Managing a Global Workforce Flashcards

Question

Global crises have made it apparent that the world itself is a system in which changes in one part can affect other parts:

Answer 1

Economics. Although the recession of 2009 began in the U.S. financial industry (in 2008), by 2009 it had become a sharp global economic downturn that affected developed and, to an even stronger degree, developing economies. The interlinked financial markets weakened sources of capital, and the sharp reduction of imports by developed economies weakened developing economies, which in turn weakened exports from developed economies. Climate change. Changes due to rising levels of carbon dioxide and other gases do not recognize political borders. The trend has been toward recognition of climate change and acceptance of some of its causes. Economies have been acting individually and as groups to respond. Pandemics. Like epidemic, pandemic refers to a contagious infectious or viral illness that spreads. Unlike an epidemic, a pandemic is not limited to one specific geographic region. According to the World Health Organization (WHO) description, a pandemic has the potential to include millions of people in many areas and countries across the globe. The growing understanding and awareness of pandemics, such as the COVID-19, H1N1, Ebola, or Zika virus outbreaks, underscore the need for communication and concerted global response—both during outbreaks and to prepare for outbreaks. Changes in governmental power. When the controlling party of a government changes, the new party may work to enact new policies concerning things like economics, trade, and immigration. If these policies are markedly different from previous policies, and if they are made rapidly, without allowing for countries and organizations to provide input, respond, or adjust, they may cause major issues across the world.

Answer 2

Understand and respond adequately. Crises may interplay with one another, too—for example, governmental power changes can lead to an economic crisis or climate change effects can spur a governmental power change.

Answer 3

Global forces require careful analysis. HR should strive to understand which globalization events, forces, and trends are significant for a given organization and for HR responsibilities within that organization. It is important for HR to distinguish between large-scale forces and trends and more immediate events and “trendy” phenomena. All may be important and/or have a critical impact, but they need to be understood and interpreted differently. Global warming is different than, say, Hurricane Katrina or the Japanese tsunami of 2011. Likewise, the impact of social networks is different than the sudden popularity of LinkedIn over Facebook. Global forces should be viewed in terms of their connections. While the various forces shaping globalization can be labeled as PESTLE (political, economic, social, technological, legal, and environmental), these factors are in reality interconnected and can be fully understood only in light of such connections. Consider global warming as an example. It is an environmental phenomenon with social ramifications, but it is shaped by economic forces and political actions (or inaction) and by legal and technological responses. HR should understand the unique ways in which each significant global force, event, or trend is affecting: - The parent organization’s home office and its various subsidiary or host countries. - Its industry and competitive landscape. - The organization’s overall goals and strategies. - The role HR must play if the parent organization is to maximize the benefits and minimize the costs of that force, event, or trend. Global forces have unique cultural connotations. While the effects of a given globalization force are global, their impact may be uniquely felt by different cultures, industries, and organizations. To consider global warming again: It differently affects developing vs. developed countries, nonsustainable (oil, coal) vs. sustainable (wind, solar) industries, etc.

Answer 4

Corporation, a governmental agency, a nongovernmental organization, a nonprofit, an association, or an educational institution. It may be large or small, multinational in structure or simply engaged in international trade.

Answer 5

Physical dispersion—the organization operates in multiple countries Diversity of thought, people, and culture that is actively leveraged by a strategic objective Unified through a clear single organizational identity Global for a reason; self-aware of their global reach and leveraging geographic and cultural diversity to achieve success as they have defined it

Answer 6

Globally integrated organizations can often be more innovative. A global workforce contributes distinctive perspectives and processes to the entire learning organization. The research division of an American multinational technology company, for example, operates research centers in China, Egypt, Germany, India, Israel, the United Kingdom, and the U.S. Although this decision may have been made for many reasons, these worldwide research centers contribute to the organization’s character and increase its global competitiveness.

Answer 7

Challenges and benefits. Leaders must develop strategies that align the organization’s objectives and resources with different countries’ operational, legal, and cultural requirements.

Answer 8

Participating in creating the organization’s particular global strategy. Aligning HR processes and activities with the organization’s global strategy. These activities include: - Attracting and retaining leaders and employees with the knowledge and skills needed to implement the organization’s strategy. - Developing an organizational awareness of globalization and an appreciation of the organization’s constituent cultures. - Implementing processes to increase integration and exchange of knowledge. Enhancing communication between the organization and its stakeholders. Ensuring that the HR function possesses the skills, knowledge, and resources to fulfill its global role and demonstrate its value in global strategic management. Adapting processes as needed to the cultural and legal contexts of each area of the global organization. Given the complexity of cultural and legal frameworks, an HR professional may consult with local experts and the organization’s legal counsel. To better understand such legal advice, it may also help to perform preliminary research on the laws of the particular countries with which your organization does business.

Answer 9

Globalization strategy and orientation and how these characteristics influence global HR activities and then develop and implement appropriate HR strategies. Understanding the reasons for global expansion can help explain an organization’s subsequent strategic decisions about how to globalize. These reasons tend to fall into categories of “pushes” and “pulls.” Organizations may have been pushed toward globalization in reaction to changes in the business environment. They may have been pulled toward change through the promise of achieving greater organizational value through globalization.

Answer 10

When domestic market opportunities are exhausted, organizations look overseas for new customers and opportunities.

Answer 11

Globalization has become a way to cut costs and maintain profitability—for example, through offshoring for labor or to move production closer to markets.

Answer 12

Sometimes it is more economical to relocate operations closer to new sources of necessary resources.

Answer 13

Relocation may be due to burdensome laws or regulations or may exploit opportunities only available in other markets/regions. (This strategy can be risky and can lead to a backlash in public relations.)

Answer 14

Organizations might discover that following a client or customer overseas makes more business sense than maintaining domestic or existing production/facilities.

Answer 15

When foreign competitors gain access to domestic markets, local firms are compelled to expand their markets elsewhere.

Answer 16

A multinational presence can give an organization greater control over its business (production, branding, sector consolidation, etc.).

Answer 17

The enterprise’s core strategic goals. Its capabilities and resources, both economic and organizational. The distances (physical, cultural, legal, sociopolitical) that the enterprise will have to bridge.

Answer 18

Creating a new entity—either by purchasing an already existing operation (a turnkey operation), by building a new operation from the ground up (a greenfield operation), or by repurposing an existing disused facility (a brownfield operation). Acquiring a subsidiary that will be wholly owned and operated through merger and acquisition. Entering into an alliance or partnership. Outsourcing all or specified tasks to a supplier or performer in the new market. Offshoring an existing capability to the new location. Offshoring is a distinctively global expansion tool.

Answer 19

These agreements can open markets and promote workforce mobility; they can also lower risks by enforcing laws, regulations, and treaties (for example, intellectual property protections).

Answer 20

National policies that promote economic expansion (for example, China’s “Going Out” policy)—could include tax incentives, special financing terms, or investor risk insulation.

Answer 21

More tactical than strategic—a move to lower taxes or reduce production costs—or they may speak to larger strategic considerations. But no organization can long succeed with only a succession of tactical reactions to whatever pushes and pulls may come along. A comprehensive business strategy, enabling coordinated responses and proactive measures, is needed for success. So it is with globalization.

Answer 22

Headquarters maintains tight control over subsidiaries, who are expected to follow the strategic pattern, values, policies, and practices expressed by headquarters. There is “one best way.” Management will usually share a common ethnic background, different from the ethnic make-up of subsidiaries.

Answer 23

Subsidiaries are allowed a large measure of independence as long as they are profitable. They may plot their own paths based on the business and cultural contexts of their countries. There are “many best ways.”

Answer 24

Subsidiaries are grouped into regions (such as Europe, North America, or Asia-Pacific). Strategic coordination is high within the region but not as high between the region and headquarters.

Answer 25

Subsidiaries are neither satellites taking orders nor independent bodies setting their own course. Headquarters and subsidiaries are participants in a network, each contributing its unique expertise. There is essentially “a team way,” transcending national borders.

Answer 26

Structural strategies of global organizations. There are a range of strategic options available to organizations that wish to (or find they must) compete in the global market.

Answer 27

Strategies to meet the needs of their customers and expand their growth opportunities. These needs are commonly expressed as drives toward global integration or local responsiveness, and a broad range of global strategies is possible within the continuum this pair presents.

Answer 28

Emphasizes consistency of approach, standardization of processes and products, and a common corporate culture across global operations. It allows organizations to take advantage of standard processes and economies of scale to achieve greater efficiency, which can lower costs of operation, create greater pricing flexibility, and increase profit. For example, standardization of technology across global markets rewards companies that are successful in maintaining control and consistent quality levels.

Answer 29

A focus on alignment helps to ensure that decisions made locally reflect the global perspective. Assignees, employees who work outside their home countries, have traditionally played a significant role in carrying the message and focus from headquarters into the organization’s global locations.

Answer 30

Standardized processes, supported by technology that enables communication and transparency, support organizational control over strategic parts of the value chain.

Answer 31

Performance targets and rewards are defined from a global perspective. This creates greater control over organizational activity and also helps avoid potential conflicts between individual performance objectives—for example, sales targets in one region that will damage efforts in other regions.

Answer 32

Shared visions and values prepare members of the organization to make everyday decisions in a manner that is consistent with a global identity.

Answer 33

Emphasizes adapting to the needs of local markets and allows subsidiaries to develop unique products, structures, and systems. It can make organizations more flexible and agile—equipped to identify and capitalize quickly on local market opportunities, correct misalignments of products and services with customers’ desires and habits, and adjust to local regulations and business practices. In an industry heavily influenced by cultural factors, such as clothing or food, global participants must be skilled in adapting their offerings to cultural preferences in their markets.

Answer 34

The ability to respond to local customer needs (for example, the tailoring of a global fast-food menu to reflect local tastes) or the demands of local distribution (for example, temperature sensitivity, unit sizes, packaging). Efficiency gained from using local substitutes (for example, a transnational food and beverage company varies the content of its infant cereal products by region: wheat in Europe, soy in Asia). The ability to remain compliant with local laws and regulations (for example, hours of operation, marketing strategies).

Answer 35

Apply regardless of the size and scope of the organization or its particular organizational structure or goals.

Answer 36

Homogeneity of customer needs Availability of global distribution networks Opportunities for shared marketing

Answer 37

Economies of scale Transportation costs R&D costs Transferable technology advantages

Answer 38

Trade policies Technical standards and requirements Regulatory climates

Answer 39

Extent and methods of globalization by industry competitors

Answer 40

Borders become more permeable and the concept of a global consumer becomes more real.

Answer 41

The best course is to strike a balance between these alternatives that fits each organization at each point in its life.

Answer 42

The matrix describes ways in which an organization can combine GI and LR elements into a single globalization strategy. The grid has two axes, global integration (vertical) and local responsiveness (horizontal), that form a matrix containing four strategic options for MNEs: international, multidomestic, global, and transnational. International (Low local and global responsiveness) Global (Low local and high global responsiveness) Transnational (High local and global responsiveness) Multidomestic (High local and low global responsiveness) Each strategy has a characteristic organizational philosophy about how headquarters and the various local subsidiaries relate to one another and where and how local activities are controlled.

Answer 43

A firm exports a product or service to foreign countries. The company may open production facilities or service centers, but the product/service, processes, and strategy are developed in the home country. Examples: A German firm that manufactures robotics for specialized industrial purposes around the world; an American-based defense contractor, that, for security reasons, must maintain clear lines of separation among its various international subsidiaries.

Answer 44

The organization is a decentralized portfolio of subsidiaries. Goals and strategies are developed locally because of competitive demands. Knowledge is shared on a local rather than global level. Example: A confectionery company, with different products and manufacturing and sales strategies for each market in which it operates.

Answer 45

The firm views the world as a single global market and offers global products that have little or no national variation or that have been designed with customizable elements. Strategy, ideas, and processes emanate from headquarters. Example: A white goods manufacturer whose products are quite standardized (washing machines, dishwashers, etc.).

Answer 46

The firm locates its value chain activities in the most advantageous geographic locations. Subsidiaries are allowed to adapt global products and services to local markets. Best practices and knowledge are shared throughout the organization. Example: A cosmetics company that markets products specifically to different regions and prioritizes diversity in talent acquisition.

Answer 47

Decisions are made at the organization’s headquarters level. Decisions apply to strategy and coordination and focus on standardization of processes and integration of resources. Strategies for: - Workforce alignment - Organizational development - Sharing of knowledge and experience

Answer 48

Decisions are made at the local level. Decisions aim at adapting strategic goals and plans to local realities—in other words, local responsiveness. Strategies for: - Agreements with local workforce groups - Adjustments to standard policies on working conditions to reflect local cultural practices (for example, holidays and break times) - Adjustments based on local legal requirements

Answer 49

Extent to which: Diversity is embraced in management of people, products/services, and branding. Differences among locations are embraced. Product/service offerings and brand identity may be adjusted to accommodate local cultures. Example: Global fast-food chains offer localized menu options in addition to standard menu items. Challenges: - Unless corporate brand is well-established, localized offerings may dilute brand. - Local approaches may diffuse core identity.

Answer 50

Extent to which underlying operations such as IT, finance, or HR integrate across locations. Example: Business where units have a common platform: Single technology used in all locales. Same business performance metrics in all locales. Unified HR systems in place in all locales. Challenges: - Businesses built through acquisitions often have separate processes; tendency is for each unit to operate independently and retain many of its original practices.

Answer 51

Diverse identity alignment but an integrated process alignment, or vice versa. For instance, no matter how localized the offerings on the menu at a global fast-food chain are, the underlying processes that deliver them may be highly integrated. This integration includes HR policies and practices.

Answer 52

(Sometimes referred to as “contracting out”) Is a practice where a company transfers portions of work (for example, processes or production) to outside suppliers rather than completing it internally. Generally, outsourcing contracts out (or subcontracts) activities with the goal of reducing costs and freeing up personnel and resources for other activities. Example: By outsourcing its customer support service function to an external vendor, a manufacturing company is able to reduce operating expenses and use some of the cost savings to increase its marketing and sales budgets.

Answer 53

Process or product is outsourced abroad, although it may be. In that regard, outsourcing is actually an umbrella term for several types of external work arrangements. Offshoring, onshoring, and near-shoring all are different forms of outsourcing. The key difference among these three is the location of the outsourcing.

Answer 54

Is the practice of relocating processes or production to another country. Example: A United Kingdom financial services company opens a facility in Thailand to perform back-office banking transactions for its U.K. operations. The move results in significant cost savings from lower regional labor and facilities costs and various financial incentives. Offshoring typically involves relocating an operational process or service that is relatively self-contained. Considering the scenario above, the U.K. business might determine its requirements for banking transactions locally and then hand these over to the Thai operations.

Answer 55

Lower costs (for example, lower wages, less expensive facilities). Closer proximity to necessary production resources. More favorable economic climate for corporate taxation. Financial incentives (for example, direct cash payments, low-interest loans). - Historically, offshoring has largely involved movement from developed countries to distant developing countries.

Answer 56

Access to Talent: As developing countries have increased investment in education and training, they are becoming sources of scientific and technological expertise and innovation. Round-the-clock-shifts: Having offshore shifts operating 24 hours a day can improve efficiency and reduce costs of operations. This can enable enterprises to deliver 24 hour customer service, such as call center access. Follow the Sun: By taking advantage of time zone differences, work can proceed on a given project without interruption. As one group's workday ends, the project is handed off to an offshore group in another time zone. This can decrease design and development time, allowing products to come to market sooner.

Answer 57

Globalization forces. In short, calculating the cost savings of offshoring has become more complex. For example, the cost-saving dynamic from developed to developing countries is changing. Other examples are: Wages in India and China are rising steadily, which can reduce cost-saving benefits but might result in a growing market for products and services. Countries such as Vietnam, Indonesia, and the Philippines have kept wages low, but they lack efficiencies, scale, and supply chain—which incurs its own costs. The costs of shipping goods back by sea have risen sharply, and the weeks spent in transit add further costs. Robotics and other automation innovations have reduced labor’s share of total production costs. Offshoring can lead to political fallout in developed countries, as jobs are “shipped overseas” at the expense of home-country workers.

Answer 58

Cultural differences. Distance issues (for example, different time zones and getting remote teams to work together). High turnover rates. Problems in quality control. Technical degrees that do not reliably indicate actual technical skills. Language issues. Intellectual property loss. Impaired productivity due to political instability. Loss of reputation from unethical behavior or practices of local management.

Answer 59

Refers to the relocation of business processes or production to a lower-cost location inside the same country as the business. Sometimes called “home-shoring,” onshoring can also include the situation where businesses allow employees to work from home. Beyond the potential for lower operations costs, onshoring offers the added benefits of having local employees and avoiding many of the problems associated with distant offshoring scenarios. Example: An organization chooses to onshore activities that require deep process knowledge, direct customer interaction, the need to be close to customers, and the ability to communicate fluently in the same language.

Answer 60

Refers to a company contracting a part of its business processes or production to an external company located in a country that is relatively close (for example, within its own region). For example, U.K. businesses might near-shore to Eastern Europe, or U.S. businesses might near-shore to Mexico or Canada. Considerations in near-shoring are that neighboring countries are often bound by similar financial and legal constraints or trade agreements that provide social and economic stability within a region. Countries that are closer in proximity are more likely to have shared cultural values and a similar mindset. And, the time difference is less and the cost to travel is reduced (compared to offshoring).

Answer 61

Geographically dispersed teams in order to better compete and succeed. Doing so allows organizations to draw on diverse experiences, perspectives, and knowledge that can spur innovation and improve business outcomes. HR professionals must be familiar with the interconnected challenges presented by remote teams and incorporate their specific requirements into plans and strategies.

Answer 62

Communication. Dispersed teams present a number of challenges when it comes to planning communications—most commonly, languages, technological constraints, and time zones. When communications challenges are not properly planned for and addressed, team discourse and interactions can easily deteriorate. Engagement. Remote team members can feel disconnected from the work and the wider team. It is essential that policies are established to bridge the physical distance. Remote teams must feel that they are connected to the organization and its leaders and that their concerns and feedback are not only heard but valued and reach the right audience. Building trust. Trust is essential to the proper and effective functioning of any team, but it can be difficult to build trust between geographically scattered teams. In addition to causing fatigue, excessive levels of communication may hamper trust building if the remote team gets the sense that headquarters feels the need to manage them more closely than their on-site peers. Alignment. Team members need to be on the same page with regard to understanding their individual and organizational goals, their roles within the team, the resources available to them, and the organization’s expectations in relation to personal interactions. The ability to maintain team alignment is closely linked with successful communications, as language differences or other disconnects can exacerbate misalignment.

Answer 63

Communications reviews. It is important to ensure that communications with remote teams are effective and provide value. Periodically, communications plans should be reviewed to ensure that they are encouraging the desired engagement from others. For example, are all team members able to contribute appropriately? Should you incorporate follow-ups with team members whose first language is different to ensure that there’s been no miscommunication? Similarly, review how often and which media you are using. Are videoconferences the best tool, or are emails sufficient for check-ins? Is your remote team getting videoconference fatigue? Are they feeling micromanaged from afar? Getting these right will help maintain engagement and trust. Cross-cultural communication and diversity training. By employing cross-cultural communication and diversity training, an organization can minimize the adverse effects of cultural and linguistic differences. Providing this training can also help to prepare leaders for site visits. Site visits. One should not underestimate the two-way value of traveling to visit remote teams. When a leader travels to see a remote team, it can improve team engagement and connection, build trust, and ensure that the team remains in alignment with the organization’s goals. It can also improve headquarters’ understanding of the remote team’s work conditions, dynamics, personalities, and practices and of the local customs and culture, and it can generate reflective knowledge, in which the visitor gains insight into how they themselves are seen by others. When team members get to know each other, collaboration becomes more effective, smoother, and easier. Careful planning must be done to provide the best return on investment.

Answer 64

Clear sense of what it hopes to accomplish, what it needs from the venture, and what risks the venture entails. There are no cost-saving guarantees for any strategy, especially if it is poorly planned or executed.

Answer 65

Workforce and talent issues, HR plays a critical role by performing due diligence to support the decision to move work.

Answer 66

Wage structure relative to other options Tax structure Real estate Infrastructure (examples include telecommunications networks, transportation, energy)

Answer 67

Government receptivity, amount of regulation Ethical environment of political and business communities Quality of life Accessibility

Answer 68

Political and labor unrest Natural disasters IT security Personal and property security, intellectual property rights Economic stability, including fluctuations in currency exchange value Regulatory stability

Answer 69

Language and cultural differences Size of labor force with required skills Size of offshore sector and share of exports Availability of vendors for specific services, such as IT

Answer 70

Reducing operating costs, boosting profit margins, and so forth. Which type of outsourcing works best depends on the organization’s goals, business processes, risk management strategies, and other factors. However, it is always harder to manage remote operations. The option chosen will determine the types of issues that will need to be addressed. Issues related to moving work across borders include immigration, global job classifications, business travel, and the use of geographic centers of excellence.

Answer 71

HR professionals must familiarize themselves with immigration requirements and restrictions in order to support business in a global environment. This is true not only for moving work overseas but also for bringing foreign talent to the home country, sending team members for site visits, and hiring international contractors.

Answer 72

Political leadership shifts, which can make it a volatile policy area prone to sudden changes. For example, regular national elections in countries such as the United States and the United Kingdom have resulted in stark, oscillating changes to their immigration laws in recent decades. These changes may result in additional burdens associated with travel to these countries for some prospective employers, employees, and tourists, depending on their nations of origin and whether the travel is for business or leisure purposes.

Answer 73

Stay connected. HR professionals should ensure that they keep abreast of any news, changes, and developments in immigration and global employment regulations. Understanding the nuances of immigration policy is a major challenge for HR, and it requires dedicated care and attention to stay current with changing rules. Some industry groups offer up-to-date information regarding these issues, and networking and engaging with other professionals can also provide useful information. Track employees. It is important for all organizations to have a system for tracking their employees’ immigration status and their location. Whether bringing a foreign worker to your home country, sending someone overseas, or contracting work to an international freelancer, HR must keep a database that clearly defines their role, their destination or location, and the parameters of any visas (duration, limitations, etc.) or work regulations. Conduct self-audits. HR should commit to periodically auditing its own processes and practices and also examining the experience of employees who are working with visas, are overseas, and so forth. While especially important during times when immigration politics are turbulent, it is good practice to ensure that policies, paperwork, and processes are in line with current legislation and best practices. It is far better to have everything in order before an immigration officer orders an audit. In addition, audits can identify improvements or refinements that should be instituted. Consider legal advice. In some circumstances, immigration law might be opaque. In these cases, it is worthwhile to hire outside counsel to avoid future costs from complications, mistakes, delays, or other pitfalls. If information is not readily available or if a situation is unclear, it is best to seek expert advice in order to avoid problems down the line.

Answer 74

Become familiar with global job classifications and implement a job-leveling scale for their organization.

Answer 75

The relative value of a job position in the organization, regardless of where the work is done or local conventions. As organizations grow globally, the ability to properly identify and define jobs can help the organization ensure that it is properly structured, eliminate redundancies, increase effectiveness, avoid excess costs, and ease decision making. It can also ensure that hiring, remuneration, and rewards policies are fairly applied across the organization, regardless of branch or job location. HR can use industry-recognized job classifications or grades, or it might create its own depending on the nature of the work that the organization does. To do so, HR would need to gather information related to expected skill levels, compensation, and responsibility and compare accordingly. As an organization grows, or expands into ever-more territories, it is important for HR to revisit and refine any grading system it uses.

Answer 76

Crafting appealing and effective business travel policies. Clear travel policies can help organizations mitigate or avoid certain risks inherent in business travel. An appealing travel policy can also be used to attract top talent and make it clear that the organization takes its employees’ well-being on the road seriously. To perform this role, HR should establish a travel risk management plan and a travel orientation procedure. An organization’s travel risk management plan should include all relevant details regarding legal, security, and medical risks related to business travel. Some information will be general and applicable to all (or most) business travel. Plans will also need to include information tailored to the specific destination country.

Answer 77

Communication. The plan should include procedures for communicating the necessary contents of the plan and procedures to all relevant stakeholders. This includes providing information and documentation before, during, and after the trip and also providing information related to travel policy updates or changes based on legal, medical, or other reasons. Legal considerations. The plan should include information on the legal considerations related to business travel. Depending on the destination, this might include what type of visa or work permit is required, what prohibitions and restrictions there are on business travelers, and what work might result in taxation or legal scrutiny (for example, can deals be finalized by business travelers or are they limited to meetings and negotiations). Duty of care. The plan should include details relating to duty-of-care provisions. Organizations have a responsibility to look after their employees and, if applicable, the family members who accompany them on assignments. This duty begins before the travel takes place and can be incorporated into the orientation procedures. HR has to ensure that proper care is taken of traveling employees, ensuring that they have access to the resources they need to facilitate comfortable, productive, and safe business trips. Compliance checks. The plan should include checks to ensure that the traveling employee is adhering to the organization’s travel policies, visa obligations, and local laws. Similarly, the organization should ensure that their own procedures are in compliance (for example, paperwork and documents, fees payments). Travel reviews. The plan should include post-travel reviews to confirm that travel policies and requirements were followed and also to assess whether the employee was provided with appropriate and relevant resources and information. These reviews can generate valuable feedback that can be used to improve policies and procedures for future travel assignments.

Answer 78

Orientation meetings to employees who are about to embark on business travel (short- and long-term). The purpose of the orientation is to prepare the employee for their trip, from both an information and a well-being perspective. During these sessions, the employee will be educated on a number of topics related to their upcoming travel. They should also be given information to help them acquire any resources they need.

Answer 79

Logistics. The employee will need to be informed about any visa and passport requirements for the trip and will possibly need to fill out some paperwork. HR should provide clear travel itineraries and also lodging information for the trip. HR might also give the employee information about useful travel apps that might help them on their journey (such as flight trackers or city guides). Medical. The employee should be provided with information related to medical and travel insurance coverage, relevant medical information (hospital locations, emergency phone numbers), and local and organizational contacts if an emergency should arise. For frequent business travelers, there is a growing concern regarding long-term health impacts, and HR might also want to provide information about wellness and health provisions for the trip (access to gyms, healthy food options, etc.). Security. In some situations, the employee will need to be briefed on the local political situation, environmental considerations (extreme weather, cold or hot climates), and what this might mean for their trip and safety. They should be provided with emergency contact information and embassy details (for international travel). Expectations. HR should make it clear to employees how they are expected to comport themselves on their trip. It is becoming increasingly common for business trips to have the option of personal travel added. Many organizations accommodate this request, but it remains essential that employees understand that their business responsibilities must be fulfilled appropriately and that their conduct can reflect on their employer.

Answer 80

Given the complexities of a globalized business environment, organizations can benefit from establishing geographic centers of excellence (COEs). A COE is a team made up of individuals with specialized skills, expertise, and knowledge. They are tasked with developing strategic services and capabilities. They do this by providing leadership, disseminating their specialized knowledge across the organization, and gathering information and feedback to improve processes and capabilities. During the course of their work and support of other departments and individuals in the organization, the COE team would gather information to support continued improvement of the organization’s processes and policies. For example, it would collect information about reusable assets, ways to streamline and shorten delivery times, ways to standardize processes, and identify ways to improve efficiency.

Answer 81

Managing and improving policies and procedures related to management of compensation (payroll, salary planning, incentives, etc.). Managing and improving employee personal and financial welfare (for example, leaves of absence, vacation allowance, health services, income protection, and retirement planning). Managing and improving labor relations to ensure that all employees are treated fairly and respectfully (for example, ensuring that policies comply with local, national, and international laws and regulations). Managing and improving employee development, training, engagement, and retention policies and procedures.

Answer 82

Strategic-systematic or Tactical-reactive perspective

Answer 83

Approach global assignments as long-term investments. Develop future executives with essential global perspectives and experiences to formulate and implement competitive strategies. Increase the effectiveness of critical coordination and control functions between and among the home office and foreign operations. Effectively disseminate information, technology, and values throughout the worldwide organization.

Answer 84

Approach global assignments as short-term expenses. Focus on a quick-fix approach to a short-term problem in a foreign operation. Randomly and haphazardly perform some functions of assignments and focus attention as problems arise. Fail to systematically integrate the worldwide organization in terms of values, technology, products, and brand.

Answer 85

Foregoes the benefits of talent development and retention, building of cross-cultural fluency in its future leaders, and growth in institutional knowledge and knowledge sharing. A purely tactical approach may also lead to a higher rate of failure in global assignments.

Answer 86

Choose average and good performers as assignees. Send their assignees to another country to manage a project or get a particular job done.

Answer 87

Use a wide variety of global assignment types. Choose high-potential managers and top executives as assignees. View assignments as leadership, career, and organizational development opportunities. Make assignments for many reasons other than situational project management or remedial intervention to fix a problem.

Answer 88

Establish a staffing policy, such as staffing locally wherever possible and promoting from within the organization, before making assignee decisions or staffing a new operation. The presence of a core staffing policy can simplify the local staffing and global assignment decision-making process.

Answer 89

Employee from an organization’s home country assigned to relocate to an international jurisdiction for an extended period of time, generally two or more years. By the traditional definition, a European citizen assigned to work in another EU country would be considered an expat, while someone who had self-selected to live and relocate in another country would not. That notion of an expat has since lost its original meaning due to the degree and proliferation of globalization itself. The term “expatriate” is derived from the Latin “ex” (meaning “out”) and “patria” (“homeland”). But in today’s globalized marketplace, a Mexican employee of a Japanese multinational organization who was previously based in the Netherlands may now be assigned (or may request assignment) to the organization’s Canadian subsidiary.

Answer 90

International assignee, or IA (while “expat” now generally refers to anyone who is not a citizen of the country in which they reside and doesn’t intend to become a permanent resident).

Answer 91

International assignment experience. Contact with colleagues, family, and friends while abroad can now be constant and instantaneous. Maintaining a clear picture of how the world’s events look and are being interpreted back home is now easy. That doesn’t eliminate the “foreignness” of the international assignment (or shouldn’t—if overused or misused, virtual connections can create a cocoon that separates the assignee from the host culture), but it can change the comfort level. This is especially true for younger generations of workers who, tablet and smartphone in hand, feel “at home” (and, equally, “at office”) wherever they go.

Answer 92

Move away from the traditional, long-term expatriate assignment toward newer, more flexible uses of global talent.

Answer 93

Spend their entire careers in international assignments, moving from one locale to another

Answer 94

Hired locally in subsidiary countries (and are also known as HCs, host-country nationals)

Answer 95

On assignment for less than a year but more than a few weeks, often without moving the family

Answer 96

Traditional expatriates on full relocation assignments lasting from one to three years

Answer 97

Travel across a country border for work regularly

Answer 98

Ad hoc or contract workers hired for a single assignment

Answer 99

Dimension to the individual’s experience and another category of responsibilities. They inevitably create some tension and conflict between the individual’s allegiance to the home-country/headquarters location and to the local operation and situation in the host country. The degree of tension can be affected by a variety of factors, including the length of the assignment, the assignee’s country of origin and age, and the number and types of previous assignments. To use language developed by Black, Gregersen, and Mendenhall, allegiances can range from a “homebound” refusal to assimilate into the local culture to a “go native” full embrace of local culture and work modes.

Answer 100

Identify and recruit the individual who will be most successful in a particular type of global assignment. Acquaint the assignee with the ways their allegiance may be challenged and the stresses they may encounter. Anticipate repatriation and support any unique needs the assignee may have.

Answer 101

Consider assignments within the broader context of the organization’s overall business strategy and leadership development activities. Make sure that the assignment process is clearly aligned with other organizational initiatives.

Answer 102

Consider family, logistical, legal, cultural, organizational, and other issues in addition to the immediate concerns of the employee. Identify potential risks to the assignee and the organization—for example, health or security risks associated with specific assignments. Make sure that all criteria (not just a candidate’s functional competence and communication skills) are considered during the selection process.

Answer 103

Confirm that the selection process is based on the correct criteria. Involve the right people in the selection process. Plan ahead and allow adequate time for selection.

Answer 104

Avoid turning the selection process into a selling or marketing campaign. Communicate both the benefits and the challenges of the assignment. Encourage the candidate to talk to repatriated assignees.

Answer 105

Provide cross-cultural training for the whole family. Provide language training; it is usually an essential requirement.

Answer 106

Make sure that assignees receive necessary vaccinations. Make plans for in-country security, health-care coverage, and emergency evacuation if needed. Establish a communication system that allows the organization to locate assignees at all times and confirm their status. Assignees should also have the means for emergency contact.

Answer 107

Anticipate potential assignee challenges and prepare contingency plans. Make sure that the assignee doesn’t feel abandoned during the assignment.

Answer 108

Develop plans to ensure retention of the repatriate; repatriates who leave represent a loss of the organization’s investment in their development. Recognize that the greatest contribution to both the organization and the employee may occur when the employee returns home.

Answer 109

Recognize that problems will occur. Look for the reason a problem occurred after responding to it.

Answer 110

Answer candidate questions and engage effectively in the selection process.

Answer 111

The country or countries to which they are sending assignees. Essential developmental assignments and experiences. The specific job function and assignment objectives and what effects the assignment location will have on these factors. The process of cross-cultural adjustment to anticipate the feelings the assignee may experience. Cultural dimensions and the effect these dimensions have on the way different cultures look at life. Potential problem areas associated with the assignment.

Answer 112

Use additional selection criteria (beyond fluency in the host language and technical skills). Evaluate assignment candidates as well on key traits such as flexibility and adaptability. Make cultural adaptability training for assignee and spouse part of the selection process. Mandate cross-cultural training for assignees and their families to reduce the risk of failed assignments, to manage expectations, and to facilitate adjustment and performance. Ensure that the international assignment policy is clear and specific. Begin repatriation planning and succession management before the assignee leaves the home country and continue it at least one full year before the end of the assignment. Maintain a point of contact for assignees while on assignment. Provide repatriation integration training for the assignee and family. Use experientially derived pre- and on-arrival international assignment orientation programs for all inbound employees who are visiting headquarters as well as for all outbound employees visiting international operations. Create policies, counseling, and management systems that span the process from pre-departure planning through on-site management to completion and repatriation. During the international assignment, develop and implement ongoing programs that foster and retain intercultural competencies and global knowledge management practices. Begin post-assignment debriefing before the assignee returns from the assignment and immediately upon return. Use debriefing information to establish a database of relevant learning. Link social responsibility and ethics. Develop programs that foster ethical conduct and support of the local community. Tie ethical values directly to accountability in practice. Comply with applicable labor standards, laws, and regulations that affect the business in different parts of the world, including national and extraterritorial laws.

Answer 113

Stage 1: Assessment and Selection Stage 2: Management and assignee decision Stage 3: Pre-departure preparation Stage 4: On assignment Stage 5: Completing the assignment (Then there can be repatriation and redeployment)

Answer 114

The assessment and selection of assignees is one of the most important determinants of success. A primary purpose of the assessment and selection process is to ensure that the organization has the right people in the right places at the right times.

Answer 115

Develop the selection criteria: - Develop specific selection criteria for the assignment. - Create a potential global assignee talent pool. Involve the right people: - Identify and contact candidates from the pool. - Involve the candidates’ spouses, significant others, and family members, as appropriate and legally permissible. - Contact and schedule home- and host-country managers to participate in the assessment. - Coordinate vendors and consultants who will be involved in the selection process. Choose the best selection methods and tools: - Develop multiple data-gathering instruments. - Conduct interviews and ensure that surveys are completed. Complete the assessment/make a recommendation: - Analyze data. - Schedule subsequent rounds of interviews and assessment sessions, as required. - Make the final recommendation and selection

Answer 116

Once the candidate has been selected, the organization has the information it needs to engage in due diligence regarding the costs, benefits, logistics, and other aspects of the global assignment. Likewise, the candidate must evaluate the assignment offer to be sure he or she is making a sound career and personal decision.

Answer 117

Analysis of the costs and benefits of the assignment. Global assignments, like other major organizational investments, must produce specific and quantifiable benefits to justify their funding and execution. Detailed analysis of the return on investment in assignments is a growing trend and an increasing concern in global organizations. Preparation of the assignment plan. The global assignment plan guides the assignment process and clarifies both the organization’s and the assignee’s expectations of the assignment situation. The global letter of assignment is a key document that evolves from the assignment plan. Typically, the letter of assignment is a memorandum of understanding (MoU) stipulating the business aspects of the assignment as well as compensation, benefits, and local work rules. Depending on regulations in the host country, other legal requirements may need to be satisfied by the letter of assignment. Candidate acceptance or rejection of the assignment offer. Just as the organization follows a process in assessing the potential costs and benefits of the global assignment, the candidate should also be given access to people and information needed to make a sound personal and career decision. Aspects the candidate should consider include: - Long-term career advantages. - Adequate financial incentives. - Opportunities for growth and learning. - Family support and opportunities to balance interruption of children’s education and spouse’s career. - Desirability of the location.

Answer 118

By the completion of this stage, the assignee and his or her family should have the practical knowledge and day-to-day survival skills they will need during the first months in the host country. Because of the complexity of global assignments, organizations often use specialized third-party vendors to coordinate and manage key aspects of the deployment process. Organizations that don’t use the services of third-party vendors should create a pre-departure checklist to anticipate and address all the key issues to be resolved before the assignee leaves the home country.

Answer 119

Visas and work permits. Different countries have different visa and work permit (employment authorization) regulations and requirements and associated costs. Short-term assignments may be easier to arrange than periods over 90 days. An individual cannot enter most countries to look for a job; the job must already exist and the work authorization is usually contingent on the employer’s ability to demonstrate that comparable skills do not exist in the local workforce. Time is a critical factor in two senses—first, the organization must plan for how long it will take to obtain the necessary documents; second, the organization must be aware of any time restrictions (expiration dates) on the visa and/or permit. All these considerations are in the hands of the embassy or consulate office of the host country. Ensuring that there is compliance with all requirements is up to the organization, as is the responsibility to cover any sponsorship expenses that might be incurred. Security briefings. Briefings of this type are a requirement, especially for international assignments in volatile parts of the world. There are two important aspects of a security briefing: (1) personal and family safety abroad and (2) business aspects of security, including physical and intangible threats to the organization’s employees, assets, and intellectual property. Cross-cultural counseling. Conducted both before and during the global assignment, cross-cultural counseling can increase the likelihood of the assignment’s success. Components of a comprehensive cross-cultural counseling and preparation process include: - A preliminary situation and needs assessment. - A country overview and information on everyday life. - A business overview. - Personal cultural awareness activities. - Discussion of family and international relocation issues. - Country-specific case studies. - A customized and detailed support and settling-in program.

Answer 120

Assignee adaptation to the new location may take a year or more and often includes several distinct phases: honeymoon, culture shock, adjustment, and mastery. Honeymoon: everything is new and exciting, and everyone is pleased they made the decision to come abroad. Usually, there is ample support from the home and host countries during the early stages of the assignment. Culture Shock: Novelty and enjoyment turn, in varying degrees, to disillusionment and dissatisfaction, as the challenges of living and working abroad become clear. Support structures recede, and the assignee and family must increasingly fend for themselves. Adjustment: Working and living in the host country gets easier and more familiar. Assignees are unlocking the code, learning the norms and patterns of host-country behavior and how to get things done. This does not occur naturally but takes interest and motivation. Mastery: After several years of adjustment and continual learning, the mastery stage is entered. Oberg termed this the "biculturalism" stage. Assignees are able to participate fully and comfortably in the host culture. Mastery:

Answer 121

Once going abroad to their initial assignment and then when they return home or go to another country. Reverse culture shock can be just as challenging and unsettling as the initial cultural adjustment.

Answer 122

Assist assignees in obtaining a host-country tax ID number. Assist assignees in obtaining a driver’s license. Coordinate assistance with bank accounts and credit cards in the host country. Perform host-country orientation. Review and approve host-country housing leases and issue security deposits. Update allowances and deductions as conditions change in the host country (for example, rent subsidies, educational and other travel grants). Process and track required tax payments. Collect compensation and tax data that is needed for home-country reports. Coordinate emergency leaves and visits to the home country. Communicate regularly with the assignee’s home-country mentor(s). Begin active repatriation efforts at least six months before the assignment ends. Process visa and work permit renewals and extensions.

Answer 123

While completing the assignment may be one of the most important aspects of the assignment process, it is frequently overlooked. There are two aspects to completion: repatriation and redeployment.

Answer 124

Involves reintegrating the employee back into the home country after an international assignment. It includes adjustment to the new job and readjustment to the home culture and conditions (including any potential reverse culture shock). Repatriated employees have a critical role to play in global organizations. Their international experiences enable them to contribute invaluable knowledge to the organization’s global mindset and understanding of the world market as well as serve as role models and potential mentors for future assignees.

Answer 125

Does not always involve repatriation. An assignee’s next assignment can be back in the home country, in a different global location, or in a new location or new position in the current host country.

Answer 126

Adequate notice that the assignment is ending. A clear repatriation plan. Assurance that the skills and experience the assignee acquired during the assignment will be used effectively in his or her new assignment. Repatriation support services (which may range from mentoring and counseling to logistical support and compensation and benefit adjustments).

Managing a Global Workforce Flashcards

(150 cards)