Employee safety, health, and international human resource management are covered in this document. It discusses the legal provisions for employee health and safety, measures to promote health, and the purpose of safety programs. When managing human resources internationally, companies must consider parent country nationals, host country nationals, and third country nationals. Effective international human resource management requires selecting adaptable expatriates, providing cross-cultural training, and developing competitive compensation packages.

1. UNIT-V
Employee Safety/ Health and International Human
Resource Management: Needs and legal provision of
employee health, measures to promote employee
health , purpose of employee safety, accidents: causes
& prevention, effective safety management ,& legal
provisos. basic principles governing International
Human Resource Case Studies

16. ANNOTATED OUTLINE
30-2
INTRODUCTION
In recent times, the trade barriers between nations have almost
disappeared. Communication links have become faster and
cheaper. There is convergence of consumer tastes also. The scarce
resources of the nations have been moving around freely. In this
scenario, companies have realised the importance of expanding their
reach throughout the globe, integrating their production, finance,
marketing and research activities in a careful way. In a way, this
would mean sending more and more employees overseas on
temporary assignments. When sent abroad on such assignments,
expatriates face unique problems
International Human Resource Management

17. Globalisation
30-2
In a borderless world, success of a business increasingly depends on
offering product and services that are competitive on a world basis,
not just on local basis. If the prices and quality of a firm’s product and
services are not competitive with those available elsewhere in the
world , the firm might be racing towards extinction.
For example, people drive Ford in Germany, Dell computers in India,
eat McDonald’s hamburgers in France, Levi Strauss jeans in China,
Japanese use Kodak Film and American Express credit cards.
International Human Resource Management

18. Terminologies
30-2
• Domestic Company
• Multinational Company
• Transnational Company
• Global corporation
• Globalism
• Global Management
International Human Resource Management

19. Opportunities due to Globalisation
30-2
Globalization offers numerous opportunities in terms of market size,
revenues and profits, but only those companies that are able to adapt
to local laws, customs, traditions, and cultures. The factors that
compel corporations to undertake a global journey may be listed as
follows:
• Homogeneity of Demand
• Spread Research and Development
• Increased Market size
• Rising economies of scale
• Favourable government policies
• Exploit local advantage
International Human Resource Management

20. Attributes of the Global Manager
30-2
International Human Resource Management
• Adapts well to the business environment
• Respects different beliefs, values and practices
• Solves problems quickly in new circumstances
• Communicate well with people from different cultures
• Speaks more than one language
• Understand different government and political system
• Conveys respect and enthusiasm with others

21. 30-3
The world is full of stateless
corporations
 Nestlé (Switzerland): Nestlé personifies the stateless corporation with 98 per cent
of sales and 96 per cent of employees outside the home country. Nestlé’s previous
Global CEO was German born H. Maucher, and half of the company's general
managers are non-Swiss. Maucher put strong emphasis on hiring local managers
who are native to the region and know the local culture. The combination of strong
brands and autonomous regional managers has made Nestlé the largest branded
food company in Mexico, Chile, Brazil, Thailand, Vietnam & China. The present
Austrian Peter Brabeck - Letmathe, has held important positions all over the
CEO,
world
and is leading a totally globalised review and revamp of Nestlé's worldwide
operations.
Cola Cola: Is a multinational corporation that obtains over 80 per cent of its operating
income from outside the United States. It operates in 185 markets, has more than
6,50,000 employees, and serves more than 5 billion customers. One of the
company's core values is to 'think globally, but act locally.'·
Other Companies: For example, Colgate-Palmolive Company sells Colgate
toothpaste in more than 50 countries. McDonald's sells its burgers in 73 countries.
Asea
taken
Gilette, Johnson & Johnson earn well over 50 per cent of their profits overseas.
Brown Boveri (ABB) has operations throughout the world, having sought or
minority positions in over 60 firms.
International Human Resource Management

22. 30-4
Complexities in global operations
International operations have:




More functions
More heterogeneous functions
More involvement in the employee's personal life
Different approaches to management, since the population of expatriates
and locals varies
 More complex external influences, such as from societies and
governments
 More cultural differences (with completely different languages, foods,
values, beliefs and ways of doing things).
International Human Resource Management

23. 30-5
In the new millennium, of course, the traditionally conceived and
practiced leadership skills do not seem to produce results. The
leadership skills that are required for the newly emerging global
economy seem to be somewhat different.
International Human Resource
Management
International Human Resource Management

24. 30-6
Competencies needed by a
transnational managers
International Human Resource Management
Transnational Skills
Global perspective
Transnationally competent managers
Understand worldwide business
environment from a global perspective
Traditional international managers
Focus on a single foreign country and on
managing relationships between headquarters
and that country
Local responsiveness Learn about many cultures Become an expert in one culture
Synergistic learning  Work with and learn from people
from many cultures simultaneously
 Create a culturally synergistic
organisational environment
 Work with and coach people in each foreign
culture separately or sequentially
 Integrate foreigners into headquarters’
national organisational culture
Transition and
adaptation
Adapt to living in many foreign cultures Adapt to living in a foreign culture
Cross-cultural
interaction
Use cross -cultural interaction skills on a
daily basis throughout one’s career
Use cross cultural interaction skills primarily on
foreign assignments
Collaboration Interact with foreign colleagues as equals Interact within clearly defined hierarchies of
structural and cultural dominance
Foreign experience Transportation for career and organisation
development
Expatriation primarily to get the job done.

25. 30-7
International Human Resource
Management
International Human Resource Management
It is the process of procuring, allocating and effectively utilising
human resources in a multinational corporation. Generally speaking,
there are three sources of employees for an international
assignment: parent country nationals, host country nationals and
third country nationals. When compared to domestic HRM, the
scope of IHRM is very wide as it has to take care of a number of
constituencies

26. 30-8
Model of International HRM
H o s t C o u n t r y N a t io n a l
s ( C N s )
P a r e n t C o u n tr y N a ti o n
a ls ( P C N s )
T h ir d C o u n t r y N a tio n a l
s ( T C N s )
HR ACTIVITIES
International Human Resource Management

27. 30-9
Expatriate managers, generally, face a kind of culture shock when
they begin their operations in a different cultural setting. The list of
barriers that confront them seem to be unending
Cultural Differences And HRM
International Human Resource Management

28. 30-10
Puzzles confronting the expatriate
manager
The following questions must be looked into carefully before sending managers on a
foreign assignment:
What is the host country's business culture like? What is the management style?
Do I have the skills I will need to handle relationships with my employees?
Will this assignment be good for my long-term career growth? Can I expect to be
promoted when I return? How will I be treated if I do not succeed in my overseas job?
What is the country like? What are the customs? Will I be able to adjust to the
culture?
Will my family be able to adjust to the new situation? Will my spouse be able to find
suitable employment? Will my children be able to adjust to going to school in another
country? How good is the educational system there?
 How will we learn enough of the new language to communicate effectively?
Where will we live? How will the new housing arrangements compare to our current
home? What will happen to our current home when we leave for the new assignment?
What are the tax and other financial issues I will have to address as an expatriate?
Who will advise me on these topics? Will the Company pay me in a way that protects
my income from high foreign tax rates?
 How will our medical needs be taken care of?
L. Grant, "That overseas job could derail your career," Fortune, 14.4.97; S. Taylor R.N. Nappier, "Working in
Japan", Sloan Management Review, Spring 1996)
International Human Resource Management

29. 30-11










International Human Resource Management
Sense of self and space
Language
Dress and appearance
Food, eating habits and perceptual problems
Time and time consciousness
Relationships
Values and norms
Beliefs and attitudes
Mental processes and learning
Work habits and practices
Understanding the problems brought by the above complicating factors is
very important for an expatriate manager, because a small mistake could
lead to grave personal insult and jeopardise important business dealings.
Fortunately cultural sensitivity can be learned through various techniques.
Cultural Differences And HRM

30. 30-12
Cross cultural training techniques for
expatriate managers
(a)Documentary programmes: Trainees read about a foreign country's history, culture,
institutions, geography, and economics. Videotaped presentations are often used.
(b)Culture assimilation: Cultural familiarity is achieved through exposure to a series of
simulated intercultural incidents, or typical problem situations. This technique has been
used to quickly train those who are given short notice of a foreign assignment.
(c)Language instruction: Conversational language skills are taught through a variety of
methods. In most multinational companies, executives learn various languages in a
routine way, so that they can be useful to the company in case of short-term foreign
assignments.
(d)Sensitivity training: Experiential exercises teach awareness of the impact of one's
actions on others.
(e) Field experience: First hand exposure to ethnic subcultures in one’s own country or
to foreign cultures heightens awareness.
(f)Business basics: This covers negotiating cross-culturally, working with various types
of clients, making presentations etc.
(S. Oden Wald, "A Guide for Global Training", Training and Development, July 93.)
International Human Resource Management

31. 30-13
Economic Factors And HR Practices
International Human Resource Management
Differences in economic systems among countries also translate into
inter country differences in HR practices. In free enterprise systems,
companies focus on cost cutting, enhancing shareholder value,
productivity etc. in socialist systems, the focus shifts to prevention of
unemployment, even at the expense of efficiency. In labour surplus
and capital hungry economies like India, upholding labour laws,
respecting political ideologies, and offering jobs to economically poor
and underprivileged sections may occupy the centre stage. These
inter-country differences in cultures, economic systems, labour
policies, thus, complicate the task of selecting, training and managing
employees abroad.

32. 30-14
 International Recruitment
While hiring executives, global companies are guided by three
things; ethnocentrism, polycentrism and geocentrism
a. Ethnocentrism: it is a cultural attitude marked by the
tendency to regard one's own culture as superior to others
b. Polycentrism: In the polycentric corporation there is a
conscious belief that only host country managers can ever
really understand the culture and behaviour of the host
country
managed
market, therefore, the foreign subsidiary should be
by local people.
c. Geocentrism: it assumes that management candidates must
be searched on a global basis, without favouring anyone.
Economic Factors And HR Practices
International Human Resource Management

33. 30-15
Reasons for expatriate failures
International Human Resource Management
Transfer anxieties: Foreign assignments might have been pushed ahead without
adequate preparation and advance planning. The expat might, as result,
find the task insurmountable, feel the pressure unbearable and return empty-
handed.
Career problems: A foreign posting creates, for the expatriate a number of
career problems (i) being 'out of sight, out of mind' and being bypassed for
promotions (ii) the danger of coming home a stranger with few familiar faces to
greet his/her arrival (iii) the likelihood of being tempted by the foreign life style and
losing the desire to return.
Personal problems: As Negandhi reported, expatriates may encounter serious
adjust problems such as: personal discomfort and uncomfortable living
conditions, homesickness; education, medical, health problems of family
members; social aloofness, cultural mismatch.
Other concerns: These include: (i) the foreign posting might be looked at as
a short term obligation (ii) the expats performance might be evaluated against
a short-term criteria, (iii) the expat may begin to feel the pinch due to lack of
continuity in plans empowering him to conduct the show for a reasonable
period (iv) business environment of the host country might be too restrictive,
unfriendly and even unbearable.

34. 30-16
 International selection
While selecting executives for international postings, the following
things could be kept in mind
i. General and technical criteria
ii. Language skills
iii. Cross cultural suitability
iv. Motivation for foreign assignment
v. Family situation
Economic Factors And HR Practices
International Human Resource Management

35. 30-17
Expatriate managers : success and
failure
T h
e
a n
d
first key to finding a successful expatriate is a selection process that accurately determines who is culturall
y
adaptable,has
a s
upportiv
e family
s
ituation,and is
motiv
ated to ac
c
eptthe ov
ers
eas
as
s
ignment.
f le x ib
le
C h a r a c t e r i s t i c s o f t h e e x p a t r i a t e m a n a g e r
S t r o n g t e c h n ic a l s k ill s U n c e r ta in te c h n ic a l c o m p e t e n c y
G o o d la n g u a g e s k ills W e a k la n g u a g e s k ills
S t r o n g d e s ir e to w o r k o v e r s e a s U n s u r e a b o u t g o in g o v e r s e a s
S p e c if ic k n o w le d g e o f o v e r s e a s
c u lt u r e
F a m ily p r o b le m s
W e ll- a d ju s te d f a m ily s it u a ti o n L o w s p o u s e s u p p o r t
C o m p le te s u p p o r t o f s p o u s e B e h a v io u r a l r ig id ity
B e h a v io u r a l f le x ib i lit y U n a d a p ta b ili ty - c lo s e d t o n e w id e a
s
A d a p ta b ility a n d o p e n - m i n d e d n e s
s
P o o r r e la t io n a l a b ilit y
G o o d r e la t io n a l a b ility W e a k s t r e s s m a n a g e m e n t s k ills
G o o d s tr e s s m a n a g e m e n t s k i lls
H ig h p r o b a b ility f o r s u c c e s s L o w p r o b a b ili t y f o r s u c c e s s
International Human Resource Management

36. 30-18
In selecting the individual who gets an overseas assignment,
organisations must not only consider their ability to do the job but, in
addition, must consider their ability to work in a new culture and
emotionally handle the stress associated with a new set of cultural
concerns
 International training and development
Careful selection is only one side of the coin. To ensure success,
expatriates require proper orientation, cross cultural training, career
counselling etc.
i. Orientation
1. cultural briefing
2. assignment briefing
3. shipping requirements
ii. cross cultural training
iii. career development and counselling
International Human Resource Management
Economic Factors And HR Practices

37. 30-19
 International compensation
Compensation practices for international employees are much more
complex than those for domestic employees because many more
factors must be considered
i. Income that the expatriate was getting at Home
ii. Additional incentives to be paid on global assignment
iii. The income of local employees reporting to the expatriate
International Human Resource Management
Economic Factors And HR Practices

38. 30-20
 International labour relations
Labour management relations in international companies depend on
the peculiar customs, traditions, laws and practices followed in
respective countries. Global companies must pay adequate attention
to the health, safety and security of their employees also.
1. The role of unions
2. Collective bargaining
3. Labour participation
4. Employee health
5. Employee safety
International Human Resource Management
 Repatriation
1. logistics
2. readjustment and integration into the community for the
employee and his or her family
Economic Factors And HR Practices