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Chapter 14 - Human Resource Selection and Development Across Cultures
f) After the designer, translator, and native-language trainers are satisfied, the materials
are printed.
g) Language and content of the training materials are tested with a pilot group.
Cultural Assimilators
1) A cultural assimilator is a programmed learning technique designed to expose members
of one culture to some of the basic concepts, attitudes, role perceptions, customs, and
values of another culture.
2) Choice of Content of the Assimilators: One of the major problems in constructing an
effective cultural assimilator is deciding what is important enough to include. Some
assimilators use critical incidents that are identified as being important (must meet at least
one of the following).
available.
d) The situation is relevant to the expatriate’s task or mission requirements.
3) Validation of the Assimilator:
a) The term validity refers to the quality of being effective, of producing the desired
4) The Cost-Benefit Analysis of Assimilators:
a) The assimilator approach to training can be quite expensive. A typical 75- to 100-
incident program often requires approximately 800 hours to develop.
b) Research shows that these assimilators improve the effectiveness and satisfaction of
individuals being trained as compared with other training methods.
Positive Organizational Behavior
1) Positive organizational behavior (POB) refers to the study and application of positively
2) Positivity in the workplace has been connected to employee satisfaction.
a) When employees are treated well, they will give back to the organization.
b) Positive traits: conscientiousness, emotional stability, extroversion, agreeableness,
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Chapter 14 - Human Resource Selection and Development Across Cultures
Future Trends
1) Several issues will emerge as critical for managing a global workforce.
2) Linking talent management and employee mobility is at the top of the list.
3) Many involved now question the personal and professional value of an overseas
assignment; the assignment often doesn’t advance a career or cause a person to stay
.
4) Another trend is the emergence of “cross-border” commuters.
5) Finally, the rise and growth of emerging markets represent a significant challenge for
MNCs. (On the other hand, expatriate assignments are likely to continue as part of the
arsenal of MNCs seeking to leverage talent for global success.)
The World of International Management—Revisited
Questions & Suggested Answers
1. What are the costs and benefits of hiring home-, host-, and third-country nationals
for overseas assignments?
Answer: Home-country nationals tend to have the technical expertise and
knowledge of the organization’s strategy, which are necessary to start operations
abroad. They provide control of international operations, especially in situations
where intellectual property and/or substantial financial resources are at stake.
local, which is beneficial from a public relations point of view. However, host-
country nationals may lack the technical expertise, managerial skills, or ethical
standards (if from a high-corruption country) deemed necessary by the
organization.
Third-country nationals are usually less expensive than home-country nationals.
Usually they are hired due to their expertise in a specific area that best qualifies
them for the job. They also provide a fresh, neutral perspective that can enhance
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2. What skill sets are important for international assignments, and how can employees
be prepared for them?
Answer: Skills include adaptability, physical and emotional health, age, experience,
education, knowledge of the local language and culture, motivation, the support of
3. What are the implications of offshore outsourcing for the management of human
resources globally and in India in particular?
Answer: Offshore outsourcing will provide MNC managers with tremendous
opportunities for finding the right talent in an extremely large, global market.
Outsourcing also enables MNCs to take advantage of lower labor costs in other
variations in technical or ethical standards, human rights violations, language and
cultural barriers, and perceptual biases, which might further complicate
coordination and integration.
Employee retention is a big problem in India. In fact, some MNCs find that the cost
of high employee turnover can actually offset the benefits of the country’s lower
wage rate.
Key Terms
Adaptability screening―The process of evaluating how well a family is likely to stand up to
the stress of overseas life
Balance-sheet approach―An approach to developing an expatriate compensation package
that ensures the expat is “made whole” and does not lose money by taking the assignment
Cafeteria approach―An approach to developing an expatriate compensation package that
entails giving the individual a series of options and letting the person decide how to spend the
available funds
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Chapter 14 - Human Resource Selection and Development Across Cultures
Cultural assimilator―A programmed learning technique designed to expose members of one
culture to some of the basic concepts, attitudes, role perceptions, customs, and values of
another culture
Ethnocentric MNC―An MNC that stresses nationalism and often puts home-office people in
charge of key international management positions
Ethnocentrism―The belief that one’s own way of doing things is superior to that of others
Expatriates―Managers who live and work outside their home country. They are citizens of
the country where the multinational corporation is headquartered.
Geocentric MNC―An MNC that seeks to integrate diverse regions of the world through a
global approach to decision making
Home-country nationals―Local managers who are hired by the MNC
Host-country nationals―Expatriate managers who are citizens of the country where the
multinational corporation is headquartered
Inpatriates―Individuals from a host country or third-country nationals who are assigned to
work in the home country
International selection criteria―Factors used to choose personnel for international
assignments
Learning―The acquisition of skills, knowledge, and abilities that result in a relatively
permanent change in behavior
Localization―An approach to developing an expatriate compensation package that involves
paying the expat a salary comparable to that of local nationals
Lump-sum method―An approach to developing an expatriate compensation package that
involves giving the expat a predetermined amount of money and letting the individual make
his or her own decisions regarding how to spend it
Polycentric MNC―An MNC that places local nationals in key positions and allows these
managers to appoint and develop their own people
Positive organizational behavior (POB)―The study and application of positively oriented
human resource strengths and psychological capacities that can be measured, developed, and
effectively managed for performance improvement in today’s workplace
Regiocentric MNC―An MNC that relies on local managers from a particular geographic
region to handle operations in and around that area
Regional system―An approach to developing an expatriate compensation package that
involves setting a compensation system for all expats who are assigned to a particular region
and paying everyone in accord with that system
Repatriation―The return to one’s home country from an overseas management assignment
Repatriation agreements―Agreements whereby the firm tells an individual how long she or
he will be posted overseas and promises to give the individual, on return, a job that is
mutually acceptable
Third-country nationals―Managers who are citizens of countries other than the country in
which the MNC is headquartered or the one in which they are assigned to work by the MNC
Training―The process of altering employee behavior and attitudes in a way that increases the
probability of goal attainment
Transition strategies―Strategies used to help smooth the adjustment from an overseas to a
stateside assignment
Validity―The quality of being effective, of producing the desired results. A valid test or
selection technique measures what it is intended to measure
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Chapter 14 - Human Resource Selection and Development Across Cultures
Review and Discussion Questions
1. A New York-based MNC is in the process of staffing a subsidiary in New Delhi,
India. Why would it consider using expatriate managers in the unit? Local
managers? Third-country managers?
Answer: The New York-based MNC might use any of the three options, depending
on the situation. If the New Delhi operation were a start-up situation, home-country
nationals would be the logical choice. Home-country nationals might also be used if
If the positions at the New Delhi subsidiary require skills or technical expertise that
are not available in New Delhi or in the New York operation, the company might
opt for third-country managers. Third-country nationals would be hired when the
MNC is in the more advanced stages of doing business internationally.
2. What selection criteria are most important in choosing people for an overseas
assignment? Identify and describe the four that you judge to be of most universal
importance and defend your choice.
Answer: There are a number of selection criteria that should be considered in
choosing someone for an overseas assignment.
These criteria would include the following:
a. Age, experience, and education. Most organizations send both young and
seasoned personnel to the same overseas operation. This gives the overseas
success. It is important to interview both the candidate and the spouse for
overseas assignments.
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3. What are the major common elements in an expat's compensation package? Besides
the base pay, which would be most important to you? Why?
Answer: The common elements generally are base salary, benefits, allowances, and
taxes. In answering the second part of the question, it is important to stress that
expensive than a developing country, but the MNC may have to pay a premium
(“combat pay”) for the expatriate to live in an undesirable location.
4. Why are individuals motivated to accept international assignments? Which of these
motivations would you rank as positive reasons? Which would you regard as
negative reasons?
Answer: The positive reasons for accepting an international assignment include
training, challenge, autonomy, and a chance to use technical competence. The
5. Why do expatriates return early? What can MNCs do to prevent this from
happening? Identify and discuss three steps they can take.
Answer: Some of the common reasons for an early return include: the expatriate is
not happy in the overseas position, the expatriate is not doing a good job, and the
family is not adjusting to life overseas.
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Chapter 14 - Human Resource Selection and Development Across Cultures
6. What kinds of problems do expatriates face when returning home? Identify and
describe four of the most important. What can MNCs do to deal with these
repatriation problems effectively?
Answer: Many expatriates feel that their international experience is not highly
valued by the company or that their jobs back home have less responsibility and are
boring when compared to the challenges of their overseas positions. Others have no
headquarters. Some are even going so far as to include expatriates on projects at the
home office when they are on leave. These types of efforts on the part of the MNC
help ensure that the expatriate is looked on as a regular member of the staff.
7. How do the following types of MNCs differ: ethnocentric, polycentric, regiocentric,
and geocentric? Which type is most likely to provide international management
training to its people? Which is least likely to provide international management
training to its people?
Answer: The type of training that is required of expatriates is influenced by the
firm's overall philosophy of international management. The ethnocentric MNC puts
home office personnel in charge of key international management positions. The
MNC headquarters group and the affiliated overseas operations all have the same
basic experiences, attitudes, and beliefs about how to manage. A polycentric MNC
Each type puts a different type of training demand on the MNC: at headquarters vs.
locally, by home office personnel vs. local managers.
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Chapter 14 - Human Resource Selection and Development Across Cultures
8. IBM is planning on sending three managers to its Zurich office, two to Madrid, and
two to Tokyo. None of these individuals has any international experience. Would
you expect the company to use a standard training program or a tailor-made
program for each group?
Answer: Standard training programs concentrate on basic skills and abilities such as
decision making, communication, motivation, and leadership that are applicable
the budget must be considered. Tailor-made training programs are considerably
more expensive than standard programs.
9. Zygen Inc., a medium-sized manufacturing firm, is planning to enter into a joint
venture in China. Would training be of any value to those managers who will be
part of this venture? If so, what types of training would you recommend?
Answer: Yes, the training might help the managers to overcome the belief that their
way of doing things is superior to that of others. Training can facilitate the
manager's understanding of values and customs in China. Training might also
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Chapter 14 - Human Resource Selection and Development Across Cultures
10. Hofstadt & Hoerr, a German-based insurance firm, is planning on expanding out of
the EU and opening offices in Chicago and Buenos Aires. How would a cultural
assimilator be of value in training the MNC's expatriates? Is the assimilator a valid
training tool?
Answer: A cultural assimilator would be of value to Hofstadt and Hoerr in that it
would expose employees who are members of one culture (German) to some of the
basic concepts, attitudes, role perceptions, customs, and values of another culture
(Chicago or Buenos Aires). The cultural assimilator will be of value only to the
the culture
d. The situation must be relevant to the expatriate's task or mission requirements
11. Ford is in the process of training managers for overseas assignments. Would a
global leadership program be a useful approach? Why or why not?
Answer: This is a good thought question for your students. Encourage your students
to make their answers as substantive as possible. The company could profit with the
development of a global expansion program. An organization must conduct
marketing research to understand the needs, customs, practices, and product
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12. Microsoft is weighing setting up a new R&D facility in India to develop new
software applications. Should it staff it with Microsoft employees? Indian
employees? Or should it subcontract with an Indian firm? Explain your answer and
some of the potential challenges in implementing it.
Students should be encouraged to discuss the pros and cons of each alternative, also
highlighted in review question 1. Subcontracting with an Indian firm is also a viable
Internet Exercise: Going International with Coke
Suggestion for Using the Exercise
1. As seen in this chapter, the recruiting and selecting of managers is critical to
effective international management. This is particularly true in the case of firms that
are expanding their international operations or that currently do business in a large
number of countries. These MNCs continually have to replace managers who are
retiring or moving to other companies. Coca-Cola is an excellent example. Go to
the company’s Web site at www.coke.com and look at the career opportunities that
it offers overseas. In particular, pay close attention to current opportunities in
Europe, Africa, and Asia. Read what the company has to say and then contact one
of the individuals whose e-mail address is provided. Ask this company
representative about the opportunities and challenges of working in that country or
geographic area. Then, using this information coupled with the chapter material,
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