International HRM

Chapter 15
Learning Objectives
1. Summarize how the growth in
international business activity affects
human resource management.
2. Identify the factors that most strongly
influence HRM in international markets.
3. Discuss how differences among countries
affect HR planning at organizations with
international operations.
Chapter 15
Learning Objectives
4. Describe how companies select and train
human resources in a global labor
5. Discuss challenges related to
compensating employees from other
6. Explain how employers prepare
managers for international assignments
and for their return home.
International Business and HR
Mergers and
Foreign Human
Importance of
Global Human
Market Access
International Business Terminology
Parent Country Nationals
Host-country Nationals
Third-country Nationals
Factors that influence International HRM
Hofstede’s Five Dimensions of Culture
How Countries Differ
1. Individualism/Collectivism Describes the strength of the relation
between an individual and other individuals
in the society.
2. Power Distance
Concerns the way the culture deals with
unequal distribution of power and defines
the amount of inequality that is normal.
3. Uncertainty Avoidance
Describes how cultures handle the fact that
the future is unpredictable.
4. Masculinity/Femininity
The emphasis a culture places on practices
or qualities that have traditionally been
considered masculine or feminine.
5. Long-term/Short-term
Suggests whether the focus of cultural
values is on the future (long term) or the
past and present (short term).
Emotional Cycle Associated
with a Foreign Assignment
Performing International
HRM Functions
A. Recruiting
1. Matching process
2. Personal qualities vs. job competence
(adaptability, language skills, local
knowledge, etc.)
B. Selection Process
1. Interviewing - family participation
Topics for Assessing Candidates for
Overseas Assignments
Performing International
HRM Functions (continued)
C. Training
1. Cultural training
2. Language training
3. Personal adjustments
D. Performance Appraisal
1. Dual responsibility – host and home
Performing International
HRM Functions (continued)
E. Compensation
1. Based on length of assignment/conditions
2. Support for expenses
3. Financial support
F. Repatriation
Expatriate Compensation
• To be effective, an international
compensation program must:
– Provide an incentive to leave the United
– Allow for maintaining a U.S. standard of
– Facilitate reentry into the United States.
– Provide for the education of children.
– Allow for maintaining relationships with
family, friends, and business associates.
The process of an employee transitioning
home from an international assignment.
• “Welcome home”
• Counseling to ease the transition
• Validation
• Post assignment feedback
• Cross cultural preparation