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ADMS 2600 Lecture Notes - Multinational Corporation, Wrongful Dismissal, Constructive Dismissal

Administrative Studies
Course Code
ADMS 2600
Monica Belcourt

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Chapter 15
Multinational corporation (MNC) A firm with independent business units operating in multiple countries
International corporation A domestic firm that uses its existing capabilities to move into overseas markets
Global corporation A firm that has integrated worldwide operations through a centralized home office
Transnational corporation A firm that attempts to balance local responsiveness and global scale via a network of
specialized operating units
Cultural environment
The communications, religion, values and ideologies, education, and social structure of a country
Expatriates, or home-country nationals
Employees from the home country who are on international assignment
Host-country nationals
Employees who are natives of the host country
Third-country nationals
Employees who are natives of a country other than the home country or the host country
global manager A manager equipped to run an international business
Core skills
Skills considered critical to an employee’s success need : High Experience, high decision making,
high resourcefullness, high adaptability, high cultural sensitivity, high team building, high maturity.
Augmented skills
Skills helpful in facilitating the efforts of expatriate managers.... you need: Technical skills, negotiation skills,
strategic thinking, delegation skills, change management.
Failure rate
The percentage of expatriates who do not perform satisfactorily
The process of employee transition home from an international assignment
Home-based pay
Pay based on an expatriate’s home country’s compensation practices
Balance-sheet approach
A compensation system designed to match the purchasing power in a person’s home country
Host-based pay
Expatriate pay comparable to that earned by employees in a host country
Adapting pay and other compensation benefits to match that of a particular country

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Chapter 13 & 14
Hot-stove rule
A rule of discipline that can be compared with a hot stove in that it gives warning, is effective immediately, is
enforced consistently, and applies to all employees in an impersonal and unbiased way
(1) Treatment that punishes, (2) orderly behaviour in an organizational setting, or (3) training that moulds and
strengthens desirable conductor corrects undesirable conductand develops self-control
Progressive discipline
Discipline should be progressive
Application of corrective measures by increasing degrees
Verbal reprimand, Written reprimand ( goes on file), Stronger penalties ( suspension), Up to termination
Wrongful dismissal
A lawsuit filed in a court by an employee alleging that he or she was dismissed without proper contractual or
―reasonable‖’ notice
Constructive dismissal
When an employer commits a fundamental breach of the contract, such as by unilaterally changing a key term of the
contract, the employee can treat the breach as a termination
Chapter 14
Collective agreement
An employment contract between an employer and a union that sets out the terms of employment of a group of the
employer’s employees represented by the union
Collective bargaining process
Process of negotiating a collective agreement, including the use of economic pressures by both parties
Bargaining zone
Area within which the union and the employer are willing to concede when bargaining
Interest-based bargaining (IBB)
Problem-solving bargaining based on a winwin philosophy and the development of a positive long-term
Interest arbitrator
Third-party neutral who resolves labour dispute by issuing a final decision in the disagreement

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Types of Arbitration
Compulsory binding arbitration
Binding method of resolving collective bargaining deadlocks by a neutral third party
Final offer arbitration
Method of resolving collective bargaining deadlocks whereby the arbitrator has no power to compromise but must
select one or another of the final offers submitted by the two parties
Mediation is voluntary and has more active role
Arbitration results in binding, but mediation is only recommendations.
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