Ch. 15: Factors Affecting HRM in International Markets

Concept and brief description:

There are four main factors that affect human resources in the international market. They are: culture, education, economic systems, and political-legal systems. Organizations that operate in more than one country must recognize that the countries are not identical and differ in terms of many factors.

Emotional hook (provocative question/ claim/real-life problem):

I am currently taking a Japanese language class and I am amazed at the difference in culture between America and Japan. Our teacher teaches us different things about Japan and the differences between Japan and America. Businesses need to be aware of the differences they are facing so they can adapt in order to operate efficiently.

Key points to elicit in discussion:

Culture is by far the most important influence on international HRM. Countries also differ in the degree to which their labor markets include people with education and skills of value to employers. In addition, a country's economic system influences HRM practices in a number of ways. Also, a country's political-legal system STRONGLY impact HRM.

Facilitative questions:

What problems could occur with a company going international?