ch 19 class notes u4 Int business

Ethnocentric Approach

A staffing policy where key management positions are filled by parent-country nationals; used when the host country lacks qualified individuals.

Limitations of Ethnocentric Approach

Limits advancement opportunities for host-country nationals, causes resentment, lower productivity, and potential cultural myopia.

Polycentric Approach

A staffing policy where host-country nationals manage subsidiaries while parent-country nationals hold key positions at corporate headquarters.

Advantages of Polycentric Approach

Reduces cultural myopia and can be less expensive than the ethnocentric approach.

Limitations of Polycentric Approach

Limits host-country nationals' opportunities for experience outside their country, leading to potential lack of integration with headquarters.

Geocentric Approach

A staffing policy that seeks the best people for key jobs regardless of nationality, promoting a diverse executive cadre.

Benefits of Geocentric Approach

Utilizes human resources efficiently and enhances local responsiveness while reducing cultural myopia.

Inpatriates

Expatriates who are citizens of a foreign country working in the home country of their multinational employer.

Expatriate Failure Rates

Premature return rates from foreign postings often due to personal adjustment issues.

Reasons for U.S. Manager’s Failure (Tung)

Inability of spouse to adjust, manager's personal issues, family problems, or inability to handle overseas responsibilities.

Expatriate Selection Dimensions (Mendenhall and Oddou)

Self-orientation, others-orientation, perceptual ability, and cultural toughness predict expatriate success.

Training vs. Development

Training focuses on immediate skills for expatriate managers; development pertains to long-term career skills.

Cultural Training

Training aimed at fostering appreciation for the host country’s culture and practices.

Language Training

Training to communicate effectively in the host country's language, enhancing interaction with locals.

Practical Training

Support to help expatriates and their families adjust to daily life in the host country.

Repatriation of Expatriates

The process of reintegrating expatriates back into their home organization after an overseas assignment.

Management Development and Strategy

Ongoing manager education through job rotation to build a diverse management network.

Expatriate Pay - Balance Sheet Approach

Compensation framework ensuring expatriates maintain the same standard of living abroad as at home.

Foreign Service Premium

Extra compensation for expatriates working outside their country of origin.

Expatriate Pay Allowances

Financial support for hardship, housing, cost of living, education, and taxation considerations.

International Labor Relations - Organized Labor Concerns

Employers can move production to manage bargaining power, keeping skilled tasks at home.

HR's Role in Organizational Architecture

HR manages structure, processes, people, incentives, and culture to achieve organizational goals.

Ethnocentric vs Polycentric vs Geocentric

Different staffing approaches in international business, each with its pros and cons.

Balance Sheet Approach Components

Elements of expatriate compensation, including home-country salary comparison and additional company costs.