ULUSLARARASI İŞLETME - Deneme Sınavı - 11

Blockchain, which is the technology underlying cryptocurrencies such as bitcoin, is recent digital technology that can be used to create business value. It is a distributed, decentralized public ledger that facilitates the process of recording transactions and tracking tangible assets (e.g. house, land, cash) and intangible assets in a business network.

Dowling, Festing, and Engle (2013) discussed six factors that drive the complexity of IHRM: new HR responsibilities, need for a broader perspective in compensation, greater involvement in personal lives of employees, the mix of foreigners versus locals, greater risk exposure, external influences of the government and national culture.

A 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. (Patel and Budhwar, 2017: 120). If it is difficult for an MNE to articulate, specify, or standardize its core competency, it becomes invaluable to post a home-country manager with direct experience in developing, applying, and protecting that core competency. Firms may pursue this policy because locally qualified people are not always available, especially in developing and newly industrialized countries.

Implementing a geocentric policy successfully requires more centralized control of the staffing process, which has a longer lead time than a short term solution. The subsidiary autonomy is lost, which may be resisted by the subsidiary (Patel and Budhwar, 2017: 122).

Companies use many methods to prepare their employees for an international assignment. These methods tend to reflect an employee’s level of international involvement, of which environmental briefings reflect the lowest and field experience the highest. Field experience means visiting the culture, walking the streets of its cities and villages, and becoming absorbed by it for a short time. This can also be thought of as practical training, which is aimed at helping the expatriate and his/her family ease themselves into daily life in the host country (Hill, 2013). If the family is not included in the training and the international assignment, the alternatives will be a commuter marriage or an expatriate failure which are psychologically and financially expensive options.

A largely overlooked but critically important issue in the training and development of expatriate managers is to help them make the transition back to their home country. This training and development are called repatriation.

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.

Employee compensation is defined as all forms of pay going to employees that arise from their employment. Compensation has two main components: direct financial payments and indirect financial payments. Direct financial payments include wages, salaries, incentives, commissions, and bonuses; whereas indirect financial payments include financial benefits like employer-paid insurance (Dessler, 2017: 346). International compensation is defined as “the provision of monetary and nonmonetary rewards, including base salary, benefits, perquisites, long and short-term incentives, valued by employees based on their relative contributions to MNE performance” (Fenwick, 2004: 308).

With the going-rate approach, the base salary of the international assignee is linked to the salary structure in the host country, and MNEs usually supplement the base pay with additional payments and benefits in case the location is in a low-pay country. The advantages of this approach include equality with local nationals, simplicity, identification with host country and equity among different nationalities. There are also disadvantages of the approach. They include variation between assignments for the same employee, variation between expatriates of the same nationality in different countries, and potential reentry problems

There are also several objectives of international compensation policies of MNEs, which are stated below (Briscoe, Schuler, and Tarique, 2012): Attraction and retention of the bestqualified talent to staff the MNE in all of its locations; attraction and retention of employees who are qualified for international assignments; facilitation of transfers between the various employment locations within the MNE; establishment and maintenance of a consistent and reasonable relationship between the compensation of employees at home and abroad; maintenance of compensation that is reasonable concerning the practices of competitors yet minimizing costs to the extent possible.

According to Dunlop (1958: 16), a national industrial relations system consists of four basic components, 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 .

Ethical sourcing is the process of ensuring that products or services are obtained through responsible and sustainable methods. For example,
ingredients and raw materials that are used in a firm’s products should meet safety standards and source from suppliers who also meet social and environmental standards.

Avoid New Markets

Weaknesses

It refers to how an organization utilizes its resources while achieving its goals.

Igor Ansoff

Businesses change both their product mix and their markets.

Porter (1980), in his pioneering book Competitive Advantage, identifies three generic strategies for businesses. These three strategies are cost leadership, differentiation, and focus.