HUMAN RESOURCE MANAGEMENT IN INTERNATIONAL ORGANIZATIONS

Sonja Treven* Received: 08. 09. 2001 Accepted: 15. 11. 2001 Review UDC: 658.3

In the paper, the author first presents various approaches to the management and recruitment of employees in subsidiaries that the company has established in different countries. Then, she turns her attention to the basic functions of international human resource management, among them recruitment and selection of new employees, development and training of employees, assessment of work efficiency, as well as remuneration of employees. As the expatriates are often given special attention by their work organi ations, she concludes the paper with the description of the additional challanges occurring in the management of these employees.

1. INTRODUCTION In Slovenia, wit a pop!lation o" onl# two $illion, we ave a lot o" o%&ani'ation( doin& )!(ine(( (!cce(("!ll#, not onl# in t e do$e(tic )!t al(o in t e inte%national envi%on$ent. *e+, one o" o!% two p a%$ace!tical co$panie(, -%!ctal, w ic p%od!ce( .!ice( "%o$ va%io!( +ind( o" "%!it, SC/, t e %oad con(t%!ction co$pan# and 0!%a, w ic p%od!ce( $en1( and wo$en1( clot e(, a%e (o$e e2a$ple( o" o!% $o(t p%o$inent "i%$(. In t o(e, a( well a( in (i$ila% o%&ani'ation( t at "!nction in t e &lo)al envi%on$ent, t e# can !(e di""e%ent app%oac e( to $ana&in& e$plo#ee(. 3ow t e# "ind e$plo#ee(, pa#, t%ain, and p%o$ote t e$ va%ie( wit c!lt!%e. / e# !(!all# atte$pt to t%eat t ei% e$plo#ee( e4!ita)l#, #et in a c!lt!%all# app%op%iate $anne%.
5

Son.a /%even, 6 D, A((i(tant 6%o"e((o%, Unive%(it# o" 0a%i)o%, Sc ool o" 7cono$ic( and 8!(ine((, Ra'la&ova 20, 2000 0a%i)o%, Slovenia, 6 one: 386 2 2290299, 7:$ail: (on.a.t%even;!ni:$).(i

1<<

Management, Vol. 6, 2

1, 1!2, "". 1##!1$%

S. /%even: 3!$an %e(o!%ce $ana&e$ent in inte%national o%&ani'ation(

= en t e o%&ani'ation (end( it( e$plo#ee( to (o$e ot e% co!nt%#, it ta+e( ove% t e %e(pon(i)ilitie( )e(ide( t e )a(ic "!nction( o" !$an %e(o!%ce $ana&e$ent. -o% e2a$ple, t e "!nction( o" (ta""in&, t%ainin& and develop$ent a%e e(peciall# e$p a(i'ed in t i( o%&ani'ation. / e# do not deal $e%el# wit t e (election o" t e )e(t e$plo#ee( "o% wo%+ in "o%ei&n co!nt%ie( )!t al(o ave to )e awa%e o" t e need( o" t e w ole "a$il# t at will acco$pan# t e e$plo#ee to t e new c!lt!%al envi%on$ent. A lot o" individ!al( ta+in& on inte%national a((i&n$ent( a%e !n(!cce(("!l (ince t ei% (po!ce( o% "a$ilie( can not ad.!(t to t ei% new (!%%o!ndin&(. 3ence, it i( nece((a%# to o%&ani'e t%ainin& in t e "o%ei&n lan&!a&e "o% t e e$plo#ee and i( "a$il# (o$e $ont ( )e"o%e depa%t!%e. 7ve%#t in& nece((a%# "o% t e .o!%ne#, incl!din& vi(a(, ave to )e p%ovided "o% on ti$e. It i( al(o nece((a%# to p%epa%e t ei% %e(idence in t e new (!%%o!ndin&(, a( well a( to a((!%e ealt (e%vice( and en%ol$ent into (c ool( "o% t e c ild%en o" t e e$plo#ee(. 2. A&&ROACHES TO MANAGING AND STA''ING SU(SIDIARIES Co$panie( can appl# one o" t e t %ee di""e%ent app%oac e( to $ana&in& and (ta""in& t ei% (!)(idia%ie( >-%ance(co, ?old, 1998@: 1. 7t nocent%ic. / e o$e co!nt%# p%actice p%evail( wit t i( app%oac . 3ead4!a%te%( "%o$ t e o$e co!nt%# $a+e( +e# deci(ion(, e$plo#ee( "%o$ t e o$e co!nt%# old i$po%tant .o)(, and t e (!)(idia%ie( "ollow t e o$e co!nt%# %e(o!%ce $ana&e$ent p%actice. 2. 6ol#cent%ic. 7ac (!)(idia%# $ana&e( on a local )a(i(. A local e$plo#ee ead( a (!)(idia%# )eca!(e ead4!a%te%(1 $ana&e%( a%e not con(ide%ed to ave ade4!ate local +nowled&e. S!)(idia%ie( !(!all# develop !$an %e(o!%ce $ana&e$ent p%actice( locall#. 3. ?eocent%ic o% &lo)al. / e co$pan# t at applie( t e &lo)al inte&%ated )!(ine(( (t%ate&# $ana&e( and (ta""( e$plo#ee( on a &lo)al )a(i(. -o% e2a$ple, 7lect%ol!2 >t e vac!!$ cleane% co$pan#@ a( "o% $an# #ea%( atte$pted to %ec%!it and develop a &%o!p o" inte%national $ana&e%( "%o$ dive%(e co!nt%ie(. / e(e people con(tit!te a $o)ile )a(e o" $ana&e%( w o a%e !(ed in a va%iet# o" "acilitie( a( t e need a%i(e(. In t e et nocent%ic app%oac , t e c!lt!%al val!e( and )!(ine(( p%actice( o" t e o$e co!nt%# a%e p%edo$inant. 3ead4!a%te%( develop( a $ana&in& and (ta""in& app%oac and con(i(tentl# applie( it t %o!& o!t t e wo%ld. Co$panie( "ollowin& t e et nocent%ic app%oac a((!$e t e o$e co!nt%# app%oac i( )e(t
1<8

Management, Vol. 6, 2

1, 1!2, "". 1##!1$%

S. /%even: 3!$an %e(o!%ce $ana&e$ent in inte%national o%&ani'ation(

and t at e$plo#ee( "%o$ ot e% pa%t( o" t e wo%ld can and ( o!ld "ollow it. 0ana&e%( "%o$ ead4!a%te%( develop p%actice( and old +e# po(ition( in t e (!)(idia%ie( to en(!%e con(i(tenc#.
A)*antage+ *owe% la)o% co(t( De$on(t%ate( t%!(t in local citi'en%# Inc%ea(e( acceptance o" t e co$pan# )# t e local co$$!nit# 0a2i$i'e( t e n!$)e% o" option( availa)le in t e local envi%on$ent *ead( to %eco&nition o" t e co$pan# a( a le&iti$ate pa%ticipant in t e local econo$# 7""ectivel# %ep%e(ent( local con(ide%ation( and con(t%aint( in t e deci(ion:$a+in& p%oce(( D,+a)*antage+ 0a+e( it di""ic!lt to )alance local de$and( and &lo)al p%io%itie( *ead( to po(tpone$ent o" di""ic!lt local deci(ion( !ntil t e# a%e !navoida)le, w en t e# a%e $o%e di""ic!lt, co(tl#, and pain"!l t an t e# wo!ld ave )een i" i$ple$ented ea%lie% 0a# $a+e it di""ic!lt to %ec%!it 4!ali"ied pe%(onnel 0a# %ed!ce t e a$o!nt o" cont%ol e2e%ci(ed )# ead4!a%te%(

!igure ". Advantages and disadvantages of using local employees to staff international subsidiaries #$ome %&ejia, 'alkin, (ardy, "))*+ A)*antage+ C!lt!%al (i$ila%it# wit pa%ent co$pan# en(!%e( t%an("e% o" )!(ine((A$ana&e$ent p%actice( 6e%$it( clo(e% cont%ol and coo%dination o" inte%national (!)(idia%ie( ?ive( e$plo#ee( a $!ltinational o%ientation t %o!& e2pe%ience at pa%ent co$pan# 7(ta)li( e( a pool o" inte%nationall# e2pe%ienced e2ec!tive( D,+a)*antage+ C%eate( p%o)le$( o" adapta)ilit# to "o%ei&n envi%on$ent and c!lt!%e Inc%ea(e( t e B"o%ei&ne((C o" t e (!)(idia%# 0a# involve i& t%an("e% and (ala%# co(t( 0a# %e(!lt in pe%(onal and "a$il# p%o)le$( *ead( to i& "ail!%e %ate 3a( di(incentive e""ect on local: $ana&e$ent $o%ale and $otivation 0a# )e (!).ect to local &ove%n$ent %e(t%iction(

!igure ,. Advantages and disadvantages of using expatriate employees to staff international subsidiaries #$ome %&ejia, 'alkin, (ardy, "))*+ 1<9

Management, Vol. 6, 2

1, 1!2, "". 1##!1$%

S. /%even: 3!$an %e(o!%ce $ana&e$ent in inte%national o%&ani'ation(

/ e pol#cent%ic app%oac i( in di%ect oppo(ition. In t e co$pan# t at applie( t i( app%oac , t e a((!$ption i( t at eac co!nt%# i( di""e%ent "%o$ all t e ot e%( and t at t e (!)(idia%ie( in eac co!nt%# ( o!ld develop locall# app%op%iate p%actice( !nde% t e (!pe%vi(ion o" local $ana&e%(. =it t e &eocent%ic app%oac , o%&ani'ation( t%# to co$)ine t e )e(t "%o$ ead4!a%te%( and t e (!)(idia%ie( to develop con(i(tent wo%ld:wide p%actice(. 0ana&e% (election i( )a(ed on co$petenc# %at e% t an nationalit#. A( -i&!%e( 1 and 2 ( ow, t e%e a%e )ot advanta&e( and di(advanta&e( to !(in& local national( and e2pat%iate( in "o%ei&n (!)(idia%ie(. 0o(t co$panie( !(e e2pat%iate( onl# "o% (!c +e# po(ition( a( (enio% $ana&e%(, i& :level p%o"e((ional(, and tec nical (peciali(t(. Since e2pat%iate( tend to )e ve%# co(tl#, it $a+e( little "inancial (en(e to i%e e2pat%iate( "o% po(ition( t at can )e co$petentl# "illed )# "o%ei&n national(. In addition, $an# co!nt%ie( %e4!i%e t at a ce%tain pe%centa&e o" t e wo%+ "o%ce )e local citi'en(, wit e2ception( !(!all# $ade "o% !ppe% $ana&e$ent. -. MA.OR 'UNCTIONS O' INTERNATIONAL HUMAN RESOURCE MANAGEMENT Inte%national !$an %e(o!%ce $ana&e$ent involve( "ive "!nctional a%ea( we will di(c!(( in detail in t i( (ection: 1. %ec%!it$ent and (election, 2. develop$ent and t%ainin&, 3. pe%"o%$ance eval!ation, 9. %e$!ne%ation and 5. la)o% %elation(. Since e2pat%iate e$plo#ee( a%e o"ten t%eated di""e%entl# t an ot e% e$plo#ee(, t e p%o)le$( a%i(in& wit it will )e p%e(ented in t e ne2t (ection. -.1. Re/01,tment an) +ele/t,on Rec%!it$ent and (election a%e t e p%oce((e( t %o!& w ic an o%&ani'ation ta+e( in new $e$)e%(. Rec%!it$ent involve( att%actin& a pool o" 4!ali"ied applicant( "o% t e po(ition( availa)le. Selection %e4!i%e( c oo(in& "%o$ t i( pool t e candidate w o(e 4!ali"ication( $o(t clo(el# $atc t e .o) %e4!i%e$ent(. In co$panie( t at "!nction in a &lo)al envi%on$ent we ave to di(tin&!i( di""e%ent t#pe( o" e$plo#ee(. /%aditionall#, t e# a%e cla((i"ied a( one o" t e t %ee t#pe(:

180

Management, Vol. 6, 2

1, 1!2, "". 1##!1$%

S. /%even: 3!$an %e(o!%ce $ana&e$ent in inte%national o%&ani'ation(

1. 6a%ent co!nt%# national. / e e$plo#ee1( nationalit# i( t e (a$e a( t e o%&ani'ation1(. -o% e2a$ple, a Slovenian citi'en wo%+in& "o% a Slovenian co$pan# in 0acedonia. 2. 3o(t co!nt%# national. / e e$plo#ee1( nationalit# i( t e (a$e a( t e location o" t e (!)(idia%#. -o% e2a$ple, a 0acedonian citi'en wo%+in& "o% a Slovenian co$pan# in 0acedonia. 3. / i%d co!nt%# national. / e e$plo#ee1( nationalit# i( neit e% t at o" t e o%&ani'ation no% t at o" t e location o" t e (!)(idia%#. -o% e2a$ple, an Al)anian citi'en wo%+in& "o% a Slovenian co$pan# in 0acedonia. Since (ta""in& a( t e "!nction o" inte%national !$an %e(o!%ce $ana&e$ent )eco$e( inc%ea(in&l# $o%e co$ple2, t e(e cla((i"ication( do not cove% all e$plo#ee( >8%i(coe, 1995@. -o% e2a$ple, wit in t e 7!%opean Union, citi'en( o" $e$)e% co!nt%ie( can wo%+ in ot e% $e$)e% co!nt%ie( wit o!t a wo%+ pe%$it. 3ence, ow to cla((i"# a ?e%$an citi'en wo%+in& "o% a -%enc co$pan# in -%ance i( not clea%. 8%ie"l#, cla((i"ication o" e$plo#ee( $i& t (ee$ to !( !ni$po%tant. 3oweve%, (!c $ode o" t in+in& i( not ade4!ate (ince in $an# o%&ani'ation( an e$plo#ee1( cla((i"ication i( tied to %e$!ne%ation, a( well a( )ene"it( and oppo%t!nitie( "o% p%o$otion. In an inte%national o%&ani'ation, t e $ana&in& and (ta""in& app%oac (t%on&l# a""ect( t e t#pe o" e$plo#ee t e co$pan# p%e"e%(. In a co$pan# wit an et nocent%ic app%oac , pa%ent co!nt%# national( !(!all# (ta"" i$po%tant po(ition( at ead4!a%te%( and (!)(idia%ie(. =it a pol#cent%ic app%oac , o(t co!nt%# national( &ene%all# wo%+ in "o%ei&n (!)(idia%ie( w ile pa%ent co!nt%# national( $ana&e ead4!a%te%( po(ition(. An o%&ani'ation wit a &eocent%ic app%oac c oo(e( t e $o(t (!ita)le pe%(on "o% a po(ition, %e&a%dle(( o" t#pe. In it( app%oac to %ec%!it$ent and (election, an o%&ani'ation con(ide%( )ot ead4!a%te%(1 p%actice( and t o(e p%evalent in t e co!nt%ie( o" it( (!)(idia%ie(. *ocal c!lt!%e alwa#( in"l!ence( %ec%!it$ent and (election p%actice(, and in (o$e co!nt%ie(, local law( %e4!i%e a (peci"ic app%oac . -o% e2a$ple, in inte%national $an!"act!%in& and p%oce((in& "acilitie( in 0e2ico, co$panie( %ec%!it wit a (i&n anno!ncin& .o) openin&( o!t(ide t e "acilit# o% )# e$plo#ee( int%od!cin& "a$il# $e$)e%( w o a%e loo+in& "o% .o)(. Anot e% e2a$ple i( 3!n&a%#, w e%e &ove%n$ent atte$pt( to co$)at !ne$plo#$ent ave led to t e %e4!i%e$ent t at an o%&ani'ation $!(t &et pe%$i((ion "%o$ t e 0ini(t%# o" *a)o% )e"o%e i%in& an e2pat%iate.

181

Management, Vol. 6, 2

1, 1!2, "". 1##!1$%

S. /%even: 3!$an %e(o!%ce $ana&e$ent in inte%national o%&ani'ation(

In c oo(in& t e %i& t candidate, a )alance )etween inte%nal co%po%ate con(i(tenc# and (en(itivit# to local la)o% p%actice( i( a &oal. Di""e%ent c!lt!%e( e$p a(i'e di""e%ent att%i)!te( in t e (election p%oce(( dependin& on w et e% t e# !(e ac ieve$ent o% a(c%i)a)le c%ite%ia. = en $a+in& a i%in& deci(ion, people in an ac ieve$ent:o%iented co!nt%# con(ide% (+ill(, +nowled&e, and talent(. Alt o!& Dconnection(E can elp, co$panie( &ene%all# onl# i%e t o(e wit t e %e4!i%ed 4!ali"ication(. In an a(c%i)a)le c!lt!%e, a&e, &ende%, and "a$il# )ac+&%o!nd a%e i$po%tant. An o%&ani'ation (elect( (o$eone w o(e pe%(onal c a%acte%i(tic( "it t e .o). -.2. De*elo"ment an) t0a,n,ng / e ove%all ai$ o" t e develop$ent "!nction i( to p%ovide t at ade4!atel# t%ained pe%(onnel in a co$pan# a%e capa)le to "!l"il t ei% &oal(, a( well a( to cont%i)!te to )ette% pe%"o%$ance and &%owt wit t ei% wo%+ >A%$(t%on&, 1996@. / e develop$ent o" e$plo#ee( can )e t%eated a( a (pecial "ield o" !$an %e(o!%ce $ana&e$ent t at incl!de( planned individ!al lea%nin&, ed!cation, o%&ani'ation develop$ent, ca%ee% develop$ent and t%ainin&. At t e inte%national level, !$an %e(o!%ce develop$ent p%o"e((ional( a%e %e(pon(i)le "o%: 1. t%ainin& and develop$ent o" e$plo#ee( located in (!)(idia%ie( a%o!nd t e wo%ld, 2. (peciali'ed t%ainin& to p%epa%e e2pat%iate( "o% a((i&n$ent( a)%oad, and 3. develop$ent o" a (pecial &%o!p o" &lo)all# $inded $ana&e%(. C%eation and t%an("e% o" inte%national p%o&%a$( $a# )e ca%%ied o!t in two wa#(: 1. cent%ali'ed and 2. decent%ali'ed. !$an %e(o!%ce develop$ent

=it a cent%ali'ed app%oac , t%ainin& o%i&inate( at t e ead4!a%te%( and co%po%ate t%aine%( t%avel to (!)(idia%ie(, o"ten adaptin& to local (it!ation(. / i( "it( t e et nocent%ic $odel. A &eocent%ic app%oac i( al(o cent%ali'ed, )!t t e t%ainin& develop( t %o!& inp!t "%o$ )ot ead4!a%te%( and (!)(idia%ie( (ta"". /%aine%( co!ld )e (ent "%o$ va%io!( po(ition( in eit e% t e ead4!a%te%( o% (!)(idia%ie( to an# ot e% location in t e co$pan#. In a decent%ali'ed app%oac , t%ainin& i( on a local )a(i(, "ollowin& a pol#cent%ic $odel. = en t%ainin& i( decent%ali'ed, t e c!lt!%al )ac+&%o!nd( o" t e t%aine%( and t%ainee( a%e !(!all# (i$ila%. *ocal people develop t%ainin& $ate%ial( and tec ni4!e( "o% !(e in t ei% own a%ea.
182

Management, Vol. 6, 2

1, 1!2, "". 1##!1$%

S. /%even: 3!$an %e(o!%ce $ana&e$ent in inte%national o%&ani'ation(

/o $a2i$i'e t%ainin& e""ectivene((, it i( i$po%tant to con(ide% ow t%ainee( lea%n $o(t e""ectivel#. C!lt!%al "acto%( ave a (t%on& i$pact on t%ainin& p%actice( in di""e%ent pa%t( o" t e wo%ld. -o% e2a$ple, in Fo%t A$e%ica, w e%e powe% di(tance i( ($all, t e %elation( ip )etween t e t%aine% and t%ainee( tend( towa%d e4!alit#. / e t%aine% and t%ainee( !(e "i%(t na$e(, and t e t%ainee( "eel "%ee to c allen&e o% 4!e(tion w at t e t%aine% (a#(. In 0ala#(ia, w e%e powe% di(tance i( la%&e, a t%aine% %eceive( &%eate% %e(pect. St!dent( !(e i( (!%na$e and title, and e i( an e2pe%t t at (t!dent( %a%el# c allen&e. A( &lo)al co$petition inc%ea(e(, it i( inc%ea(in&l# i$po%tant "o% (!cce(("!l co$panie( to ave a &%o!p o" $ana&e%( wit a &lo)al pe%(pective. Co$panie( $!(t identi"# $ana&e%( wit &lo)al potential and p%ovide t e$ wit va%io!( t%ainin& and develop$ent oppo%t!nitie(. -o% e2a$ple, avin& one o% $o%e inte%national a((i&n$ent>(@, wo%+in& on c%o((:national tea$( and p%o.ect(, and lea%nin& ot e% lan&!a&e( and c!lt!%e( cont%i)!te to $a+in& a $ana&e% $o%e &lo)all# $inded. In addition, an o%&ani'ation ( o!ld incl!de not onl# pa%ent co!nt%# national(, )!t al(o o(t co!nt%# national( and t i%d co!nt%# national( in t i( &%o!p >/%even, 2001@. -.-. &e02o0man/e e*al1at,on In co$panie(, t e pe%"o%$ance eval!ation i( $o(t "%e4!entl# ca%%ied o!t "o% ad$ini(t%ation o% develop$ent intention( >Cleveland and ot e%(, 1989@. -o% ad$ini(t%ation p!%po(e(, pe%"o%$ance eval!ation i( called "o% w en t e deci(ion( on wo%+ condition( o" e$plo#ee(, p%o$otion(, %ewa%d( andAo% la#o""( a%e in 4!e(tion. Develop$ent intention o" pe%"o%$ance eval!ation i( o%iented to t e i$p%ove$ent o" t e wo%+ pe%"o%$ance o" e$plo#ee(, a( well a( to t e en ance$ent o" t ei% a)ilitie( on t e &%o!nd o" t e ade4!ate t%ainin& p%o&%a$ and advi(in& e$plo#ee( %e&a%din& )e avio% in t e wo%+ envi%on$ent. In =e(te%n $!ltinational co$panie(, pe%"o%$ance app%ai(al( a%e !(!all# done #ea%l# and !(e a (tanda%i'ed eval!ation "o%$. So$eti$e(, t e o%&ani'ation al(o %e4!i%e( (!pe%vi(ion( to di(c!(( t e %e(!lt( o" t e app%ai(al( wit eac e$plo#ee. 6e%"o%$ance eval!ation i( c allen&in& "o% an# o%&ani'ation. At t e inte%national level, t e co$ple2it# i( &%eate% )eca!(e t e o%&ani'ation $!(t eval!ate e$plo#ee( "%o$ di""e%ent co!nt%ie( wo%+in& in di""e%ent (!)(idia%ie(. / e need "o% con(i(tenc# ac%o(( (!)(idia%ie( "o% pe%"o%$ance co$pa%i(on( con"lict( wit t e need to con(ide% t e c!lt!%al )ac+&%o!nd o" e$plo#ee( to
183

Management, Vol. 6, 2

1, 1!2, "". 1##!1$%

S. /%even: 3!$an %e(o!%ce $ana&e$ent in inte%national o%&ani'ation(

$a+e t e eval!ation $eanin&"!l. -o% e2a$ple, in 0e2ico, an individ!al1( p!)lic i$a&e i( i$po%tant, and p!)lic c%itici($ o" an e$plo#ee $i& t )e .!(ti"ication "o% leavin& a co$pan#. Con(e4!entl#, t e delive%# o" a )alanced pe%"o%$ance %eview, incl!din& )ot (t%en&t ( and wea+ne((e(, %e4!i%e( tact and delicac#. A( wit ot e% "!nction(, t e app%oac to pe%"o%$ance eval!ation depend( on t e o%&ani'ation1( ove%all !$an %e(o!%ce $ana&e$ent (t%ate&#. A co$pan# wit an et nocent%ic app%oac i( li+el# to !(e t e (a$e pe%"o%$ance eval!ation p%oce(( !(ed at t e ead4!a%te%( "o% it( (!)(idia%ie(. So$e co$panie( t%an(late eval!ation "o%$( into local lan&!a&e(, w e%ea( ot e%( !(e t e o%i&inal lan&!a&e eve%#w e%e. A co$pan# wit a pol#cent%ic app%oac develop( local p%oced!%e( wit in eac co!nt%#. -inall#, a co$pan# wit a &eocent%ic app%oac !(e( t e (a$e pe%"o%$ance eval!ation (#(te$ wo%ldwide, )!t it a( !nive%(al applica)ilit#. Developin& a &lo)al (#(te$ i( t e $o(t c allen&in&. -.3. Rem1ne0at,on an) 4ene2,t+ Re$!ne%ation o" e$plo#ee( a( a +e# %ole in ac4!i%in& new e$plo#ee( and i( i$po%tant "o% e$plo#ee( a( well a( "o% t e e$plo#e%(. 6a# i( t e )a(ic %e(o!%ce o" livin& o" t e e$plo#ee(, w ile )ene"it( cove% )ette% ealt ca%e, t e po((i)ilit# o" (pendin& olida#( in t e co$pan#1( olida# "acilitie( at a "avo!%a)le p%ice and al(o ot e% advanta&e(. / e deci(ion( t e e$plo#e%( $a+e conce%nin& %e$!ne%ation a%e a "acto% t at a( an i$pact on t e e2pen(e( o" t ei% co$pan# a( well a( on t e a)ilit# o" (ellin& t e p%od!ct( at a co$petitive p%ice in t e $a%+et >/%even, 1998@. / e deci(ion( a)o!t %e$!ne%ation $a# al(o en ance t e a)ilit# o" t e e$plo#e% to co$pete "o% e$plo#ee( on t e la)o% $a%+et. / e %ewa%d( e wa%%ant( $a+e t e (tandin& pe%(onnel eit e% want to +eep t ei% .o)( o% 4!it. In developin& an inte%national (#(te$ o" co$pen(ation and )ene"it(, an o%&ani'ation a( two p%i$a%# conce%n(. / e "i%(t i( co$pa%a)ilit# >8%i(coe, 1995@. A &ood co$pen(ation (#(te$ a((i&n( (ala%ie( to e$plo#ee( t at a%e inte%nall# co$pa%a)le and co$petitive wit in t e $a%+etplace. -o% e2a$ple, t e (ala%# o" a (enio% $ana&e% i( !(!all# i& e% t an t at o" a (!pe%vi(o%, and eac po(ition ( o!ld %eceive an a$o!nt wit in t e local $a%+et %an&e. / e inte%national o%&ani'ation $!(t al(o con(ide% t e (ala%ie( o" people w o $a# t%an("e% "%o$ ot e% location(. / e (econd $a.o% conce%n i( co(t. G%&ani'ation( (t%ive to $ini$i'e all e2pen(e(, and pa#%oll i( one o" t e la%&e(t. Ren!$e%ation and )ene"it( a%e clo(el# tied to local la)o% $a%+et condition(, even w en an o%&ani'ation ta+e( an et nocent%ic o% &eocent%ic
189

Management, Vol. 6, 2

1, 1!2, "". 1##!1$%

S. /%even: 3!$an %e(o!%ce $ana&e$ent in inte%national o%&ani'ation(

app%oac . / e availa)ilit# o" 4!ali"ied local people to "ill po(ition(, p%evailin& wa&e %ate(, t e !(e o" e2pat%iate(, and local law( inte%act to in"l!ence t e level o" %en!$e%ation and )ene"it(. -o% e2a$ple, i" t e%e a%e "ew applicant( availa)le "o% po(ition(, t e %en!$e%ation "o% t o(e po(ition( &ene%all# inc%ea(e(. /o %ed!ce e2pen(e(, t e inte%national !$an %e(o!%ce( $ana&e% $i& t t en con(ide% )%in&in& in an e2pat%iate. A co$pan# !(!all# develop( a polic#, w ic co!ld appl# &lo)all#, to o""e% (ala%ie( and )ene"it( %ep%e(entin& a (peci"ic $a%+et level. -o% e2a$ple, a la%&e (!cce(("!l $!ltinational co$pan# t at e$p a(i'e( t e 4!alit# o" it( p%od!ct( and e$plo#ee( co!ld ave a &lo)al polic# to pa# t e i& e(t wa&e( eve%#w e%e it ope%ate(. Anot e% co$pan# co!ld o""e% top (ala%ie( in t e co!nt%# w e%e it doe( %e(ea%c and develop$ent, #et pa# ave%a&e wa&e( in t e co!nt%# w e%e it $an!"act!%e(. -.5. La4o0 0elat,on+ / e la)o% %elation( "!nction identi"ie( and de"ine( t e %ole( o" $ana&e$ent and wo%+e%( in t e wo%+place. / e concept o" la)o% %elation( va%ie( &%eatl# in di""e%ent pa%t( o" t e wo%ld. In t e United State(, "o% e2a$ple, la)o% %elation( a%e o"ten a "o%$al %elation( ip, (o$eti$e( anta&oni(tic, )etween la)o% and $ana&e$ent de"ined )# a !nion cont%act. In Hapan, t e %elation( ip )etween $ana&e$ent and !nion( i( coope%ative, and $ana&e$ent o"ten appoint( !nion leade%( >3od&ett(, *!t an(, 1999@. In $an# co!nt%ie(, t e &ove%n$ent %e&!late( la)o% %elation( p%actice(. Con(e4!entl#, in t i( "!nction, $o%e t an ot e% !$an %e(o!%ce( $ana&e$ent "!nction(, an o%&ani'ation $a# ave to )e pol#cent%ic. 3oweve%, even t o!& la)o% %elation( a%e local level i((!e(, it i( &ood co%po%ate (t%ate&# to coo%dinate a la)o% %elation( polic# ac%o(( (!)(idia%ie(. 3. MANAGEMENT O' E6&ATRIATES Gne o" t e $o(t c allen&in& ta(+( "o% an# co$pan# ope%atin& inte%nationall# i( to $ana&e it( e2pat%iate(. / e (tati(tic( ( owin& t ei% e""icienc# on t at $atte% a%e not enco!%a&in&. -o% e2a$ple, t e "ail!%e o" U.S. e2pat%iate( >t e pe%centa&e w o %et!%n p%e$at!%el#, wit o!t co$pletin& t ei% a((i&n$ent@ i( to )e in t e 20 I 90J %an&e. In Hapan, t e "ail!%e %ate i( le(( t an 5J "o% t ei% e2pat%iate(. Gne o" t e %ea(on( "o% t e di""e%ence i( t at Hapane(e e2pat%iate( %eceive "a% $o%e o%ientation and lan&!a&e in(t%!ction t an U.S. e2pat%iate( do.
185

Management, Vol. 6, 2

1, 1!2, "". 1##!1$%

S. /%even: 3!$an %e(o!%ce $ana&e$ent in inte%national o%&ani'ation(

3.1. T7e 0ea+on+ 2o0 e8"at0,ate 2a,l10e In inte%national co$panie(, it i( i$po%tant to !nde%(tand t e %ea(on( )e ind e2pat%iate(1 i& "ail!%e %ate( (o t at p%eventive $ea(!%e( can )e ta+en. Si2 "acto%( acco!nt "o% $o(t "ail!%e(, alt o!& t ei% %elative i$po%tance va%ie( )# "i%$ >?o$e':0e.ia, 8al+in, 198<@. / e(e a%e: ca%ee% )loc+a&e, c!lt!%e ( oc+, lac+ o" c%o((:c!lt!%al t%ainin&, an ove%e$p a(i( on tec nical 4!ali"ication(, a tendenc# to !(e inte%national a((i&n$ent( a( a wa# to &et %id o" p%o)le$ e$plo#ee(, and "a$il# p%o)le$(. 3.2. C0o++!/1lt10al a)91+tment 72pat%iate( and t ei% "a$ilie( need ti$e to )eco$e "a$ilia% wit t ei% new envi%on$ent and to )eco$e co$"o%ta)le livin& t e%e. = en t e# a%%ive, t e newne(( o" t e e2pe%ience i( e2citin&. A "ew $ont ( late%, w en t e# ave ad $o%e e2pe%ience wit t e c!lt!%e, e2pat%iate( $i& t )e&in to "eel "%!(t%ated o% con"!(ed a( t e# t%# to $a+e (en(e o" t ei% new livin& (it!ation. / i( "eelin& i( Dc!lt!%e ( oc+.E A( e2pat%iate( &et co$"o%ta)le and !nde%(tand $o%e a)o!t t e c!lt!%e, !(!all# t %ee to (i2 $ont ( a"te% a%%ival, t e c!lt!%e ( oc+ will wea% o"", and t e# will e2pe%ience a $o%e no%$al "eelin& >Adle%, 199<@. 3.-. E8"at0,ate 0eent0: A"te% t e e2pat%iate co$plete( i( a((i&n$ent and %et!%n( o$e, e $!(t ad.!(t in t e (a$e wa# a( w en &oin& a)%oad. / e wo%+, people, and &ene%al envi%on$ent a%e no lon&e% "a$ilia%. / e e2pat%iate and i( co$pan# a%e !(!all# !np%epa%ed to deal wit t i( (it!ation. / e di(o%ientation e2pe%ienced )# a %et!%nin& e2pat%iate i( +nown a( %eve%(e c!lt!%e ( oc+. / e e2pat%iate &ain( val!a)le in"o%$ation and e2pe%ience "%o$ an inte%national a((i&n$ent, )!t "o% $an# o%&ani'ation( t i( i( lo(t )eca!(e o" t e "ail!%e to $ana&e e2pat%iate %eent%# (!cce(("!ll#. 8# one e(ti$ate, a)o!t 25 J o" %et!%nin& e2pat%iate( leave t e co$pan# wit in a #ea% a"te% %et!%nin& >8lac+, ?%e&e%(en, and 0enden all, 1992@. 3.3. Sele/t,on o2 e8"at0,ate+ / e c oice o" e$plo#ee "o% an inte%national a((i&n$ent i( a c%itical deci(ion. Since $o(t e2pat%iate( wo%+ !nde% $ini$al (!pe%vi(ion in a di(tant
186

Management, Vol. 6, 2

1, 1!2, "". 1##!1$%

S. /%even: 3!$an %e(o!%ce $ana&e$ent in inte%national o%&ani'ation(

location, $i(ta+e( in (election a%e li+el# to &o !nnoticed !ntil it i( too late. /o c oo(e t e )e(t e$plo#ee "o% t e .o), $ana&e$ent ( o!ld: e$p a(i'e c!lt!%al (en(ivit# a( a (election c%ite%ion e(ta)li( a (election )oa%d o" e2pat%iate( %e4!i%ed p%evio!( inte%national e2pe%ience e2plo%e t e po((i)ilit# o" i%in& "o%ei&n:)o%n e$plo#ee( w o can (e%ve a( De2pat%iate(E at a "!t!%e date (c%een candidate(1 (po!(e( and "a$ilie( A (!cce(("!l e2pat%iate $!(t )e a)le to )ot do t e .o) and andle a new c!lt!%al envi%on$ent. 3ence, t e e2pat%iate $!(t do i( .o) co$petentl#, lea%n to live co$"o%ta)l# in a new c!lt!%e, and en(!%e t at i( "a$il# adapt( a( well. 3.5. E8"at0,ate t0a,n,ng A( $entioned ea%lie%, e2pat%iate( a%e $o%e (!cce(("!l w en t ei% o%&ani'ation( t%ain t e$ to p%epa%e "o% t ei% li"e and wo%+ a)%oad. *ac+ o" t%ainin& i( a $a.o% ca!(e o" e2pat%iate "ail!%e. / e $o(t i$po%tant a(pect o" e2pat%iate t%ainin& i( c%o((:c!lt!%al t%ainin& >CC/@. S!c t%ainin& p%epa%e( an e2pat%iate to live and wo%+ in a di""e%ent c!lt!%e )eca!(e copin& wit a new envi%on$ent i( $!c $o%e c allen&in& t an dealin& wit a new .o). A va%iet# o" t%ainin& $et odolo&ie( i( availa)le "o% CC/. In /a)le 1, we o!tline (o$e o" t e pop!la% one( and &ive a )%ie" de(c%iption o" eac .
Table ". (ross%cultural training methods #!rancesco, $old, "))-+ C1lt10al (0,e2,ng+ A0ea (0,e2,ng+ Ca+e+ Role &la:,ng C1lt10e A++,m,lato0 ',el) E8"e0,en/e+ 72plain t e $a.o% a(pect( o" t e o(t co!nt%# c!lt!%e, incl!din& c!(to$(, t%adition(, eve%#da# )e avio%(. 72plain t e i(to%#, &eo&%ap #, econo$#, politic( and ot e% &ene%al in"o%$ation a)o!t t e o(t co!nt%# and %e&ion. 6o%t%a# a %eal li"e (it!ation in )!(ine(( o% pe%(onal li"e to ill!(t%ate (o$e a(pect o" livin& o% wo%+in& in t e o(t c!lt!%e. Allow( t e t%ainee to act o!t a (it!ation t at e o% ( e $i& t "ace in livin& o% wo%+in& in t e o(t co!nt%#. 6%ovide( a w%itten (et o" (it!ation( t at t e t%ainee $i& t enco!nte% in livin& o% wo%+in& in t e o(t co!nt%#. 6%ovide an oppo%t!nit# "o% t e t%ainee to &o to t e o(t 18<

Management, Vol. 6, 2

1, 1!2, "". 1##!1$%

S. /%even: 3!$an %e(o!%ce $ana&e$ent in inte%national o%&ani'ation( co!nt%# o% anot e% !n"a$ilia% c!lt!%e to e2pe%ience livin& and wo%+in& t e%e "o% a ( o%t ti$e.

3.6. E8"at0,ate e*al1at,on an) 0em1ne0at,on / e pe%"o%$ance eval!ation o" e2pat%iate $ana&e%( i( pa%tic!la%l# di""ic!lt. / e .o) a pe%(on doe( a)%oad can incl!de $!c $o%e t an w at e doe( at o$e. A $ana&e% o"ten (tep( into t e %ole o" co!n(elo%, t%aine%, t%o!)le( oote%, o% diplo$at, in addition to i( a((i&ned .o) %e(pon(i)ilitie(. =it t e need "o% adaptin& to a new c!lt!%e, a di""e%ent wa# o" doin& )!(ine((, and o"ten a new lan&!a&e, $an# "acto%( in"l!ence e2pat%iate pe%"o%$ance. An o%&ani'ation1( &ene%al polic# in"l!ence( e2pat%iate %e$!ne%ation. / %ee co$$on app%oac e( a%e: a o$e:)a(ed polic#, a o(t:)a(ed polic# and a %e&ion:)a(ed polic# >Dowlin&, Sc !le%, =elc , 1999@. =it a o$e:)a(ed polic#, e$lo#ee(1 %e$!ne%ation "ollow( t e (cale o" t ei% o$e co!nt%ie(. / e o(t:)a(ed polic# (et( (ala%ie( at t e level o" t e o(t co!nt%#, wit )ene"it( !(!all# tied to t e o$e co!nt%#. -inall#, %e&ion dete%$ine( t e t i%d app%oac . Re$!ne%ation "o% e$plo#ee( wo%+in& o!t(ide t ei% o$e co!nt%ie( %e"lect( w et e% t ei% %elocation i( wit in t ei% o$e %e&ion o% in anot e% %e&ion. =it t i( app%oac , an a((i&n$ent clo(e% to o$e >wit t e %e&ion@ %eceive( %e$!ne%ation at a lowe% %ate t an one "!%t e% awa# >o!t(ide t e %e&ion@. 5. CONCLUSIONS Inte%national !$an %e(o!%ce $ana&e$ent "oc!(e( on t e $ana&e$ent o" !$an %e(o!%ce( on a &lo)al )a(i(. An o%&ani'ation1( (t%ate&# on &lo)ali'ation (t%on&l# a""ect( t e app%oac it ta+e( to inte%national !$an %e(o!%ce $ana&e$ent. / e app%oac to inte%national !$an %e(o!%ce $ana&e$ent in t!%n in"l!ence( t e i$ple$entation o" t e $a.o% inte%national !$an %e(o!%ce $ana&e$ent "!nction( o" %ec%!it$ent and (election, develop$ent and t%ainin&, pe%"o%$ance eval!ation, %e$!ne%ation and )ene"it(, and la)o% %elation(. Co$panie( ta+in& an et nocent%ic app%oac atte$pt to i$po(e t ei% o$e co!nt%# $et od( on t ei% (!)(idia%ie(. / e pol#cent%ic app%oac "ollow( local p%actice(. -inall#, a &eocent%ic o% &lo)al app%oac develop( p%actice( "o% wo%ld: wide !(e.
RE'ERENCES; 1. 2. 188 Adle% F.H., Inte%national Di$en(ion( o" G%&ani'ational 8e avio%, So!t =e(te%n Colle&e 6!)li( in&, 199<. A%$(t%on& 0., 6e%(onnel 0ana&e$ent 6%actice, Ko&an 6a&e, 1996.

Management, Vol. 6, 2

1, 1!2, "". 1##!1$%

S. /%even: 3!$an %e(o!%ce $ana&e$ent in inte%national o%&ani'ation( 3. 8lac+ H.S., ?%e&e%(en 3.8., 0enden all 0.7., /owa%d a / eo%etical -%a$ewo%+ o" Repat%iation Ad.!(t$ent, Ho!%nal o" Inte%national 8!(ine(( St!die(, Fo. 23, 1992, pp. <3< I <60. 9. 8%i(coe D.R., Inte%national 3!$an Re(o!%ce 0ana&e$ent, 6%entice 3all, 1995. 5. Cleveland H.F., 0!%p # K.R., =illia$( R.7., 0!ltiple U(e( o" 6e%"o%$ance App%ai(al(: 6%evalence and Co%%elate(, Ho!%nal o" Applied 6(#c olo&#, Fo. <9, 1989, pp. 130 I 135. 6. Dowlin& 6.H., Sc !le% R.S., =elc D.7., Inte%national Di$en(ion( o" 3!$an Re(o!%ce 0ana&e$ent, 8el$ont, =ad(wo%t , 1999. <. -%ance(co A.0., ?old 8.A., Inte%national G%&ani'ational 8e avio%, 6%entice 3all, 1998. 8. ?o$e' I 0e.ia *. R., 8al+in D. 8., Ca%d# R. *., 0ana&in& 3!$an Re(o!%ce(, 7n&lewood Cli""(, 6%entice 3all, 1995. 9. ?o$e' I 0e.ia *. R., 8al+in D. 8., / e dete%$inant( o" $ana&e%ial (ati("action wit t e e2pat%iation and %epat%iation p%oce((, Ho!%nal o" 0ana&e$ent Develop$ent, Fo. 6, 198<, pp. < I 18. 10. 3od&ett( R.0., *!t an( -., Inte%national 0ana&e$ent, 0c?%aw:3ill, 1999. 11. /%even S., 0ana&e$ent LloveM+i vi%ov, *.!)l.ana, ?o(poda%(+i ve(tni+, 1998. 12. /%even S., 0edna%odno o%&ani'aci.(+o veden.e, *.!)l.ana, ?o(poda%(+i ve(tni+, 2001. U&RAVL.AN.E L.UDS<IM &OTENCI.ALIMA U ME=UNARODNIM ORGANIZACI.AMA Sa>eta? U ovo$ (e %ad! p%vo p%ed(tavl.a.! %a'liLiti p%i(t!pi !p%avl.an.! i %e&%!ti%an.! 'apo(leni ! pod%!Nnica$a +o.e pod!'eOa otva%a.! ! %a'liLiti$ 'e$l.a$a. Pati$ (e opi(!.! te$el.ne "!n+ci.e $eQ!na%odno& !p%avl.an.a l.!d(+i$ potenci.ali$a, t.. %e&%!ti%an.e i (ele+ci.a novi 'apo(leni+a, n.i ovo o)%a'ovan.e i %a'vo., p%oc.ena !Lin+ovito(ti %ada, te i(plata na+nada 'a %ad. 6oMto (e Llanovi$a o%&ani'aci.e na %ad! ! ino'e$ni$ pod%!Nnica$a Le(to o)%aOa po(e)na paNn.a, na +%a.! (e %a(p%avl.a o po(e)ni$ i'a'ovi$a +o.e p%ed(tavl.a !p%avl.an.e ta+vi$ 'apo(lenici$a.

189