BA 4216Cross-cultural Studiesin Organizations

International human resource management

Instructor: Çağrı Topal

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Key termsHome-country nationals/expatriatesHost-country nationalsThird-country nationalsInpatriates

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Factors to considerCultural factorsEconomic and ideological factorsLabour factor costsIndustrial relations factors

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Staffing philosophiesEthnocentric-reasonsControlReadily available personnelPersonnel with the company

knowledgePersonnel known by the companyCompany loyaltyForeign imageCentralized structureLow-cost commodity productionPerceived political threatLack of knowledge of the host country 4

Staffing philosophiesEthnocentric-problemsUnfamiliarity of expatriatesLack of adaptabilityProblems in intercultural

communicationHighly expensive salary packagesNot always the best qualified peopleProductivity problems in the early

part of the international assignment

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Staffing philosophiesPolycentric-reasonsSmaller firms without resourcesFamiliarity of host country nationalsLess expensiveCompany image

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Staffing philosophiesPolycentric-problemsCoordination problems between the

subsidiary and the parentLoyalty to the host country not to

the companyCommunication problemsInability and reluctance to moveLack of perspective on the corporate

culture

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Staffing philosophiesRegiocentricGlobal market divided into regionsSelection of staff within regionsSimilar productsRegional marketing

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Staffing philosophiesGeocentricGlobal bureaucracyTraining and relocation costsDocumentation requirements

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Selection criteriaTechnical abilityManagerial skills acquisitionCross-cultural sensitivityAdaptability and flexibilityDiplomatic skillsForeign language aptitudePositive attitudeEmotional stability and maturityAdaptability of family

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Selection of female employeesClients refusalConservative imageGlass-ceilingAssumption of prejudice

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Cross-cultural trainingEthnocentric: headquarters-basedPolycentric/regiocentric: subsidiary-

basedGeocentric: headquarters/subsidiary-

based

Environmental briefingsCultural orientationCultural assimilatorsLanguage trainingSensitivity trainingField experience 12

Performance appraisal-1Purpose• Compensation and promotion• Development and improvement

Policy• Ethnocentric: headquarters criteria• Polycentric/regiocentric: sensitive to local•Geocentric: supposedly universal

Biases: host vs. home

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Performance appraisal-2Assignment’s difficulty levelOn-site manager’s vs. home-site

manager’s evaluationUse of a former expatriate that

worked in the same overseas location

Cultural modification of the criteriaQualitative vs. quantitative criteria

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International compensationSame salary plus varying allowancesLocalized compensation surveysLong-term incentive programs

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