Human resource management 8e by gomez mejia 2016 chapter 17

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Chapter 17

International HRM Challenge

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Chapter Challenges

1 Specify the HRM strategies that are most

appropriate for firms at different stages of internationalization

2 Identify the best mix of host-country and

expatriate employees given the

conditions facing a firm

3 Explain the challenges of expatriate

assignments

17-2

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Chapter Challenges

4 Learn how to effectively manage

expatriate assignments and minimize the chances of failure

5 Develop HRM policies and procedures

that match the needs and values of

different cultures

6 Consider ethical implications of HRM

policies and procedures on a global basis

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The Stages of International

Involvement

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Determining the Mix

Host-Country and Expatriates

• Wholly owned subsidiaries

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Advantages and

Disadvantages

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Reliance on Expatriates

Increases When:

• Local talent is not available

• Overall business strategy is global vision

• International units and domestic operations are

highly interdependent

• Technology has reduced need for expatriate to

link the international units to home office

• The political situation is unstable

• Significant cultural differences exist between host and home countries

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The Challenges of Expatriate

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The Challenges of Expatriate

Assignments

Difficulties on Return

• Lack of respect for acquired skills

• Loss of status

• Poor planning for return position

• Reverse culture shock

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• Establish a selection board of expatriates

• Require previous international experience

• Explore the possibility of hiring foreign-born

employees

• Carefully consider expatriate’s ethical values

• Screen candidate’s spouses and families

• Develop an effective selection program

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• Cross-cultural training

• 9 to 12 months before the assignment

• Expatriate family training

• Approaches to training

o Information-giving approach

o Affective approach

o Impression approach

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Career Development

Important Guidelines:

• Position the international assignment

as a step toward advancement

• Provide support for the expatriate

• Provide support for the spouse

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Important Guidelines:

• Provide the expatriate with disposable

income equivalent to home disposable

income

• Provide explicit “add-on” incentive for

accepting international assignment

• Avoid having expatriate fill the same jobs

held by locals or lower-ranking jobs

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Hofstede’s Five Cultural

Dimensions

Power Distance Individualism Uncertainty Avoidance Masculinity/Femininity

Orientation

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EEO in the International

Context

Prohibition of basing employment decisions

race, sex, and age

Foreign-national employees are not covered by

U.S law Immigration Control and Reform Act of 1986

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Important Caveats

• National culture may be an elusive concept

• Cultures change over time

• Blame is sometimes placed on cultural

factors

• Hard data are not present

• Right and wrong values vary

• Business laws vary

• The need to find the right balance of HRM

policies

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HRM and Exporting Firms

• HRM Practices for International

Activity

• Ethics and Social Responsibility

• Dealing with Political Risks

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Summary and Conclusions

• The Stages of International Involvement

• Determining the Mix of Host-Country and

Expatriate Employees

• The Challenge of Expatriate Assignments

• Effectively Managing Expatriate

Assignments with HRM Policies and

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Pearson Education, Inc.

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