Which of the following is considered important when developing a more effective global hr system?

Cultural factors
Countries vary in terms of culture, having basic values and attitudes that are exhibited in their arts, social programs, politics, law, and business ventures. Punctuality, the practice of shaking hands, and the approach to a job are only a few of the many culture-related matters that HR professionals must be aware of.

Economic systems
Most U.S. organizations operate in a capitalistic system; however, their overseas functions may find themselves in unfamiliar circumstances. Labor-related issues such as compensation and benefits may differ significantly in foreign countries.

Legal and industrial relations
Although we have a long association with the concept of "employment at will" in the U.S., few foreign countries practice this approach. In contrast, employee-elected groups in Europe frequently discuss and define key employment policies, such as those related to layoffs.

New partnerships and conditions
The emergence of the European Union (EU) creates new challenges for marketing goods and services throughout the partner countries. The problems may range from the currency exchange system to the detailed employment policies and regulations developed by the EU.

The four factors that challenge international business can complicate the HR practices developed primarily to serve the U.S. workforce. Values, attitudes, local work customs, unions and worker councils, and laws are some of the issues to consider in the following key HR practices:

1) Personnel Selection Procedures
The criteria and method for selecting an individual for a position may vary across countries. For example, China uses "employee tests." Japan emphasizes a person's ability to get along well with others.

2) Performance Appraisals
Each country uses unique criteria to assess employees. For example, Taiwan and Australia emphasize approaches that "document an employee's performance" and Japan and Mexico favor behaviors that "recognize subordinates."

3) Training and Development Practices
Although most countries rank technical skills improvement as important, the expenditure and the time allocated for training vary widely. For example, Asian countries allocate only 26 hours for training a year and Europe allows a total of 45 hours a year.

4) Use of Pay Incentives
In the United States, there is a relatively strong emphasis on paying for improved or high performance, but it has only a moderate role in the overall pay package in other countries. However, China, Japan, and Taiwan lay emphasis on incentives.

Training Global Employees

Although there is consensus that employees should be trained, less than half of the U.S. companies surveyed recently indicated they had training programs. Some companies, however, not only train the manager or employee but also the spouse. Training specialists tend to argue that the following should be included in an instructional program for personnel scheduled for overseas assignments:

- The impact of cultural differences on business outcomes
- The way attitudes, both negative and positive, are formed and the way they influence behavior
- Factual knowledge about the target country
- Language, adjustment, and adaptation skills

Training Trends

Other trends in training global staff include:

- Setting up management development centers around the world where executives hone their skills
- Conducting classroom programs, which provide overseas executives with educational opportunities, similar to stateside programs
- Providing continuous in-country, cross-cultural training
- Using returning managers as resources to cultivate the "global mindset" of the home-office staff
- Using software and the Internet for cross-cultural training