Professional Documents
Culture Documents
Management
Lecture-44
Managing Human
Resources in an
International
Business
Stages of a
Global
Organization
Domestic
International
Multinational
Global or Trans-
national
Why?
The Evolution of
Global Business
Exporting - Selling abroad
Licensing - Organization grants a foreign
firm the right to use intellectual
properties
Franchising - Parent company grants
another firm the right to do business in a
prescribed manner
Multinational corporation - Firm that is
based in one country and produces
goods or provides services in one or
more foreign countries
subordinates
How negotiations should be
conducted
How training should be delivered
– Recruiting
– Selection
– Compensation
– Benefits
– Performance Management
– Training
Global HR: HR Planning
In deciding level of international
involvement of the business….
– HR provides information about
relevant HR issues (e.g., local
market pay rates, labor laws)
Decisions about where & how many
employees are needed for each facility
International Staffing
Recruitment
Key
Key Issues
Issues Selection
Training and
Development
Global HR: Selection
Identify host-country, parent-country, & third-
country nationals
– Hire locally? For which jobs?
Anticipate emotional cycle associated with foreign
assignment:
– Culture shock
– Learning
– adjustment
Consider criteria associated with success in working
overseas:
– Competence in area of expertise
– Ability to communicate verbally & nonverbally in foreign
country
– Flexibility, tolerance of ambiguity, & sensitivity to cultural
differences
– Motivation to succeed & enjoyment of challenges
– Willingness to learn about country’s culture, language,
customs
– Support from family members
Selection of Employees
for International
Assignments
Emphasize cultural sensitivity as a
selection criteria
Establish a selection board of expatriates
Require previous international
experience
Screen candidates’ spouses and families
Global HR: Training &
Development
Consider differences when developing training
– Norms for participation? Language?
Content?
Cross-cultural preparation for international
assignment (departure, assignment, return)
International assignments as a part of career
paths (development)
– Process for identifying employees
Four Step Approach
to Training Overseas
Candidates
Level 1 training focuses on the impact of
cultural differences, and on raising trainees’
awareness of such differences and their impact on
business outcomes.