Effective International Human Resource Management

International HRM consists of interplay among three dimensions: the broad function, Country categories and types of employees. Factors differentiating international from domestic HRM are additional activities such as, developing a global mindset in the organization, international taxation, exchange rates, relocation and orientation, providing international administrative services, foreign government relations, and providing foreign language and cultural training. The book stresses the training of not only verbal language training, but training of non-verbal communication. This is similar to the case study when the American manager felt uncomfortable with how the minister was touching his shoulder when speaking. In Latin America, the personal bubble is much smaller than that of the U.S. This is a prime example, of how HRM did not properly prepare the manager for the business culture of their country.

As previous chapter have discussed, HRM plays a very large role when selecting expatriates and can be the ultimate reason of failure or success. One important function of HRM is designing programs for more than on national group of employees, resulting in a need to take a more global view. Also HRM needs to take a much bigger involvement in expatriates’ lives compared to domestic workers. Expatriates need to be informed of things such as exchange rates, cost of living, and so on. The book goes on to talk about other parts of preparation such as international terrorism. Expatriates need proper training with the goal of the expatriate not returning home due to the fear of the expatriate being kidnapped for ransom and/or robbed. Other external influences include the types of government, state of country’s economy, and general accepted business practices in host countries all that all need to be addressed by HRM.

There are different MNC’s expatriation practices that vary from country to country. For instance, in Japan the duration of foreign assignments is significantly longer than that of the U.S. (4.67 years). Japan actually has a very low incidence rate of expatriate failure maybe due to their HRM functions and the support system of the corporate headquarters. European expatriates have an extensive international perspective as is, making them perfect candidates for expatriation. There are several implications that can be taken from European and Japanese expatriate practices, such as the need for U.S. expatriation to include training in cross-cultural sensitivity. Since U.S. citizens learn mostly about American culture and mainly English, this is crucial for success.

HRM has the job of selecting and training the right person for expatriation. There needs to be an extensive, sophisticated selection process. This may include analyses of family situations, lifestyles, and financial situations. If these aspects of an expatriate’s life are in turmoil, adapting overseas will be difficult resulting in possible failure. Finding out why the expatriate wants the foreign assignment is also key. The next steps cover selecting only top-notch people, familiarizing the expatriate to the country they are going to, and setting up a supportive administration solely to assist expatriates. Successful attributes are as followed:

Tolerance for ambiguity *behavioral flexibility*nonjudgmental*cultural empathy*interpersonal skills*
Belief in the mission*interest in foreign experience*stable lifestyle*nonverbal communication skills

It is becoming a growing trend that corporations are tracking and developing young managers to have a global perspective. Companies are now seeing this trait of high importance to remain globally competitive in the future. Another source for recruiting is the managers that are currently on a foreign assignment. There are several steps to evaluate the expatriate’s eligibility. Other types of recruiting come from external sources and educational institutions that deal with international travel/business.

Expatriate preparation programs will cover the corporation’s international environment, pre-expatriation, cultural briefing, assignment briefing, relocation requirements, language training, expatriation, and repatriation. Effective compensation for these expatriates can determine the success or failure of the foreign assignment. It is important to be sure that the compensation package contains benefits, a motivational salary, and more.