GLOBAL HUMAN RESOURCES
1
Cross-Cultural Management
Global Staffing
Pressures
– Candidate selections
– Assignment terms
– Relocation
– Immigration
– Culture and language
– Compensation
– Tax administration
– Handling spouse and dependent matters
2
Cross-Cultural Management
Sources of Human Resources
• Host-Country Nationals
– Local managers who are hired by the MNC
– Used in middle- and lower-level
management positions
– Nativization
• Requirement of host-country
government that mandates employment
of host-country nationals
3
Cross-Cultural Management
Sources of Human
Resources
• Third-Country Nationals (TCNs)
– Citizens of countries other than the one in
which the MNC is headquartered or the
one in which the managers are assigned to
work by the MNC
4
Cross-Cultural Management
Failure Rates of International Assignments
International assignment failure can cost
hundreds of thousands of euros
Europe
% Failure
Japan
US
0
5
20
40
60
Cross-Cultural Management
Why International
Assignments Fail
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•
•
•
•
6
Personality
Person’s intentions
Family pressures
Lack of cultural skills
Other non-work conditions like living and
housing conditions, and health care
Cross-Cultural Management
Improving Failure Rates/Solutions
•
•
•
•
•
•
7
Provide realistic previews
Have a careful screening process
Improve orientation
Provide good benefits
Test employees fairly
Shorten assignment length
Cross-Cultural Management
Selecting
International Managers
• Test for traits that predict success in
adapting to new environments
• Job knowledge and motivation
• Relational skills
• Flexibility and adaptability
• Extra-cultural openness
• Family situation
8
Cross-Cultural Management
Predictive trait
breakdown
The New Workplace:
Sending Women Abroad
• In the US, only 6% filled overseas positions
compared to 49% domestic
• One survey found inaccurate stereotypes:
– Not as internationally mobile
– Might have a tougher time building teams
9
Cross-Cultural Management
Culture Shock!
• Disorientation upon entering a new cultural
environment
• Normal use of own cultural filter fails
– interpretation of perceptions
– communication of intentions
• All people experience culture shock... Past
experience and training can shorten its
length
10
Cross-Cultural Management
Symptoms
– homesickness
– boredom
– withdrawal (reading is an obsession, focus
on home nationals, avoid host nationals)
– excessive sleep need, compulsive eating
and drinking
– irritability
– exaggerated cleanliness
11
Cross-Cultural Management
Symptoms (cont.)
– marital stress, family tension, conflict
– stereotyping host nationals
– hostility towards host nationals
– loss of ability to work effectively
– fits of weeping
– psychosomatic illnesses
12
Cross-Cultural Management
Repatriation of Expatriates
• Repatriation
– Return to one’s home country from an overseas
management assignment
• Reasons for returning
– Formally agreed-on tour of duty is over
– Expats want their children educated in the home
country
– Unhappiness with foreign assignment
– Failure to perform well
• Readjustment problems
– Permanent position upon return constitutes a
demotion
– Lack opportunity to use skills learned abroad upon
return
– Salary and benefits may decrease upon return
13
Cross-Cultural Management
Repatriation Problems
• Finding former colleagues
promoted
• Reverse culture shock
14
Cross-Cultural Management