)  The degree of centralization of union-management relations  The scope of bargaining (parties and issues)  The degree to which government intervenes  The degree of unionization and union strength  The political affiliations of unions

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 38 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 38 of 41 Collective Bargaining in Other Countries Collective Bargaining in Other CountriesCollective Bargaining in Other Countries  When we look at other countries, wefind that the process can vary widely, especially with regard to the role of government. International Labor OrganizationsInternational Labor Organizations  The most active of the international union organizations has been the International Trade Union Confederation (ITUC), which has its headquarters in Brussels.  Another active and influential organization is the International Labour Organization (ILO), a specialized agency of the United Nations created in 1919.

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 39 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 39 of 41 Labor Participation in Management Labor Participation in ManagementLabor Participation in Management  In many European countries, provisions for employee representation are established by law.  A higher form of worker participation in management is found in Germany, where representation of labor on the board of directors of a company is required by law.  This arrangement is known as codetermination Each of these differences makes managing human resources in an international context more challenging.Each of these differences makes managing human resources in an international context more challenging.

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 40 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 40 of 41 Key Terms augmented skills balance sheet approach codetermination core skills cultural environment culture shock expatriates, or home-country nationals failure rate global compensation system global corporation global manager guest workers home-based pay host-based pay host country host-country nationals international corporation localization multinational corporation (MNC) repatriation split pay third-country nationals transnational corporation transnational teams work permit, or visa

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 41 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 41 of 41 Chapter 15 - Learning Outcomes Learning Outcome StatementsRelated Outcomes from Body of the Text 1 Explain the economic, political, and cultural factors in different countries that HR managers need to consider. What environmental factors should Quiznos consider in its move to Kuwait? How do economics, politics, and culture impact the way Quiznos manages its employees in Kuwait? 2 Identify the types of organizational forms used for competing internationally. If you were a global HR manager, you would want to make sure your HR practices match the structure of the organization. What is the ideal organizational structure in a global environment? 3 Explain how domestic and international HRM differ. What is the best way to make HR practices transnational? 4 Discuss the staffing process for individuals working internationally. Why would PepsiCo want to send as few U.S.-based managers as possible to run operations in Peru? 5 Identify the unique training needs for international assignees and their local employees. If you were going to send a new manager to South Korea, what specific types of training would you provide her before she left? 6 Identify the characteristics of a good international compensation plan. Should compensation packages be equal across the world, or should they be adapted to the local cultures and economies? 7 Reconcile the difficulties of home- and host-country performance appraisals. Assume you are working for GE in Afghanistan. The power often goes out in your building, business deals take longer than in the United States, and you experience a great amount of stress due to the unstable political environment. Would you want your performance to be assessed in relation to the difficulty of doing business in Afghanistan? 8 Explain how labor relations differ around the world. Do you think there should be some international standard for labor rights? If so, what should that standard be and how should it be enforced?