Human Resource ManagementHuman Resource ManagementInternational HRInternational HR

Stages of International InvolvementStages of International Involvement

Stage 1 Markets are exclusively domestic Stage 2 Markets expanded to foreign

countries, but production remains domestic Stage 3 Some operations moved out of

home country Stage 4 Firm in a multinational corporation

(MNC) where assembly/production is in several countries

Stage 5 Transnational corporations where control is diffuse with little allegiance to any one country

Locals vs. ExpatriatesLocals vs. Expatriates

Pluses and minuses of localsPluses and minuses of expatriates

Expatriate AssignmentsExpatriate AssignmentsProblems

– U.S. failure rate 20 – 40% 3 to 4 times higher than Europeans or Asians

– (In 2006 failures cost $170,000 to $360,000 each - Total of over $4 billion)

Career Blockage Culture Shock Lack of Pre-departure Cross-cultural Training Overemphasis on Technical Skills Family Problems

Expatriate AssignmentsExpatriate Assignments

Problems – Difficulties upon Return

Lack of respect Loss of status – status reversal Reverse culture shock

Levels of CultureLevels of Culture

ManifestExpressed valuesBasic assumptions

FrameworksFrameworks

Kluckhohn & Strodtbeck- Variation in Values Orientation

Bigoness & Blakely’s DimensionsHofstede’s DimensionsHall’s Culture ContextTrompenaars’ Seven Dimensions

Kluckhohn & StrodtbeckKluckhohn & Strodtbeck

Values orientation Variations

Relation to nature Subjugation Harmony MasteryTime orientation Past Present FutureBasic human nature Evil Neutral/MixedGoodActivity orientation Being Containing/ Doing

controllingRelationships among Individualistic Group Hierarchical peopleSpace orientation Private Mixed Public

Bigoness & BlakelyBigoness & Blakely

Pleasantness Good Citizen Competent Good Thinker(Cheerful,loving, (Responsible, (Capable, (Imaginative, helpful) polite, obedient) courageous) intellectual)

Australia (n=36) 12.7 10.9 5.6 8.3Brazil (n=30) 11.7 10.1* 4.7* 6.8*Denmark (n=37) 11.9 11.5 5.2 8.6France (n=32) 13.1* 11.3 5.6 7.8Great Britain

(n=89) 12.5 11.7 6.2 7.7Germany (n=106) 13.0* 10.8 5.5 8.0Italy (n=31) 12.2 11.7 5.2 6.7*Japan (n=20) 10.0* 9.8* 6.2 7.5Holland (n=31) 12.2 11.8 5.4 7.5Norway (n=46) 11.5 11.4 5.2 8.0Sweden (n=69) 12.8 12.0 4.5* 8.1USA (n=42) 12.1 11.5 6.7* 7.7

Overall 12.3 11.3 5.6 7.9

Hofstede’s Dimensions of Cultural Differences:

Individualism versus collectivismIndividualism versus collectivism -concern for self vs. others-concern for self vs. others

Power distancePower distance -acceptance of unequal power distribution-acceptance of unequal power distribution

Uncertainty avoidanceUncertainty avoidance -preference for structure-preference for structure

Materialism versus concern for others (Masculinity/Femininity)Materialism versus concern for others (Masculinity/Femininity) -tough vs. tender-tough vs. tender

Long-run versus short-run orientation (Bond)Long-run versus short-run orientation (Bond) -future vs. past/present-future vs. past/present

Power DistanceLow High

IC

Collective

Individual

VEN

COLPAK

TAI PER

SINHOK

PHI

INDJAP

GRE

THA

NZL CANNET

USAAUL

GBR

Hofstede Dimension Scores for 10 CountriesHofstede Dimension Scores for 10 Countries

PD IC MF UA LTUSA 40L 91H 62H 46L 29LGermany 35L 67H 66H 65M 31MJapan 54M 46M 95H 92H 80HFrance 68H 71H 43M 86H 30LNetherlands 38L 80H 14L 53M 44MHong Kong 68H 25L 57H 29L 96HIndonesia 78H 14L 46M 48L 25LWest Africa 77H 20L 46M 54M 16LRussia 95H 50M 40L 90H 10LChina 80H 20L 50M 60M 118H

PD – H = accepts unequal powerIC – H = individualisticMF – H = masculineUA – H = avoid uncertaintyLT – H = long-term orientation

From Hostede, 1993Academy of Management Executive

What Can Be Done?What Can Be Done?

Reward Practices-– Hi Power Distance vs Low Power Distance– Collectivistic vs Individualistic– Hi Uncertainty Avoidance vs Hi Ambiguity– Hi Masculinity vs. Hi Femininity– Long-term vs. short-term orientation

Staffing/Appraisal Practices– Hi Power Distance vs Low Power Distance– Collectivistic vs Individualistic– Hi Uncertainty Avoidance vs Hi Ambiguity– Hi Masculinity vs. Hi Femininity– Long-term vs. short-term orientation

Hall’s Culture ContextHall’s Culture Context

High-context– China, Egypt, France, Italy

Low-context– Australia, Canada, England, United States

Culturally Based Differences in Culturally Based Differences in Management Style: Management Style:

StereotypesStereotypes

GermanyGermanyTechnically expert,Technically expert,authoritarians authoritarians

FranceFranceElitist,Elitist,

authoritarians authoritarians

JapanJapanFormal,Formal,consensus seekersconsensus seekers

ChinaChinaLow-profile,Low-profile,

tough negotiatorstough negotiators

United StatesUnited StatesEmotional,Emotional,egalitariansegalitarians

Multicultural Managers and OrganizationsMulticultural Managers and OrganizationsThe Multicultural Manager– Has the skills and attitudes to relate effectively to and

motivate people across race, gender, age, social attitudes, and lifestyles. Respects and values the cultural differences.

– Has the ability (e.g., is bilingual) to conduct business in a diverse, international environment.

– Has a cultural sensitivity in being aware and interested in why people of other culture act as they do.

– Is not parochial in assuming that the ways of one’s culture are the only ways things should be done.

– Is not ethnocentric in assuming that the superiority of one’s culture over that of another culture.

Protocol Do’s and Don’t’s in Several CountriesProtocol Do’s and Don’t’s in Several Countries

Great Britain

DO say please and thank you often. DO arrive promptly. DON’T ask personal questions because the British protect their privacy. DON’T gossip about British royalty

France

DO shake hands when greeting. Only close friends give light, brushing kisses on cheeks. DO dress more formally than in the United States. Elegant dress is highly valued. DON’T expect to complete any work during the French two hour lunch

- DON’T chew gum in a work setting.

Italy

DO write business correspondence in Italian for priority attention. DO make appointments between 10:00 and 11:00 or after 3:00. DON’T eat too much pasta, as it is not the main course. DON’T hand out business cards too freely. Italians use them infrequently.

Protocol Do’s and Don’t’s in Several CountriesProtocol Do’s and Don’t’s in Several Countries

Greece

DO distribute business cards freely so people will know how to spell your name. DO be prompt even if your hosts are not. DON’T expect to meet deadlines. A project takes as long as the Greeks think is necessary. DON’T address people by formal or professional titles. The Greeks want more informality.

Japan

DO present your business cards with both hands and a slight bow as a gesture of respect. DO present gifts, American-made and wrapped. DON’T knock competitors. DON’T present the same gift to everyone, unless all members are the same organizational rank.

Improving the Expatriate AssignmentImproving the Expatriate Assignment Emphasize cultural sensitivity in selection and include

spouse in assessment Conduct cross-cultural training with more for longer

assignments Position international assignments as career

enhancing Use compensation as an incentive

Most Expensive CitiesMost Expensive Cities 1 Tokyo Japan 152 2 Osaka Kobe Japan 145 3 Paris France 132 4 Copenhagen Denmark 124 5 Oslo Norway 123 6 Zurich Switzerland 122 7 Frankfurt Germany 118 8 Helsinki Finland 115 9 Geneva Switzerland 115 10 Singapore Singapore 112 11 Hong Kong Hong Kong 110 12 Vienna Austria 109 13 Dublin Ireland 108 14 New York United States 100 15 Morgantown United States 56

EEO in the International ContextEEO in the International Context

EEO prohibition of discrimination based on age, sex, race, etc. apply to international assignments too

Foreign national employees of U.S. companies working outside the US are not covered by U.S. employment law

Immigration and Control Act (1986)– Non-U.S. citizens living and working in the

U.S.– May not be discriminated against

Other International HR ConsiderationsOther International HR Considerations

Ethics and Social Responsibility– Many ethical dilemmas face expatriates– Ethical and legal are not the same

Foreign Corrupt Practices Act (1977) Political Risk

Possibility that social or government pressures negatively impact operations

Expatriates often caught in middleo Should understand political situation