Chapter 14-intl management

The Importance of International Human Resources
-Essential part of any organization.
-Important to understand how employees feel they are being treated.
-Especially challenging.
-Sending employees overseas can be expensive.
-Economic pressures are changing the nature of the human resources process.
Three Primary Functions of International HR
1. Procurement, allocation, and use of employees
2. Home country, host country, third country
3. Home country, host country, and third country labor and employment issues
MNCs can tap four basic sources for positions:
-Home-country nationals
-Host-country nationals
-Third-country nationals
-Inpatriates
Home-Country Nationals
-Expatriate managers who are citizens of the country where the multinational corporation is headquartered
-Sometimes called headquarters nationals or expatriates
Common reasons to use home-country nationals
-start up operations,
-to provide technical expertise,
-to develop promising managers
-to facilitate coordination and control
Host-Country Nationals
Local managers hired by the MNC
Common reasons to use host country nationals include:
-Familiarity with the culture
-Knowledge of the language
-They are less expensive than expatriates.
-Hiring them is good public relations.
Third-Country Nationals
Managers who are citizens of countries other than the country in which the MNC is headquartered or the one in which the managers are assigned to work by the MNC.
Advantages of TCN
-TCN managers can often achieve corporate objectives more effectively than expatriates or local nationals.
-During rapid expansion, TCNs can substitute for expatriates and complement and expand on the viewpoints of local nationals and headquarters personnel.
-In joint ventures, TCNs can demonstrate a global or transnational image and bring unique cross-cultural skills to the relationship.
Inpatriates
Individuals from a host country or third country who are assigned to work in the home country.
International selection criteria
-Factors used to choose personnel for international assignments
-MNCs usually give serious consideration to five or six criteria.
HR Responsibilities
-Developing the global mindset of the organization
-International taxation
-Exchange rates
-International administrative services
-Foreign government relations
-International relocation and orientation
-Foreign language and cultural training
-Training and development at the local level
Base salary
Amount of money that an expatriate normally receives in the home country
Cost-of-Living Allowance
-Payment for differences between the home country and the overseas assignment.
-Designed to provide the expatriate the same standard of living enjoyed in the home country
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
Repatriation
The return to one’s home country from an overseas assignment.
Reasons for returning to home country
-The agreed-on tour of duty is over
-Want their children educated in a home-country school
-Not happy in their overseas assignment (or family isn’t happy)
-Failed to do a good job
Readjustment problems
-“Out of sight, out of mind” syndrome
-Organizational changes
-Technological advances
-Adjusting to the new job back home