卡伦国际企业管理第6版 课件汇 约翰 卡伦 CH11 International Human Resource Management -CH15 Leadership and Management Behavior

11InternationalHumanResourceManagementLearningObjectives(1of3)Knowthebasicfunctionsofhumanresourcemanagement.Defineinternationalhumanresourcemanagement.Understandhowinternationalhumanresourcemanagementdiffersfromdomestichumanresourcemanagement.Knowthetypesofworkersthatmultinationalcompaniesuse.LearningObjectives(2of3)Explainhowandwhenmultinationalcompaniesdecidetouseexpatriatemanagers.Knowtheskillsnecessaryforasuccessfulexpatriateassignment.Understandhowexpatriatemanagersarecompensatedandevaluated.Appreciatetheissuesregardingexpatriateassignmentsforfemalemanagers.LearningObjectives(3of3)Knowwhatcompaniescandotomaketheexpatriateassignmenteasierfortheirfemaleexpatriates.Understandtherelationshipbetweenchoiceofamultinationalstrategyandinternationalhumanresourcemanagement.HumanResourceManagement(HRM)HumanResourceManagement(HRM):dealswiththeoverallrelationshipoftheemployeewiththeorganizationMajorgoalsofHRMaremanaginganddevelopinghumanassets.BasicHRMFunctions(1of2)BasicHRMfunctionsare:Recruitment:identificationofqualifiedindividualsforavacantpositionSelection:processoffillingvacantpositionsintheorganizationTraining:providingopportunitiestohelptheindividualtoperformPerformanceAppraisal:assessingtheindividual’sperformanceBasicHRMFunctions(2of2)BasicHRMfunctionsare:(cont’d)Compensation:providingtheadequaterewardpackageLaborRelations:therelationshipbetweentheindividualandthecompanyInternationalHuman

ResourceManagement(IHRM)Whenappliedtotheinternationalsetting,theHRMfunctionsmakeupInternationalHumanResourceManagement.Intheinternationalarena,thebasicHRMactivitiestakeonanaddedcomplexity,fortworeasons:EmployeesofMNCsincludeamixtureofworkersofdifferentnationalities.HRManagersmustdecidethenecessaryextentofadaptationtolocalbusiness&nationalcultures.TypesofEmployeesinMultinationalOrganizations(1of2)Expatriate:EmployeeswhocomefromacountrythatisdifferentfromtheoneinwhichtheyareworkingHomeCountryNationals:Expatriateemployeeswhocomefromtheparentfirm’shomecountryThirdCountryNationals:Expatriateworkerswhocomefromneitherthehostnorthehomecountry.HostCountryNationals:LocalworkerswhocomefromthehostcountrywheretheMNCunitislocated.TypesofEmployeesinMultinationalOrganizations(2of2)Inpatriate:Employeesfromforeigncountrieswhoworkinthecountrywheretheparentcompanyislocated.Flexpatriates:Employeeswhoaresentonfrequentbutshort-terminternationalassignments.InternationalCadre(Globals):Managerswhospecializeininternationalassignments.CommuterAssignmentsEmployees:Employeeswholiveinonecountry,butspendpartoftheworkweekinanothercountry.MultinationalManagers:

ExpatriateorHostCountry(1of2)Decidingwhethertouseexpatriateorlocalmangersdependsmostlyonafirm’smultinationalstrategy.Transnationalstrategistsseetheirmanagerialrecruitsasemployableanywhereintheworld.Multidomesticstrategiststendtofavorlocalmanagers.Foraparticularposition,thefirmshouldask:Givenourstrategy,whatisourpreferenceforthisposition(host,home,orthirdcountrynational)?MultinationalManagers:

ExpatriateorHostCountry(2of2)Forexpatriatemanagers(parentorthirdcountry):Isthereanavailablepoolofmanagerswithappropriateskillsfortheposition?Aretheywillingtotakeexpatriateassignments?Doanylawsaffecttheassignmentofexpatriatemanagers?Forhostcountrymanagers:Dotheyhavetheexpertisefortheposition?Canwerecruitthemfromoutsideourfirm?IstheExpatriateWorthIt?IHRMdecisionsregardinguseofexpatriatemanagersmusttakeintoaccountthecostsofsuchassignments.Thetotalcompensationofexpatriatemanagersisoften3-4timeshigherthanhome-basedsalaries.Inadditiontohighcostsofrelocatingexpatriates,moremultinationalsarenowconcernedwithexpatriatesafetyworldwide.Also,thefailurerateofU.S.expatriatesishigherthanthosefromEuropeandJapan.Exhibit11.1:

PercentofMillenialsWhoWanttoWorkOutsideoftheirHomeCountryExhibit11.2:

TheTenMostExpensive

andLeastExpensiveCitiesReasonsfor

U.S.ExpatriateFailure(1of3)Individual:PersonalityofthemanagerLackoftechnicalproficiencyNomotivationforinternationalassignmentFamily:Spouseorfamilymembersfailtoadapttolocalculture.Spouseorfamilymembersdonotwanttobethere.Reasonsfor

U.S.ExpatriateFailure(2of3)Cultural:TheManagerfailstoadapttolocalcultureorenvironment.TheManagerfailstodeveloprelationshipswithkeypeopleinthenewcountrybecauseofthecomplexityofcultivatingnetworkswithdiversepeople.Reasonsfor

U.S.ExpatriateFailure(3of3)Organizational:ExcessofdifficultresponsibilitiesintheassignmentFailuretoprovideculturalandotherimportantpre-assignmenttraining,likelanguageandcultureFailureofcompanytopicktherightpersonCompany’sfailuretoprovidetheleveloftechnicalsupportthatdomesticmanagersareusedtoFailureofthecompanytoconsidergenderequityTheStrategicRoleof

ExpatriateAssignmentsHelpmanagersacquireskillsnecessarytodevelopsuccessfulstrategiesinaglobalcontextHelpthecompanycoordinateandcontroloperationsthataredispersedgeographicallyandculturallyProvideimportantstrategicinformation.ProvidecrucialinformationaboutlocalmarketsProvideopportunitiesformanagementdevelopmentProvideimportantnetworkknowledgeSelectingExpatriateManagersSelectingthewrongpersonforthejobleadstofailure.Selectingthewrongpersoncanbeamajorexpense,costingmorethan$1millionperexpatriatefailure.Improperlyselectedemployeeswhocannotperformbutwhoremainonassignmentcanbemoredamagingtothefirmthanthosewholeaveprematurely.Domesticperformancedoesnotpredictexpatriateperformance.Selectioncriteriamaydiffer.KeySuccessFactorsforExpatriateAssignmentsTechnicalandmanagerialskillsPersonalitytraits(flexible,willingtolearn)Relationalabilities(abilitytoadapttoothercultures)Familysituation(spouse&familywillingnesstogo)Stresstolerance(abilitytomaintaincomposure)Languageability(speak,read&writethelanguage)Emotionalintelligence(empathize,relatetoothers)Exhibit11.3:

ExpatriateSuccessFactors

andSelectionMethodsThePriorityofSuccessFactorsforExpatriateAssignmentsTheimportanceofsuccessfactorsforaparticularassignmentdependsonfourassignmentconditions:AssignmentlengthShortassignmentsfocusontechnicalandprofessionalsskillsCulturalsimilarityRequiredinteractionandcommunicationwithlocalsJobcomplexityandresponsibilityExhibit11.4:

WhatPercentageofCompaniesareUsingMoreShortTermAssignments?Exhibit11.5:

SelectingExpatriates:PrioritiesforSuccessFactorsbyAssignmentTrainingandDevelopment(1of2)Predeparturecross-culturaltrainingreducesexpatriatefailureratesandincreasesjobperformance.ThemainobjectiveofCross-CulturalTrainingistoincreasetherelationalabilitiesofthefutureexpatriateandthespouseandfamily.Thetrainingrigordependsontheassignment.TrainingRigor:TheextentofeffortbybothtraineesandtrainerstopreparetheexpatriateforworkabroadTrainingandDevelopment(2of2)LowrigortrainingShorttimeperiodConsistsoflecturesandvideosonlocalculturesBriefingsoncompanyoperationsHighrigortrainingLastsoveramonthMoreexperientiallearningExtensivelanguagetrainingIncludesinteractionswithhostcountrynationalsExhibit11.6:

BuildingCross-CulturalTrainingRigor:TechniquesandObjectivesExhibit11.7:

TrainingNeedsand

ExpatriateAssignmentCharacteristics

PerformanceAppraisal

fortheExpatriate

Conductingreliableperformanceappraisalfortheexpatriateisverychallenging.Seldomcanthefirmusesameperformancecriteria.Challenges:FitofinternationaloperationinmultinationalstrategyUnreliabledataComplexandvolatileenvironmentsTimedifferencesanddistanceseparation

StepstoImprovetheExpatriatePerformanceAppraisal

Withoutintensiveanddirectcontact,performanceappraisalscanfailtodemonstrateacomprehensiveunderstandingoftheexpatriatemanager’ssituation.Toovercomethesedifficulties:Fittheevaluationcriteriatothestrategy.Fine-tunetheevaluationcriteria.Usemultiplesourcesofevaluationwithvaryingperiodsofevaluation.Exhibit11.8:

EvaluationSources,Criteria,andTimePeriodsforExpatriateEvaluationExpatriateCompensationCompensationpackagesmustbeattractivetoskilledmanagers,butalsoconsidertheincreasingcosts.Compensationpackageshavemanycommonfactors:LocalmarketcostoflivingHousingTaxesBenefitsTheBalance-SheetApproach

(1of2)Providesacompensationpackagethatattemptstobalancepurchasingpowerinthehostcountrywiththatinthehomecountry.Theexpatriateshouldnotbeinabetterorworsepositionfinanciallybecauseoftheassignment.Thefirmprovidesallowancesforadjustmentsfordifferencesintaxes,costofliving,housing,food,recreation,personalcare,clothing,education,homefurnishing,transportation,andmedicalcare.TheBalance-SheetApproach

(2of2)Inadditiontomatchingpurchasingpower,firmsmayprovideadditionalallowances:Foreignservicepremiums(often10-20%ofbasepay)Hardshipallowance(extramoneyfordifficultpostings)Relocationallowances(miscellaneouscostsofmove)Home-leaveallowances(transportationcoststoreturnhomeonceortwiceperyear)Exhibit11.9:

TheBalanceSheetApproach

ToExpatriateCompensationOtherApproaches

toExpatriateCompensationThehighcostofexpatriatecompensationandthetrendtowardworldwideworkershasresultedinmodificationsofthebalancesheetapproach.Somevariations:Headquarters-basedCompensation:payinghomecountrywagesregardlessoflocationHost-basedCompensation:adjustingwagestolocallifestylesandcostsoflivingGlobalpaysystems:worldwidejobevaluations,performanceappraisalmethods,andsalaryscalesTheRepatriationProblemRepatriationProblem:thedifficultiesthatmangersfacecomingbacktotheirhomecountriesandreconnectingwiththeiroldjobs.Threebasicculturalproblems“reversecultureshocks:”AdaptingtonewworkenvironmentandcultureofhomeofficeRelearningtocommunicatewithothersinhomeandorganizationalculturesAdaptingtotheirbasiclivingenvironmentStrategiesfor

SuccessfulRepatriationThesestrategiesmayhelpfirmstosuccessfullyrepatriatetheirmanagers:Provideastrategicpurposefortherepatriation.Establishateamtoaidtheexpatriate.Provideparentcountryinformationsources.Providetrainingandpreparationforthereturn.InternationalAssignments

forWomen(1of2)Womenininternationalassignmentsarestrikinglyrare.Estimatesarethatwomenrepresentonly12%ofexpatriatemanagers,but45%ofmanagement.Womenfaceaglassceilingathome,andanexpatriateglassceilingworldwide,becauseof2myths:Myth1:Womendonotwishtotakeinternationalassignments.Myth2:Womenwillfailbecauseoftheforeignculture’sprejudicesagainstlocalwomen.InternationalAssignments

forWomen(2of2)Don’tassumethatpeoplefromforeignculturesapplythesamegenderroleexpectationstoforeignworkersthattheydotolocalwomen.Successfulwomenexpatriatesemphasizenationality,notgender.Theissuesthatariseincross-culturalinteractionsdependmoreonhowforeignersreacttothoseofadifferentnationality.InternationalAssignments

forWomen:AdvantagesWomenmayhaveadvantagesinexpatriatepositions:Beinguniquemeansshebecomesmorevisible.Localbusinesspeoplefromtraditionalculturesassumethatsheisthebestpersonforthejob.Womenaremorelikelytoexcelinrelationalskills,amajorfactorinexpatriatesuccess.Localmenspeakateasewithawomanaboutmoretopicsthanmen,leadingtomoreinteraction.InternationalAssignments

forWomen:DisadvantagesWomenalsosufferdisadvantagesworsethanmales:Facetheglassceiling,isolationandloneliness;needtoworkhardertoprovethemselves.Seldomgivenaninternationalassignmentuntillaterintheircareers.NeedtobalanceworkandfamilyresponsibilitiesNeedtoworryaboutaccompanyingspouseWhatCanCompaniesDo

toEnsure

FemaleExpatriateSuccess?Despitethedisadvantagestheyface,opportunitiesforwomenasexpatriatemanagersareexpectedtogrow:Shortageofhigh-qualitymultinationalmanagers.Fewermenarewillingtotaketheassignments.Whatfirmscandotoensurethesuccessofwomen:Providementors,networkingwithotherwomenIdentifyandremovesourcesofbarrierstointernationalassignment.MultinationalStrategy

andIHRM(1of2)MultinationalcompanieshaveseveraloptionsfordevelopingtheappropriateIHRMpoliciesfortheimplementationoftheirmultinationalstrategies.OnewayistoexamineitsIHRMorientation,orphilosophy.IHRMOrientation:Acompany’sbasictacticsandphilosophyforcoordinatingIHRMactivitiesformanagerialandtechnicalworkers.MultinationalStrategy

andIHRM(2of2)TherearefourbasicIHRMorientations:Ethnocentric:AllaspectsofHRMtendtofollowtheparentorganization’shomecountryHRMpractices.Regiocentric&Polycentric:HRMismoreresponsivetothehostcountrydifferencesinHRMpractices.Global:Thefirmassignsitsbestmanagerstointernationalassignments,recruitingworldwide.Exhibit11.10:

IHRMOrientationandPracticesforManagers&TechnicalWorkersEthnocentricIHRMBenefitsBenefits:LittleneedtorecruitqualifiedhostcountrynationalsforhighermanagementGreatercontrolandloyaltyofhomecountrynationalsLittleneedtotrainhomecountrynationalsKeydecisionscentralizedEthnocentricIHRMCostsCosts:MaylimitcareerdevelopmentforhostcountrynationalsHostcountrynationalsmayneveridentifywiththehomecompanyExpatriatemanagersareoftenpoorlytrainedforinternationalassignmentsandmakemistakesRegiocentric&PolycentricIHRMBenefitsBenefits:ReducestrainingexpensesFewerlanguageandadjustmentissuesLessenedhiringandrelocationcostsRegiocentric&PolycentricIHRMCostsCosts:Coordinationproblemswithheadquartersbasedoncultural,language,andloyaltydifferencesLimitedcareer-pathopportunitiesforhostcountryandregionalmanagersLimitedinternationalexperiencesforhomecountrymanagersGlobalIHRMBenefits&CostsBenefitsBiggertalentpoolHighinternationalexpertiseDevelopmentoftransnationalorganizationalculturesCostsDifficultyinimportingmanagerialandtechnicalemployeesAddedexpenseSummaryWhenbasicHRMpracticesareappliedtoacompany’sinternationaloperations,theybecomeIHRM.Chapter11focusedonHRMpracticesforexpatriates.ExpatriatespresentspecialchallengesforMNCs.SuccessfulIHRMisa21stcenturychallenge.GlobalizationallowsMNCstohirefromaworldwidepooloftalent.Itisimportantformultinationalstofindwaystoproperlymanageexpatriatessuccessfully.12HRMintheLocalContext:KnowingWhenandHowtoAdaptLearningObjectives(1of3)HaveabasicunderstandinghowthenationalcontextaffectsHRMpractices.Describehowrecruitmentandselectionpracticesdifferamongnationalcontexts.Identifypossiblehostadaptationsinrecruitmentandselectionpracticesforamultinationalcompany.Explainhowtraininganddevelopmenttechniquesareusedindifferentcountries.LearningObjectives(2of3)Namesourcesofhigh-qualityworkersindifferentnations.Understandhowtrainingmustbeadaptedtohostcountryworkers.Identifyhowperformanceevaluationandcompensationpracticesdifferinvariousnationalcontexts.LearningObjectives(3of3)Discusspossiblehostcountryadaptationsinperformanceevaluationandcompensationpracticesforamultinationalcompany.Understandhowlaborcostsvaryamongnations.Appreciatehowthenationalcontextandhistoricalconditionsaffecttherelationshipbetweenmanagementandlaborindifferentcountries.KeyQuestionsRegardingLocalEmployeesHowcanweidentifytalentedlocalemployees?Howcanweattracttheseemployeestoapplyforjobs?Canweuseourhomecountry’strainingmethodswithlocalemployees?Whattypesofappraisalmethodsarecustomary?Whattypesofrewardsdolocalpeoplevalue?Doanylocallawsaffectstaffing,compensation,andtrainingdecisions?WhyDoNationsDifferinHRM?(1of2)Becauseofthenationalcontext:NationalcultureandsocialinstitutionsinfluencehowmanagersmakedecisionsregardingstrategiesCountriesvarywidelywithregardstosocialinstitutionsandnationalcultureMultinationalsmustselectandimplementpracticesthatmeetnationalcontext.Exhibit12.1:

HowtheNationalContextLeadstoNationalDifferencesinLocalHRMPracticesWhyDoNationsDifferinHRM?(2of2)Becauseoftheresourcepool:allthehumanandphysicalresourcesavailableinacountryIncludesqualityoflabor,availabilityofscientificlaboratories,andsourcesoffuelArisesfrombothfromnaturalandinducedfactorconditionsUniquetoeachcountryKeyFactorsthatInfluence

theResourcePoolThequality,quantity,andaccessibilityofrawmaterialThequantity,quality,andcostofpersonnelavailableThescientific,technical,andmarket-relatedknowledgeavailabletofirmsThecostandamountofcapitalavailabletofirmsforoperationsandexpansionThetype,quality,andcostsofsupportinginstitutionssuchasthesystemsofcommunication,education,andtransportationNationalFactorConditions:NaturalandInducedNaturalFactorConditions:nationalresourcesthatoccurnaturally.E.g.,abundantwatersupplyInduced-FactorConditions:nationalresourcescreatedbyanation.E.g.,superioreducationalsystemCharacteristicsoftheNationalContextThatAffectHRMEducationandtrainingofthelaborpoolLawsandculturalexpectationsofselectionpracticesTypesofjobsfavoredbyapplicantsLawsandculturalexpectationsregardingfairwagesandpromotioncriteriaLawsandtraditionsregardinglaborpracticesRecruitmentThemajorstepsinrecruitmentManagersdeterminethatjobsareavailableEmployersdeterminethetypesofpeopleandskillsthatarenecessaryforthejobEmployersgenerateapoolofapplicantsforthejobExhibit12.2:

StepsintheRecruitingProcessRecruitmentStrategiesWalk-insorunsolicitedapplicationsAdvertisementsplacedinnewspaperorontheInternetCompanyWebsitejobpostingsInternaljobpostingsPublicandprivatepersonnelagenciesPlacementservicesofeducationalinstitutionsCurrentemployeerecommendationsRecruitmentintheU.S.U.S.managers:Tendtoseeonlineorprintadvertisingasoneofthemosteffectiverecruitmentmethods.FearemployeereferralsresultintherecruitmentofpeoplewithsimilarbackgroundsFearthatrecruitmentbypersonalcontactsmayresultinbiasesagainstsomegroups.Openandpublicadvertisementsarethemosteffective,reflectiveofindividualisticU.S.culture.Exhibit12.3:

MostEffectiveRecruitingSourcesforU.S.CompaniesRecruitmentin

CollectivistCountriesWhiletheU.S.favorsopenformsofrecruitment,recruitmentincollectivistsocietiestendstofocusonthein-group,suchasthefamilyandfriendsofcurrentemployees.BackdoorRecruitment:prospectiveemployeesarefriendsorrelativesofthosealreadyemployedManagersarerecruitedfromprestigiousuniversities.RecruitmentAroundtheWorld(1of2)Notonlycompaniesbutindividualshaverecruitmentpreferencesbasedonnationalculture&socialinstitutions.Lookingforjobsthroughpublicvs.privateagencies:Individualsinformercommunistandsocialistsocietiesweremorelikelytorelyonpublicagencies.Individualsinmoreindividualisticsocietiesusedprivateagencies.RecruitmentAroundtheWorld(2of2)Postingadsandrespondingtoads:Bothareverypublicformsofrecruitment.Individualisticsocietiesandegalitarian(low-masculinity)societiesprefersuchforms.Applicantsapplydirectly.IndividualsinSocialistsocietiesandformercommunistcountriesprefertotalktofriends,relativesandotherconnectionstofindajob.Exhibit12.4:

PreferredWaystoLookforaNewJob:Publicvs.PrivateAgencyExhibit12.5:

PreferredWaystoLookforaNewJob:AnsweredAdsvs.AdvertisedExhibit12.6:

PreferredWaystoLookforaNewJob:Applyvs.Friends&FamilySelectionintheU.S.Gatherinformationonacandidate’sjobqualificationsFindamatchbetweenthecandidate’sskillsandthejobrequirements.Thefocusisontheindividual’sachievementsratherthangroupaffiliations.ManyfirmsprohibitNepotism,thehiringofrelatives.Manyalsoprohibitmanagersfromsupervisingfamilymembers.Exhibit12.7:

StepsinU.S.PersonnelSelectionSelectionin

CollectivistCulturesHiringalwaystakesthein-groupintoaccount.Preferenceisgiventohiringrelativesoffirst,theemployer,thenrelativesofemployees.Thisselectionvaluespotentialtrustworthiness,reliability,andloyaltyoverperformance-relatedbackground.Highschoolanduniversitytiesmaysubstituteforfamilymembership.ImplicationsfortheMultinational:RecruitmentandSelectionRecruitmentandselectionofhostcountryworkersrequiresthatmanagersofMNCsunderstandandadapttolocalpractices.Iflocalnormsarenotfollowed,theMNCmaynotgetthebestemployees,andmayoffendculturalnormsorbreakhostcountrylaws.ManyfirmsnowusingElectronicHumanResources(eHR).TrainingandDevelopmentWithinacountry,theneedfortraininganddevelopmentvarieswidelyindustry,technology,etc.,butbroadnationaldifferencesexist.Differencesintraininganddevelopmentaredueto:DifferencesineducationalsystemsEmphasisontrainingplacedbynationalgovernmentsCulturalvaluesregardingotherpersonnelpracticesExhibit12.8:

TrainingSystemsaroundtheWorldExhibit12.9:

Training&Development

inSelectedCountriesTrainingandDevelopment

intheU.S.Companieswithover100employeesinvestmorethan$60billionintrainingcosts.Managementdevelopmentandcomputerskillsarethemostpopular.ThereisgrowingpressureonU.S.businessestosupplementbasiceducationaltraining.Thetransitiontoaservicesectoreconomymeanstheneedforspecializedskillstrainingwillincrease.Exhibit12.10:

SkillsTaughtbyU.S.OrganizationTrainingandVocationalEducationinGermanyAsophisticatedandstandardizednationalsystemprovidestwomajorformsofvocationaleducation:GeneralandspecializedvocationalschoolsandprofessionalandtechnicalcollegesDualsystem:Acombinationofin-houseapprenticeshiptrainingwithpart-timevocational-schooltrainingleadstoaskilledworkercertificate.Withadvancedtraining,onecanachievethestatusofMeister:amastertechnician.TheGermanDualSystemStemsfromcollaborationamongemployers,unions,andthestateCostsaresharedbetweencompaniesandthestate.Employershaveanobligationtoreleaseemployeesfortraining.Producesawell-trainednationallaborforcewithskillsthatarenotcompanyspecificDualSystemunderstressduetoeconomicdownturnExhibit12.11:

Germany’sApprenticeshipProgramunderPressureImplicationsfortheMultinational:TrainingandDevelopmentBeforeoperatinginahostforeigncountry,multinationalmanagersmust:ConsiderthequalityofworkersandmanagersthereExaminethefeasibilityofexportingtrainingtothemAdaptationofmanagement-developmenttodifferentnationalcontextsdependsonintendeduseofhostcountrymanagers.PerformanceAppraisalPerformanceAppraisal:Identifyingpeopletoreward,promote,demote,develop&improve,orterminateNoteveryonecanmoveupthecorporateladder.AssumptioninindividualisticculturesisthatperformanceappraisalsystemsproviderationalandfairsolutionstotheseHRproblems.PerformanceAppraisal

intheU.S.U.S.systemvalueslinksamongindividualrights,dutiesandrewards,andequalopportunity.TheidealU.S.systemisrational,logicalandlegal.Suchsystemshavefourelements:PerformancestandardsPerformancemeasuresPerformancefeedbackHumanresourcedecisionsPerformanceAppraisalAroundtheWorld(1of3)Australia,CanadaandtheUnitedStatesThese3areamongthetopfivecountriesforallperformance-appraisalpurposes.Veryhighonindividualism,withheavyemphasisontheindividualdevelopmentoftheemployeePerformanceappraisalsareseenasthemosteffectivemethodtogaugehowwellanemployeeisdoingandhowtheirperformancecanbeimproved.Exhibit12.12:

Cross-NationalDifferencesinPurposesofPerformanceAppraisalsPerformanceAppraisalAroundtheWorld(2of3)TaiwanandLatinAmericaAlsofigureprominentlyonthelistPossibleeffectsofsocialinstitutionssuchasgovernmentandtradeagreementsMaybeemulatingWestern-basedsystemsbecauseofadesiretosatisfytradeagreementsandothercompetitivenessrequirementsPerformanceAppraisalAroundtheWorld(3of3)InCollectivistSocieties,performanceappraisalsmaynotbeasimportant:Ageandin-groupmembershipsprovidealargecomponentofthepsychologicalcontractwiththeorganization.Humanresourcedecisionstakeintoaccountpersonalbackgroundcharacteristicsmorethanachievement.Managersindirectlysanctionpoorperformance,andoftenavoiddirectperformanceappraisalfeedback.CompensationCompensation:includeswagesandsalaries,incentivessuchasbonuses,andbenefitssuchasretirementcontributions.Therearewidevariationsamongcountriesandorganizationsonhowtocompensateworkers.Acountry’seconomicdevelopment,culturaltraditions,laborunions,andlegalinstitutionsallaffectcompensation.CompensationintheU.S.IntheU.S.,wagesandsalariesdifferbasedontwomajorfactors:External:includeslocalandnationalwagerates,governmentlegislation,andcollectivebargainingInternal:includestheimportanceofthejobtotheorganization,itsaffluenceanditsabilitytopay,andtheemployee’srelativeworthtothebusiness94%offirmsusecomparativewagedatatodeterminecompensation.Compensation