ULUSLARARASI İŞLETME - Deneme Sınavı - 1

Awareness of cultural differences is essential for international human resources managers. IHRM is usually more complicated than domestic human resources management. In order to understand the complexity of IHRM, we need to understand its three dimensions. As demonstrated in Figure 5.1, the dimensions of IHRM are activity dimension, regional dimension, and employee-group dimension. IHRM consists of different activities (i.e., recruitment and selection, training and development, performance appraisal and compensation, labor relations, leadership) which form the first dimension. The second dimension is related to the regional aspect which includes whether HRM is carried out in the homecountry, host-country, or other countries; and the third dimension is concerned with different employee groups, i.e., whether they are homecountry nationals, host-country nationals, or from other countries (third-country nationals).

IHRM is usually more complicated than domestic human resources management. In order to understand the complexity of IHRM, we need to understand its three dimensions. the dimensions of IHRM are activity dimension, regional dimension, and employee-group dimension. IHRM consists of different activities (i.e., recruitment and selection, training and development, performance appraisal and compensation, labor relations, leadership) which form the first dimension. The second dimension is related to the regional aspect which includes whether HRM is carried out in the home-country, host-country, or other countries; and the third dimension is concerned with different employee groups, i.e., whether they are home-country nationals, host-country nationals, or from other countries (third-country nationals)

Based on these dimensions, Dowling, Festing, and Engle (2013) discussed six factors that drive the complexity of IHRM; these factors are illustrated in Figure below.

According to “Expat Explorer,” the Global Report of the HSBC Company, Turkey ranks 7th among the top destinations for expatriates, the first five of which are Switzerland, Singapore, Canada, Spain, and New Zealand.

An MNE is said to be following an ethnocentric approach when strategic decisions are made at the headquarters; and critical positions in both the domestic and foreign operations of an MNE are filled by personnel from the parent country (PCNs) with no or minimal autonomy delegated to the foreign subsidiaries.

Reverse culture shock is a psychological phenomenon that can lead to feelings of fear, helplessness, irritability, and disorientation.

Performance appraisal is defined as an employee’s current and/or past performance relative to the predetermined performance standards (Dessler, 2017: 274). Performance management is an extension of performance appraisal (Lindholm, 2000: 45), which is “a process that enables the MNE to evaluate and continuously improve individual, subsidiary unit and corporate performance, against clearly defined, pre-set goals and targets” (Dowling, Festing, and Engle, 2013: 151). In a similar vein, international performance management is defined as, “a designed, implemented and evaluated intervention of an MNE for the purpose of managing the performance of its global workforce so that performance at the individual, team, or organizational level contributes to the attainment of strategic global objectives and results in overall MNE desired performance” (Briscoe et al., 2012: 344). The essential components of international performance management include job analysis, goals which are defined at the individual, subsidiary, and global levels, and performance appraisal (Dowling and Welch, 2004). Based on job analysis, employees’ job goals and standards are defined, and their performance related to these goals is assessed. Goals at individual level lead to the achievement of subsidiary goals which is linked to the goals of a multinational organization.

The criteria for performance appraisal are identified by Gregersen, Hite, and Black (1996) as, objective criteria, subjective criteria, and contextual criteria. Objective criteria (also defined as hard criteria) are about the quantifiable factors which can be directly measured based on tangible outcomes, such as market share, total revenues, and return on investment.

Industrial relations cover all aspects of employment relationships with particular attention to labor and management relations (Katz, 1988). Industrial relations is a broad concept encompassing many relations regarding the workplace. Kaufman (2008) classifies industrial relations under two distinct paradigms; the Original Paradigm and the Modern Paradigm. The Original Paradigm focuses on employment relations, and the Modern Paradigm focuses on unions and labor management relations. According to Dunlop (1958: 16), a national industrial relations system consists of four basic components (Figure 5.6), which are actors or parties (employees, employers, government), rules (both substantive and procedural resulting from mutual cooperation and oppositions between actors), an ideology (which binds separate actors one another), and the environmental context (as cited by Rahim, 2011: 66).