What do you call a companys employees who are natives of a country other than those in which the companys headquarters and its subsidiaries are situated quizlet?

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Differences in economic systems also translate into differences in human resource
management policies. For instance, some countries in the Euro zone tend to put more restrictions
on the number of hours an employee can legally work each week. Differences in labor costs are
also substantial. Hourly compensation costs for production workers vary as well. Several
European countries, including the United Kingdom and Germany, require substantial severance
pay to departing employees. The U.S. practice of employment at will does not exist in Europe,
where firing or laying off workers is usually expensive. And in many European countries, work
councils replace the worker-management mediations typical in U.S. firms. Codetermination is
the rule in Germany and several other countries. Unions in Europe are influential, and labormanagement bargaining and relations reflect this fact. In general, four issues characterize
European labor relations: centralization, employer organization, union recognition, and content
and scope of bargaining.

Expatriates (expats) are noncitizens of the countries in which they are working.
Employers often can't find local candidates with the required qualifications. Multinationals also
view a successful stint abroad as a required step in developing top managers. Furthermore, the
assumption is that home-country managers are already steeped in the firm's policies and culture,
and thus more likely to apply headquarters' ways of doing things.
Posting expatriates abroad is expensive, security problems give potential expatriates' pause,
returning expatriates often leave for other employers within a year or two, and educational
facilities are turning out top-quality candidates abroad. Systematizing the entire expatriate
management process is one way to avoid such early returns. For example, employers should have
an expatriate policy covering matters such as compensation and travel costs. Include procedures,
for instance, requiring that the manager responsible for the expat's costs obtain all chain of
command approvals. Another step in avoiding early returns is to test and select people who have
the necessary traits and adaptability (as discussed earlier). And perhaps most importantly
consider the expat's family situation. In one study, U.S. managers listed, in descending order of
importance, reasons for expatriates leaving early: inability of spouse to adjust, managers'
inability to adjust, other family problems, managers' personal or emotional immaturity, and
inability to cope with larger overseas responsibility. Such findings underscore a truism about
selecting international assignees: The problem is usually not incompetence, but family and
personal problems.

Balancing global consistency in compensation with local considerations starts with
establishing a rewards program that makes sense in terms of the employer's strategic aims. Then
the employer turns to more micro issues, such as, is how we're paying our employees abroad
competitive? Steps to follow in creating a global pay system include these:
Step 1. Set strategy. First, formulate longer-term strategic goals, for instance, in terms of
improving productivity or boosting market share.
Step 2. Identify crucial executive behaviors. Next, list the actions you expect your executives
to exhibit in order to achieve these strategic goals.
Step 3. Global philosophy framework. Next, step back and ask how you want each pay
component (salary, bonus, incentives, and so forth) to contribute to prompting those executive
actions.
Step 4. Identify gaps. Next, ask, "To what extent do our pay plans around the world now support
these actions, and what changes if any are required?"
Step 5. Systematize pay systems. Next, create more consistent performance assessment
practices, and establish consistent job requirements and performance expectations for similar
jobs worldwide.
Step 6. Adapt pay policies. Finally, review your global pay policies (for setting salary levels,
incentives, and so forth). Conduct surveys and analyses to assess local pay practices. Then finetune the firm's global pay policies so they make sense for each location.

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