Employees in an International Workforce
Parent-country national – employee who was born and works in the country in which an organization’s headquarters is located.
Host-country national – employee who is a citizen of the country (other than parent country) in which an organization operates a facility.
Third-country national – employee who is a citizen of a country that is neither the parent country nor the host country of the employer.
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CHAPTER 15 MANAGING HUMAN RESOURCES GLOBALLYFUNDAMENTALS OF HUMAN RESOURCE MANAGEMENT 5TH EDITIONBY R.A. NOE, J.R. HOLLENBECK, B. GERHART, AND P.M. WRIGHTEmployees in an International WorkforceParent-country national – employee who was born and works in the country in which an organization’s headquarters is located.Host-country national – employee who is a citizen of the country (other than parent country) in which an organization operates a facility.Third-country national – employee who is a citizen of a country that is neither the parent country nor the host country of the employer.Employers in the Global MarketplaceInternational organization –sets up one or a few facilities in one or a few foreign countries.Multinational company –builds facilities in a number of different countries in an effort to minimize production and distribution costs.Global organization –chooses to locate a facility based on the ability to effectively, efficiently, and flexibly produce a product or service using cultural differences as an advantage.Factors Affecting HRM inInternational MarketsCultureCulture – a community’s set of shared assumptions about how the world works and what ideals are worth striving for.greatly affect a country’s laws.influences what people value, so it affects people’s economic systems and efforts to invest in education.determines effectiveness HRM practices.Hofstede’s Five Dimensions of Culture1. Individualism/CollectivismDescribes the strength of the relation between an individual and other individuals in the society.2. Power DistanceConcerns the way the culture deals with unequal distribution of power and defines the amount of inequality that is normal.3. Uncertainty AvoidanceDescribes how cultures handle the fact that the future is unpredictable.4. Masculinity/FemininityThe emphasis a culture places on practices or qualities that have traditionally been considered masculine or feminine.5. Long-term/Short-term OrientationSuggests whether the focus of cultural values is on the future (long term) or the past and present (short term).Performance Management AcrossNational BoundariesWhen establishing performance management methods in other countries, consider:Legal requirementsLocal business practicesNational culturesDifferences may include:Which behaviors are ratedHow and the extent to which performance is measuredWho performs the ratingHow feedback is requiredCompensating an International WorkforceMarket pay structures can differ substantially across countries in terms of both pay level and relative worth of jobs.Dilemma for global companies:Should pay levels and differences reflect what workers are used to in their own countries?Should pay levels and differences reflect the earnings of colleagues in the country of the facility, or earnings at the company headquarters?Assessing Candidates for Overseas AssignmentsManaging Expatriates:Preparing ExpatriatesPre-assignment site visitJob orientationCountry orientationCulture orientationLanguage trainingCompensation / benefits / taxes counselingHousing counselingHealth care / schools / shopping / recreation counselingCounseling by returning expatriatesLocal sponsorship from host country