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Peng Inst Chapter 15 REVISED (2nd Edition)

Peng Inst Chapter 15 REVISED (2nd Edition) - Peng...

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Peng Global Business 2e Chapter 15 Managing Human Resources Globally 1
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LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. Explain staffing decisions with a focus on expatriates 2. Identify training and development needs for expatriates and host country  nationals 3. Discuss compensation and performance appraisal issues 4. List factors that affect labor relations in both home and host countries 5. Discuss how the institution- and resource-based views shed additional light on  HRM 6. Participate in three leading debates concerning HRM 7. Draw implications for action 2
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Has Anyone Lived in a Foreign  Country? Describe life in that country. What should a person know about its  culture and environment before leaving for  that country (in order to be successful)? If you were an executive and needed to  send someone to that country, what  characteristics would you look for in that  person?   3
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STAFFING Human resource management  (HRM) -  activities that attract, select, and manage  employees. Staffing -  HRM activities associated with  hiring employees and filling positions. Host country nationals  (HCNs) - known  as “locals”. 4
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STAFFING Expatriates (expats)  -   Nonnative employees who work in  a foreign country. Parent (home) country nationals  (PCNs) - employees  who come from the parent country of the multinational  enterprise (MNE) and work at its local subsidiary. Third country nationals  (TCNs) - employees who come  from neither the parent country nor the host country. 5
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Approaches to Staffing Ethnocentric approach -  emphasis on the norms and  practices of the parent company (and the parent country  of the MNE) by relying on PCNs. Polycentric approach -  emphasis on the norms and  practices of the host country. Geocentric approach  -   focus on finding the most suitable managers, who can be PCNs, HCNs, or TCNs. 6
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Roles of Expatriates Strategists   - representing interests of the MNE’s  headquarters. Daily managers  - run operations, to build local capabilities  and gain international management experience. Ambassadors  - representing HQ’s interests in the  subsidiaries and representing the interests of the subsidiaries   when interacting with headquarters. Trainers   - for their replacements.  Over time, some localization  in staffing is inevitable, calling for expatriates to train local  employees. 10
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Expatriate Failure and Selection Expatriate failure is defined as: (1) premature (earlier than expected)  return (2) unmet business objectives (3) unfulfilled career development  objectives 11
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Expatriate Failure and Selection Using the measure of premature return, earlier studies  reported that:
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