Title: Homework P20-3, 4, 5 for International human resource management Page number: 3 1, Discuss two HR activities in which a multinational firm must engage that would not be required in a domestic environment. (1) More HR activities To operate in an international environment, a human resource department must engage in a number of activities that would not be necessary in a domestic environment: international taxation; international relocation and orientation; administrative services for expatriates; host government relations; and language translation services. 2) Risk exposure The direct costs (salary, training costs and travel and relocation expenses) of failure to the parent firm may be as high as three times the domestic salary plus relocation expenses, depending on currency exchange rates and location assignments. Another aspect of rick exposure that is relevant to IHRM is terrorism. 2, why is a greater degree of involvement in employee’s personal lives inevitable in many international HRM activities?
A greater degree of involvement in employees’ personal lives is necessary for the selection, training and effective management of both PCN and TCN employees. In the international HR department must be much more involved in order to provide the level of support required and will need to know more about the employee’s personal life. The HR department or HR professional needs to ensure that the expatriate employee understands housing arrangements, health care, and all aspects of the compensation package provided for the assignment(cost-of- living allowances, premiums, taxes and so on). , Discuss at least two of the variables that moderate differences between domestic and international HR practices. (1) Attitudes of senior management to international operations. It is likely that if senior management does not have a strong international orientation, the importance of international operations may be underemphasized in terms of corporate goals and objectives. In such situations, managers may tend to focus on domestic issues and minimize differences between international and domestic environments. 2)The cultural environment The cultural environment is an important variable that moderates differences between domestic and international HRM. The new environment requires many adjustments in a relatively short period of time, challenging people’s frames of reference to such an extent that sense of self, especially in terms of nationality, comes into question. People , in effect, experience a shock reaction to new cultural experiences that cause psychological disorientation because they misunderstand or do not recognize important cues.