PART FIVE EMPLOYEE RELATIONS

C H A P T E R S e v e n t e e n
Managing Global
Human Resou!es
17
Le!tue Outline
Stategi! Ovevie"
HR and the Internationalization of Business
The HR Challenges of International Business
How Inter-country Differences Affect HRM
Global Differences and i!ilarities in HR "ractice
"ersonnel election "rocedures
The "ur#ose of the "erfor!ance A##raisal
Training and De$elo#!ent "ractices
The %se of "ay Incenti$es
How to I!#le!ent a Global HR yste!
Ma&ing the Global HR yste! More Acce#table
De$elo#ing a More 'ffecti$e Global HR yste!
I!#le!enting the Global HR yste!
taffing the Global (rganization
International taffing) Ho!e or *ocal+
(ffshoring
,alues and International taffing "olicy
-hy '.#atriate Assign!ents /ail
electing '.#atriate Managers
Training and Maintaining '.#atriate '!#loyees
(rienting and Training '!#loyees on
International Assign!ents
Co!#ensating '.#atriates
A##raising '.#atriate Managers
International *abor Relations
Terroris!0 afety and Global HR
Re#atriation) "roble!s and olutions
A /inal -ord) Auditing the HR /unction
In Brief: This chapter outlines some
of the HR problems and issues
involved with international
businesses. The subjects covered
include inter-country differences,
using selection to improve
international assignments, and
training and maintaining international
employees.
Interesting Issues: Many companies
desire to rotate managers through
international assignments, but find
that work visa reuirements of the
host countries !including the ".#.$
can sometimes greatly hinder these
efforts.
12
ANNOTATE# O$TLINE
I% HR an& T'e Intenationali(ation o) *usiness
International Business and Its I!#act on Managing 3 Due to the 'uro#ean Mar&et
unification0 the introduction of the euro currency0 the o#ening of 'astern 'uro#e0 and
the ra#id de$elo#!ent of de!and in Asia and other areas of the world0 large and
s!all fir!s are finding their success de#ends on their ability to !ar&et and !anage
o$erseas4
A4 The HR Challenges of International Business 3 de#loy!ent0 &nowledge and
inno$ation disse!ination0 and identifying and de$elo#ing talent on a global basis4
Co!#licating these decisions are the cultural0 #olitical0 legal0 and econo!ic
differences a!ong countries and their #eo#les4
B4 How Inter-country Differences Affect HRM 3 A co!#any o#erating !ulti#le units
abroad does not ha$e the lu.ury of dealing with a relati$ely li!ited set of
econo!ic0 cultural0 and legal $ariables4
54 Cultural /actors 3 Countries differ widely in their cultures0 which are the basic
$alues to which their citizens adhere4 Cultural differences fro! country to
country necessitate corres#onding differences in !anage!ent #ractices
a!ong a co!#any6s subsidiaries4
24 'cono!ic yste!s 3 Differences in econo!ic syste!s translate into
differences in HR #ractices4 Differences in labor costs are substantial4
14 *egal and Industrial Relations /actors 3 $ary dra!atically fro! country to
country4 In !any 'uro#ean countries0 wor& councils re#lace the infor!al or
union based wor&er-!anage!ent !ediations ty#ical in %44 fir!s4 In
Ger!any and se$eral other countries0 codeter!ination is the rule where
e!#loyees ha$e the legal right to a $oice in setting co!#any #olicies4
74 The 'uro#ean Co!!unity 3 refers to the unification of se#arate 'uro#ean
countries in the 5889s into a co!!on !ar&et for goods0 ser$ices0 ca#ital0
and labor4
NOTES 'ducational Materials to %se
II% Global #i))een!es an& Similaities in HR Pa!ti!es
A4 "ersonnel election "rocedures 3 '!#loyers around the world tend to use
si!ilar criteria and !ethods for selecting e!#loyees4 As in the %nited tates0
e!#loyers around the world usually ran& :#ersonal inter$iews0; :the #erson6s
ability to #erfor! the technical re<uire!ents of the =ob0; and :#ro$en wor&
e.#eriences in a si!ilar =ob; at or near the to# of the criteria or !ethods they use4
B4 The "ur#ose of the "erfor!ance A##raisal 3 There tends to be !ore $ariation in
how e!#loyers in different countries use the results of #erfor!ance a##raisals4
11
To recognize subordinate; was a !ain #ur#ose for a##raisals in >a#an and
Me.ico4
C4 Training and De$elo#!ent "ractices 3 there are usually !ore si!ilarities than
differences across countries4 In #articular0 e!#loyers =ust about e$erywhere ran&
:to i!#ro$e technical abilities; as the !ain #ur#ose for #ro$iding e!#loyees with
training4 The a!ount of training fir!s #ro$ide does $ary substantially fro!
country to country4
When Youre on Your Own, HR for Line Managers and
Entrepreneurs) Co!#aring !all Businesses0 HR
"ractices in the %nited tates and China 3 Researchers
ha$e identified !any differences between HR for s!all
businesses in China fro! those in the %nited tates4
Differences are significant in the areas of) =ob analysis0
#erfor!ance a##raisal #ractices0 and actual #ay #ractices4
D4 The %se of "ay Incenti$es 3 there are great $ariations in the use of incenti$e
#ay4 o!e co!!unist countries actually use !ore incenti$e #ay than the %44
NOTES 'ducational Materials to %se
III% Ho" To Im+lement a Global HR S,stem
A4 Ma&ing the Global HR yste! More Acce#table
54 Re!e!ber global syste!s are !ore acce#ted in truly global organizations4
24 In$estigate #ressures to differentiate and deter!ine their legiti!acy4
14 Try to wor& within the conte.t of a strong cor#orate culture4
B4 De$elo#ing a More 'ffecti$e Global HR yste!
54 /or! global HR networ&s4
24 Re!e!ber that it6s !ore i!#ortant to standardize ends and co!#etencies
than s#ecific !ethods4
C4 I!#le!enting the Global HR yste!
54 Re!e!ber0 :?ou can6t co!!unicate enough4;
24 Dedicate ade<uate resources for the global HR effort4
NOTES 'ducational Materials to %se
17
IV% Sta))ing t'e Global Ogani(ation
A4 International taffing) Ho!e or *ocal+ 3 Multinational co!#anies @MACsB
e!#loy se$eral ty#es of international !anagers4 *ocals are citizens of the
countries where they are wor&ing4 '.#atriates @:e.#ats;B are non-citizens of the
countries in which they are wor&ing4 Ho!e-country nationals are citizens of the
country in which the !ultinational co!#any has its head<uarters4 Third-country
nationals are citizens of a country other than the #arent or the host country4

B4 (ffshoring 3 ha$ing local e!#loyees abroad do =obs that the fir!6s do!estic
e!#loyees #re$iously did in-houseCis growing by lea#s and bounds4 (ffshoring
=obs is $ery contro$ersial4 In the 58D9s and 5889s0 it was !ostly !anufacturing
=obs that e!#loyers shi##ed o$erseas4
C4 ,alues and International taffing "olicy 3 'thnocentric run fir!s would staff
foreign subsidiaries with #arent-country nationals because they belie$e that
ho!e country attitudes0 !anage!ent styles0 and &nowledge are su#erior to the
host country4 "olycentric run fir!s would staff foreign subsidiaries with host-
country nationals because they are the only ones that can really understand the
culture and the beha$ior of the host country !ar&et4 Geocentric run fir!s would
staff foreign subsidiaries with the best #eo#le for &ey =obs regardless of
nationality because they belie$e that the best !anager for any s#ecific #osition
anywhere on the globe !ay be in any of the countries in which the fir! o#erates4
D4 -hy '.#atriate Assign!ents /ail 3 International assign!ents fail for $arious
reasons including) #ersonality0 the #erson6s intentions0 and non-wor& factors4
'4 electing '.#atriate Managers 3 is si!ilar to selecting do!estic !anagers0 but
you need to deter!ine if !anagers for international assign!ents can co#e
internationally4
54 Ada#tability screening0 often conducted by a #sychologist or #sychiatrist0 is
ai!ed at assessing the assignee6s and fa!ily6s #robable success in handling
the foreign transfer4
The New Workplace) ending -o!en Managers Abroad 3 Many
!anagers assu!e that wo!en don6t want to wor& abroad4 In fact0
this sur$ey found0 wo!en do want international assign!ents4
'!#loyers tend to assu!e that wo!en #osted abroad are !ore
li&ely to beco!e cri!e $icti!s4 Howe$er0 !ost of the sur$eyed
wo!en e.#ats said that safety was no !ore an issue with wo!en
than it was with !en4 /ear of cultural #re=udices against wo!en is
another co!!on issue4 Here0 there6s no doubt that in so!e cultures
wo!en ha$e to follow different rules than do their !ale counter#arts4
But e$en here0 as one e.#at said0 :e$en in the !ore harsh cultures0
once they recognize that the wo!en can do the =ob0 once your
co!#etence has been de!onstrated0 it beco!es less of a #roble!4;

NOTES 'ducational Materials to %se

1E
V% Taining an& Maintaining E-+atiate Em+lo,ees
A4 (rienting and Training '!#loyees for International Assign!ents 3 o!e clai!
there is generally little or no syste!atic selection and training for assign!ents
o$erseas4 A four-ste# a##roach is reco!!ended) 5B focus on the i!#act of
cultural differences0 and on raising trainees6 awareness of such differences and
their i!#act on business outco!esF 2B get #artici#ants to understand how
attitudes @#ositi$e and negati$eB are for!ed and how they influence beha$iorF 1B
#ro$ide factual &nowledge about the target countryF and 7B #ro$ide s&ill building
in areas li&e language0 ad=ust!ent and ada#tation s&ills4
54 Trends in '.#atriate Training 3 !ore fir!s are #ro$iding continuing0 in-
country cross-cultural training during the early stages of a #erson6s o$erseas
assign!entF e!#loyers are returning !anagers as resources to culti$ate the
:global !indsets; of the rest of their ho!e office staffF there is increased use
of software and the Internet for cross-cultural training4
B4 Co!#ensating '.#atriates 3 #resents so!e tric&y #roble!s due to the <uestion of
whether or not to !aintain co!#anywide #ay scales and #olicies
54 The Balance heet A##roach0 the co!!on a##roach to e.#atriate #ay0
refers to e<ualizing #urchasing #ower across countries4
24 Incenti$es 3 Many fir!s offer o$erseas !anagers long-ter! incenti$es that
are tied !ore closely to #erfor!ance at the foreign subsidiary le$el4
C4 A##raising '.#atriate Managers 3 can be i!#ro$ed by)
54 ti#ulating the assign!ent6s le$elF
24 -eighing the e$aluation !ore toward the on-site !anager6s a##raisal than
toward the ho!e-site !anager6s distant #erce#tions of the e!#loyee6s
#erfor!ance4
14 Modifying the nor!al #erfor!ance criteria used for that #articular #osition to
fit the o$erseas #osition4 These differences can be in !any different areas4
now Your E!plo"!ent Law) The '<ual '!#loy!ent (##ortunity
Res#onsibilities of Multinational '!#loyers 3 %44 e!#loyers doing
business abroad0 or foreign fir!s doing business in the %nited tates
or its territories0 ha$e wide-ranging res#onsibilities to their
e!#loyees under A!erican e<ual e!#loy!ent o##ortunity laws0
including Title ,II0 the AD'A0 and the ADA4

D4 Terroris!0 afety0 and Global HR
54 Ta&ing "rotecti$e Measures
24 Gidna##ing and Ranso! @GHRB Insurance 3 The insurance itself ty#ically
co$ers se$eral costs associated with &idna##ings0 abductions0 or e.tortion
atte!#ts4 These costs !ight include0 for instance0 hiring a crisis tea!0 the
actual cost of the ranso! #ay!ent to the &idna##ers or e.tortionists0
ensuring the ranso! !oney in case it6s lost in transit0 legal e.#enses0 and
e!#loyee death or dis!e!ber!ent4
1I
'4 Re#atriation) "roble!s and olutions 3 o!e co!!on re#atriation #roble!s
are) they often fear that out of sight is out of !indF returning e.#atriates are
assigned to !ediocre or !a&eshift =obsF returnees are ta&en abac& when the
tra##ings of the o$erseas =ob are lost u#on returnF the e.#atriate6s for!er
colleagues ha$e been #ro!oted while heJshe was goneF and the e.#atriate6s
fa!ily !ay go through culture shoc&4 o!e #ossible solutions are) written
re#atriation agree!entsF assign a s#onsorF #ro$ide career counselingF &ee#
co!!unications o#enF and de$elo# reorientation #rogra!s4
#!pro$ing %roducti$it" Through HR#&) Ta&ing the HRI Global 3
As a co!#any grows relying on !anual HR syste!s to !anage
acti$ities li&e worldwide safety0 benefits ad!inistration0 #ayroll0 and
succession #lanning beco!es unwieldy4 /or global fir!s0 it !a&es
#articular sense to e.#and the fir!6s hu!an resource infor!ation
syste!s abroad4
/4 A /inal -ord) Auditing the HR /unction re<uires using accounting and
statistical techni<ues to calculate the cost of hu!an resources4 The HR
Re$iew should be ai!ed at ta##ing to# !anagers6 o#inions regarding the HR
function6s effecti$eness by assessing what should be0 and what is4 :-hat
should be; refers to HR6s broad ai!0 which in$ol$es a broad #hiloso#hy and
$ision state!ent0 and a focused !ission state!ent4 :-hat is; should
address the following <uestions4 -hat are the HR functions+ How i!#ortant
are these functions+ How well is each of the functions #erfor!ed+ -hat
needs i!#ro$e!ent+ How effecti$ely does the cor#orate HR function use
resources+ How can HR beco!e !ost effecti$e+
The HR &corecard, &trateg" and Results) Managing Global
Hu!an Resources 3 *isa ta&es ste#s to !a&e the Hotel "aris6 HR
functions global in nature4 This includes e.#atriate !anager training0
integrated HRI that allows to# !anage!ent to !onitor HR
#erfor!ance on an ongoing basis0 and a new incenti$e syste! for
local !anagers4
NOTES 'ducational Materials to %se
#ISC$SSION .$ESTIONS
/% You ae t'e +esi&ent o) a small business% 0'at ae some o) t'e "a,s ,ou e-+e!t being
involve& intenationall, "ill a))e!t ,ou business1 Being in$ol$ed internationally can affect
$irtually e$ery as#ect of your business4 It can affect the growth of your business due to additional
!ar&ets0 it can affect costs of doing business0 and it can affect e$ery as#ect of HRM as outlined in the
cha#ter
2% 0'at ae some o) t'e s+e!i)i! uni3uel, intenational a!tivities an intenational HR manage
t,+i!all, engages in1 5B /or!ulating and i!#le!enting HR #olicies and acti$ities in the ho!e-office
of a !ultinational co!#any4 This HRM !anager would engage in selecting0 training0 and transferring
#arent-co!#any #ersonnel abroad and for!ulating HR #olicies for the fir! as a whole and for its
foreign o#erations4 2B Conducting HR acti$ities in the foreign subsidiary of an MAC is another for!4
Again0 local HR #ractices are often based on the #arent fir!Ks HR #olicies0 fine-tuned for local country
#ractices4
1L
4% 0'at inte5!ount, &i))een!es a))e!t HRM1 Give seveal e-am+les o) 'o" ea!' ma,
s+e!i)i!all, a))e!t HRM% 5B Cultural /actors - %44 !anagers !ay be !ost concerned with getting
the =ob done4 Chinese !anagers !ay be !ost concerned with !aintaining a har!onious
en$iron!ent4 And His#anic !anagers !ay be !ore concerned with establishing trusting0 friendshi#
relationshi#s4 2B 'cono!ic /actors - %44 econo!ic syste!s tend to fa$or #olicies that $alue
#roducti$ity while !ore socialistic countries li&e weden would fa$or #olicies that #re$ent
une!#loy!ent4 1B *abor Cost /actors - Me.ican labor costs @lowB can allow inefficiencies of labor0
while Ger!an labor costs @highB !ight re<uire a focus on efficiency4 7B Industrial Relations /actors -
Ger!an law re<uires that wor&ers ha$e a $ote in setting #olicies while in >a#an the e!#loyees do not
ha$e a say0 but the go$ern!ent !ay ha$e a say in establishing #olicies4 EB The 'uro#ean
Co!!unity - The 'C will gradually reduce the differences between !e!ber countries4
6% You ae t'e HR manage o) a )im t'at is about to sen& its )ist em+lo,ees oveseas to sta)) a
ne" subsi&ia,% You boss7 t'e +esi&ent7 as8s ,ou "', su!' assignments )ail7 an& "'at ,ou
+lan to &o to avoi& su!' )ailues% Ho" &o ,ou es+on&1 'sti!ates say that 29M to 2EM of all
o$erseas assign!ents fail4 Reasons include) inability of s#ouse to ad=ust0 !anagersK inability to
ad=ust0 other fa!ily #roble!s0 and !anagersK inability to co#e with res#onsibility4 -e will need to
select a !anager that dis#lays) ada#tability and fle.ibility0 cultural toughness0 self-orientation0 others-
orientation0 #erce#tual ability0 and has a fa!ily with ada#tability4
9% 0'at s+e!ial taining &o oveseas !an&i&ates nee&1 In "'at "a,s is su!' taining simila to
an& &i))eent )om ta&itional &ivesit, taining1 It is suggested that a four-ste# training a##roach
be ta&en) 5B training focused on the i!#act of cultural differences and their i!#act on business
outco!esF 2B training focused on attitudes that are ai!s at getting #artici#ants to understand how
attitudes @both #ositi$e and negati$eB are for!ed and how the influence beha$iorF 1B training focused
on factual &nowledge about the target countryF and 7B s&ill building in areas li&e language and
ad=ust!ent and ada#tation s&ills4 This training is different fro! traditional di$ersity training in the last
two ste#s0 which are not nor!ally #art of di$ersity training4 In addition0 traditional training and
de$elo#!ent is needed as with any other !anager4
:% Ho" &oes a++aising an e-+atiate;s +e)oman!e &i))e )om a++aising t'at o) a 'ome5o))i!e
manage1 Ho" "oul& ,ou avoi& some o) t'e uni3ue +oblems o) a++aising t'e e-+atiate;s
+e)oman!e1 A !a=or difficulty is) -ho actually a##raises the #erfor!ance+ @Cultural differences
could affect itB There are fi$e suggestions) 5B ti#ulate the assign!entKs difficulty le$elF 2B -eight the
e$aluation towards the on-site !anagerKs a##raisalF 1B Ha$e a for!er e.#atriate ad$ise the ho!e-site
!anager in his or her e$aluationF 7B Modify the nor!al #erfor!ance criteria to fit the #osition and
characteristics of the localeF EB Atte!#t to gi$e credit for insights0 not =ust !easurable criteria4
<% As an HR manage7 "'at +ogam "oul& ,ou establis' to e&u!e e+atiation +oblems o)
etuning e-+atiates1 The #rogra!s listed in the cha#ter gi$e a good su!!arization of the ty#es
of #rogra!s and acti$ities that should be established to assure a s!ooth re#atriation4
#ESSLER COMPANION 0E* SITE
We invite you to visit the Dessler homepage (htt#)JJwww4#renhall4co!Jdessler) on
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provi!es professors "ith a customi#e! course Web site$ inclu!ing ne"
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such as 'nternet (esources$ an H()' E*am Prep +ui!e$ assessment e*ercises$ an!
more
1D
IN#IVI#$AL AN# GRO$P ACTIVITIES
/% 0o8ing in&ivi&uall, o in gou+s7 "ite an e-+atiation an& e+atiation +lan )o ,ou
+o)esso7 "'o ,ou s!'ool is sen&ing to *ulgaia to tea!' HR )o t'e ne-t t'ee ,eas% In
de$elo#ing their e.#atriation and re#atriation #lan0 the students should use Internet resources to find
infor!ation on $arious cultural0 econo!ic0 and legal factors that could affect their #rofessor4 They
should include a descri#tion of the ty#e of training #rogra! their #rofessor should ta&e #rior to lea$ing
for Bulgaria0 the #ay structure while on the international assign!ent0 and #articulars for how the
re#atriation #lan will wor& for the #rofessor6s return4
2% Give t'ee s+e!i)i! e-am+les o) multinational !o+oations in ,ou aea% C'e!8 t'e liba, o
Intenet o "it' ea!' )im to &etemine in "'at !ounties t'ese )ims 'ave o+eations an&
e-+lain t'e natue o) some o) t'ei o+eations7 an& "'ateve ,ou !an )in& out about t'ei
intenational HR +oli!ies% The e.a!#les will $ary according to what co!#anies ha$e o#erations in
your area4 This can be an e.citing o##ortunity for students to find out !ore about co!#anies and
what they are doing beyond your i!!ediate geogra#hic area4
4% C'oose t'ee taits use)ul )o sele!ting intenational assignees7 an& !eate a staig't)o"a&
test =not +en!il an& +a+e> to s!een !an&i&ates )o t'ese taits% There are an infinite nu!ber of
res#onses that you !ight get to this <uestion4 /irst0 !a&e sure that the traits either are on the list in
the cha#ter0 or are reasonable and logical traits that would be useful4 econd0 assure that the tests
that the students de$elo# are ones that will actually identify the #resence of these traits4
6% $se a liba, sou!e to &etemine t'e elative !ost o) living in )ive !ounties as o) t'is ,ea7
an& e-+lain t'e im+li!ations o) su!' &i))een!es )o &a)ting a +a, +lan )o manages being
sent to ea!' !ount,% The !ost co!!on a##roach is to e<ualize #urchasing #ower across
countries0 a techni<ue &nown as the balance sheet a##roach4 The basic idea is that each e.#atriate
should en=oy the sa!e standard of li$ing he or she would ha$e had at ho!e4
9% T'e HRCI ?Test S+e!i)i!ations@ a++en&i- at t'e en& o) t'is boo8 lists t'e 8no"le&ge someone
stu&,ing )o t'e HRCI !eti)i!ation e-am nee&s to 'ave in ea!' aea o) 'uman esou!e
management =su!' as in Stategi! Management7 0o8)o!e Planning7 an& Human Resou!e
#evelo+ment>% In gou+s o) )ou to )ive stu&ents7 &o )ou t'ingsA =/> evie" t'at a++en&i-
no"B =2> i&enti), t'e mateial in t'is !'a+te t'at elates to t'e e3uie& 8no"le&ge t'e
a++en&i- listsB =4> "ite )ou multi+le !'oi!e e-am 3uestions on t'is mateial t'at ,ou believe
"oul& be suitable )o in!lusion in t'e HRCI e-amB an& =6> i) time +emits7 'ave someone )om
,ou team +ost ,ou teamCs 3uestions in )ont o) t'e !lass7 so t'e stu&ents in ot'e teams !an
ta8e ea!' ot'esC e-am 3uestions% The !aterial fro! this cha#ter that is a##licable to the HRCI
certification e.a! would include) The HR challenges of international business0 how inter-country
differences affect HRM0 global differences and si!ilarities in HR #ractice0 how to i!#le!ent a global
HR syste!0 staffing the global organization0 and training and !aintaining e.#atriate e!#loyees4
:% T'e A+il 2DD6 issue o) HR Maga(ine !ontaine& an ati!le title& ?A)tes'o!8s o) 0a7@ "'i!'
sai& t'at sol&ies etuning to t'ei Eobs )om Ia3 "oul& li8el, e3uie HRCs assistan!e in
!o+ing "it' ?&ela,e& emotional tauma%@ T'e tem &ela,e& emotional tauma e)es to t'e
+esonalit, !'anges su!' as ange7 an-iet,7 o iitabilit, an& asso!iate& +oblems su!' as
ta&iness o absenteeism t'at e-+osue to t'e taumati! events o) "a sometimes tigges in
etuning veteans% Assume ,ou ae t'e HR manage )o t'e em+lo,e o) Fo'n Smit'7 "'o is
etuning to "o8 ne-t "ee8 a)te one ,ea in Ia3% *ase& on "'at ,ou ea& in t'is !'a+te7
"'at ste+s "oul& ,ou ta8e to 'el+ ensue t'at Fo'nCs eintegation into ,ou "o8)o!e goes
as smoot'l, as +ossible1 There are se$eral suggestions in the section :Re#atriation) "roble!s
and olutions4; At !ini!u!0 you should arrange for a s#onsorJ!entor0 career counseling0 and a
reorientation #rogra!4 ?ou need to also !a&e sure that there are clear and o#en doors for hi! to
co!!unicate with you4 It would be a good idea to ha$e so!e counseling a$ailable as well4
18
E-+eiential E-e!iseA Com+ensation In!entives )o E-+atiate Em+lo,ees
This e.ercise forces students to thin& realistically about the co!#ensation #roble!s with e.#atriate
e!#loyees4 The ran&ings will $ary0 but students should be #re#ared to defend their ran&ings with reason
and logic4 i!ilarly0 while the described :effects on co!#ensation; !ay $ary0 they should be reasonable
and logical4 -hen discussing the #roble!s that the higher le$el of co!#ensation !ight create0 do not
forget) 5B =ealousy of other e!#loyees0 2B #roble!s of ad=ust!ent when re#atriation occurs0 and 1B
whether e$en this le$el will be ade<uate to entice e!#loyees to ta&e the foreign assign!ents4
A++li!ation Case In!i&entA ?*oss7 I T'in8 0e Have a Poblem@
54 *ase& on t'e !'a+te an& !ase in!i&ent7 !om+ile a list o) /D intenational HR mista8es M%
Fis'e 'as ma&e so )a% A!ong his !ista&es) /isher has not #ro#erly identified candidatesF cultural
sensiti$ity0 inter#ersonal s&ills and fle.ibility ha$e not been included as re<uired =ob s&illsF there is no
syste! in #lace to assess candidates for #ro#er s&illsF the co!#any does not ha$e realistic cost
#ro=ects for cross-border o#erationsF the co!#any has not deter!ined whether it would be cost effect
to ha$e an e.#atriate !anagerF there are no assign!ent letters docu!enting the sco#e of the =obF
there is no international co!#ensation syste! in #laceF the co!#any has not ta&en into account
differences in foreign e.#ensesF the co!#any has not ta&en into account foreign ta.esF there is no
for!al relocation assistance #rogra! in #laceF the co!#any has not considered the i!#ortance of
fa!ily su##ortF there is no cultural orientation #rogra! in #lace for e.#atriate !angers or their fa!ily
!e!bersF a!ong others4
24 Ho" "oul& ,ou 'ave gone about 'iing a Euo+ean sales manage1 0',1 I would ha$e
in$estigated the !ar&et to deter!ine the a##ro#riate le$el of co!#ensation and benefits4 '.#atriate
co!#ensation #ac&ages should consider ta. e<ualization clauses or other !easures for dealing with
differing costs of li$ing4 The co!#any should also ha$e retained consul on 'uro#ean labor lawsJ
#ractices4 The location of the office should be carefully selected for fa$orable labor and ta. laws4 *i&e
/isher0 I would ha$e wanted a large #ool of #otential a##licants0 but gi$en /isher6s ine.#erience0 he
!ay ha$e benefited fro! the use of an outside agency @search fir!B4 /inally0 /isher6s stereoty#es of
'uro#ean !anagers !ay ha$e clouded his =udg!ent with his e.isting #ool of a##licants4

14 0'at "oul& ,ou &o no" i) ,ou "ee M% Fis'e1 /isher needs to see& legal consul in regard to his
labor situation4 He is li&ely in the wrong4 In which case0 he will need to reinstate the e!#loyees and
a#ologize4 He will in all li&elihood need to start o$er and find an a##ro#riate sales !anager with
&nowledge of the local culture and business #ractices4
Continuing CaseA Cate Cleaning Com+an, Going Aboa&
/% Assuming t'e, began b, o+ening Eust one o t"o stoes in Me-i!o7 "'at &o ,ou see as t'e
main HR5elate& !'allenges 'e an& Fenni)e "oul& 'ave to a&&ess1 The students will not only
need to incor#orate their learnings fro! this cha#ter to answer this <uestion0 they should also include
infor!ation fro! all the cha#ters in the te.t to co!e u# of the !ain HR-related i!#lications and
challenges Carter Cleaning Co!#any will face as a result of o#ening the Me.ican stores4
2% Ho" "oul& ,ou go about !'oosing a manage )o a ne" Me-i!an stoe i) ,ou "ee Fa!8 o
Fenni)e1 Fo instan!e7 "oul& ,ou 'ie someone lo!all, o sen& someone )om one o) ,ou
e-isting stoes1 0',1 The students should used the infor!ation in the cha#ter on selecting
international !anagers4 The students are li&ely to differ in their choices as to which ty#e of
international !anager they would suggest for the *ondon o#erationF =ust loo& for the! to =ustify their
res#onses4
EGPERIENTIAL EGERCISES H CASES
79
4% T'e !ost o) living in Me-i!o is substantiall, belo" t'at o) "'ee Cate is no" lo!ate&A Ho"
"oul& ,ou go about &evelo+ing a +a, +lan )o ,ou ne" manage i) ,ou &e!i&e& to sen& an
e-+atiate to Me-i!o1 The students should use infor!ation fro! cha#ters 550 520 and 510 and the
Internet sources #resented in those cha#ters to for!ulate their res#onse to this <uestion4
6% Pesent a &etaile& e-+lanation o) t'e )a!tos ,ou "oul& loo8 )o in ,ou !an&i&ate )o
e-+atiate manage to un t'e stoes in Me-i!o% The students should include infor!ation
#resented in cha#ters one through fifteen0 in addition to the infor!ation #resented in this cha#ter0 to
de$elo# their list of HR-related things Carter Cleaning Co!#any needs to do in selecting their
e.#atriate e!#loyee for Me.ico4
PART5EN#ING VI#EO CASE Em+lo,ee Relations
a!uel *a/ayette was sent to "aris with his fa!ily to head u# a new
/ocus "ointe office4 a!uel and his fa!ily had a great a!ount of
difficulty accli!ating the!sel$es to their new en$iron!ent0 and after si.
!onths returned to Aew ?or&4 a!uel !ust now !eet with his HR
re#resentati$es to discuss what went wrong0 and to also address his
current e!#loy!ent situation0 as his #osition in Aew ?or& had been filled
while he was in "aris4 This seg!ent focuses on how HR can best select
and #re#are candidates for an international assign!ent4
/or full $ideo case and discussion <uestions0 #lease $isit the /aculty
Resource section of the Dessler Co!#anion -eb ite at)
htt#)JJwww4#renhall4co!Jdessler
IEY TERMS
!o&etemination '!#loyees ha$e the legal right to a $oice in setting co!#any #olicies4
e-+atiates =e-+ats> Aon-citizens of the countries in which they are wor&ing4
'ome !ount, nationals Citizens of the country in which the !ultinational co!#any has its
head<uarters4
t'i& !ount, nationals Citizens of a country other than the #arent or the host country4
o))s'oing Ha$ing local e!#loyees abroad do =obs that the fir!6s do!estic
e!#loyees #re$iously did in-house4
et'no!enti! The notion that ho!e-country attitudes0 !anage!ent style0 &nowledge0
e$aluation criteria0 and !anagers are su#erior to anything the host
country has to offer4
+ol,!enti! A conscious belief that only the host-country !anagers can e$er really
understand the culture and beha$ior of the host-country !ar&et4
geo!enti! The belief that the fir!6s whole !anage!ent staff !ust be scoured on a
global basis0 on the assu!#tion that the best !anager of a s#ecific
75
#osition anywhere !ay be in any of the countries in which the fir!
o#erates4
a&a+tabilit, s!eening A #rocess that ai!s to assess the assignee6s @and s#ouse6sB #robable
success in handling a foreign transfer4
)oeign sevi!e +emiums /inancial #ay!ents o$er and abo$e regular base #ay0 ty#ically ranging
between 59M and 19M of base #ay4
'a&s'i+ allo"an!es Co!#ensate e.#atriates for e.ce#tionally hard li$ing and wor&ing
conditions at certain locations4
mobilit, +emiums Ty#ically0 lu!#-su! #ay!ents to reward e!#loyees for !o$ing fro! one
assign!ent to another4
72