Chapter 10 – Managing Human Resources Globally

• Home Country refers to the country where an organization's headquarters are based.
• Host Country is a country, different from the home country, where an organization operates a facility.
• Third Country is neither the home country nor the host country of an employer.
• Expatriates are employees who are assigned to work in countries other than their home country.
• International Organization sets up or facilitates operations in one or a few foreign countries.
• Multinational Company builds facilities in multiple countries to reduce production and distribution costs.
• Global Organizations strategically locate facilities based on their ability to effectively, efficiently, and flexibly produce a product or service, leveraging cultural differences.
• Transnational HRM System makes decisions from a global perspective, includes managers from various countries, and incorporates ideas from diverse cultures.
• Digital Nomad is a remote worker who uses technology to work from various locations worldwide.
• Culture Shock involves disillusionment and discomfort during the adjustment to a new culture.
• Cross-Cultural Preparation is training provided to employees and their families before an assignment in a foreign country.
• Repatriation is the process of preparing expatriates to return to their home country after a foreign assignment.

Global Business and HRM

• Increasing numbers of companies are entering global markets through exporting and operating in foreign countries.
• Organizations require employees who understand customers, suppliers, and local laws in different countries and can adapt to various situations.
• Organizations can hire combinations of home-country, host-country, and third-country nationals.
• Organizations operate on various scales, including as exporters or international, global, or multinational entities.
• Global organizations need a transnational HRM system that makes decisions from a global perspective and incorporates ideas from diverse cultures.

Factors Influencing HRM in Global Markets

• Culture is the most significant influence, encompassing shared assumptions about the world and ideals.
• Education levels in different countries can vary significantly.
• The political-legal system, including the type of government, laws, and regulations, impacts global HRM.
• A country's economic system and government involvement influence HRM practices.

International Operations and HR Practices

• International operations impact workforce planning, selection, training and development, performance management, total rewards, and labor relations.

Managing and Preparing Employees for International Assignments

• Extensive preparations are necessary when an employee is selected for an international assignment.
• Expatriate preparation includes cross-cultural training and career development activities.
• Support increases the likelihood that the expatriate will gain valuable career skills and handle repatriation successfully.
• Communication about changes at home and validation of their work abroad support expatriates during repatriation.