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1. Discuss at least two HR activities in which a multinational firm must engage that would not be required in a domestic environment.

   A multinational firm will be required to deal with more human resources activities than when it operates within a domestic environment. It has to deal within taxation issues regarding its employees, there will be activities of relocating and orientation of employees brought from the host country, it will be forced to deal with an extra load of expatriate administrative services, forging new relations with the host government, and in some instances, the human resources may be required to seek translation services.

   The human resources department in a multinational firm will be more involvedt in an employee’s personal lives than one that is domestic. This involvement will include duties such as organizing healthcare services, housing arrangements, increased compensation (cost-of-living allowances, taxes, and premiums), seeking schools for the employees’ children and organizing visa requirements for employees.Discuss two variables that moderate differences between domestic and international HR practices.

    

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   Attitudes of senior management: If a member of senior management within an organization lack international orientation, the greater importance of international operations may not be fully emphasized when it comes to achieving goals and objectives. In such situations, these managers may only focus on domestic environment minimizing on the differences existing between international and domestic environment. The managers may assume that the human resource practices are the same be it in domestic or international environment.

   The Cultural environment: the assumption that what works at home can work anywhere else is a dangerous attitude which may lead to business failure. It is therefore, very crucial for human resource managers to recognize the differences in cultural practices between countries for any organization to run smoothly. Activities such as rewarding, hiring, dismissal and promoting will be determined by the cultural practices of the host country.

   What are the stages a firm typically goes through as it grows internationally and how does each stage affect the HR function?

   International relations: As a firm grows internationally, it will be vital for it to forge new relationships with the host countries. This means that the human resources have to select envoys that will represent the firm in negotiations and portray the firm’s image in the best way possible.

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   Staffing: as the firm grows, it will require more members of staff, and this is the sole duty of the human resource to seek qualified personnel who fill the emerging positions. Many host countries demand that a certain percentage of the workforce involved has to come from that country. This may force the human resource to either outsource the services or contract an agent to do the hiring for them.

   Registration: as the firm expands and goes international, it has to deal with issues of immigration procedures for its members of staff who may be going to the host country. This is solely the duty of human resources.

   Country of origin influences the firm's approach to organization structure. As MNEs from China and India internationalize, to what extent are they likely to differ from that observed for Japanese, European and U.S. MNEs?

   China and India MNEs are inferior in technological and organizational structures when operating outside the comfort of their countries but superior in host specific knowledge like marketing tactics and environmental familiarity unlike Japan, European and U.S MNEs. This means the rate of their expansion might be slower compared to these other three countries.

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   Discuss at least two HR activities in which a multinational firm must engage that would not be required in a domestic environment.

   A multinational firm will be required to deal with more human resources activities than when it operates within a domestic environment. It has to deal within taxation issues regarding its employees, there will be activities of relocating and orientation of employees brought from the host country, it will be forced to deal with an extra load of expatriate administrative services, forging new relations with the host government, and in some instances, the human resources may be required to seek translation services.

   The human resources department in a multinational firm will be more involvedt in an employee’s personal lives than one that is domestic. This involvement will include duties such as organizing healthcare services, housing arrangements, increased compensation (cost-of-living allowances, taxes, and premiums), seeking schools for the employees’ children and organizing visa requirements for employees.

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   Discuss two variables that moderate differences between domestic and international HR practices.

Attitudes of senior management: If a member of senior management within an organization lack international orientation, the greater importance of international operations may not be fully emphasized when it comes to achieving goals and objectives. In such situations, these managers may only focus on domestic environment minimizing on the differences existing between international and domestic environment. The managers may assume that the human resource practices are the same be it in domestic or international environment.

The Cultural environment: the assumption that what works at home can work anywhere else is a dangerous attitude which may lead to business failure. It is therefore, very crucial for human resource managers to recognize the differences in cultural practices between countries for any organization to run smoothly. Activities such as rewarding, hiring, dismissal and promoting will be determined by the cultural practices of the host country.

What are the stages a firm typically goes through as it grows internationally and how does each stage affect the HR function?

International relations: As a firm grows internationally, it will be vital for it to forge new relationships with the host countries. This means that the human resources have to select envoys that will represent the firm in negotiations and portray the firm’s image in the best way possible.

Staffing: as the firm grows, it will require more members of staff, and this is the sole duty of the human resource to seek qualified personnel who fill the emerging positions. Many host countries demand that a certain percentage of the workforce involved has to come from that country. This may force the human resource to either outsource the services or contract an agent to do the hiring for them.

Registration: as the firm expands and goes international, it has to deal with issues of immigration procedures for its members of staff who may be going to the host country. This is solely the duty of human resources.

Country of origin influences the firm's approach to organization structure. As MNEs from China and India internationalize, to what extent are they likely to differ from that observed for Japanese, European and U.S. MNEs?

China and India MNEs are inferior in technological and organizational structures when operating outside the comfort of their countries but superior in host specific knowledge like marketing tactics and environmental familiarity unlike Japan, European and U.S MNEs. This means the rate of their expansion might be slower compared to these other three countries.