International Human Resources Management

Flashcards for reviewing key concepts in international human resources management.

What is PEST Analysis in International HRM?

An audit of a company’s environmental influences (political, economic, socio-cultural, and technological) to determine their strategy and HR response.

What are the advantages of using PEST analysis?

Spotting business or personnel opportunities, identifying trends, avoiding implementing failing HR practices, and breaking free of old habits to create innovative ideas.

Name some of the Economic factors an organization should consider when doing a PEST analysis.

Currency fluctuations, economic forecasts, and trade cycles.

Name some of the Social-Cultural factors an organization should consider when doing a PEST analysis.

National culture, population demographics, and human rights.

Name some of the Technological factors an organization should consider when doing a PEST analysis.

Production technology and property rights.

What does a GLOBAL organization do?

Views the world as a single market; operations are controlled centrally from the corporate office.

What does a TRANSNATIONAL organization do?

Specialized facilities permit local responsiveness; complex coordination mechanisms provide global integration.

What does an INTERNATIONAL organization do?

Uses existing capabilities to expand into foreign markets.

What does a MULTINATIONAL organization do?

Several subsidiaries operating as stand-alone business units in multiple countries.

List the three types of international staff?

Parent/Home-country Nationals, Host-country Nationals, and Third-country Nationals

What is the Ethnocentric Staffing Model

An International HRM Strategy.

What is the Polycentric Staffing Model

An International HRM Strategy.

What is the Geocentric Staffing Model

An International HRM Strategy.

What are some local recruiting and selection issues to consider when staffing internationally?

Assessing firm’s HR needs, primary sources of labor, labor force skills and talents, and training requirements; awareness of hiring regulations, laws, and norms.

Why is cultural awareness important for international business managers?

They must be aware of cultural nuances and cognizant of the role of cultural differences and similarities in workers from different cultures.

What are some skills critical to an employee’s success abroad?

Experience, decision-making, adaptability, team-building, resourcefulness, cultural sensitivity, and maturity.

List the steps to take when Selecting Home-Country Nationals.

Begin with self-selection, creating a candidate pool, and assessing core skills.

What are some augmented skills and attributes that are helpful for expatriate managers?

Technical, negotiation, delegation, strategic thinking, change management skills

How do you select expatriate managers?

Selection testing should include, job knowledge, relational skills, flexibility/adaptability, extra-cultural openness, motivation, family situation

What are problems related to the family during expatriate assignment?

Language, Presence/age of children and Spousal bond

List essential training program content to prepare employees for working internationally

Language training, cultural training, assessing and tracking career development, managing personal and family life, and repatriation including culture shock.

What aspects of the host country an employee preparing for an international assignment need to be acquainted with?

Social and business etiquette, history and folklore, current affairs including relations with the United States, cultural values and priorities, geography, sources of pride, religion, political structure, practical matters, and the language.

What are some developmental and career advantages of an international assignment?

It increases the expatriate’s responsibilities and influence, provides unique experiences, enhances understanding of the global marketplace, and offers the opportunity to work on important projects.

What are some general rules to follow when compensating employees?

Pay plan should support the strategic intent of the organization, flexibility to customize particular policies and programs to meet local needs, and "Think globally, act locally".

What is a Global 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

What are some common compensation benefits of Expatriate Managers?

American standard of living, Security (hardship premium), Health care , Foreign taxes, Education (children), Family, friends, and business associates relationships and Expatriate return

What are Home-Based Pay systems based on?

Pay based on an expatriate’s home country’s compensation practices

What is the Balance-Sheet Approach?

A compensation system designed to match the purchasing power in a person’s home country

What needs to be calculated in order to implement a Balance-Sheet Approach?

Calculate base pay , Figure cost-of-living allowance (COLA), Income taxes, housing, goods and services, and discretionary expenses Add incentive premiums and assistance programs

What is Split Pay?

Pay is split between local and home currency

What is Host-Based Pay?

Expatriate pay and benefits are comparable to that earned by employees in a host country.

Who should appraise performance?

Home-country evaluations and Host-country evaluations.

List the ROI Performance Criteria steps?

Define the assignment’s objectives, Agree on quantifiable measurements for assignment, Develop an equation that converts qualitative behavior into quantifiable measurements, Evaluate performance against these measurements and Calculate ROI to see if the expatriate covered the cost of keeping them on assignment.

What are some Performance Appraisal factors?

Ambassador, Improvement, Development, Learning Adjustment and Expectations, Goals

What are some solutions for Repatriation problems?

Match the expat and his or her family with a psychologist trained in repatriation issues, Make sure the expat always feels “in the loop” with what’s happening back at the home office and Provide formal repatriation services when the expat returns home.

What are some 'Do's' of the best Global HR Practices?

Work within existing local systems—integrate global tools into local systems, Create a strong corporate culture, Create a global network for system development, Treat local people as equal partners in system development etc…

What are some 'Don'ts' of the best Global HR Practices?

Try to do everything the same way everywhere, Yield to every claim that “we’re different”—make them prove it, Force a global system on local people, Use local people just for implementation etc…