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International Business
Environments and Operations
Part 6
Managing International
Operations
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Chapter 13
Human
ResourceManagement
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Factors Influencing HRM in International
Business
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The Strategic Function of InternationalHRM
Strategizing HRM
The Perspective of Expatriates
HRM Frameworks in the MNE
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The Perspective of Expatriates
Trends in Expatriate Assignment
The Young, The Old, and The Restless
The Impact of Market Disruption
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HRM Frameworks in the MNE
Three perspectives anchor an MNEs staffing
policy:
Ethnocentrism
Polycentricism
Geocentricism
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Managing Expatriates
Selecting Expatriates
Expatriate Failure
Preparing Expatriates
Compensating Expatriates
Repatriating Expatriates
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Selecting Expatriates
Technical Competence
Adaptiveness
Self-Maintenance
Satisfactory Relationships with Host Nationals
Sensitivity to Host Environments
Leadership Ability
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Expatriate Failure
Costs of Failure
Preventing Failure
Dealing with Adjustment and Stress
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Preparing Expatriates
Focusing on Adaptiveness and Related
Characteristics
General Country Understanding
Cultural Sensitivity
Practical Skills
Approaches: Specialized Knowledge versusCultural Sensitivity
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Compensating Expatriates
The Pay-Performance Link
Types of Compensation Plans
Home Based, Headquarter Based, and Host
Based Methods
Complications Posed by Nationality Differences
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Key Aspects of Expatriate Compensation
In designing compensation packages for
expatriates, HRM considers the following topics
Base Salary
Foreign Service Premium
Allowances
Fringe Benefits Tax Differentials
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Repatriating Expatriates
Returning home from a foreign assignment, the
act of repatriation, is fraught with difficulties.
Readjustment to Home Country Organization
Changes in Personal Finances
Readjusting to Life
Managing Repatriation
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International Labor Relations
How Labor Sees MNEs
How Labor Responds to the MNE
Labors Struggle: Barriers to International
Unanimity
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Future: Which Countries Will Have the
Jobs of the Future?
Worker populations will grow faster in developing
countries
Wealthier countries will continue to grow in the numberof retirees
Adjustments for developed economies:
Nationalism
Men versus Machines Brains: Drains, Recycle, or Halt