global human resource management

Topics: Expatriate, Human resource management, Management Pages: 20 (6872 words) Published: April 28, 2014
Global Human Resource Management
Chapter Outline

Opening Case: Lenovo




Types of Staffing Policy
Expatriate Managers
Management Focus: Managing Expatriates at Royal Dutch/Shell The Global Mind-Set


Training for Expatriate Managers
Repatriation of Expatriates
Management Development and Strategy
Management Focus: Monsanto’s Repatriation Program


Performance Appraisal Problems
Guidelines for Performance Appraisal


National Differences in Compensation
Management Focus: Global Compensation Practices at McDonald’s Expatriate Pay


The Concerns of Organized Labor
The Strategy of Organized Labor
Approaches to Labor Relations



Closing Case: XCO China

Learning Objectives

1. Articulate the strategic role of human resource management in the international businesses.

2. Discuss the pros and cons of different approaches to staffing policy in the international business.

3. Explain why management may fail to thrive in foreign postings.

4. Articulate how management development and training programs can increase the value of human capital in the international business firm.

5. Explain how and why performance appraisal systems might vary across nations.

6. Explain how and why compensation systems might vary across nations.

Chapter Summary

This chapter focuses on the challenging topic of global human resource management (HRM). The term “expatriate manager” is introduced. The task of staffing foreign subsidiaries is discussed. In this area, firms typically pursue either an ethnocentric, polycentric, or geocentric approach. This section is followed with an explanation of the challenges involved in selecting expatriate managers. Expatriate managers often fail in their overseas assignments for a variety of reasons, ranging from the inability of their spouses to adjust to living overseas to a manager's personal or emotional maturity. Techniques that can be used to reduce expatriate failure are presented and discussed. The chapter also discusses a number of other HRM topics in the context of global management. The topics of training and management development are discussed, along with performance appraisal and compensation. The chapter concludes with a discussion of labor issues in the international business.

Opening Case: Lenovo


The opening case explores Lenovo’s mission to become a major player in the global personal computer industry. Lenovo acquired IBM’s personal computer division in 2004 to become the third largest personal computer firm in the world. After the acquisition, Lenovo immediately put a new management team in place led by an American, and moved the company’s headquarters from China to the United States. Discussion of the case can revolve around the following questions:

Suggested Discussion Questions

QUESTION 1: Immediately after it acquired IBM’s personal computer division, Lenovo shifted its headquarters to the United States, and named an American to head the company. Lenovo has also stated that English will be the company’s business language. Why is Lenovo trying to distance itself from its Chinese origins?

ANSWER 1: When Lenovo acquired IBM’s PC division it made the surprising decision to move the company’s headquarters to New York. Lenovo feared that without such a move, the company risked losing IBM’s managers, engineers, and salespeople – individuals who created value for the organization. In addition to moving the company’s headquarters, Lenovo also appointed Stephen Ward, the former head of IBM’s PC division to CEO. Lenovo then created a management team that included an equal number of Chinese...
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