IHRM basics
What does IHRM stand for?
International Human Resource Management.
What do we call an employee who works in a foreign country?
An expatriate, or expat.
What is culture?
Shared values, beliefs, norms, and behaviors of a group.
What is compensation?
The financial and non-financial rewards employees receive for their work.
What is recruitment?
The process of finding and attracting candidates for a job.
What is the main difference between domestic HRM and IHRM?
HRM manages employees across different countries and cultures.
What is the process of bringing an expatriate back to their home country?
Repatriation.
Which famous researcher developed a model of national cultural dimensions widely used in international management?
Geert Hofstede.
Name ONE part of an employee's compensation package.
Salary, bonus, benefits, allowance, etc.
Why can international recruitment be more difficult than domestic recruitment?
Because of differences in languages, laws, cultures, qualifications, and labor markets.
Name one factor that makes IHRM more complex than domestic HRM.
Different cultures, laws, currencies, languages, or labor markets.
You move abroad for work. Your job is going well, but you feel stressed because the food, language, customs, and workplace behavior are unfamiliar.
What are you experiencing?
Culture shock.
In a high power-distance culture, are employees generally more or less accepting of hierarchy?
More accepting.
An employee moves from Uzbekistan to a country where everyday expenses are much higher.
What allowance could help compensate for this difference?
Cost-of-living allowance.
A company opens a new branch in another country.
Name TWO HR issues it should consider.
Recruitment, labor laws, compensation, training, culture, visas, or employee benefits.
A company operates in 5 countries. Should it use exactly the same HR policies in every country?
Not necessarily. HR policies may need to be adapted to local cultures and laws.
An employee is excellent at their job but cannot adapt to the culture of the host country.
What could HR have done before sending them abroad?
Provided cross-cultural training.
Your manager says, “Call me by my first name.”
Your new manager from another culture expects you to use a formal title.
What IHRM issue does this demonstrate?
Cultural differences in workplace communication and hierarchy.
An employee is sent abroad and receives extra money for housing, transportation, and living expenses.
Why might the company provide these benefits?
To support the employee during an international assignment and make the assignment attractive.
Why should a multinational company provide cross-cultural training?
To help employees understand and adapt to different cultural values, behaviors, and communication styles
Why can a successful HR practice in one country fail in another?
Because cultural, legal, social, and economic conditions can be different.
An expatriate performs poorly abroad. However, their technical skills are excellent.
Name TWO possible reasons for their poor performance.
Cultural adjustment problems, family problems, language barriers, lack of support, or communication difficulties.
An American manager gives direct feedback to an employee.
The employee finds it rude and embarrassing, while the manager considers it honest and efficient.
What does this situation demonstrate?
Different cultural communication styles.
Why must multinational companies consider taxation when designing international compensation?
Because tax systems differ between countries and can significantly affect an employee's actual income.
A company uses the same performance evaluation system in every country.
Employees in one country complain that the system is unfair because it doesn't fit their cultural expectations.
What should IHRM do?
Adapt the system to local cultural and organizational conditions while maintaining global standards.