ANSWERS WITH COMPLETE SOLUTIONS
HRM in a Global Environment
Organizations with customers or suppliers in other countries need employees who
understand those customers or suppliers. Organizations that operate facilities in foreign
countries need to understand the laws and customers that apply to employees in these
countries. They may have to prepare managers and other personnel to take
international assignments.
parent country
the country in which the organization's headquarters is located. employee born in the
US working at a US factory are parent-country nationals
host country
a country (other than the parent country) in which an organization operates a facility.
employees that work in the country they are from are host-country nationals
third country
a country that is neither the parent country not the host country. (the organization may
or may not have a facility in the third country). For instance if an organization is from the
US, has a factory in china and hires an Australian manger to run the factory in China,
the manager would be a third country national.
expatriate
employees assigned to work in another country.
, domestic organization
companies with a local, regional, or national market.
exporting
shipping domestically produced items to other countries to be sold there. This is the
usual way for companies to start entering foreign markets.
international organization
an organization that sets up one or a few facilities in one or a few foreign countries.
multinational companies
go overseas on a broader scale. An organization that builds factories in a number of
different countries in an effort to minimize production and distribution costs.
global organizations
an organization that chooses to locate a facility based on the ability to effectively,
efficiently, and flexibly produce a product or service, using cultural differences as an
advantage.
transnational HRM system
type of HRM system that makes decisions from a global perspective, includes
managers from many countries, and is based on ideas contributed by people
representing a variety of cultures.
transnational organization
when transnational HRM systems become embedded in the organizations HRM but
also in its overall culture and strategy, the organization may be referred to as a
transnational organization.
This may not differ from a high-performance global organization.