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International Human Resources

International Human Resource Management (Royal Melbourne Institute of Technology)

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International Human
Resources
RMIT
SCHOOL OF BUSINESS

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International Human Resources 2

Table of Contents

INTRODUCTION (WEEK 1) 4
PERSONNEL MANAGEMENT VS HRM 4
MOVINGFROMH RMTOI HRM 5

THECUL
TURALANDORGANI
SATI
ONALCONTEXT(
WEEK2
) 8
HOFSTEDE’
SDIMENSIONSOFCULTURALVAL
UE 8
GLOBE’ S8CULTURALDIMENSI
ON 9
HALL&HALL’S4DI MENSI
ON 9
I
MPACTOFT HECULTURALCONTEXTONH RMPRACTI
CES 10

I
NTERNATI
ONALRECRUI
TMENTANDSELECTI
ON(
WEEK3
) 13
RECRUI
TMENTANDSELECTI
ON 13
I
NTERNATI
ONALSTAFFI
NGAPPROACHES 14
TYPESOFINT
ERNATI
ONALASSIGNMENTS 16
THEROLEOFANEXPATRIATE 17

DEVEL
OPI
NGGL
OBALWORKF
ORCE(
WEEK4
) 19
TRAINI
NGANDDEVEL OPMENT 19
TRAINI
NGMET HODS 19
APPROACHESTOEMPLOYEEDEVELOPMENT 20
I
NTERNATIONALTRAINING 21
EXPATRI
ATEPOST-ARRI VALTRAINI
NG 23
DEVELOPI
NGST AFFT HROUGHI NTERNATI
ONALASSI
GNMENTS 24
SOCIALRESPONSIBLET RAINI
NGANDDEVEL OPMENTPRACTI
CES 24
REPATRI
ATIONACT I
VITI
ESANDPRACT I
CES 24

MANAGI
NGGL
OBALPERF
ORMANCE(
WEEK5
) 25
PERFORMANCEMANAGEMENTVS. PERFORMANCEAPPRAI
SAL 25
PERFORMANCEMANAGEMENTAPPROACHES 25
TYPI
CALRATERERROR 26
EXPATRI
ATEPERFORMANCEMANAGEMENT 26
CRITERI
AUSEDFORPERF ORMANCEAPPRAISALOFI
NTERNATI
ONALEMPL
OYEES 27

REWARDI
NGGL
OBALWORKF
ORCE(
WEEK6
) 27
OBJECTI
VESOFINTERNATI
ONALREWARDANDCOMPENSATI
ON 29
COMPLEXI
TI
ESOFGL OBALCOMPENSATI
ON 29
ALLOWANCEANDBENEFITS 30
THEBALANCESHEETAPPROACH 30
GOI
NGRATEAPPROACH 30
L
OCALPL
USAPPROACH 31

I
HRMI
NASI
ANCONTEXT(
WEEK7
) 32
CHI
NA:HRMI
NTRANSI
TI
ON 32

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International Human Resources 3

CHINA:HRMPRACTICES 33
RECRUITMENTANDSELECTI
ON 33
TRAINI
NGANDDEVELOPMENT 33
SOUTHKOREA:HRMI NT RANSI
TI
ON 34
I
HRMOFCHI NESEMNES 34
I
HRMOFSOUTHKOREANMNES 35

HRM/IHRM IN EU (WEEK 8) 36
WHATISEXACTLYEUROPE? 36
HRM IN EU 37
HETEROGENEI
TY 37
CULTURALBLOCS 37
HOFSTEDE…EUROPE(S) 38
EUROPEANMNESANDHRMPOLI CY 39
MORECOLLECTIVEORI
ENT OWARDSH
EDAPPROACHT RMI
NEU 39

GL
OBALBUSI
NESSETHI
CSANDMANAGI
NGEXPATRI
ATE-HCNRELATI
ONSHI
P(WEEK9
) 39
CORPORATECODEOFETHICS 40
DEVELOPI
NGCODEOFCONDUCT 40
MANAGINGEXPATRI
ATE-HCNRELATIONSHIP 41
CONSEQUENCESOFHCNS’ ATTTUDES/
I BEHAVI
OURST
OWARDEXP
ATRI
ATES 42
I
MPLI
CAT
IONST
OBUSI
NESSES 42

MANAGI
NGNON-TRADI
TI
ONALEXPATRI
ATES(
WEEK1
0) 42
THECHANGINGNATUREOFASSIGNMENTS 43
SHORTTERMASSIGNMENT 43
I
NTERNATI
ONALCOMMUT ERASSIGNMENTS 43
ROTATI
ONALASSIGNMENTS 43
I
NPATRI
ATI
ON 43
VI
RTUALASSIGNMENT 43
MANAGINGNON-TRADI
TIONALEXPATRI
ATES 44

MANAGI
NGDI
VERSI
TYI
NTHEGL
OBALCONTEXT(
WEEK1
1) 45
DIFFERENCESBETWEENI RMANDGTM 45
DIVERSOFGL OBALTALENTMANAGEMENTSYST EM 46
SI
XPRI NCIPLESOFEF FECTIVEGT M 46
GLOBALTALENTMANAGEMENT 46
RETAINING AND ENGAGING A CHANGING WORKFORCE 47
HOW TOI MPROVEENGAGEMENT? 48
MANAGI NGF EMALEEXP ATRIATES 49

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International Human Resources 4

Introduction (Week 1)
Wh
ati
sHu
manr
eso
urc
ema
nag
eme
nt?

Huma nr
eso u r
cema n
agementi
sanint
egr
at
edsetofp
ers
onn
ela
cti
vi
t
ies
,li
nke
dst
r
ate
gic
all
ywi
t
h
or
ganiza
ti
on a l
obj
ecti
ves
Theseact
iv
itiesinc
lude:
• Hu ma nres
o ur
cepla
nni
ng
• St affin
g(re
c r
ui
tment
,sel
ect
i
on,pl
ace
me n
t)
• Pe rfo r
mancema nag
ement
• T ra
in inganddeve
lopment
• Co mp ensa
ti
on(remune
rat
io
n)andbene
fi
ts
 I nd
u s t
ri
alr
elat
i
ons

I
nt
ern
ati
ona
lHumanre
sour
cetal
ksa
bouth
owmult
i
nat
io
nalen
ter
pri
sea
remanagi
ngpe
opl
e
o
ver
seas
.Gl
oba
li
sat
i
onhasr
esh
apedour
worl
dwi
t
hma n
yo r
gan
isa
ti
onse
xpan
din
gthei
rbor
der
s.

Personnel Management vs HRM

Pe
rsonne
lmana
gement:
• As et
off
unc
ti
onsora
cti
vi
t
ies

Hu
manre
sourc
ema na
gement:
• Anin
teg
rat
edseto
fpe
rsonn
ela
cti
vi
t
ies
,li
nkwi
t
hor
gan
iza
ti
ona
lob
jec
ti
vess
tr
at
egi
cal
l
y

The‘
Har
var
d’Mode
lof
HRM

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International Human Resources 5

Un
it
ari
storPl
ura
li
st
?

Un
it
ari
sta
ssu
me stha
tmana
geme
nta
ndt
hee
mpl
oye
ess
har
e:
• Commo nin
ter
est
s
• Commitment

Pl
ura
li
sta
ssumesthat
peopl
eal
way
sha
vea
imsa
ndi
nt
er
est
the
ref
or
e:
• Co nfl
i
cti
nev
it
abl
e
• Ne got
iat
i
on&reso
lut
i
on

‘
Har
d’o
r‘s
oft
’HRM?

Ha
rdHRMfocuse
so n:
• Str
ategi
c,manager
i
ali
ssu
es
• Eff
ecti
veutl
i
li
zat
i
on
• Bro
a dgoal
s&o bj
ect
iv
es

Sof
tHRMf
ocus
eson:
• Empl
oyeein
vol
vement
• Addr
essi
ngempl
oye
esnee
dsa
ndi
nt
er
est

Mo
vin
gfr
omHRMt
oIHRM:Why
?Impl
i
cat
i
ons
?

Wh
y?

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International Human Resources 6

• I
ncr
eas
edgl
oba
lact
i
vi
ti
esan
dg l
oba
lco
mpeti
t
ion–gl
oba
li
zat
io
n
• Akeys
our
ceof
compet
i
ti
veadv
ant
agei
nin
ter
nati
ona
lbu
sin
ess

I
mpli
cat
i
ons?
• Mo r
eh umanandfi
nan
cialc
ost
sinv
olv
ed
• Sh o
rta
geo fi
nt
er
nati
onalmana
gers
• Incr
easeindi
ver
si
tyofl
abormark
et
• Ne edt
ou nd
erst
anddi
ff
eren
tHRM, r
ul
esan
dre
gul
at
io
ns

De
fini
ngI
nt
erna
ti
ona
lHRM

“
Thefie
ldof
IHRMisaboutunder
sta
ndi
ng,r
ese
arc
hing,a
ppl
yingandr
evisi
nga l
lhuma n
r
esour
ceact
ivi
t
iesi
nthei
ri
nterna
landex
ter
nal
cont
extsast
heyimpac
tthepr ocessof
ma naginghuma n
resourcesin
enterpri
sesthroughout
t
h egloba le
n v
ironme nt
t
oe nhancethe
expe r
ienceofmul ti
pl
e
stakeholder
s ,
includi
ng
i
n vestors,
custome rs,
empl oyees,par
tne r
s,
suppliers,
en v
ironme nt
ands oc i
et
y”(Br i
scoe&
Schul er
,2004,p.20).

Mor
gan
’sMode
l

Th
ei n
ter
pl
ayamongth
reeHRMd i
mensi
onsi
nani
nt
er
nat
i
ona
len
vir
onme
nt(
Mor
gan
,19
86)
:
• Th r
eebr
oadHRa c
ti
vi
ti
es
• Th r
eeco
untr
i
es
• Th r
eeca
tego
ri
esofempl
oyee
s

Wh
ati
sane
xpa
tri
at
e?

• Ane
mpl
oye
ewh
oiswo
rki
nga
ndt
emp
ora
ri
lyr
esi
di
ngi
naf
or
ei
gnc
oun
tr
y.

• Anempl
oyeewhoist
ransf
err
edout
of
t
hei
rho
meb as
e/pa
rentc
o u
ntr
yin
to
s
omeothe
rare
ao ft
hefi
r
m’s
i
nt
er
nat
ion
aloper
at
ion
s.

I
nt
ern
ati
ona
las
signme
ntsc
rea
tee
xpa
tri
at
es

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International Human Resources 7

Di
ffe
renc
esbe
twe
endome
sti
cHRM&I
HRM

Theli
ter
at
urei
d ent
i
fi
ess i
xfa
ctor
sthat
addtothe
co
mp l
exit
yofI
HRM:
1.MoreHRa ct
ivi
t
ies
2.Theneedforabroad
e rpe
rspec
ti
ve
3.Morein
vol
veme nt
ine mpl
oyee
s’per
sonall
i
ves
4.Changesi
ne mphasi
sa st
hewo r
kf
orcemi
xo fe
xpa
tr
ia
tesa
ndl
oca
lsv
ari
es
5.Anincr
ease
dr i
skexposur
e
6.Br
oaderext
e r
nali
nfl
uences

Ex
ter
nal
Fac
tor
s

Cu
lt
ura
lenvir
onme nt
• Cu l
tur
eisme mbersofagroupors
oci
etysha
readist
i
nctwayofl
i
fewit
hcommonva
lue
s,
at
t
itu
desandb ehavi
our
sthatar
etr
ansmit
t
edo v
ert
imeinagrad
ual,
yetdy
nami
c,p
roce
ss
(
Phatak
,1995)
• Th ecul
tur
aldi
ffe
rence
sinfl
uenc
epeopl
einawo r
kenvi
ronmen
t(Har
zin
g&Ru y
sse
vel
dt,2
006
)
– Cu l
tureshock
– Emi c- e
ti
cdis
ti
ncti
on
– Divergence/
conv
ergenc
ea p
proac
h
• Cu l
tur
eawarenessinworkp
lace

I
nt
ern
alF
act
ors

I
ndus t
rytype
• Gl obali
ndus
try
• Mu lti
-do
me s
ti
c
in
du st
ry
I
nte
r nala
tti
tudes
• I nt
e r
nati
ona
l
ori
entat
i
onofseni
or
man ager
s

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International Human Resources 8

Af
r
ame
wor
kof
str
at
egi
cHRMi
nMNEs

L
ink
agebe
twe
enHRa
ndCSR

• HRM’scont
ri
but
iont
oCSR–
abo
ut whet
hert
hecompan
yis
doi
ngg o
odfort
hesoci
et
y
• CSR’scont
ri
but
i
ontoHRM

Soc
ial
Respons
ibl
eIHRMMode
l
(
Shen,2
011)

T
wo-d
ime
nsi
ona
lcons
tr
uct
:
• Exte
rnal
CSR-support
iv
eIHRM
• Employ
ee-or
ie
ntedIHRM

Th
ecu
lt
ur
ala
ndo
rga
nis
ati
ona
lco
nte
xt(
Wee
k2)
“
Cult
ur
econs
is
tsinpatt
er
nedwaysoft
hinki
ng,f
eeli
ng,andrea
cti
ng,
acq
uir
edandtr
ansmi
t
tedmai
nl
y
b
ysymbol
s,c
onsti
tut
i
ngthedi
st
in
cti
veachi
evement
sofhuma ng
rou
ps…in
clu
din
gthei
rembodi
men
ts
i
nart
ef
act
s;t
heess e
nti
alcor
eof c
ult
ureconsi
st
softr
adi
tiona
l…ide
asandespe
cia
ll
ythe
ir
a
tta
chedval
ues”(Kr
oeber&Kl
uckhoh
n, 1
952,p.1
81).

Th
ecu
lt
ur
alI
ceb
erg

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International Human Resources 9

Go
also
fcr
osscul
tur
al
ma
nagements
tud
ies
 De sc
ri
beandcompar
e
or
gani
sat
i
onbehav
iou
r
b
etweenc
ount
ri
esan
dcu
lt
ur
es
 I
mpro
vesi
nte
rac
ti
on

Ho
fst
ede
’sd
ime
nsi
onso
fcu
lt
ur
alv
alu
e

 I
ndivi
dual
i
sm/Coll
ect
i
vis
m
 Powerdi
sta
nce
 Uncer
tai
nt
ya v
oid
ance
 Mascul
in
it
y/Femi
nini
t
y
 Lo
n gte
rmo r
ie
ntat
i
on/shor
tt
er
mor
i
ent
at
io
n

Po
wer
dis
tan
ce&I
ndi
vi
dua
li
smv
sco
ll
ect
i
vi
sm

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International Human Resources 10

GL
OBE’
s8c
ult
ur
ald
ime
nsi
on
1
.Ins
ti
tu
ti
onal
col
lec
ti
vi
sm
2
.Ingr
oupcol
lec
ti
vi
sm
3
.Uncer
tai
nt
yavoi
danc
e
4
.Powerdi
st
ance
5
.Genderega
li
ta
ri
ani
sm
6
.Asser
ti
ven
ess
7
.Perf
or
ma n
ceori
ent
at
ion
8
.Humanori
enta
ti
on

Ha
ll&Ha
ll
’
s4d
ime
nsi
on

1
.Hi
ghvsl
owcont
extcommuni
cat
io
n
2
.Sp
ati
alo
ri
ent
at
io
n
o Ac t
ual
dis
tanc
eb et
weenpeo
plewhe
n
communi
cat
in
g
3
.Mono
chr
omevspoly
chro
met i
me
o Doo neth
ingatati
mevsdoma n
y
t
hingsatonc
e
4
.In
for
mat
i
onsp e
ed
o Hig
ho rl
owinf
ormati
onfl
owduri
ngco
mmu ni
cat
i
on(sl
owflowofi
nf
ormat
io
np l
an
i
nfor
ma t
i
oncaref
ul
lyandstr
uct
ur
eit
;Cul
tur
eswi
thf
astfl
owo f
inf
or
ma t
i
onthi
nkt
hat
the
morequic
kl
ythein
format
i
o ni
sspr
ead,t
hebet
te
rit
isf
ora l
l
)

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International Human Resources 11

I
mpa
cto
fth
ecu
lt
ur
alc
ont
ext
onHRMp
rac
ti
ces

Ap
plyc
ult
ur
alawarenes
stowork
pla
ce
 Sh owrespe
c t
forc
ult
ur
aldi
ver
si
ty
 F or
ma lt
r
aini
ng
 Mo rein
ter
acti
on
 Us especi
fi
cstr
at
egi
estoel
imi
nat
ebia
sanddi
scr
imi
nat
i
on
 Cr e
a t
eanorgani
sat
i
onalcu
lt
ur
ethat
val
uesd
ive
rsi
ty

Ma
nage
mentde
mandsof
int
ern
ati
ona
lgr
owt
h

Whyg
lob
all
yst
and
ard
ize
HRM?

T
oen
sur
e:

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International Human Resources 12

- Cons
is
ten
cy
- Tr
ansp
are
ncy
- Al
i
gnment

Wh
ylo
cal
l
yre
spo
nsi
veHRM?

T
ore
spe
ctlo
cal
:
- Cult
ur
alval
ues
- Tra
dit
i
ons
- Legi
sl
ati
on
- Govern
mentpol
ic
ies
- Educat
i
onsyst
ems

Ba
lanc
ingt
hes
tanda
rdi
zat
i
ona
ndl
oca
li
sat
i
onofHRMi
nMNEs

F
act
orsdr
iv
ings
tanda
rdi
zat
i
on

 St
r
a t
egy
 St
r
u c
tur
e
 Cor
pora
tec
ult
ur
e
 Si
zeandmat
uri
t
yof
thefi
r
m

F
act
orsdr
iv
ingl
oca
li
sat
i
on

Ac
cor
di
ngt
othehos
tcount
rycont
ext
:
- Cult
ur
alen
vir
onment
- Ins
ti
tu
ti
ona
lenvi
ro
nme nt
(cou
ntr
y-o
f-o
ri
gi
n;h
ost
-
cou
ntr
yeff
ect
)
- Fir
ms i
zea
ndma t
uri
ty

Ac
cor
di
ngt
ofe
atur
esoft
hel
ocalaffil
i
ate
:
 Modeofope
rat
i
on
 Subs
idi
ar
yrol
e(gl
oba
lin
no v at
or
;in
teg
rat
edp
lay
er;
imp
leme
nte
r;l
oca
lin
nov
ato
r)

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International Human Resources 13

I
nst
it
uti
ona
leffe
ctsonMNEs

I
mpa
cto
fth
ein
sti
t
uti
ona
lco
nte
xtHRMp
rac
ti
ces

Gupt
aandGo
vinda
raj
an’
sfourge
ner
ics
ubs
idi
aryr
ole
s

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International Human Resources 14

I
nt
er
nat
i
ona
lre
cru
it
men
tan
dse
lec
ti
on(
Wee
k3)

Re
cru
it
men
tan
dse
lec
ti
on

Rec
rui
t
ment
:sea
rchi
ngf
orandob
tai
ni
ngpot
ent
ia
ljo
bc a
n d
idat
esins
uffic
ien
tnu
mbe
rs&q
ual
i
tys
oth
at
t
heorg
ani
zat
i
oncansel
ect
themos
tappr
opr
i
atepeop
letofi
l
lit
sjo
bneed s

Sel
ect
i
on:t
hepr
oces
so f
gat
heri
ngi
nf
or
mat
i
onf
ort
hep
urp
ose
sof
eva
lua
ti
ng&d
eci
di
ngwh
oms
hou
ld
beempl
oye
dinpar
ti
cul
arj
obs

St
r
ateg
ic
Se
lec
ti
on

Re
cru
it
ment
Source
s
 Int
er
nalvsext
er
nal
 Dir
ectappl
i
cant
san
dref
er
ral
s
 Adver
ti
sement
s
 Publ
ic/
pri
vat
eempl
oymen
tagen
cie
s
 Univ
ersi
t
ies

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International Human Resources 15

Adv
ant
age
sanddi
sadv
ant
age
sof
thedi
ffe
rent
rec
rui
t
ments
our
ces

Se
lec
ti
onCri
t
eri
a
 Es s
enti
ala
ndde
sir
abl
esk
il
l
s
 Attr
i
butes
 Ex p
eri
ences
 Ed u
cati
on

Th
ec os
tsofget
ti
ngitwron
g
• F u
rth
errecr
ui
tmentandsel
ect
ionco
sts
• Ad di
t
ion
aldevel
opmentandori
ent
at
ionco
sts
• Lossofcompe t
i
ti
veadva
ntage
• Da magetocompanybra
nd
• Threat
enedcomp an
yvia
bil
it
y

I
nt
er
nat
i
ona
lst
affin
gap
pro
ach
es
• Et
hno
cent
ri
c
• Ke ypos
it
io
nsatthedomes
ti
c&for
ei
gnope
rat
i
onsar
ehe
ldb
yheadqua
rt
ers
’
manage
me nt
pers
o n
nel(
e.
g.su
bsi
di
ar
ie
saremana
gedb
yexpa
tr
ia
tesf
romtheh
ome
co
u n
tr
y(PCNs))
.

• Po
lyc
ent
r
ic
• Su b
sid
iar
i
e sa
reusu
all
ymana
gedb
ylo
cal
nat
i
ona
ls(
HCNs
)wh
oar
ese
ldo
mpr
omo
ted
t
oposi
ti
onsathe
adqua
rt
er
s.

• Re
gio
cen
tr
ic
• Re fl
ectst
hegeo
gra
phi
cst
r
ate
gyands
tr
uct
ur
eofth
eMNE.
• Util
iz
e sawid
erpoo
lof
manag
ersb
uti
nali
mit
edway.

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International Human Resources 16

• Ge
oce
ntr
ic
• Awo rl
dwideappro
achtoMNC’soper
at
ion
s,r
ecog
niz
ingt
hat
eachp
art
mak
esau
niq
ue
c
ontr
i
bu t
i
o nwi
thit
suni
quecompet
ence.
• Na t
i
onali
tyisi
gnor
edinfa
vou
r of
abi
li
ty
.
• PCNs ,HCNsa ndTCNscanbefoun
dinkeypo
sit
i
onsany
where
.

Adv
anta
gesa
nddi
sadv
a nt
age
sof
diffe
rent
sta
ffinga
ppr
oac
hes
Ap
proach Adva
ntages Di
sadv
ant
age
s

Et
hno
cen
tr
ic  Eff
ect
i
vec
ommuni
cat
i
on  L i
mit
sth
epromo
ti
onoppor
tu
nit
iesofHCNs
 Easyt
oco
ntr
ol  Ad a
ptat
i
onti
mefo
r e
xpa
tr
iat
esislo
ngerdur
i
ng
wh
ichex
pat
ri
at
esof
tenmak
ep oo
ro ri
ncor
re
ctdec
is
ion

Po
lyc
ent
r
ic  Empl
oyment
ofHCNsisle
ss  L
imi
tedcar
eerp
athf
orHCNsa
ndT CNsout
si
deof
ex
pensi
ve t
hei
r
 El
i
minat
esl
angua
g e
/cu
lt
ur
al owncou
ntry
bar
ri
er
sandavo
idsadj
ust
men
t  Creat
escommuni
cat
i
ongapbe
tweenHCNma na
ge
pr
obl
ems a
t
 subsi
dia
ryandex
pat
ri
at
emanage
ra t
hea
dquar
ter
s

Ge
oce
ntr
i
c  Enha
ncessu
bsi
di
ari
es’
lea
rni
ng,  Hi
ghc
ost
sof
tr
ai
ni
nga
ndr
el
oca
ti
on
i
nnov
ati
onpot
ent
i
alan
d
pe
rf
ormanc
e
Re
gio
cen
tr
ic  Al
l
owsmanager
stot
r
ans
fer  Pr
odu
cesfe
dera
li
sma
tar
egi
ona
lba
sisr
at
her
tha
n
be
twe
enregi
onal
hea
dqu
art
ers  co
unt
ryba
sis
an
dsubs
idi
ar
ies

Det
e rminant
sof
st
affingchoi
ces

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International Human Resources 17

Re
asonsf
ori
nter
n at
ionala
ssi
gnment
s
• Posi
ti
onfi
l
li
n g
• Managemen t
d e
vel
opment
• Organ
izat
i
o ndevel
opme
nt

Di
ffe
ren
tMNEsus
eex
pat
ri
at
esf
ordi
ffe
ren
tre
asons

MNEs Re
asons
Br
it
i
shand F
il
lsk
il
lga
ps;
hel
pes
tab
li
shn
ewb
usi
nes
ses(
Tun
gli
&Pe
ipe
rl
,20
09)
Amer
ic
an
Ja
panes
e F
il
lsk
il
lga
ps;
coo
rdi
nat
i
nga
ndc
ont
r
oll
i
ngl
oca
lop
era
ti
ons(
Tun
gli
&Pe
ipe
rl
,20
09)

Ge
rma
n Kno
wledg
eexc
hange
;in
ter
nat
i
ona
lte
amd e
vel
opme
nt;
soc
ial
i
zat
i
ono
fHCNma
nag
ers
;ma
nag
ing
un
cert
ai
nt
y(Br
uni
ng,
Bebenr
ot
h&Pasch
a,201
1)

Au
str
al
ia
n Cont
r
oll
i
ngs
ubs
idi
ar
ie
s’o
per
at
io
ns,
red
uci
ngr
i
sksa
ri
si
ngf
r
omc
ult
ur
alf
r
ict
i
on(
Tha
ren
ou&Ha
rve
y,
20
06)

Chi
nes
ean
d Co
ntr
ola
ndc
ommu
nic
ati
on(
Nig
am&Su
,20
10)
I
ndi
an

T
ype
sof
int
er
nat
i
ona
las
si
gnme
nts

• Longter
m( t
radi
t
iona
lex
pat
ri
at
eassi
gnme
nt) 1t
o5y e
ars
• Exte
nded u
pto1ye
ar
• Shortt
erm upt
o3mo n
ths

So
meno
n-s
tan
dar
das
si
gnme
nts
:
• Commute
r g
oho
mee
ver
yon
etot
wowe
eks

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International Human Resources 18

• Ro
tat
i
ona
l commu t
eforsetper
iodfo
ll
owedby
br
eakinho mecountr
y
• Co
ntr
act
ual spec
ifi
cski
l
lse mpl
oyeeshi
redf
or
6t
o1 2mo nthsonspeci
fi
cpr
oje
cts
• Vi
rt
ual e
mpl
oyeema nag
e sint
er
nati
onal
r
esponsi
bil
it
iesf
romhomec ou
ntr
ybas
e
• Se
lf
-i
ni
ti
at
ed i
ni
ti
at
edb
ythei
ndi
vi
dual

Di
ffe
renc
esbe
twe
ent
radi
t
iona
l&s
hor
t-
ter
mas
signme
nts

Th
ero
leo
fane
xpa
tr
ia
te

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International Human Resources 19

F
actor
sine
xpa
tri
at
e
s
ele
c t
i
on

Expa
tri
at
es’
sel
ect
ioncr
it
eri
aindi
ffe
ren
tMNEs
MNEs Sel
ect
i
onc r
it
eri
a

US T
ech
nica
l/
pr
ofe
ssi
onal
ski
l
ls
;expe
ri
encei
nth
eco
mpa
nya
ndwi
l
li
ngn
esst
oac
cep
t
a
ssi
gnment
s(T
ungl
i&Pei
per
l,
2009)

J
apa
nes
e Ex
patri
at
es’
exp
eri
enc
eint
heco
mp a
ny;t
ech
nic
als
ki
ll
s;p
ers
ona
lfa
cto
rs;
lan
gua
ge
pr
ofi
ci
ency(
Behr
end
,Bake
r&Thompso
n,200
9)

So
uthKo
rea
n Ed
uca
ti
on;
prev
iou
swo
rki
nge
xpe
ri
enc
e;wo
rkp
erf
or
man
ce;
loc
all
ang
uag
efl
uen
cy(
Kan
g&
Sh
en,2
013)

Soc
ial
Res
pons
ibl
eSt
affingPr
act
i
ces

• Rec
rui
tl
ocalwor
kfo
rce
• MNEstopr
ovid
ee q
ualopp
ort
uni
tyi
nall
IHRMa c
ti
vi
ti
estoempl
oye
es,r
egard
les
sof
the
ir
ge
nder
,rac
e,ageandcul
tur
alba
ckg
round
• App
oint
employe
esforp
lan
ning
,imp
lement
in
ga n
da u
dit
i
n gCSRi
nit
i
ati
ves
• Cons
ide
rcandi
dat
es’a
tt
it
udest
owar
dCSRi nre
crui
t
me n
t an
dsel
ect
i
on

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International Human Resources 20

Co
stof
fai
l
ure

• Di
rec
tcost
s:ai
r
far
e;r
e l
oca
ti
onexpen
ses
;tr
ai
ni
ng;c
ompen
sat
i
o npac
kag
e
• I
ndi
rec
tcost
s:l
ossofmark
etsha
re;c
hang
eimpa
ctonl
oca
lst
aff
;dr
opofmo
ral
;dr
opo
f
pr
oduct
i
vi
ty;
impact
one x
patr
i
ates

De
vel
opi
ngg
lob
alwo
rkf
or
ce(
Wee
k4)

T
rai
ni
nga
ndd
eve
lop
men
t

T
rai
ni
nga
imst
oimp
rov
ecur
rentwo
rks
ki
ll
san
dbe
hav
ior
s

Deve
lopmentai
mstoi
ncr
eas
eab
il
i
ti
esi
nre
lat
i
ont
ofut
ure
po
sit
i
onsorass
ign
me n
ts

SHRMmode
lof
lea
rni
nga
nde
mpl
oye
ede
vel
opme
nt

Wh
yist
rai
ni
nga
ndde
vel
opme
nti
mpor
tant
?

• Pr
ovi
dest
heski
ll
srequ
ir
edtoworkwi
thn
ewte ch
nol
ogy
• He
lpsempl
oye
e su
n d
erst
andhowtowor
keff
ecti
vel
yi
ntea
ms
• En
sure
stha
tthecompany’
scul
t
ureemphas
is
e si
nnova
ti
on,c
rea
ti
vi
tya
ndl
ear
ni
ng

I
nducti
onandorienta
ti
on
• Theformalpr
ocessoff
amil
i
ari
zi
ng(
or‘
or
ien
ti
ng’
)newemp
loy
eeswit
htheo
rga
niza
ti
on,
thei
r
j
obandtheworkuni
t
• Re d
ucti
ono f
anxi
ety
• Leadstotheearl
ydev
elo
pme n
tofp
osi
t
iv
ea t
t
it
ude
s,j
obsa
ti
sf
act
io
na n
dlon
g-t
ermcommit
ment
t
oorga
n i
zat
ion
s

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International Human Resources 21

T
rai
ni
ngme
tho
ds
• Pr
e s
enta
ti
onme t
hods
• Hands-
onme t
hods
• Gr
oup-bui
ldi
ngmethods

TheNe
edsAs
ses
sme
ntPr
oce
ss

Ki
rk
pat
ri
ck’
sTr
ai
ni
ngEv
alua
ti
onMode
l

Ap
pro
ach
est
oemp
loy
eed
eve
lop
men
t

• Fo
rmale
duc
ati
onpr
ogr
ams
• Cor
por
at
euni
ver
si
ti
es

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International Human Resources 22

h
tt
ps:
/
/www.
yout
ube.
com/wat
ch?v=
g9neh
PueARc
• De v
elo
pmental
assess
me n
t
• Psychol
ogi
calt
est
in
go r
perso
nal
i
typ
rofi
l
ing
• Jobexper
ien
ces
• Me nt
or
ing
/coa
ching

Thei
mpor
tanc
eof
int
erna
ti
ona
ltr
ai
ni
nga
ndde
vel
opme
nt

I
mpr
ove
shuma
nc a
pit
ala
ndthemot
iv
ati
onf
orb
othe
xpa
tr
ia
tesa
ndHCNs
,wh
ichi
ntu
rni
nfl
uen
ces
i
nt
er
nat
i
ona
lbu
sin
essper
for
mance

I
nt
er
nat
i
ona
ltr
ai
ni
ng
• Exp
atr
ia
tep
re-
depar
tu
ret
ra
ini
ng
• Exp
atr
ia
tep
ost-
ar
ri
val
tr
ai
ni
ng
• HCN/T
CNtra
ini
ng

Es
sent
i
alcomponentsofp r
e-depa
rtur
etr
ai
ni
ng
• Cu l
t
ural
awaren e
sstr
ai
n i
ng
• Prel
imi
naryvisi
ts
• L a
nguagein
s t
ruct
i
on
• Pract
ic
alassis
tance
• Se c
uri
t
yb r
iefi
ngs

Cu
lt
ura
lawarenessprogra
ms
 Envir
onmentalbr
ie
fi
ngs&c
ult
ur
alo
ri
ent
at
io
n
 Cu l
t
urala
ssimi
lat
ors
 Se n
sit
i
vit
ytrai
ni
ng
 F i
el
dexper
iences

Cr
oss
-cul
t
ura
lTr
ai
ni
ngMode
l(Me
nde
nha
ll
,Du
nba
r&Oddo
u,1
987
)

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International Human Resources 23

Ex
ampl
eso
fpr
e-de
par
tur
etr
ai
ni
ng

MNEs Pr
e-de
par
tur
etr
ai
ni
ng

Au
str
al
ia
nMNEs(
She
n&L
ang
,20
09) I
n-
cou
ntr
yle
ctu
re-
st
yl
eCCT

Ch
ine
seMNEs(
She
n&Da
rby
,20
06) L
imi
t
edo
radh
ocp
re-
dep
art
ur
etr
ai
ni
ng

NewZe
ala
ndMNEs(
Sea
k&En
der
wic
k, Ve
ryl
i
tt
lep
re-
dep
art
ur
etr
ai
ni
ngt
oex
pat
r
iat
es
20
08)
T
aiwa
nes
sMNEs(
Hua
ng,
200
2) L
imi
t
edpr
e-d
epa
rt
ur
etr
ai
ni
ngt
oex
pat
r
iat
esd
uet
ore
sou
rce
c
ons
tr
ai
nt
s

Sout
hKo
rea
nMNEs(
Kan
g,Sh
en&Xu
, L
imi
t
edp
re-
dep
art
ur
etr
ai
ni
ng;
emp
has
iz
edo
nla
ngu
aget
r
ain
ing
20
15)

La
ngua
ge/
cr
oss
-cul
t
ura
ltr
ai
ni
ng

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International Human Resources 24

Ex
pat
r
iat
epo
st-
ar
ri
val
tr
ai
ni
ng
• Ai
mtomini
mizeth
eprob
lemsassoc
iat
edwit
hcul
tur
alad
jus
tment
• Pr
ovi
dessomeessen
ti
alr
esour
ces(e
.g.s
oci
alsup
porta
ndon-si
t
eme n
tor
i
ng)
• Gi
vesexp
atr
ia
tesanopp
ortu
nit
ytoeva
luat
eanyemerg
ingst
re
ssor
sandprob
lems
• En
able
sexpat
ri
atest
ocombi
neexpl
ici
tkn
owled
geandinf
or
ma t
i
onfr
omthei
rpri
orkn
owl
edg
e
wit
hre
alexp
eri
ence

Ex
ampl
esof
pos
t-a
rri
val
tra
ini
ng

MNEs Pos
t-a
rri
val
tra
ini
ng
Au
str
al
ia
nMNEs(
Hut
chi
ngs
,20
03) Ve
ryl
i
mit
edr
el
oca
ti
ona
ssi
st
anc
ean
dla
ngu
aget
r
ain
ingi
nCh
ina

USMNEs(
ElMa
nso
ur&Wo
od,
201
0) Sel
dompr
ovi
dep
ost
-
arr
i
val
orf
ol
lo
wupt
r
ain
ingt
oth
e
ex
pat
ri
at
es

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International Human Resources 25

Eu
rop
eanMNEs(
Sel
mer
,20
02) L
it
tl
epo
st-
ar
ri
val
tr
ai
ni
ngt
oex
pat
r
iat
es
Ch
ine
seMNEs(
She
n&Da
rby
,20
02) Mai
nl
ypr
ovi
deadho
cp o
st-
arr
i
valt
r
ain
ingf
ocus
ingonwo
rk
sa
fet
yan
dgove
rnmen
torin
dust
rypr
oduct
reg
ula
ti
ons

Sou
thKo
rea
nMNEs(
Kan
g,Sh
en&Xu
, Pu
tas
tr
onge
mph
asi
sonl
ang
uag
etr
ai
ni
ngi
nth
eho
stc
oun
tr
y
20
15)

De
vel
opi
ngs
tafft
hr
oug
hin
ter
nat
i
ona
las
si
gnme
nts
• I
nte
rnat
i
onalmanagement
devel
opment
isakeyt
oa t
tr
act
in
g ,
ret
ai
ni
ng,
andd
eve
lop
ingt
op
i
nt
erna
ti
onalmanager
s
• MNEsprov
idedl
it
tl
eatt
ent
i
ontoexpa
tr
ia
tes
’car
eerdevel
opment
• HCNs/
TCNss ho
uldals
obein
clu
dedint
heglo
b a
lle
aders
hippro
gra
m

So
cia
lre
spo
nsi
bl
etr
ai
ni
nga
ndd
eve
lop
men
tpr
act
i
ces
• MNEss
hou
ldp
rovi
deade
quat
eCSRt
rai
ni
ngt
oempl
oyee
s
• MNEss
hou
ldo
ff
erequ
alpr
omot
io
nan
dc a
ree
rde
vel
opment
opp
ort
uni
t
iest
oHCNs

Re
-ent
rya
ndc
are
eri
ssue
s

Re
pat
r
iat
i
ona
cti
vi
t
iesa
ndp
rac
ti
ces

F
act
orsi
nflue
nci
ngr
epa
tri
at
eadj
ust
ment

Ma
nag
ingGl
oba
lPe
rf
or
man
ce(
Wee
k5)

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International Human Resources 26

Pe
rf
or
man
cema
nag
eme
ntv
s.Pe
rf
or
man
cea
ppr
ai
sal

Pe
rfo
rmancema nagement
- Th epro
ce s
sthro
u g
hwh i
chmanag
ersens
uret
hat
emp
loy
ees
’ac
ti
vi
t
iesa
ndo
utp
utsa
re
c
o ng
ruentwit
htheorg
ani
sat
io
n’sgo
als

Pe
rfo
rmanceapprai
sal
- Th esys
temat
icev
alu
a t
i
ono
f t
heper
for
manceo
femp
loy
eesa
ndt
oun
der
st
andt
hea
bil
i
ti
eso
fa
p
e r
sonfo
r f
ur
the
rgrowt
handdev
elo
pme n
t

Pu
rpo
seo
fth
ep e
rf
ormancemana
geme
nts
yst
em
 St
rat
egi
cpurpo
se
 Admi
nis
tr
ati
vepur
pose
 Deve
lop
me nt
alpu
rpos
e

Cr
i
ter
i
aof
ane ff
ect
ivep
erf
or
man
cema
nag
eme
nts
yst
em
 Congr
u ence
 Rel
iabi
li
ty
 Val
id
it
y
 Acce
ptab i
l
it
y
 Speci
fi
ci
ty

Pe
rf
or
man
cema
nag
eme
nta
ppr
oac
hes
 Th
ec o
mp a
rat
iveappr
oac
h
o Inv
olve
sranki
nganemp l
oye
e’sperf
ormanc
ewithr
esp
ectt
otha
tof
oth
ers
’i
ntheg
rou
p
o Techni
que:r
anki
ng,f
orc
eddist
rib
uti
on
 Th
ea t
tr
i
but
ea ppr
oach
o Ratedonthebas
isofaspeci
fi
csetofpa
ramet
erss
uchaspr
obl
emsol
vi
ngsk
il
l
s,
tea
mwo rk
,communi
cati
on,j
udgement,c
reat
i
vi
tyan
dinno
vat
io
n
o Techni
que:gr
aphi
cra
ti
ngscale
 Th
eb e
havi
ourala
ppro
ach

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International Human Resources 27

o Defi
nesspec
ifi
c,desi
r
ablesbehav
iour
sandpr
ovi
desmeanst
oass
esst
hem
o Tech
n i
que
s:beh a
viou
ral
lyanch
o r
edrat
i
ngscal
e(BARS)
 Th
er e
sul
t
sap p
roac
h
o Organi
sat
i
onsra t
eemp l
oyee
so nth
eb as
iso
femploy
eeper
fo
rma
ncere
sul
t
s
o Tech
n i
que
:balancedscor
ecar
d

T
ypi
cal
rat
ere
rr
or

Pe
rf
or
man
cefe
edba
ck
 Pur
pos
e
 Fr
eque
ncyoff
eed
bac
k
 For
mat
 Foc
us

Ma
nagi
ngpoo
rperf
orman c
e
 Exampl
eso f
p oorper
fo
rmance
 Commo nrea
son sf
orpoorpe
rf
ormanc
e
 Howtoma nagep o
orperf
or
mance
 Tra
nsfe
rri
ng,demoti
ngordi
smis
sin
ganun
der
per
fo
rmi
nge
mpl
oye
e

Ex
pat
r
iat
epe
rf
or
man
cema
nag
eme
nt
Va
ri
a b
lesa
ff
ect
ingexpat
ri
at
esperf
or
man
ce:
 Thecomp e
nsati
ngpacka
ge
 Thetask
 Headquart
er
s’suppo
rt
 Theh o
stenvi
ron
me nt
 Cult
ural
adju
stment

I
mpor
ta
nceo f
expat
ria
teper
for
manceapp
rai
sal
 En abl
estoimpl
ementt
hecorp
ora
test
rat
egyeff
ect
ive
ly
 En s
u r
esaninte
rnat
i
onalmana
gerper
fo
rmsinana ppr
opri
at
eway
 Affe
c t
scareerde
vel
opment
,pr
omoti
onandcomp e
nsati
on
 Infl
uence
se mplo
yeejo
bs a
ti
sf
act
i
on,moti
vat
i
ona ndworkbeh
avi
oura
ndt
hust
heMNEs
pe
rf
o r
man c
e
Cr
i
ter
i
aus
edf
orp
erf
or
man
cea
ppr
ai
sal
ofi
nt
er
nat
i
ona
lemp
loy
ees

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International Human Resources 28

Ha
rdgoal
s:Ob
jec
ti
ve,
qua
nti
fi
abl
ean
dca
nbed
ir
ect
l
yme
asu
red(
e.
gre
tur
noni
nve
stme
nt(
ROI
)
,
mar
ket
shar
es)

So
ftg
oal
s:r
el
at
io
nsh
ip-
bas
ed(
e.
gle
ade
rsh
ips
tyl
e,i
nt
er
per
son
als
ki
ll
s)

Cont
ext
ual
goal
s:t
akei
nt
ocons
ide
rat
io
nfa
cto
rst
hat
res
ult
fr
omt
hes
it
uat
i
oni
nwh
ichp
erf
or
man
ce
oc
cur
s(egcha
ngesofe
xcha
ngerat
e)

Ra
ter
 Di
rec
tsupe
rvi
sor
/pe
ersa
tbo
thh
ead
qua
rt
er
san
dlo
cal
sub
sid
iar
y
 Sel
fas
sessment
 36
0mu l
ti
-
rate
r

F
req
uen
cyofper
fo
rmanceapp
rai
sal
 yea
r b
asedeval
uat
i
oncanno
tprovi
dec
ri
ti
cal
fee
d b
ackf
ori
mpr
ove
ment
 morefr
equen
teval
uat
i
onindi
ff
ere
ntpa
tt
ern
sma ybere
qui
r
edf
orabe
tt
ero
utc
ome

F
eedb
ack
 iden
ti
fy
ingexpa
tr
iat
es’
str
engt
hsa
ndwea
knes
ses,a
sses
si
ngtrai
ni
ngne
eds,a
ndc
rea
ti
ng
t
ar
get
eds k
il
lsu
ppl
ystr
ateg
ies
 communicat
eperf
or
ma n
cegapsan
dgu
idet
r
aini
nganddev
elo
pme n
tpl
ans
 for
mat

Pe
rf
or
manceappra
isa
lofHCNs
 apprai
salp
roced
ure
 apprai
salc
ri
te
ri
a
 rat
er
 fr
equencyoff
eedba
ck
 fe
ed b
ack

Ho
wdo
esappra
isi
nganexpa
tr
ia
te’
spr
ogr
ammediff
er fr
oma ppra
isi
ngt
hatofhome-
offic
ema n
age
rs?
Ho
wwoul
dyouavoi
dsomeoft
heuni
quepr
obl
emsof a ppr
ais
ingtheex
pat
ri
ate
’sper
forma n
ce?
“
Accur
at
ea pp
rai
sal
ofper
fo
rmanc
eisv
erydiffic
ult
”.
Intheli
ght
oft
hisst
ate
me n t
,di
scu
sst
he
i
ssue
sa n
da pp
roa
chesi
nint
er
nat
io
nal
perf
orma nc
ema nagement
.

Re
war
di
ngg
lob
alwo
rkf
or
ce(
Wee
k6)
As
tr
at
egi
cmo
del
ofr
ewa
rdma
nag
eme
nt

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International Human Resources 29

Types of employee rewards

Ob
jec
ti
vesofr
ewardsyst
em
 c ompl
ywithl
egalr
equi
rement
s
 a t
tr
actandkeepdesi
r
edq ua
li
ty
/mixofe
mp l
oye
es
 mo ti
vat
eemp l
oyee
stoimpro
vethei
rpe
rf
ormance
 re i
nf
or
ceo r
gani
sat
ion
’skeyval
ues
,desi
r
edcult
ur
e
 d ri
veandrei
nf
orc
ed e
sir
edemp l
oye
ebehavi
our

F
lex
ibl
erewar
ds:p
ayfo
rp e
rfo
rmanc
e
 i n
c e
nti
ves
tr
uct
uretoenc
our
agea
ndd
ir
ect
emp
loy
ees
’be
hav
iou
rst
ome
etg
oal
s

Emp
loy
eeben
efi
ts
 fin
anc
ial
rewar
dsnot
pai
ddi
rec
tl
yi
nca
sht
oth
eemp
loy
ee(
e.
gch
il
dca
re,
hea
lt
hca
re,
gym
membe
rshi
p,l
i
fei
nsu
ran
ce)

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International Human Resources 30

 n
on-fi
nan
cia
lre
war
ds(
e.
gwo
rk-l
i
feb
ala
nce
;ed
uca
ti
on)

Ob
jec
ti
veso
fin
ter
nat
i
ona
lre
war
dan
dco
mpe
nsa
ti
on
 e
nsureco
nsi
st
encywi
tht
heMNEss t
r
ate
gy,st
r
uctu
rea
ndnee
ds
 h
elptoat
t
rac
tandre
tai
nbestp
eopl
e
 f
aci
li
t
atet
het
ran
sfero
fin
ter
nat
ion
ale
mploy
eesint
hemos
tco
st-
eff
ect
i
vema
nne
r

Co
mpl
exi
t
ieso
fgl
oba
lco
mpe
nsa
ti
on

Ke
ycomponent
sofexpa
tri
at
ec ompens
ati
onpacka
ge
 basi
csal
ary
 for
eig
nserv
ic
eind
ucementandhar
dsh
ipp
remiu
m
 all
owanc
esandbene
fi
ts

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International Human Resources 31

Al
l
owa
ncea
ndb
ene
fi
ts
 c
osto
fli
vi
ngall
owance(
COL
A)
 h
ousi
ngal
lowance
s
 h
omeleav
ea l
lo
wances
 e
ducat
i
onall
owances
 r
el
oca
ti
onall
owances
 s
pous
ea s
sist
ance

Co
nsi
der
at
io
ns
• Wh et
hert
oma in
tai
ne xp
atr
iat
esinhome-cou
ntr
ypro
grams,pa
rti
cul
ar
lyi
ft
hefi
r
md o
esno t
r
ece
iveataxdeducti
onf
or i
t
• Wh et
herfi
r
msh avetheopt
ionofenro
ll
in
gexpat
ri
at
esinhost
-c
ount
rybene
fi
tpr
o g
ramsan d
/or
mak
ingupa n
ydiff
ere
nceincover
age
• Wh et
herexpat
ri
at
ess ho
uldrec
eivehome-c
ount
ryorhostc
ountr
ysoci
als
ecur
i
tybenefi
t
s
• Other
s:exchang
er at
e,t
axat
ion,
va c
ati
ons,
andspec
iall
eav
e

Ap
pro
ach
est
oin
ter
nat
i
ona
lco
mpe
nsa
ti
on

Th
eba
lan
ces
hee
tap
pro
ach

Ad
van
tag
es&d
isa
dva
nta
geso
fth
eba
lan
ces
hee
tap
pro
ach
:

Ad
van
tag
es:
 faci
l
it
at
esex
patr
i
ater
e-e
ntr
y
 easycommuni
cat
i
on

d
isa
dva
ntag
es:
 resul
tsi
ng r
eat
dis
pari
t
ies
 c o
mp l
ic
ate
dtoadmin
ist
er

g
oin
gra
tea
ppr
oac
h

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International Human Resources 32

Ad
van
tag
es&d
isa
dva
nta
geso
fth
ego
ingr
at
eap
pro
ach
:

Ad
van
tag
es:
 equal
it
ywi
thlo
calna
ti
onal
s
 simp
li
ci
ty
 equi
tyamongexp
atr
i
ate
sofdi
ff
ere
ntn
ati
ona
li
ti
es

d
isa
dva
ntage
s:
 v a
ri
ati
onbet
weenass
ign
ment
sfo
rsa
mee
mpl
oye
es
 p ot
ent
ia
lre
-ent
ryp
robl
ems

l
oca
lpl
usa
ppr
oac
h

l
oca
lco
mp on
ent
+ex
pat
r
iat
e
c
omponen
t

d
oesn
oti
ncl
ude
:

COLA,mobi
li
typr
emiums
,
har
dshi
pall
owance
s,
f
amil
i
ari
zat
ionvi
si
ts
,home
l
eave
,cros
s-cul
t
ura
l
t
rai
ni
ng,ot
herpr
e-dep
art
ur
e
ors
pouseassi
st
ance

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International Human Resources 33

MNEap
pro
ache
stoint
er
nati
onalt
axat
ion
 Taxeq
uali
zat
i
on
o MNEwi t
h h
old
st a
xo b
li
gat
ion&thenpaysa
llt
axe
sinhos
tcoun
tr
y
 Taxpr
ot
ect
ion
o Emp l
oyeepaysuptoamounts/
h ewoul
dpayoncomp
ensat
i
oninho
mec
oun
tr
y
 Adhoc–eachexpat
ri
atei
sh a
ndle
dd i
ff
erent
l
y


















L
ais
sezf
ai
re–o
nth
eiro
wn

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International Human Resources 34

I
HRMi
nAs
ianCo
nte
xt(
Wee
k7)

Ch
ina
:HRMi
ntr
ans
it
i
on

I
nst
i
tut
i
ona
lch
a n
ges
:
 Economi
cre
for
msa
ndo
pen
ingu
psi
nce1
979

Pr
e-r
ef
or
m
 Th r
eeoldi
r
onsin
clu
de:i
ro
nwa g
e(cent
ra
ll
yadmin
ist
er
edwa
ge)
;i
ronr
i
cebo
wl(
li
fe
ti
me
empl
oyment
);
ir
onchai
r(
st
ate
-cont
r
oll
edapp
oint
mentan
dpr
omot
io
nofma
nage
ri
alst
aff
)

Re
for
ms(19
78-cur
re
nt)
 1986int
r
oducedla
bourcont
ra
ctsfo
rnewwork
ers
 1992thr
eepers
onnelre
for
ms:l
a b
ourcon
tr
act
s,p
erfo
rman
ce-li
nke
drewa
rds
yst
ems
,
c
ontr
i
but
orysoci
ali
nsur
ance
 mid1990sl
abourf
orceres
our
cema na
gement
,usedasasyn
onymfor
HRM

Cu
lt
ur
alv
alu
es

 Co
nfu
cia
nvalu
es:
o L oy
alt
y
o F i
li
alp
iet
y
o Re spe
ctfo
rel
der
s
o So ci
alha
rmon
y

Ot
herf
act
or
s

 Keyowner
shi
pty
pe:
o SOE( s
tat
e-o
wnedent
er
pri
se)
o POEs(Pri
vat
eowne
dente
rpr
is
e)
o FOEs(for
ei
gn-o
wnedent
er
pri
se)
 Lo
c a
ti
on
 I
ndust
ry
 Si
ze

Ch
ina
:HRMPr
act
i
ces

Re
cru
it
men
tan
dse
lec
ti
on
 Sin
ce200
0s,f
ulla
uthor
i
tyt
orecr
ui
temp
loy
ees
 Twowaysel
ect
i
on
 Recr
ui
tment
sourc
es:
o Jobfai
rs
o jo
bc en
tr
es
o employ
me nt
agenc
ies
o headhunt
ers

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International Human Resources 35

o o nl
inerec
rui
tment
o wo rdofmou t
het
c.
 Sel
ect
ioncri
ter
ia
:
o Ed ucat
ion
o Sk i
ll
s
o Ex peri
ence
s
o Pe rf
ormance(po
li
ti
cal
att
i
tud
e)
 Sel
ect
ionme t
hod:
o J obint
erv
iews
 I
nfl
uenceofguanxi
 Chal
le
ng e
s?

Tr
ai
ni
nga
ndd
eve
lop
men
t
 Si
nce1990
s,fu
llc
ont
ro
l
 Tr
ai
nin
gprogr
ams:
o Int
er
nalt
rai
ni
ng(e
ginhous
etra
ini
ng,OTJt
rai
ni
ng)
o Exte
rnatr
ai
ni
ng(egl
ead
ersh
ipdeve
lopmentr
unbyun i
ver
si
ti
es/
tr
ai
ni
ngi
nst
i
tut
i
ons
)
 Pr
omoti
ondepend
sonman a
ger
i
alcapa
bil
i
ti
es,sk
il
l
setc(
infl
uenceof
guanx
i)

Pe
rf
or
manceappr
aisa
l
 Since198
0s,ent
erp
ri
seuseperf
or
ma n
ceappra
isa
ltodet
ermi
nep
ayandpr
omot
io
n
 Perf
o r
manceapp
rai
salpr
oced
ures:
sel
fasse
ssment
, p
eergro
upd
isc
uss
ion
,su
per
ior
’
sfi
nal
c
omme nt
s
 Perf
o r
manceapp
rai
salc
ri
ter
i
ac a
nb equa
nti
t
ati
ve/qua
li
ta
ti
ve
 Ov e
ral
l,l
i
mitedf
eedba
ckispr
ovi
ded

Re
war
dan
dc o
mpensat
io
n
 Si
nce199
0s,per
for
man
ce-r
el
ate
dpays
yst
em
 Wagest
ruc
tur
e:bas
epay
,per
fo
rman
cer
ela
tedp
ay,
all
owa
nce
san
dbe
nefi
t
s

So
uthKo
rea
:HRMi
ntr
ans
it
io
n
 Con
fuc
ianfa
mil
yval
ues
 Pa
ter
nal
ist
i
cfami
l
yideol
ogy

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International Human Resources 36

I
HRMo
fCh
ine
seMNEs

I
nt
ern
ati
onalr
ecr
uit
me ntandsel
ecti
on(Shen&Edwards
, 2
004)
 Ma j
orr
easo
nso fusi
ngexp
atr
iat
es:a
dmini
st
ra
ti
onandcon
tr
ol
;t
ech
nic
ale
xpe
rt
is
e
 Tendtose
lec
tex pa
tr
iat
esi
nte
rnal
l
y
 Se l
ect
i
oncr
it
eri
a:
o Domest
ictrac
krec
ord
o Manageme n
t/t
ech
nic
alski
l
ls
o Lang
uag eabi
li
t
y
o Educa
ti
o n
o Compli
ancewit
hcompanyregu
lat
i
ons
St
ageof
HRM Pe
ri
od Ch
ara
cte
ri
st
ic
s
Sen
ior
i
ty-
bas
ed Bef
or
e  Empha
sis
e‘h
a r
mony’
rat
hert
han‘
compe
ti
ti
on’
HRM 19
87  Pr
omot
ionwasbas
edonemploy
mentd
urat
i
on,ed
uca
ti
on
bac
kgr
ounda
n dag
e

Ne
wHRM 1
988
-  ‘
NewHRM’(in
crea
sin
glyadopt
edab
il
i
ty-
andper
fo
rmanc
e-
1
997 b
asedpay
me nt
,r
ecru
it
ingandpr
omot
io
nirr
esp
ect
iveo
f
t
heaca
demicback
ground)

Per
fo
rman
ce- 1
998
-no
w  Re s
ourci
ngfl
exi
bil
it
y
ba
sedHRM  Perf
ormance-
b as
e dr
ewar
ds
 Re c
rui
tment&ret
e nt
i
onoft
opt
al
ent
h
tt
ps:
/
/www.
youtu
be.
co m/wat
ch?
v=KHg
It
_xh
580

o Wil
l
ing
nesstowo
rkabr
oad
 Ha
vef
or
malr
eloc
ati
onpo
li
cy
,howe
ver
neg
lec
tpr
epa
rat
i
on,
rea
dju
stme
nta
ndf
ami
l
yis
sue
s

I
nt
ern
ati
onalt
rai
ningandde vel
opme nt
 Mo s
tcomp ani
esdidnotp
rovi
dea deq
uatepr
e-dep
art
ur
etr
ai
ni
ngforex
patr
ia
tesandt
hei
r
f
ami
li
es-why?
 Trai
ni
ngme thod
: i
n-h
o u
setrai
ning
 Emp ha
sizeoncult
ura
lawa r
enessandcompli
anc
ewit
hcompani
es’
pol
ici
es
 Didnotprovi
deenoughtr
aini
ngtoHCNsa ndTCNs
 Un a
wareo ft
heimpor
tanceofi
n t
er
nati
onal
ma na
gement
deve
lopment
,l
ackedco
mmitmen
tto
e
mp l
oyeedevel
opment

I
nt
er
nat
i
ona
lperf
or
ma nceappr
ai
s a
l
 Adopt
eddi
ff
erentper
fo
rmanceappro
achestoempl
oyee
swithdi
ff
ere
ntposit
i
ons
 Mai
np ur
pose:det
ermi
nep a
yrat
herth
ano r
gani
sat
io
naldev
elop
me n
t
 Lac
ko f
for
ma l
p er
fo
rmanceappra
isa
lpro
cedures
 Lac
ko f
feed
b a
cka ndcommunic
ati
on
 Morecon
cernedaboutdi
li
genc
e,posi
t
iv
ea t
ti
tu
desandcompli
anc
ewithfi
r
m’sre
gul
at
io
ns

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International Human Resources 37

I
nt
er
nat
i
ona
lre
wardandcompensat
i
on
 Usedhos
t-
basedappr
oachf
orHCNnonexec
uti
ves
;ac
ont
ra
ct-b
asedapp
roa
chfo
rHCN
exe
cut
iv
es
 Used‘
host
-basedsa
lar
y+h omes
ala
ry’
,‘
pos
t-ba
seda
ppr
oach
’,a
nd‘n
egot
ia
blec
ont
r
act
-
bas
edappro
ach’
.

I
HRMo
fSo
uthKo
rea
nMNEs

I
nt
ern
ati
onalst
affing
 Mixedappro ac
h
 On e-ways el
ect
ion
 Se l
ect
io
nc rit
eri
a:
o Ex p er
ti
se
o J obp er
for
ma n
ce
o Pr evi
ouswo r
ki
ngexper
ie
nces
o L an g
uagea b
il
i
ty
o Ag ea ndperso
nal
it
y
 Locali
seds el
ect
ioncr
it
eri
afo
rHCNs
 Paylit
tl
eattent
iontore
pat
ri
ati
oni
ssu
es

I
nt
ern
ati
ona
ltra
ininganddevel
opme nt
 Prov
idel
imite
dp r
e-d
epar
tu
rea ndpos
tar
ri
valt
r
ain
ingt
oexpa
tr
iat
es
 HCNt r
ai
ningma i
nl
yfor
newe mplo
yeesan
dp r
oduc
ti
onwor
ker
s
 Didnotpaystr
ongat
ten
ti
ontoexpat
ri
at
esandHCNscar
eerdev
elo
pme
nt

I
nt
ern
ati
onalperf
ormanceapprai
sal
 Expa t
r
iat
eswereeval
uat
edbyheadquar
te
rsandsu
bsi
di
ar
ies
 HCNswe r
ee v
alu
atedl
ocal
l
y
 Pe r
for
mancea p
prai
salc
ri
te
raif
orexp
atr
i
ates
:
o Wo rkper
for
mance
o Wo rkat
ti
tud
ea n
dcomp et
enc
e
 Oralfeed
backwasp r
ovi
ded;wr
i
tte
nfeedb
ackwasonl
ypr
ovi
dedt
opo
orp
erf
or
mer
s

I
nt
ern
ati
onalr
ewa r
da ndcompe nsati
on
 Expatr
i
atespackages
:
o Ba s
ep ay
o Pe r
fo
rma n
ce– ba
s e
dp ay
o Al l
owa nc
esandb enefi
t
s
 HCNsp ackagedependsonpo si
ti
ons
,qu
ali
fi
cat
i
onsa
nds
eni
or
it
y
 Hu g
ec o
mp ensat
io
nd i
spari
t
y

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International Human Resources 38

HRM/IHRM in EU (Week 8)

What
isex
act
l
y
Eu
rope
?

Thefo
rmati
ono
f
EECa n
dEU
 Eur
opeanEcono
micCommu ni
t
y(EEC):cr
eat
edin1957by6c
oun
tr
ie
s,k
nownasthe
CommonMa r
ket
;
 EU(Nov.1
993);
 Eur
opeanSoci
alChar
te
r;
 Soci
alp
oli
cy:
asthedeve
lop
me nt
ofnor
ms,ru
les,
str
uct
ur
esan
din
str
umen
tsrel
at
edtowor
k,
i
ncomeandtheheal
t
ho f
worke
rs(l
abo
u r
lawandpol
ic
y).

Ho
mog
ene
it
y

 Th
ef o
urf
re
edoms(o
fmovement
)
 Th
eEUi sc
rea
ti
ngcommonins
ti
tu
ti
onals
tru
ctur
esofr
egul
at
io
ns
o Alowe
ri
ngofvar
io
ustr
adeandfi
nancebar
ri
er
s
o Aredu
cti
onofr
est
ri
ct
i
onsofla
bourmo v
ement
s
o Theadve
ntofn
ewtechn
olog
ye n
a b
lesent
er
pri
seso
pera
tei
nt
er
nat
i
ona
ll
y

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International Human Resources 39

HRM in EU
 European integration = HRM standardisation

Human ResourcesManagement Country Profiles Human Resources Management Country Profiles

ITALY SWEDEN
Senior Management… Challenges… Senior Management… Challenges…
Industrial Relations…
Industrial Relations…
Reforms…
Reforms…

man resources management body: Government centralisation (2008)††

man resources management body: Government centralisation (2008)††
ment for the Public Administration 0% 100%
gency for Government Employers 0% 100%
C e n tral S u b -c e n tra l
nment production costs (2010)†† Type of recruitment system(2010) C e n tra l S u b -c e n tral
ment production costs (2010)†† Type of recruitment system(2010)
Career Position
100% Career Position
based based 100%
E m p lo y e e c o m p e n s a t io n based based
G o o d s & s e rv ic e s u s e d It a l y O EC D 3 3
E m p lo y e e c o m p e n s a t io n
F ix e d c a p it a l c o n s u m p t io n Sw e d e n O EC D 3 3
G o o d s & s e r v ic e s u s e d
F ix e d c a p it a l c o n s u m p t io n

6 .8 % 0 .3 % 1 1 .4 % In s id e : Italy
O u ts id e : O EC D 2 8
0 .0 % 6 .8 % 0 .3 % 1 1 .4 % In s id e : Sw e d e n
0 .8 % O u ts id e : O EC D 2 8
2 7 .4 % 1 0 .0 % 9 .0 %
0 .0 %
3 .4 %
2 7 .4 %
2 4 .0 % 1 6 .4 %
4 3 .4 % 3 6 .8 % 2 3 .5 %
2 4 .0 %
2 7 .5 %
2 9 .2 %

3 0 .0 %

3 0 .0 %

He
ter
oge
nei
t
y

TheEUhis
torya
n dd
iff
ere
ncesi
ncul
t
uresandl
ang
uag
e,l
ega
lre
gul
at
io
ns,
cul
t
ura
lhe
ri
ta
gea
ndmu
tua
l
st
ere
oty
pes,makeconv
e r
gen
cele
ssl
ike
ly.

Cu
lt
ur
alBl
ocs

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International Human Resources 40

Ho
fst
ede
…Eu
rop
e(s
)

I
HRMi
nEU

Ak
eyf
act
ori
sth
ecu
lt
ur
ald
iff
ere
nce
sbe
twe
ent
hec
oun
tr
ie
s

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International Human Resources 41

Eu
rop
eanMNEsa
ndHRMPo
li
cy
• MNEsc ompetebasedonqua li
ty
:
lab
ourisvi
ewedasasourceofaddedval
ue,ala
rgeno.o
f c
ore/
pr
ivi
l
egedemp l
oye
e s
;
l
oca
tedinhi
gh-
tec
he n
vir
onment,
mo recoop
erat
io
nwith‘s
oci
alpol
i
cy’
.
• MNEsc ompetebasedonpr i
ce:
l
abo
urisvi
ewedascost
,mini
mizi
ngc os
tandtr
ansf
er
rin
ga ct
i
vit
i
estol
ow-
wagecount
ri
es;p
layoff
i
nt
ern
ati
onalu
nion
sa n
dg ov
ernmentsagai
nste
achother
;eve
nmo ve a wayfro
mEu ro
pe.

Compe
ti
ti
vene
ssv
s.s
oci
aldumpi
ngi
nEU

SOCI
ALDUMPI
NG
REVI
SI
ON

Mo
rec
oll
ect
i
veo
ri
ent
eda
ppr
oac
hto
war
dsHRMi
nEU

 Thein
vol
vementofu
nio
nlead
ersandl
i
neman
ager
s
 Newe c
onomyrequ
ir
esinn
ovat
i
veHRM
 HRMinas t
rat
egi
cal
li
ance
 Soci
alpar
tn
ers:
cooper
at
ionp
roce
ssandd
eci
si
on-
mak
ingi
ncr
oss
-cu
lt
ur
al
envi
r
onment

Gl
oba
lBu
sin
esse
thi
csa
ndma
nag
inge
xpa
tr
ia
te-
HCNr
el
at
io
nsh
ip(
Wee
k9)
Ma
nag
inge
thi
cal
is
sue
s

Et
hi
cal
is
sue
sinin
ter
nat
i
onalbus
ine
ss
1.Emp l
oyment
pra
cti
ces

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International Human Resources 42

o Wh enworkcondi
ti
oninah ostn
ati
onarecl
earl
yinferi
ort
othoseinaMNEsh ome
nat
ion,whatst
andard
ss houl
dbea pp
li
ed-t
hoseo fthehomen a
ti
on,t
hoseo ft
hehost
nat
ion,orso
me t
hingi
nb etween
?
 Ex amp l
es:Appl
einCh i
na,Ni
keinVi
e t
nam
o I nt
er
n at
i
onalbusi
nessimpli
cat
io
ns:est
abl
is
hmi ni
ma laccept
anceworki
ngstan
dards
anda u
ditf
or
e i
gnsubsi
diar
iesandsubco
ntr
actsonar egul
arbasi
s
2
.En
vir
onment
a l
regul
ati
ons
o Et hi
cali
ssuesari
sewhe nenvi
ro
nme nt
alr
egulat
i
on sinhostn
ati
onsarei
nferi
ort
othos
e
int
heh omen a
ti
on
o ‘ t
ra
ge d
yo ft
hecommo ns’occur
swhenindi
vi
dualso v
e r
usearesour
ceheldi
nc o
mmo n
byall
3
.Cor
ru
pti
on
o ‘ t
heextent
wh i
chpubli
cp o
we ri
sexer
ci
sedforpri
vategain
,inc
ludi
ngpett
yandg r
and
for
mso fcor
rupt
i
on,aswe l
l a
s‘cap
tur
e’oft
hes t
atebye l
i
tesandpri
vat
einte
rest
’(
Wo r
ld
Bank,2015)

Ca
use
sofcorr
upt
ion:
 Personal
:(egp e
rson
algreed;de
cli
neo fper
sona
leth
ical
sensi
t
ivi
t
y;l
owawaren
essorl
acko
f
c
our
a g
etod enoun
ceco r
ruptb
ehavi
ou r
)
 Cu l
t
ural(egcul
tur
alenvi
ronment
stha tc
ondonecor
ru
pti
on;l
ackoft
ra
nspar
ency
,esp
eci
al
lyat
t
hei
nsti
tu
ti
o na
lle
vel
)
 Inst
it
uti
ona l(
egregu
lati
onsandin
effic
ien
tcont
ro
ls;s
lowjud
ici
alp
roc
esse
s)
 Organisat
ional(
eglackofmoralc
ri
teri
ainpromot
i
ons;downpl
ayi
ngorr
eact
i
ngmil
dl
yto
c
orr
upti
oncharges
)

Ho
fst
edes
cal
e:l
owma
scu
li
ni
ty
-le
ssc
orr
upt
i
on

Hi
ghe
con
omi
cde
vel
opme
nt–l
essc
orr
upt
i
on

Hi
ghp
oli
t
ic
ala
nde
con
omi
cfr
eed
om–l
essc
orr
upt
i
on

Cor
ru
pti
onte
ndst
ode
cli
newh
eni
nf
or
mat
i
oni
ncl
udi
ngi
nt
er
net
commu
nic
ati
onb
eco
mesmo
re
ac
cess
ibl
e.

Co
rpo
rat
eco
deo
fet
hi
cs

Mo
ti
vat
i
onsf
orc
orp
ora
ter
esp
ons
ibi
l
it
y:

 Une
thi
cala
ndirr
esp
onsib
leb e
havi
ourc
anr
esu
lti
nle
gal
hea
dac
hes
 Cus
tomeract
i
onssuchasbo y
cott
s
 Une
thi
calb
ehavi
ourcanaff
ectempl
oye
emor
al
e
 Ba
dp ub
li
ci
tyi
sgoin
gtoco s
t t
hesal
es

De
vel
opi
ngc
odeo
fco
ndu
ct
 I
nt
er
nal
/ex
ter
nal

Wh
atma
kesag
oodi
nt
er
nalc
odeo
fco
ndu
ct?

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International Human Resources 43

1
.Se
tsgloba
l p
oli
ci
eswithwhic
hevery
onework
ingany
wher
efo
rth
eco
mpa
nymu
sta
ppl
y
2
.Commu n
icat
escomp a
n ypol
i
ci
es
3
.En
s u
resthepol
ic
iesla
idouti
nthecode
sarecarr
i
edout
4
.Re
p or
tst
heresul
tstoexte
rnal
sta
kehol
der
s

Ma
nag
inge
xpa
tr
ia
te-
HCNr
el
at
io
nsh
ip

Wh
ymat
ter
s?
 HCNscanoff
er e
xpat
ri
at
esps
ychoso
cial
supp
ort
 HCNscanpro
v i
dewit
hwork
-rel
at
edsuppor
t
 Hel
pexp
a t
r
iat
e sadj
ust
bet
te
rtoth
en ewenv
ir
onmen
t

Ho
wtod
efi
neHCNsa tt
i
tude
sa ndbeha
vio
ursto
warde
xpa
tr
ia
tes
?
 Wil
l
ingnes
stoprovi
derol
e/wor
kinf
ormat
io
nands
oci
alsu
ppo
rt
 Wil
l
ingnes
stohelp
 ]
prej
udi
cetowar
dfemaleexpa
tr
iat
es
 t
rus
t i
nexpat
ri
ate
s
 kno
wledge/i
nf
ormat
ionshar
in
g
 coo
p er
at
ionandsuppor
t
 hel
pin
gb e
h a
vio
ur

Wh
ata
ret
hea
nte
ced
ent
sof
HCNs
’at
t
it
ude
san
dbe
hav
iou
rst
owa
rde
xpa
tr
ia
tes

1
.HCNp
ers
onal
it
y
o Ther
eisdi
rec
trel
at
io
nshi
pbe
twe
enHCNs’p
erso
nal
it
yandthe
ira
tt
it
udes
/be
hav
iou
rs
to
wardexpa
tr
ia
tes
o Egagree
abl
eness
;cons
ci
ous
nes
s;o
penn
esstocha
nge;
b u
tnotf
orext
r
aver
si
on

2
.Pe
rce
ive
dcompens
ati
ongapb e
tweenex
pat
ri
at
esandHCNs
o HCNswh operc
eivel
argecompe
nsat
io
ngapsar
eli
kel
ytof
eel
depr
i
vedandunf
ai
r
o Th i
sper
cept
i
oncau s
esHCN’snega
ti
veat
t
it
udes
/beha
viou
rst
owa
rdexp
atr
ia
tes(
eg
kno
wle
dgeshar
ingbehavi
our
)

3
.HCNs
oci
alca
teg
o r
i
sati
on
o Soci
alca
tegori
sat
i
onth
eory
o Soci
alca
tegori
sat
i
onbase
do ng
ender
,nat
i
onal
i
ty
, v
alu
es i
mil
ar
it
yet
c
o In
side
rs-morel
ike
lyt
opro
vid
erol
ein
for
mati
onandsoci
als
uppor
t;o
uts
ide
rs-l
ess
li
kel
y

4
.Ex
pat
ri
atecon
tactwi
thHCNs
o I nt
er
groupcont
actth
eory
o Qu ali
t
yco nt
actandHCNs’so
cia
lsupp
ort
behav
iou
r
5
.Pe
rce
ive
djust
ic
eo fexp
atr
iat
es
o So ci
alexcha
ngetheory
o Pe rc
eiv
edp r
ocedura
lju
sti
ceofe
xpat
ri
at
esass
oci
ate
dwit
hHCNjo
bsa
ti
sf
act
io
n,
org
anis
ati
onalcommit
ment,s
ati
sf
act
i
onwit
hexpa
tr
iat
esa
ndal
t
rui
smt
owar
d
expat
ri
at
es.

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International Human Resources 44

6
.Ta
skcoh
esi
ven
ess
o Member
s’s
hare
do r
i
ent
ati
ont
owor
kta
sksanduni
t
yina
ccompl
is
hin
gthe
m
o Tas
kcohe
siv
enessi
sre
lat
edt
oHCNs’
wil
li
ngn
esst
oshar
einf
or
mati
on

7
.In
terp
ers
onal
aff
ectan
dg u
axi
o int
er
pers
onalaff
ect(
li
ke-
disl
i
kere
act
io
n)
o int
er
pers
onalaff
ectan
dg u
anxip
osi
ti
vel
yre
lat
etoHCNs
’wi
l
li
ngn
esst
opr
ovi
des
upp
ort
t
oexp
atr
iat
es

Co
nse
que
nce
sof
HCNs
’at
t
it
ude
s/b
eha
vio
urst
owa
rde
xpa
tr
ia
tes
1
.ex
pat
r
iat
ead
jus
tme
nt
2
.ex
pat
r
iat
epe
rf
orma
nce

i
mpl
i
cat
i
onst
obu
sin
ess
es
1
.MNEsn eedt
op a
yspeci
fi
ca tt
ent
iont
ojob-
pers
onfi
twhe
ns e
lec
ti
ngHCNs(e
.g.h
ighi
n
o
penne
ss)
2
.MNEss ho
u l
dpro
vid
esuffic
ien
tint
era
cti
onoppor
tu
nit
i
esf
orbot
hexpat
r
iat
esan
dHCNs(e.
g.
r
egu
lar
socia
lfu
ncti
onanda ct
iv
it
ie
s)
3
.MNEss ho
u l
ddesi
gnfa
irrewardsyst
emsfo
rexpat
ri
at
esandHCNs
4
.MNEss ho
u l
dfo
cusonint
e rd
ependenceof
theta
sks

Ma
nag
ingn
on-t
r
adi
t
ion
ale
xpa
tr
ia
tes(
Wee
k10
)
T
rad
it
io
nal
vsNo
n-t
r
adi
t
ion
ale
xpa
tr
ia
tes

 Tr
adi
ti
ona
l,l
ongt
ermexpat
ri
at
ion
:moret
han1y
ear
 Non-t
r
adi
ti
onale
xpat
ri
at
ion
:
o Shortt
er
ma ss
ign
me n
ts
o Int
er
nati
ona
lcommutera
ssi
gnmen
t
o Rotat
i
onalas
si
gnment
o Sel
f
-in
it
ia
ted
as
si
gnments
o Vi
rt
ual
as
si
gnments
o I
mpart
at
ion

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International Human Resources 45

Th
ech
ang
ingn
atu
reo
fas
si
gnme
nts
 Redu
ceco sts
 Te
chnol
ogya dv
anc
ement
 Redu
cediffic
ult
i
esi
nvo
lve
dint
r
adi
t
ion
ale
xpa
tr
ia
ti
on(
egu
nwi
l
li
ngn
esst
ore
loc
ate
)

Sh
ort
ter
mas
si
gnme
nt

Sh
ort
ter
mas
si
gnme
nts
-PCNsa
ssi
gne
dov
ers
easf
oru
pto1
2mo
nth
s,a
lt
hou
ghn
orma
ll
ysh
ort
ert
han
6mont
hs

At
t
rac
ti
vet
oorg
ani
sati
ons
:
 Costr
educt
io
nc o
mp a
redwit
htr
adi
ti
ona
lex
patr
ia
ti
on
 Inv
olv
esaskil
lt
ran
sfe
randprob
lemsol
vi
ng
 Canbeu s
edtotr
ai
nlocal
workf
or
ceandhan
dleth
espe
cifi
cne
edso
fpr
oj
ect
s

At
t
rac
ti
vet
oind
ivi
dual
s:
 Ga i
nsi
nte
rnat
io
nale
xper
i
enc
esear
lyi
nthei
rca
reer
s
 L e
ssdi
srup
ti
ve,r
equ
ir
esf
ewerl
i
fec
o n
sid
era
ti
ons

I
nt
er
nat
i
ona
lco
mmu
ter
ass
ign
men
ts
 Al
socal
l
edfl
expat
ri
at
esorf
r
equent
fl
yer
s
 Nor
mall
yfa
mily
/sp
ousewi
l
lnotr
el
ocat
e
 I
nt
erna
ti
onalco
mmuti
ngi
smorest
ru
ctur
ed,
andi
nvo
lve
str
avel
l
ingbet
wee
nhomean
dho
st
co
unt
rywheremos
toft
hewor
kisdone,
suc
hasweekl
yba
sisorbi
weekl
yba
sis

Ro
tat
i
ona
las
si
gnme
nts
 PCNscommu t
eforas hor
t,seto
f pe
ri
odo f
ti
me,andfol
l
owedb yabr
eaki
nthehomecount
ry
 Goal
:pr
ovidei
n t
er
na t
i
onalassi
gneeswhoa r
eassi
gnedtohar
dshi
ploc
ati
onswi
thest
abl
i
shed
ext
ende
dwo rk
we eksandtheopport
uni
tyfo
rrest
andrecr
eati
onawayf
romtheass
ign
ment
l
ocat
io
ntoco n
tin
uewo rk
ingatthelo
cat
ionwit
hah i
ghl
evelofpr
odu
cti
vi
ty
 Theempl
o y
ee’sfa
milyusual
lyr
ema i
nsinth
eh o
mec ount
ry
 Commonlyusedono i
lri
gs;wit
hh a
rdsh
iploc
ati
oni
ntheg l
oba
lmini
ngi
ndust
ry

I
npa
tr
ia
ti
on

Th
ek eyi
ssuesinmanagin
ginpa
tr
ia
ti
on?
 Typic
a lex
patr
i
atepol
i
cie
sma yn
otbesui
t
abl
efori
npa
tr
ia
tes
,assuc
hmo s
tmo
vesa
rel
ear
ni
ng
a
ssig
n ments
 Co mpaniesunder
est
i
matet
hecros
s-c
ult
ur
alc
ha l
l
eng
esfac
ingi
npa
tr
ia
tes

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International Human Resources 46

Vi
r
tua
las
si
gnme
nt
 Newcommu n
ica
ti
ontec
hnol
ogy
 Vi
r
tualt
eam(geogr
aphi
cal
l
yd i
spe
rsedt
eam, GDT)
o Ag r
oupofin
div
idu
alswhoworkacrossti
me,sp
aceandor
gani
sat
i
onal
bounda
ri
eswi
t
h
li
nksst
reng
thbywebsofcommuni
c at
ionte
chnol
ogy
o Needtopaymoreatt
ent
io
ntosta
ffin
g( e
gc o
gni
ti
veande
mo t
i
onali
nt
el
li
gen
ce)

Be
nefi
t
sofvi
rt
ualtea
ms :
 Gr ea
terfl
exi
bi
li
t
y
 Sa ve
stimea n
dc o
sts
 I n
cre
aseslear
nin
ga c
ros
sor
gan
isa
ti
on

Ch
all
eng
es?
 Ma nagi
ngcommunic
ati
on(s
tr
ainonin
ter
per
son
alr
el
ati
on s
hipduetocu
lt
ural
diff
ere
nce
san
d
vi
rt
ual
dimensi
on;a
mb i
guo
usc on
tex
tcanl
eadt
omisu
n der
standi
ng)
 Po orI
Tinf
r
astr
uct
ure
 Ha r
dertoac
hiev
eteamide
nti
fyandcohe
sio
nduet
odiff
erentl
oca
ti
ons;t
ru
stbuil
din
g

Se
lf
-i
ni
ti
at
edexpa
tr
ia
ti
on
 Standa
rdexpa
tr
ia
ti
onsar
eus
ual
l
yin
it
ia
tedb
yth
eor
gan
isa
ti
on,
sel
fi
ni
ti
at
eda
ssi
gnme
ntsa
re
i
ni
ti
at
edbyth
eindi
vi
dua
l.

Pr
os:
 Cos
tad
vant
age(
egr
ecr
ui
tment
;comp
ensat
i
onpac
kage
s)
 Fe
werex
pect
at
io
nso
norgan
isa
ti
onst
aki
ngr
esp
onsi
bi
l
it
yfo
rlo
ngt
er
mca
ree
rpl
ann
ing

Co
ns:
 Redu
cedpr
edi
ct
abi
l
it
yoff
ut
urep
erf
or
man
ce
 La
ckofhe
adqu
art
ersu
ppor
t

What we have already known about the use of non-traditional expatriates?

Both empirical research and industry surveys revealed the use for non-traditional expatriates
has risen (e.g. Tharenou & Harvey, 2006; PricewaterhouseCoopers, 2005)
• Skill transfer & management development (Mayerhofer et al., 2004)
• Skill transfer, problem solving, managerial control & management development
(Tahvanainen et al., 2005)
• Knowledge transfer, technical support & management control (Kang & Shen, 2016)

It is important to formulate and implement appropriate HRM policies and practices for non-
traditional expatriates
• Recruitment and selection
• Training
• Performance appraisals
• Compensation

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International Human Resources 47

Ma
nag
ingn
on-
tr
adi
t
ion
ale
xpa
tr
ia
tes

1.Re c
ruit
me ntands el
ection
• Nof ormalr
ecrui
tme ntandsel
ecti
onpoli
ci
esf
ornon-t
rad
it
ion
alexpat
ri
at
es
E.
g .Fi
nn i
shMNEs –shortt
e rmassi
gnme nt
swe r
eusedfo
rs p
eci
fi
cint
erna
ti
onalpr
ojec
tsorsol
vi
ng
ac
u t
ep robl
ems .
E.
g .KoreanMNEs –Select
ioncri
ter
iainc
ludet
echni
cals
kil
ls
,exper
ti
se,pr
obl
ems ol
vin
gs k
il
l
sand
i
nt
e r
n at
ional
wo r
kexperi
enc e
• F amil
y/s
pouseissuesa r
elar
gelyi
gnoredwhensele
cti
ngshor
t-
ter
ma ssi
gnees
2.Tr
a i
ning
• MNEsp rov
ideli
mitedpre-d
epart
ureandpost
-ar
ri
valt
rai
ni
ng
E.
g .Fi
nn i
shMNEs –onlyprovid
eCCTi fcul
tur
aldi
st
anceishi
gh;i
n-hou
setra
ini
ngisprov
ide
do n
vo
lun t
arybasi
s
Aust
rianMNEsp r
ovi
des omel a
nguagea n
dCCTt rai
ni
ng
KoreanMNEsp rov
idedsomer esource
stoh e
lpwit
hlan
gu a
geandcult
ure;
Atte
ndingpost
-a
rr
iv
al
t
rai
ningisp u
rel
yav ol
untarybasi
sa ndnoassi
gneehasatt
endedsuchtr
ai
ningduetoti
meconst
rai
nt

3.Perf
ormanceapprai
sal
• Us esimi
lar
ap p
roac
hf o
rtr
adi
ti
onal
expat
ri
at
es
E.
g .F
inni
sh&Au s
tr
ianMNEs –rat
er
sofper
for
mancear
eimme di
at
ehome-ba
sedsupe
rvi
sor
s
Ko r
eanMNEs –per
for
ma n
cesa r
eeval
uat
edbybot
hsubsi
dia
ryandheadq
uart
er
s;i
mme d
iat
e
su
p er
vi
sorsi
nh e
adquart
er
sa ndmanager
sarer
espons
ibl
eforp
roj
ect
sinl
ocal
subs
idi
ar
ie
s;mai
n
appr
ais
alcri
t
eri
ainc
ludeworkperf
or
mance,wor
katt
i
tud
es

4.
Co mpensat
ion
• Co mpensat
i
onvaryb a
sedona s
sig
nmentdur
at
ions
• Sh or
t-
ter
ma ss
ign
e esareusu
all
ypai
dintheh
omec oun
tr
y
E.
g. F
inni
shMNEs—tax-
fr
e edai
lyal
lo
wance,COLA,ha
rdshi
pal
lowa
nce
Kor
e a
nMNEs –donothavesepara
tecompensa
ti
onpol
ic
iesf
ornon-
t
rad
it
io
nal
exp
atr
i
ate
s;v
ari
ed
al
l
owa nc
esbasedonnon-
e xpa
tr
iat
es’po
sit
i
ons

Ma
nag
ingd
ive
rsi
t
yint
heg
lob
alc
ont
ext
(We
ek1
1)
Wh
ati
satal
entmanagement
?
 Tal
entaskeypeopl
eincr
it
ic
alj
obrol
es,
aswe l
lasempl
oyee
swhopo
ssessora
repu
rsu
ing
spec
ial
i
s e
da n
dind e
ma n
dk n
owle
dgeandski
ll
s.
 Id
enti
fi
edasase t
oforg
anis
ati
ona
lpr
ocesse
stoa t
t
rac
t,d
evel
op,
mobi
l
is
ea n
dret
ai
n
in
div
idual
swit
hh i
ghl
evelof
humancapi
tal
.

Gl
oba
lta
len
tma
nag
eme
nt

De
fi
nit
i
on:

“
Asubs
eto
fIHRMact
iv
it
ie
s(sys
tema
ti
cal
l
yli
nke
dIHRMpol
i
ci
esandpra
cti
ces
)toat
tr
act
,deve
lop
,
r
et
ai
nandmobi
li
zei
ndi
vi
dual
swit
hhi
ghle
vel
sofcu
rr
ent
andpo
ten
ti
alhumancapi
t
alcons
is
ten
twit
hthe
s
tr
at
egi
cdi
rec
ti
onso
fth
eMNEst ose
rvet
heobj
ect
i
veso
fmul
ti
pl
esta
kehol
der
s”(T
ari
que&Schul
er,
2
010,
p.21
4).

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International Human Resources 48

Di
ff
ere
nce
sbe
twe
enI
RMa
ndGTM

 I
HRMfocusesonab r
oaderr
angeofempl
oye
es;GTMfo
cuseso
nas ubs
etofempl
oye
eswit
h
h
ighl
evel
sofhumancapi
tal
 I
HRMh asbroa
derran
geco nc
ern
s;GTMfocus
esonat
tr
act
i
ng,dev
elo
pin
g ,
moti
vat
i
ngand
r
et
ain
ingemploy
ees
 I
HRMinclu
desab r
oaderr
a n
geofHRp o
li
ci
esandpr
act
i
ces
;GTMf o
cusesonl
yasub-
set
of
a
cti
vi
ti
eswit
hi
ne ac
hpoli
cyandprac
ti
ce

Di
ver
sof
glo
bal
tal
ent
man
age
men
tsy
ste
m

T
ale
ntfl
ow
 I ndi
vi
dua
lsmovef
oravar
iet
yof
reason
s
 Mo ve
mentof
tal
entb
etwe
encount
r
iesora
mon
gse
ver
alc
oun
tr
ie
s(t
akea
dva
nta
geo
f
e c
onomi
coppor
tu
nit
i
es)

Ch
ang
ingwork
for
cedemogr
aphic
s
 Globalwo
rkf
or
ceisagi
ng,espec
ial
l
yind
eve
lop
edcoun
tri
es
 Re a
lchal
l
engeist
oeff
ecti
vel
yat
tr
act
,de
vel
opandr
et
aintwod
iff
ere
ntg
ene
rat
i
onso
femp
loy
ee

As
hor
tof
tal
ent
 Alac
kofsu
it
abl
eco
mpe
ten
cie
sfo
rth
epo
sit
i
onsa
ndj
obs

Re
gio
nan
dind
ust
rysp
eci
fi
c
 Moref
ocu
sedi
nparti
cul
arr
egi
ons
/in
dus
tr
ie
segAs
iap
aci
fi
c(Si
nga
por
e)

Si
xpr
i
nci
pl
eso
feff
ect
i
veGT
M
1
.Ali
gnmentwi
t
hstr
at
e g
y
- Ta
len
tmanag
ementst
art
swit
hcorp
orat
est
rat
egy
- Whati
sth
est
rat
egy?Wh a
tty
peoft
ale
ntdoyounee
d?
- I
mport
anc
eofpl
aci
ngtheri
ghtp
ers
ononther
igh
tjo
b.

2
.Int
ern
alco
nsi
st
ency
- Pr
act
i
cesmus
tfi
tine
acho
the
r,TMp
rac
ti
cesc
ann
oto
per
at
eini
sol
at
io
n

3
.Cu l
t
ural
embed
dednes
s
- I
nt
egra
teco
reval
uesTMp
roc
ess
es(
egh
ir
in
gme
tho
ds,
lea
der
shi
pde
vel
opme
nt,
PMs
yst
em)

4
.Ma n
ageme
nti
nvo
lve
me nt
- TMnee
dst
ogobeyondHR,ma
nag
ersi
nal
ll
eve
lsn
eedt
oin
vol
ve

5
.Ba l
anceo fgl
oba
l a
ndloc
alneeds
- Howtor e
spondtolo
cald
ema n
dswhil
emai
nt
ai
ni
ngacoh
ere
ntHRs
tr
at
egy?
- Needag l
obalt
emp l
at
eforTMtoens
urec
ons
is
ten
cyb
utal
soal
l
owada
pta
ti
onb
ase
don
sp
ecifi
ccir
cumst
ances

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International Human Resources 49

6
.Emp l
oye
rbr
andi
ngt
hr
oug
hdiff
eren
ti
at
io
n
- Ha
veacompel
l
in
gval
uepr
oposit
i
on(gr
eat
pla
cet
owo
rk)
- St
r
essi
ngonCSR

Gl
oba
lta
len
tma
nag
eme
nt
 Maj
ori
tyres
pondent
sarenotconfi
dentt
hatt
heyh a
veaneff
ect
i
veint
er
nati
ona
lmanag
ement
t
eam
 20
%b eli
eveth
eirco
mp an
iesman ageta
lente
ff
ecti
vel
yacr
ossal
lmark
ets
 l
essth
a n1/
3agreeto
pma nagemen tt
eamhasa ni
nter
nat
i
onalou
tl
ookondeci
si
onmaki
ng
 amixofin
ter
nat
iona
lexper
ien
cea ndlocal
knowledg
e

Some strategies:
 organisations need to consider how to strike a proper balance between retention,
outsourcing work, and offshoring staff
 organisations need to reposition employees’ skill sets to align with changes in
organisational strategy
 keep boosting employee engagement

Retaining and engaging a changing workforce

Employee engagement?
 Intellectually and emotionally bound with the organisation
 Feels passionate about the goals
 Committed to live by its values
 Go beyond the basic job responsibility

Why engagement?
 Better communication
 Better commitment

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International Human Resources 50

 Better performance
 Lower turnover

Ho
wtoi
mpr
ovee
nga
geme
nt?
1
.Commu n
ica
ti
onsact
i
vi
ti
es
- Cr
eat
eanenvi
orn
mentoft
r
ust
ando
pen
nes
ss
- Go
odli
st
ener

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International Human Resources 51

2
.Re war
dschemes
- Recog
nis
it
onpr
ogr
ams
- Lo
n gse
rvi
cean
dg o
odper
for
mancea
war
ds
- St
ockowner
shi
pandpr
ofi
tsh
ari
ng

3
.Cu l
tur
ebui
l
di
nga c
ti
vi
t
ies
- Fee
li
ngofb
elon
ing
- CSR
- Workl
if
ebal
anc
e

4
.T e
amb ui
l
di
ngact
iv
it
ie
s
- Soc
ial
act
iv
it
i
es
- Smal
lt
eamrecr
eat
i
onala
cti
vi
t
ies

Ma
nag
ingf
ema
lee
xpa
tr
ia
tes
 On
ly1
3%o
fUSma
nag
erss
ent
abr
oada
rewo
men

Wh
ysol
ow?
• Myt
h1:Wo mendonotwis
htota
kein
ter
nat
i
onalass
ign
ments
.
• Myt
h2:Wo menwil
lf
ai
lini
nte
rna
ti
onala
ssi
gnment
sbecau
seoft
hef
or
ei
gnc
ult
ur
e’
spr
ej
udi
ces
aga
ins
tlo
calwomen.
• Myt
h3:Comp a
nie
sref
usetosendwomenov
e r
sea
s.

Ho
weve
r,whatwelear
nedfromr es
earc
h?
• Nog en de
rdi
ff
erencesinwil
l
ing
nes
stowor
kov
erse
as
• Stil
lsomeresi
sta
ncet osel
ect
in
gfe
ma l
eex
pat
r
iat
es(p
erc
eiv
eda
shi
ghr
i
sk)
• Nodi ffe
renc
eine ff
ecti
ven
ess

St
rengths
:
• St ronginre
lat
ion
alski
l
ls
• Be t
terwor
ka ndi
nter
act
i
ona d
just
ment
Chal
lenges:
• F ac
etheg l
asscei
li
ng
– I s
ola
ti
ona n
dlonel
i
ness
– Co nst
antpr
ovi
ngofthemsel
ves
,work
ingh
ard
ert
hanma
le
• Ne edtobal
anceworkandfa
milyres
ponsi
bi
l
it
i
es
• Ne edtoworr
ya bo
utacco
mp an
y i
ngspo
use

Mo
reWomenintheFut
ur
e?
• Wo menexpat
ri
at
emanage
rsar
ee x
pect
edt
ogr
ow
• Acutesho
rta
geofhi
gh-
qual
i
tymanage
rs
• I
n c
reasi
ngnumbero
fwomenpro
vid
erol
emode
ls

Wh
atca
ncompan
iesdotoensu
refemal
eexp
atr
i
ates
ucc
ess?
• Pro
vid
emen t
or
s
• Pro
vid
eopport
uni
ti
esf
orin
terp
ers
ona
lnet
wor
ksasafo
rmo
for
gan
iza
ti
ona
lsu
ppo
rt
• Removeso
u r
cesofba
rr
ier
s

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International Human Resources 52

• Pr
ovi
des
upp
ort
toc
opewi
t
hdu
al-
car
eeri
ss
ues

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