Human Resource

Management
ELEVENTH EDITION

GARY DESSLER

Part 5 | Employee Relations

Chapter
17

Managing Global Human Resources

2008 Prentice Hall, Inc.

All rights reserved.

PowerPoint Presentation by Charlie Cook

The University of West Alabama

After studying this chapter, you should be able to:

1. List the HR challenges of international business.
2. Illustrate how intercountry differences affect HRM.
3. Discuss the global differences and similarities in HR
practices.
4. Explain five ways to improve international assignments
through selection.
5. Discuss how to train and maintain international
employees.

2008 Prentice Hall, Inc. All

172

HR and the Internationalization of Business

The Global Challenges
Coordinating market, product, and production plans

on a worldwide basis.
Creating organization structures capable of

balancing centralized home-office control with

adequate local autonomy.
Extending HR policies and systems to service

staffing needs abroad.

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Intercountry Differences Affecting HRM

Cultural
Factors

Economic
Systems

International
Human Resource
Management

Legal and Industrial

Relations Factors

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174

Global Differences and Similarities

in HR Practices
Personnel
Selection
Procedure

Use of Pay
Incentives

International
Human Resource
Management

Purpose of
Performance
Appraisal

Training and
Development
Practices

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175

How to Implement a Global HR System

Best practices for making a global HR system
more acceptable to local managers:
1. Remembering that global systems are more

accepted in truly global organizations.

2. Investigating pressures to differentiate and

determine their legitimacy.

3. Working within the context of a strong corporate

culture is best.

2008 Prentice Hall, Inc. All

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A Global HR System (contd)

Best practices for developing a more effective
global HR system:
Form global HR networks that make local HR

managers a part of global teams.

Remember that its more important to standardize

ends and competencies than specific methods.

Best practices for implementing the global HR

system:
Remember, You cant communicate enough.
Dedicate adequate resources for the global HR effort.

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Staffing the Global Organization (contd)

Top Management Values

Ethnocentric

International
Staffing
Policy

Polycentric
Geocentric

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Staffing the Global Organization (contd)

Inability of Spouse
to Adjust

Personality

Personal
Intentions

Why Expatriate
Assignments
Fail

Family
Pressures

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Inability to Cope
with Overseas
Responsibilities

Lack of
Cultural Skills

179

Staffing the Global Organization (contd)

Realistic Previews

Careful Screening

Helping Expatriate
Assignments Succeed

Improved Orientation

Cultural and Language Training

Improved Benefits Packages

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Selecting Expatriate Managers

Adaptability Screening
Assessing the assignees (and spouses) probable

success in handling the foreign transfer.

Overseas Assignment Inventory

A test that identifies the characteristics and attitudes

international assignment candidates should have.

Realistic Previews
The problems to expect in the new job, as well as the

cultural benefits, problems, and idiosyncrasies of the

country.

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Compensating Expatriates
The Balance Sheet Approach
Home-country groups of expensesincome taxes,

housing, goods and services, and discretionary

expensesare the focus of attention.
The employer estimates what each of these four

expenses is in the expatriates home country, and

what each will be in the host country.
The employer then pays any differences such as

additional income taxes or housing expenses.

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International Labor Relations

Characteristics of
European Labor
Relations

Industry-Wide
Centralization

Employer
Organization

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Multiple Union
Recognition

Content and
Scope of
Bargaining

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KEY TERMS
codetermination
expatriates (expats)
home-country nationals
third-country nationals
offshoring
ethnocentric
polycentric
geocentric
adaptability screening
foreign service premiums
hardship allowances
mobility premiums

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