Global Business Chapter 19

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Global Business Chapter 19
2013-04-21 08:43:49
Human Resources

Human Resources
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  1. Human Resource Management
    refers to the activities an organization carries out to use its human resources efficiently. These activities include determining its HR strategy, performance evaluations, management development, compensation, and labor relations
  2. expatriate manager
    citizen of one country who is working abroad in one of the firm's subsidiaries
  3. Staffing policy
    • concerned with the selection of employees for particular jobs.
    • selecting individuals who have the skills required
  4. Corporate culture
    • the organization's norms and value systems. 
    • a strong corporate culture can help a firm implement a strategy
  5. Types of staffing policies
    • 1. Ethnocentric
    • 2. Geocentric
    • 3. Polycentric
  6. Ethnocentric Staffing policy
    all key management positions are filled by parent-company nationals.
  7. Why ethnocentric?
    • 1. firm may believe the host country lacks qualified individuals to fill senior positions
    • 2. best way to maintain a unified corporate culture
    • 3. if transferring core competencies, may believe the best way to do that is with parent-company nationals.
  8. Why not ethnocentric?
    • 1. limits opportunities for host-country nationals
    • 2. can lead to cultural myopia: the firm's failure to understand host-country cultural differences that require different approaches to marketing and management
  9. Polycentric
    Requires host country nationals to be recruited to manage subsidiaries while parent country nationals occupy key positions at corporate head office.
  10. Why polycentric?
    • 1. Alleviates cultural myopia: unlikely to make the mistakes that arise from cultural differences that expats would make. 
    • 2. Inexpensive to implement
  11. Why not polycentric?
    • 1. Limits career mobility 
    • 2. Isolates headquarters from foreign subsidiaries: may make transferring core competencies and curve and location economies difficult to achieve
  12. Geocentric
    Seeks the best possible people for key jobs throughout the organization, regardless of nationality.
  13. Why geocentric?
    • 1. Use human resources efficiently
    • 2. Helps build strong culture and informal management networks
  14. Why not geocentric?
    • 1. National immigration policies may limit implementation
    • 2. Expensive
  15. Expatriate failure
    The premature return of an expatriate manager to his or her home country
  16. Reasons for failure (us)
    • 1. Inability of spouse to adjust
    • 2. manager's inability to adjust
    • 3. Other family problems
    • 4. Managers personal or emotional maturity 
    • 5. Inability to cope with larger overseas responsibilities
  17. What are the 4 dimensions that predict success in a foreign posting?
    • 1. Self-orientation
    • 2. Others orientation
    • 3. Perceptual ability: the ability to empathize 
    • 4. Cultural toughness
  18. Training for expatriate managers
    • Cultural training: seeks to foster an appreciation for the host country's culture
    • language training: learning the language can help build rapport with local employees and improve the manager's effectiveness. 
    • practical training: aimed at helping the expatriate manager and family ease themselves into day to day life in the host country.
  19. Expatriate pay includes...
    • Base salary
    • foreign service premium
    • allowances
    • taxation
    • benefits

    all handled so that the expat has the same quality of living than at home