Personnel Psychology and
Human Resource Management
In a global economy with growing competition, flat organizational structures, and share- and stakeholder orientation, there is increasing pressure to perform in all types of organizations. Organizations and their managers need to find new efficient ways of operating and to use technology and resources, especially personnel, to their fullest capacity. Personnel issues generally include staffing and recruitment, training and development, compensation, labor-management relations (unions), and the nature of the labor market. While research on these topics in international or cross-cultural settings has been growing, there are still areas that have been understudied. The majority of the research to date has focused on managers, particularly those who are assigned to overseas positions. As companies expand globally, managers are often sent overseas to manage in joint ventures or subsidiaries, and a large proportion of international joint ventures fail because of problems based on cultural factors (Park, Gowan, and Hwang, 2002).
World-class organizations need a new breed of managers who have the intangible assets of concepts, competence, and connections (Kanter, 1995). Without world-class managers being available within the organization, many multinational companies will not be effective and competitive (Harvey, 1997). Managers who are willing to work as expatriates are major corporate assets (Brett, Stroh, and Reilly, 1993). This chapter will explore personnel selection and some of the issues related to both overseas assignments and the impact of returning home, as well as related human resource issues.