Human Resource Management
International HR
Stages of International Involvement


Stage 1 Markets are exclusively domestic
Stage 2 Markets expanded to foreign
countries, but production remains domestic
 Stage 3 Some operations moved out of
home country
 Stage 4 Firm in a multinational corporation
(MNC) where assembly/production is in
several countries
 Stage 5 Transnational corporations where
control is diffuse with little allegiance to any
one country
Locals vs. Expatriates
Pluses and minuses of locals
 Pluses and minuses of expatriates

Expatriate Assignments

Problems
– U.S. failure rate 20 – 40%
 3 to 4 times higher than Europeans or Asians
– (In 2006 failures cost $170,000 to
$360,000 each - Total of over $4 billion)


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Career Blockage
Culture Shock
Lack of Pre-departure Cross-cultural Training
Overemphasis on Technical Skills
Family Problems
Expatriate Assignments

Problems
– Difficulties upon Return
 Lack of respect
 Loss of status – status reversal
 Reverse culture shock
Levels of Culture
Manifest
 Expressed values
 Basic assumptions

Frameworks
Kluckhohn & Strodtbeck- Variation in
Values Orientation
 Bigoness & Blakely’s Dimensions
 Hofstede’s Dimensions
 Hall’s Culture Context
 Trompenaars’ Seven Dimensions

Kluckhohn & Strodtbeck
Values orientation
Relation to nature
Time orientation
Basic human nature
Activity orientation
Variations
Subjugation
Past
Evil
Being
Harmony
Mastery
Present
Future
Neutral/Mixed Good
Containing/ Doing
controlling
Relationships among Individualistic Group
Hierarchical
people
Space orientation
Private
Mixed
Public
Bigoness & Blakely
Pleasantness
Good Citizen
Competent
(Cheerful,loving, (Responsible,
(Capable,
helpful)
polite, obedient) courageous)
Good Thinker
(Imaginative,
intellectual)
Australia (n=36) 12.7
Brazil (n=30)
11.7
Denmark (n=37) 11.9
France (n=32) 13.1*
Great Britain
(n=89) 12.5
Germany (n=106)13.0*
Italy (n=31)
12.2
Japan (n=20)
10.0*
Holland (n=31) 12.2
Norway (n=46) 11.5
Sweden (n=69) 12.8
USA (n=42)
12.1
10.9
10.1*
11.5
11.3
5.6
4.7*
5.2
5.6
8.3
6.8*
8.6
7.8
11.7
10.8
11.7
9.8*
11.8
11.4
12.0
11.5
6.2
5.5
5.2
6.2
5.4
5.2
4.5*
6.7*
7.7
8.0
6.7*
7.5
7.5
8.0
8.1
7.7
Overall
11.3
5.6
7.9
12.3
Hofstede’s Dimensions of Cultural Differences:
Individualism versus collectivism
-concern for self vs. others
Power distance
-acceptance of unequal power distribution
Uncertainty avoidance
-preference for structure
Materialism versus concern for others (Masculinity/Femininity)
-tough vs. tender
Long-run versus short-run orientation (Bond)
-future vs. past/present
Collective
PAK
COL
TAI PER
THA
VEN
SIN
HOK
GRE
JAP
PHI
IND
IC
NZL
CAN
NET
GBR
USA
AUL
Individual
Low
Power Distance
High
Hofstede Dimension Scores for 10 Countries
USA
Germany
Japan
France
Netherlands
Hong Kong
Indonesia
West Africa
Russia
China
PD
IC
MF
UA
LT
40L
35L
54M
68H
38L
68H
78H
77H
95H
80H
91H
67H
46M
71H
80H
25L
14L
20L
50M
20L
62H
66H
95H
43M
14L
57H
46M
46M
40L
50M
46L
65M
92H
86H
53M
29L
48L
54M
90H
60M
29L
31M
80H
30L
44M
96H
25L
16L
10L
118H
PD – H = accepts unequal power
IC – H = individualistic
MF – H = masculine
UA – H = avoid uncertainty
LT – H = long-term orientation
From Hostede, 1993
Academy of Management Executive
What Can Be Done?

Reward Practices– Hi Power Distance vs Low Power Distance
– Collectivistic vs Individualistic
– Hi Uncertainty Avoidance vs Hi Ambiguity
– Hi Masculinity vs. Hi Femininity
– Long-term vs. short-term orientation

Staffing/Appraisal Practices
– Hi Power Distance vs Low Power Distance
– Collectivistic vs Individualistic
– Hi Uncertainty Avoidance vs Hi Ambiguity
– Hi Masculinity vs. Hi Femininity
– Long-term vs. short-term orientation
Hall’s Culture Context

High-context
– China, Egypt, France, Italy

Low-context
– Australia, Canada, England, United States
Culturally Based Differences in
Management Style:
Stereotypes
United States
Emotional,
egalitarians
China
Low-profile,
tough negotiators
Japan
Formal,
consensus seekers
Germany
Technically expert,
authoritarians
France
Elitist,
authoritarians
Multicultural Managers and Organizations
The
–
–
–
–
–
Multicultural Manager
Has the skills and attitudes to relate effectively to
and motivate people across race, gender, age, social
attitudes, and lifestyles. Respects and values the
cultural differences.
Has the ability (e.g., is bilingual) to conduct business
in a diverse, international environment.
Has a cultural sensitivity in being aware and
interested in why people of other culture act as they
do.
Is not parochial in assuming that the ways of one’s
culture are the only ways things should be done.
Is not ethnocentric in assuming that the superiority of
one’s culture over that of another culture.
Protocol Do’s and Don’t’s in Several Countries
Great Britain
DO say please and thank you often.
DO arrive promptly.
DON’T ask personal questions because the British protect their privacy.
DON’T gossip about British royalty
France
DO shake hands when greeting. Only close friends give light, brushing kisses on cheeks.
DO dress more formally than in the United States. Elegant dress is highly valued.
DON’T expect to complete any work during the French two
hour lunch
DON’T chew gum in a work setting.
Italy
DO write business correspondence in Italian for priority attention.
DO make appointments between 10:00 and 11:00 or after 3:00.
DON’T eat too much pasta, as it is not the main course.
DON’T handout business cards too freely. Italians use them infrequently.
Protocol Do’s and Don’t’s in Several Countries
Greece
DO distribute business cards freely so people will know how to spell your name.
DO be prompt even if your hosts are not.
DON’T expect to meet deadlines. A project takes as long as theGreeks think is
necessary.
DON’T address people by formal or professional titles. The Greeks want more informality.
Japan
DO present your business cards with both hands and a slight bow as a gesture of
respect.
DO present gifts, American-made and wrapped.
DON’T knock competitors.
DON’T present the same gift to everyone, unless all members are the same organizational
rank.
Improving the Expatriate Assignment

Emphasize cultural sensitivity in selection and include
spouse in assessment
 Conduct cross-cultural training with more for longer
assignments
 Position international assignments as career
enhancing
 Use compensation as an incentive
Most Expensive Cities
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1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Tokyo
Osaka Kobe
Paris
Copenhagen
Oslo
Zurich
Frankfurt
Helsinki
Geneva
Singapore
Hong Kong
Vienna
Dublin
New York
Morgantown
Japan
Japan
France
Denmark
Norway
Switzerland
Germany
Finland
Switzerland
Singapore
Hong Kong
Austria
Ireland
United States
United States
152
145
132
124
123
122
118
115
115
112
110
109
108
100
56
EEO in the International Context

EEO prohibition of discrimination based on
age, sex, race, etc. apply to international
assignments too
 Foreign national employees of U.S.
companies working outside the US are not
covered by U.S. employment law
 Immigration and Control Act (1986)
– Non-U.S. citizens living and working in the
U.S.
– May not be discriminated against
Other International HR Considerations
 Ethics and Social Responsibility
– Many ethical dilemmas face expatriates
– Ethical and legal are not the same
Foreign Corrupt Practices Act (1977)

Political Risk
 Possibility that social or government
pressures negatively impact operations
 Expatriates often caught in middle
o
Should understand political situation