Chapter 15 – International Human Resources
Increasing Importance of Global Human Resource Understanding
Foreign human resources
Market Access Opportunities
International Mergers and Acquisitions
Managing Across Borders
- Domestic firm that uses its existing capabilities to move into overseas markets
- Firm with independent business units operating in multiple countries
- Firm that has integrated worldwide operations through a centralized home office
- Firm that attempts to balance local responsiveness and global scale via a network of specialized
Types of Organizations How International Companies Affect the World Economy
- Their production and distribution extend beyond national boundaries, making it easier to transfer
- They have direct investments in many countries, affecting the balance of payments.
- They have a political impact that leads to cooperation among countries and to the breaking down of
barriers of nationalism.
How Does the Global Environment Influence Management?
- Closely partnered nations such as the European Union (EU) have developed into strong competitors.
- Promotes job growth in trading nations.
- The communication patterns, religion, values and ideologies, education, and social structure of a host
country influence how HR is conducted in that country
Cultural Environmental Of International Business
- Social stratification
- Media - Technology
- Holy days
- Work ethic
- Time orientation
- Risk propensity
Domestic versus International HRM
- Issues in international HRM in helping employees adapt to a new and different environment
outside their own country:
- translation services
Expatriates or Home-Country nationals
- Employees from the home country who are on international assignment
- Employees who are natives of the host country
- Employees who are natives of a country other than the home country or the host country
Advantages of Host country Nationals
- Hiring local citizens is generally less costly than relocating expatriates.
- Since local governments usually want good jobs for their citizens, foreign employers may be
required to hire locally.
- Most customers want to do business with companies they perceive to be local versus foreign. Advantages of Expatriates
- Talent available within the company
- Greater control over managers
- Company experience