Copyright ©2014 Pearson Education, Inc. 10-1. Chapter Learning Goals 1. Emphasize the critical role of expatriates in managing in host subsidiaries and

Copyright ©2014 Pearson Education, Inc. 10-1

Chapter Learning GoalsChapter Learning Goals

1. Emphasize the critical role of expatriates in managing in host subsidiaries and in transferring knowledge to and from host operations.

2. Acknowledge the importance of international assignments in developing top managers with global experience and perspectives.

3. Recognize the need to design programs for the careful preparation, adaptation, and repatriation of the expatriates and any accompanying family, as well as programs for career management and retention.

1. Emphasize the critical role of expatriates in managing in host subsidiaries and in transferring knowledge to and from host operations.

2. Acknowledge the importance of international assignments in developing top managers with global experience and perspectives.

3. Recognize the need to design programs for the careful preparation, adaptation, and repatriation of the expatriates and any accompanying family, as well as programs for career management and retention.

10-2 Copyright ©2014 Pearson Education, Inc.


4. Become familiar with the use of global management teams to coordinate cross-border business.

5. Recognize the varying roles of women around the world in international management.

6. Understand the variations in host-country labor relations systems and the impact on the manager’s job and effectiveness.

4. Become familiar with the use of global management teams to coordinate cross-border business.

5. Recognize the varying roles of women around the world in international management.

6. Understand the variations in host-country labor relations systems and the impact on the manager’s job and effectiveness.


Opening Profile: The Expat LifeOpening Profile: The Expat Life

Is it an adventure or a hardship? Experiences of those who have

done a stint abroad are mixed. Experiences vary by job type,

and especially by location. Adjustment is easier for those

who go to places where the culture and business practices are similar

Most expect the assignment to be career-broadening

Is it an adventure or a hardship? Experiences of those who have

done a stint abroad are mixed. Experiences vary by job type,

and especially by location. Adjustment is easier for those

who go to places where the culture and business practices are similar

Most expect the assignment to be career-broadening




Emphasize the critical role of expatriates in managing in host subsidiaries and in transferring knowledge to and from host operations.

Emphasize the critical role of expatriates in managing in host subsidiaries and in transferring knowledge to and from host operations.


The Expat LifeThe Expat Life

Could include a nanny, driver, or even a bodyguard

Tax-free income? Round trips home every year?

Language classes, fees for private schools?

Being laid-off in a foreign country

26% of ex-pats opt to continue their overseas assignment

Could include a nanny, driver, or even a bodyguard

Tax-free income? Round trips home every year?

Language classes, fees for private schools?

Being laid-off in a foreign country

26% of ex-pats opt to continue their overseas assignment

Essentials of IHRMEssentials of IHRM




Acknowledge the importance of international assignments in developing top managers with global experience and perspectives.

Acknowledge the importance of international assignments in developing top managers with global experience and perspectives.

Expatriate Career ManagementExpatriate Career Management




Recognize the need to design programs for the careful preparation, adaptation, and repatriation of the expatriates and any accompanying family, as well as programs for career management and retention.

Recognize the need to design programs for the careful preparation, adaptation, and repatriation of the expatriates and any accompanying family, as well as programs for career management and retention.


HRM Practices Most Frequently Associated with Successful

Repatriation

HRM Practices Most Frequently Associated with Successful

Repatriation Visible signs that the company

values international experience Career planning sessions Communications with HQ about

repatriation process Continuous communications with

HQ Agreement about position upon

repatriation

Visible signs that the company values international experience

Career planning sessions Communications with HQ about

repatriation process Continuous communications with

HQ Agreement about position upon

repatriation

Preparation, Adaptation, and Repatriation

Preparation, Adaptation, and Repatriation


Elements of Successful Repatriation ProgramsElements of Successful Repatriation Programs


The Role of Expatriate SpouseThe Role of Expatriate Spouse


Expatriate RetentionExpatriate Retention

Exit from the home country

Quality of preparation

Entry to the host countryMonitoring and support

Entry back to the home countryReverse culture shock depends

on preparation and support

Exit from the home country

Quality of preparation

Entry to the host countryMonitoring and support

Entry back to the home countryReverse culture shock depends

on preparation and support


Expatriates: “Handle with Care”?

Expatriates: “Handle with Care”?


The Role of Repatriation in Developing a Global CadreThe Role of Repatriation in Developing a Global Cadre



Variables Influencing Success of Knowledge Transfer from

Repatriated Manager


Repatriated Manager



Repatriated Manager


Repatriated Manager


Under the Lens: Expatriates’ Careers Add to Knowledge

Under the Lens: Expatriates’ Careers Add to Knowledge

Casio Calil returned to Sao Paulo to head up JP Morgan Asset Management

Expats returning to Libya after Gaddafi hoping business would improve

“Fly-jins” in Japan after disasters in 2011

Casio Calil returned to Sao Paulo to head up JP Morgan Asset Management

Expats returning to Libya after Gaddafi hoping business would improve

“Fly-jins” in Japan after disasters in 2011



Become familiar with the use of global management teams to coordinate cross-border business.

Become familiar with the use of global management teams to coordinate cross-border business.


Global Management TeamsGlobal Management Teams

A collection of managers in or from several countries who must rely on group collaboration

Whirlpool Int’l: US-Dutch JW with administrative HQ in Italy; management team = Swedish, Italian, Dutch, American, Belgian, German

Teams must provide the means to communicate corporate culture, develop a global perspective, coordinate and integrate the global enterprise, and be responsive to local market needs

A collection of managers in or from several countries who must rely on group collaboration

Whirlpool Int’l: US-Dutch JW with administrative HQ in Italy; management team = Swedish, Italian, Dutch, American, Belgian, German

Teams must provide the means to communicate corporate culture, develop a global perspective, coordinate and integrate the global enterprise, and be responsive to local market needs

Operational Challenges for Global Virtual Teams

Operational Challenges for Global Virtual Teams


Virtual Teams’ Future NeedsVirtual Teams’ Future Needs

How to lead a virtual team meetingHow to coach and mentor virtuallyHow to monitor team progressHow to use communication

technologiesHow to manage team boundaries

How to lead a virtual team meetingHow to coach and mentor virtuallyHow to monitor team progressHow to use communication

technologiesHow to manage team boundaries


Managing Transnational TeamsManaging Transnational Teams



Managing Transnational TeamsManaging Transnational Teams

Advantages:Greater opportunity for global

competitionOpportunities for cross cultural

understandingExposure to different view

pointsDisadvantages:

Problems resulting from differences in languages

Complex decision making processes

Personality conflicts

Advantages:Greater opportunity for global

competitionOpportunities for cross cultural

understandingExposure to different view

pointsDisadvantages:

Problems resulting from differences in languages

Complex decision making processes

Personality conflicts

Management Techniques to Deal with the Cross-Cultural

Collaboration Challenges

Management Techniques to Deal with the Cross-Cultural

Collaboration Challenges




Recognize the varying roles of women around the world in international management.

Recognize the varying roles of women around the world in international management.

Management Focus: The Role of Women in International

Management


Management

Indra Nooyi—CEO, Pepsi

Soha Nashaat Head of Barclays Bank, Middle East

Indra Nooyi—CEO, Pepsi

Soha Nashaat Head of Barclays Bank, Middle East



Management


Management



Management


Management


The Role of Women in International Management:

Japan

The Role of Women in International Management:

JapanOpportunities for women are tied

to cultural values and expectations regarding the role of women

Working married women = loss of face for husband – women were only allowed clerical positions

Only 9% of Japanese women are in managerial positions

“Japan has gone as far as it can go with a social model that consists of men filling all of the economic management and political roles”

Opportunities for women are tied to cultural values and expectations regarding the role of women

Working married women = loss of face for husband – women were only allowed clerical positions

Only 9% of Japanese women are in managerial positions

“Japan has gone as far as it can go with a social model that consists of men filling all of the economic management and political roles”




Understand the variations in host-country labor relations systems and the impact on the manager’s job and effectiveness.

Understand the variations in host-country labor relations systems and the impact on the manager’s job and effectiveness.

Working Within Local Labor Relations Systems

Working Within Local Labor Relations Systems


The Impact of Unions on Business

The Impact of Unions on Business


Organized Labor Around the world

Organized Labor Around the world



Under the Lens: Vietnam the union role in achieving

manufacturing sustainability and global competitiveness


manufacturing sustainability and global competitivenessThe U.S. is Vietnam’s seventh

largest FDI countryFrom 1986: doi moi; 2000: stock

market established; member of ASEAN, AFTA and WTO; trade relations with U.S. normalized in 2006

Footwear and apparel manufacturing are offshored operations from Taiwan and South Korea

The U.S. is Vietnam’s seventh largest FDI country

From 1986: doi moi; 2000: stock market established; member of ASEAN, AFTA and WTO; trade relations with U.S. normalized in 2006

Footwear and apparel manufacturing are offshored operations from Taiwan and South Korea



manufacturing sustainability and global competitiveness


manufacturing sustainability and global competitiveness10,000 workers in some buildings,

but grounds, infrastructure, cleanliness similar to western parks

Wages remain low; 20 day holidaySatisfactory living arrangement,

not inhumane or depressingBetter Work Vietnam

10,000 workers in some buildings, but grounds, infrastructure, cleanliness similar to western parks

Wages remain low; 20 day holidaySatisfactory living arrangement,

not inhumane or depressingBetter Work Vietnam

Labor SystemsLabor Systems

Convergence in Labor systems

Divergence in Labor systems


Forces for convergence:Global

competivenessPolitical changeNew market

economiesFree trade zones

Forces for convergence:Global

competivenessPolitical changeNew market

economiesFree trade zones

Competition for jobsCollective bargaining

methodsThe role of political

ideology, overall social structure, and history of industrial practices

Competition for jobsCollective bargaining

methodsThe role of political

ideology, overall social structure, and history of industrial practices

Adapting to Local Industrial Relations Systems

Adapting to Local Industrial Relations Systems


NAFTA and Labor Relations in Mexico

NAFTA and Labor Relations in Mexico


Comparative Management in Focus: Labor Relations in

Germany

Comparative Management in Focus: Labor Relations in

Germany


Codetermination law (mitbestimmung) is coming under pressure.

Union works councils are “co-managers”.

German unions are increasingly willing to make concessions.

Termination costs are very high

Codetermination law (mitbestimmung) is coming under pressure.

Union works councils are “co-managers”.

German unions are increasingly willing to make concessions.

Termination costs are very high

The German model holds that competition should not be based on cost.

Conflicting opinions over the value of codetermination

The German model holds that competition should not be based on cost.

Conflicting opinions over the value of codetermination


ConclusionsConclusions

Ex-pat career management necessitates plans for retention during/after assignments

Ex-pat’s spouse plays a crucial roleGlobal management teams offer

greater opportunities for competition

Virtual global teams enable cost effective rapid knowledge sharing and collaboration

Women represent an underutilized resource

Labor relations environment, system processes vary around the world

Ex-pat career management necessitates plans for retention during/after assignments

Ex-pat’s spouse plays a crucial roleGlobal management teams offer

greater opportunities for competition

Virtual global teams enable cost effective rapid knowledge sharing and collaboration

Women represent an underutilized resource

Labor relations environment, system processes vary around the world

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Copyright ©2014 Pearson Education, Inc. 10-1. Chapter Learning Goals 1. Emphasize the critical role of expatriates in managing in host subsidiaries and