Effective Human Resource Management

The GLOBE research team analyzed data on nine cultural dimensions across 62 countries. Some later research by one of the GLOBE team members found 10 cultural clusters: South Asia, Anglo, Arab, Germanic Europe, Latin Europe, Eastern Europe, Confucian Asia, Latin America, Sub-Saharan Africa, and Nordic Europe.

Knowing which countries are culturally similar (i.e., in the same cluster) is helpful to MNC managers since it is less risky and more profitable to expand into similar cultures rather than those that are drastically different. Besides, having learned a successful management style in one country, managers can readily use it in another country that belongs to the same cluster.

Answer: Effective human resource management of a firm's global cadre does not end with the overseas assignment. It ends with the successful repatriation of the executive back to the company headquarters, and the integration of that executive into the company's global management cadre. The development of this global management cadre is a central component of successful human resource management. When an executive returns from an overseas assignment, that executive becomes part of the mechanism to develop other managers with international experience. In order for this to occur, the returning executive must be successfully reintegrated into the organization, and his or her skills must be made available to other managers contemplating international assignments. Also, that manager's career should not be adversely affected by the overseas assignment. The overall goal is to have this experienced manager serve as a leader in developing the global management cadre over a period of time in the organization. A successful repatriation program, then, starts before the assignment. The company's top management must set up a culture that conveys the message that the organization regards international assignments as an integral part of continuing career development and advancement, and that it values the skills of the returnees. The company's objectives should be reflected in its long range plans, commitment, and compensation on behalf of the expatriate.