Chapter 10- Managing Human Resources Globally

Factors that Affect HRM International Markets

-Culture

-Education skill levels

-Economic system

-Political legal system

Six dimensions of culture

Individualism/Collectivism, Power Distance, Uncertainty Avoidance, Masculinity/Femininity, Long-term/short-term orientation, Indulgence/restraint

Culture

The most important influence on international HRM—affects a country's laws and what people value. Culture determines the appropriateness of various HRM practices.

Culture Shock

Home-Country Nationals

Expatriate managers who are citizens of the country where the multinational corporation is headquartered

host-country nationals

individuals from the country where an overseas subsidiary is located

third-country nationals

natives of a country other than the home country or the host country of an overseas subsidiary

Domestic Organization

An organization that identifies with a single country and predominant culture.

International Organization

An organization that sets up one or a few facilities in one or a few foreign countries.

multinational company

an organization that builds facilities in a number of different countries in an effort to minimize production and distribution costs

Global Organization

An organization that chooses to locate a facility based on the ability to effectively, efficiently, and flexibly produce a product or service, using cultural differences as an advantage i.e. highest level of involvement in the global marketplace.