Essay on Lecture 11

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Globalization of Business and Strategic HR
Globalization of business is now the norm

Expatriate - employee who are citizens of the country where the parent company is based, who are sent to work in another

Pressing Challenges re: Global Staffing & Relocation
Candidate identification, assessment, selection
Global assignment cost projections
Specific assignment letters (contacts9
Compensation, benefits, and tax programs
Relocation assistance
Family support

Why Expats Assignment Fail?
Expat Assignment Fail: Early return of an expat from a global assignment
Family issues are the number one cause of the expat assignment fail. Therefor, it is imperative employers understand just how unhappy and cut off the expat’s spouse can feel in a foreign environment
The employer can provide realistic previews of what to expect, careful screening, improved orientation, and improved benefits packages, as well as other solutions

How inter-country differences affect HRM
Cultural factor
Economic systems
Legal systems
Labor cost factors

Values - a broad tendency to prefer certain states of affairs over others.
Different categories of values:
Intellectual
Economic
Aesthetic
Social
Political
Religious

Importance of Value
Provides understanding of attitudes, motivation and behaviors
Influence our perception of the world around us
Represent interpretations of “right: and “wrong”
Imply that some behaviors or outcomes are preferred over others

Cultural Dimensions
Hofstede’s Framework for assessing culture - five value dimensions: Power distance Individualism vs collectivism Masculinity vs. Femininity Uncertainity Avoidance Long term vs short term orientation
Hall’s view of culture
“Culture is communication and communication is culture” (1959)
Low and high context culture
Slow context cultures rely on direct communication and works to convey meaning ie. CANADA & USA
High context cultures: rely on contextual information and indirection communication to convey meaning ie. Japan & China

International Staffing Choices
Ethnocentric: home country management style superior to host country (we know best)
Polycentric : host country management style most appropriate for host country (they know best)
Geocentric: best managers may be found anywhere (just get the best)

Selection for Global Assignment selecting global managers - selecting managers for expatriate assignments means screening them for traits that predict success in adapting to what may be dramatically new environments adaptability screening - realistic job preview, pre-assignment visit, paper-and-pencil tests success of Canadian expatriates
Canadian companies have reported low failure rates for expatriates relative to other countries, particularly the U.S, which has a failure rate of 40 to 50 percent the country’s diverse ethnic makeup has produced a generation of business leaders who mix easily with different cultures

Maintaining Global Employees
Orienting and training employees for global assignments
Cross-cultural training
Leadership development opportunity
International compensation
Balance sheet approach
Variable pay
International EAP (Employee Assistance Program)

Maintaining International Employees: Performance Appraisal
Stipulate difficulty level of assignment
Weight on site manager’s appraisal higher than home site manager
Advice to home country manager from former expatriate
Modify performance criteria for expat situation
Credit expat for relevant insights re: functioning of the operation, specifically the interdependencies between HQ & aboard assignments

Labor Relations
Firms opening
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