MGMT 355 – International Management

Host-country nationals
A worker who is indigenous to the local country where the plant is located
Inpatriates
Managers with global experience who are transferred to the organization’s headquarters country
Third-country nationals
Employees hired from a country other than the headquarters or the host country of a firm’s activities
Expatriates
One who works and lives in a foreign country but remains a citizen of the country where the employing organization is headquarted
Parent-country nationals
An employee from the firm’s home country sent to work in the firm’s operations in another country
Regiocentric staffing approach
An approach in which recruiting for international managers is done on a regional basis and may comprise a specific mix of PCNs, HCNs, and TCNs
Polycentric staffing approach
An MNC policy of using local host-country nationals to fill key positions in the host country
Ethnocentric staffing approach
An approach that fills key managerial positions abroad with persons from headquarters– that is, with parent-country nationals
Tye and Chen
found that stress tolerance and extraversion were greatest predictors for expatriate success (study was only based on American expats, however)
expatriate success areas
-cultural training
-language instruction
-familiarity with every day matters
Causes of expatriate failure
-poor selection based on inappropriate criteria
-inadequate preparation before assignment
-alienation from headquarters
-inability of manager or family to adapt to local environment
-inadequate compensation package
-poor program for career support
Concept of “keeping the expatriate whole”
related to maintaining the same living conditions that the expatriate would have had in their home country
Reverse culture
A state of disorientation and anxiety that results in returning to one’s own culture
Effective human resource management of a company’s global cadre
should emphasize managerial skills over technical skills, tolerance for ambiguity, multiple perspectives, and ability to work with and manage others
Tolerance for ambiguity
making decisions with less information and more uncertainty about the process and the outcome
multiple perspectives
learning to understand situations from the perspective of local employees and business people
Ability to work with and manage others
learning patience and tolerance – realizing that managers abroad are in the minority among local people; learning to communicate more with others and empathize with them
transnational teams advantages vs. disadvantages
Advantages:
Greater opportunity for global competition
Opportunities for cross cultural understanding
Exposure to different viewpoints

Disadvantages:
Problems resulting from differences in languages
Complex decision making processes
Personality conflicts

power distance
High power distance suggests motivators in boss-subordinate relationship, low power distance suggests motivation by teamwork and peers
work centrality
This research considers work centrality, or the importance of work, relative to that of leisure, community, religion, and family. The higher the mean work centrality score, the more motivated and committed workers will be
employee’s needs are determined largely by
the cultural context of values and attitudes—along with the national variables—in which he or she lives and works
reward categories
US: Financial, social status, job content, career, and professional

Japan: Focus on seniority, bonuses, and permanent workers; competition discouraged

China: Focus on social benefits, shift to pay-for-performance and equity-based rewards

characteristics of a successful leader with a global mindset
Personal work style:
High “cultural quotient” (CQ)
Open minded and flexible
Effective cross-cultural communicator and collaborator
Team player in a global matrix
Supports global objectives and balances global with local goals and practices

General perspective:
Broad system perspective
Personal autonomy and emotional resilience
Change is welcomed and facilitated
Enables boundary-less organization
Operates easily in cross-cultural and cross-functional environment

Where are the IMF and World Bank Headquarters located
IMF: Washington DC

World Bank Headquarters: Washington DC

Reserve Currency
euro, yen, and pound
Convergence
migration of management and workplace practices around the world to reduce workplace disparities from one country to another
Divergence
diversification of workplace practices and management