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Global Organization Management
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International Corporations
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Maintains control over its worldwide operations (subsidiaries) through a centralized home office.
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Provides autonomy to independent country operations but bring these operations together into an integrated whole through networked structure
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INTERNATIONAL HUMAN RESOURCE MANAGEMENT
Simple definition is ‘the process of managing people in international settings’
Scyllion (1995) defined IHRM as ‘the HRM issues and problems arising from the internationalization of business, and the HRM strategies, policies and practices which firms pursue in response to the internationalization process
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• Repatriation
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Read the case given to you and do the following:
Which are the most pressing considerations that you need to address?
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You are head of HR for TLC, Consulting, a firm that deals in hotel and restaurant management consultancy.
Your firm is opening an office in Paris, France and Mr. Ashutosh Mehra, Director of Sales &Marketing, has been asked to assume responsibilities for the expansion.
The assignment would last for atleast 3 years. Although Mr.Ashutosh has widely travelled to Europe but this is his first long term overseas assignment. Mr.Ashutosh is also willing to shift his family to Paris. His family detail ar as follows:
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Mr. Ashutosh and his family have moved to their new home which is purchased on loan. His wife is an elementary school teacher and is insecure how this assignment will affect the job security.
Their children Aditya(14yrs) and Kiran(10yrs) are studying in school. None of them know French. They have heard of some good American and English speaking schools.
His present salary is 45 Lacs /annum.
 
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Q.1. Which are the most pressing considerations that you as an HR manager need to address to prepare Mr.Ashutosh for the overseas assignment?
 
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3.Language and culture training
5.Health/ Medical/ insurance
French Consulates in India
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International staffing refers to the process of selecting employees for staffing international operations of an MNC.
MNCs can be staffed using three different sources
a. Home country or Parent Country National (PCN)
b. Host Country Nationals (HCN)
c. Third Country Nationals (TCN)
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Pre-departure Training for International Assignments
-To make it easier for the employee to assume job responsibilities and be effective in the foreign country as soon as possible
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Language training
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Global Mind-set
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Unhappy spouses major reason for early return
Company losing a “million-dollar corporate-training investment” in executive
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English language has become lingua franca
Chinese new “hot” language to know
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Claims administration
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Permits executive to live at same standard as at home
Cost-of-Living Allowance
Based on differences in price of food, utilities, transportation, entertainment, clothing, personal services, and medical expenses as compared to home
Allowances for Tax Differentials
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And reasons (UNEQUALITY, GLASS CEILING) past , today.
Asian Countries ( Special reference to India, China, Japan, Philippines)
Brazil Australia
Canada UK
Delhi – 10.% women as against 53% men
Ahmeabad11. 7%
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Geert Hofsted (Prof. Emeritus Maastrick University)
Dutch Researcher conducted what is known as the largest organizationally based study ever.
-Found differences in the behavior and attitudes of 116,000 respondent from 72 countries who worked for subsidiaries of IBM.
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Hofstede, G., 1980. Cultures Consequences: International Differences in Work-related Values, Sage
Hofstede, G., 1984. Cultures Consequences: International Differences in Work-related Values, abridged edn, Sage, Beverly Hills
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5 Dimensions of a model
Power v/s distance
Individualism v/s Collectivism
Masculinity v/s Feminity
Initial meetings should be about relationship building.
Always wait for your counterpart to change the subject matter to business.
Meetings can be chaotic. Always be prepared to exercise patience.
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Punctuality is expected of foreigners. Although the Arabs place a high emphasis on punctuality they rarely practice it themselves.
If negotiating, remember the Arabs were a trading people and are excellent negotiators.
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. The last ten days of Ramadan are the most intense so do not expect to get any business done during that time.
Always dress modestly. Men should be covered from knees upwards and women from the ankles upwards. The two sexes generally do not mix..
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Working practices in the United States
• In the US, punctuality is an essential part of business etiquette and as such,
scheduled appointments or meetings must be attended on time.
Deadlines are strictly adhered to in American business culture.
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Personal competence, professionalism, and accountability for individual performance are highly valued in American business culture
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Public Behavior
• If you are introduced and people clap, it is considered polite to clap along
• Avoid expansive hand gestures when speaking
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the number ‘four’ should be avoided
five’ is negative whereas ‘eight’ means fortune and therefore is a lucky number.
Colours
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the number ‘four’ should be avoided
five’ is negative whereas ‘eight’ means fortune and therefore is a lucky
number.
Colours can also
Red is auspicious, but writing in red in personal relations can mean differently
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to impress your Chinese host with a gift and for long term relationship, don’t give an umbrella
Do not give umbrella as a gift
are typically very patriotic
You can also expect some surprisingly personal questions about your family,
age, and sometime even your salary.
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Umbrellas would not be welcome in most places in China because the pronunciation of 'umbrella' resembles separation.
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If you want to give your friends some fruits, remember to buy an even number of them because odd numbers would bring bad luck. So buy 10 apples instead of 9.
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Japan- Do not open a gift in front of a Japanese counterpart unless asked, and do not expect the Japanese to open your gift.
Avoid ribbons and bows as part of the gift wrapping. Bows as we know them are considered unattractive, and ribbon colors can have different meanings.
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When thinking of the United Kingdom (UK), images of the Queen, glorious ancient castles and thousands of years of history and heritage come to mind.
It has a diverse culture of Scots, Irish, Welsh cohabitating mostly peacefully.
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Cultural Diversity
Formerly a very homogenous society, since World War II, Britain has become increasingly diverse as it has accommodated large immigrant populations.
The United Kingdom (UK) is comprised of four countries: England, Scotland, Wales, and Northern Ireland.
It is important not only to be aware of these geographical distinctions but also the strong sense of identity and nationalism felt by the populations of these four countries.
British stands for all whereas English???
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The British are rather formal.
-Many from the older generation still prefer to work with people and companies they know or who are known to their associates.
-Younger business people do not need long-standing personal relationships before they do business with people and do not require an intermediary to make business introductions.
-Nonetheless, networking and relationship building are often key to long-term business success.
Doing business in the UK
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Rank is respected and businesspeople prefer to deal with people at their level.
If at all possible, include an elder statesman on your team as he/she will present the aura of authority that is necessary to good business relationships in many companies.
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Punctuality is a very British trait.
How meetings are conducted is often determined by the composition of people attending.
If everyone is at the same level, there is generally a free flow of ideas and opinions.
If there is a senior ranking person in the room, that person will do most of the speaking.
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-There will be a brief amount of small talk before getting down to the business at hand.
-If you make a presentation, Be prepared to back up your claims with facts and figures.
-Maintain eye contact and a few feet of personal space.
-After a meeting, send a letter summarizing what was decided and the next steps to be taken
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* Men should wear a dark colored, conservative business suit. 
* Women should wear either a business suit or a conservative dress.
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* Maintain eye contact during the greeting.
Titles
* Only medical doctors use their professional or academic titles in business. 
* Most people use the courtesy titles or Mr, Ms.
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* Business gift giving is not part of the business culture. 
* If you choose to give a gift, make certain it is small and interesting. 
* Good gifts include desk accessories, a paperweight with your company logo, or a book about your home country. 
* Inviting someone out for a meal can be viewed as a gift.
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Brazil is the fastest growing economy in Latin America.
The culture is a thriving fusion of Portuguese, African and indigenous Indian influences, all of which have left their mark on Brazilian society resulting in a rich, distinct culture.
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Brazilian culture is known for its hospitality, openess and colourful and rhythmic events such as Carnival.
Traditionally a very agriculturally based economy, Brazil is known for its production of sugar, coffee, soy beans, orange juice and beef.
Brazil also has very strong service and industry sectors which have fuelled its economy over the last century.
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Brazilian culture is known for its hospitality, openess and colourful and rhythmic events such as Carnival.
Traditionally a very agriculturally based economy, Brazil is known for its production of sugar, coffee, soy beans, orange juice and beef.
Brazil also has very strong service and industry sectors which have fuelled its economy over the last century.
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Although Brazilian culture tends to be relatively informal, Brazilians are quite fashion conscious. It is important therefore to dress smartly and conservatively.
-Brazilians love socializing and spending time with each other.
This is often done over lunches or mid morning coffee breaks which can go on for several hours.
-Often coffee is served before or during a meeting.
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-In most Brazilian cities, working hours are 8:30 am to 5.00pm with an hour or two in the middle for lunch.
-Businesses are usually open from 9:00am to 7:00pm Monday-Friday and 9:00-1:00pm on Saturday.
-It is important to schedule business appointments at least two to three weeks in advance and confirm them once you have arrived in Brazil.
-Also try to leave a few hours in between them should they go on longer than anticipated.
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-Brazilian companies tend to have vertical hierarchies where managers at the top make most of the decisions.
-These positions tend to be dominated by men, but women are slowly gaining employment in executive roles.
-Differences in class are still very prevalent in Brazilian society and business culture
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Trade organisations
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130th (2013)[ExternalExports$256 billion (2012 est.)Export goods
Transport Equipment, iron ore, soybeans, footwear, coffee, autos
Main export partners
Import goods
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