Managing a Global Workforce
6
Hofstede Dimensions
Power distance individualism masculinity uncertainty orientation indulgence
3
Employee Types
PCN HCN TCN
4
IHRM Approaches
Ethnocentric polycentric geocentric regiocentric
Hofstede's Cultural Dimensions
six dimensions, each a spectrumPower Distance
How much inequality in authority is accepted
Individualism
Individual achievement vs group loyalty
Masculinity
Competition and achievement vs cooperation and caring
Uncertainty Avoidance
Tolerance for ambiguity and unstructured situations
Long-Term Orientation
Focus on future rewards vs short-term results
Indulgence
Free gratification of desires vs strict social norms
International Employee Types
PCN
Parent-Country National
Employee from the headquarters country sent to work abroad
HCN
Host-Country National
Local employee hired in the country where the subsidiary operates
TCN
Third-Country National
Employee from neither the parent nor the host country
The Repatriation Problem
Repatriation is the MOST frequently cited challenge. Up to 25% of repatriates leave within one year.
- No clear role or career path upon return
- Skills gained abroad are undervalued by the home office
- Reverse culture shock and social readjustment
- Loss of international perks (housing allowance, hardship pay)
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Balance Sheet Is the Most Common Expat Compensation
The balance sheet approach keeps expatriates financially whole by ensuring their purchasing power stays equivalent to what it would be in the home country. If a question asks about the most common method, this is it.
Repatriation Is the Biggest Challenge
Most organizations focus on sending employees abroad but neglect bringing them home. Repatriates often return to no defined role, feel their international experience is undervalued, and leave within a year.
25% Leave Within One Year
Up to one in four repatriates leave the organization within 12 months of returning. This statistic appears frequently in exam questions about the cost of failed expatriate assignments.
Repatriation Is Hardest
Coming home is more difficult than going abroad. The role is unclear, the experience feels wasted, and 25% leave within a year.
Balance Sheet
The balance sheet keeps expats whole. It equalizes cost of living, housing, taxes, and goods so the employee is not penalized for relocating.
The school picks a student to study abroad. They look at adaptability, language skills, family situation, and technical competence. Picking the wrong student means an expensive failure.
Before the student leaves, they take a culture class. They learn the customs, communication norms, and expectations of the host country. Skipping this step leads to culture shock.
The student is in the host country. They need ongoing support, mentoring, and a point of contact back home. Isolation leads to early return.
The student returns and nobody asks about the experience. Their old friend group moved on. Their old seat is taken. This is why repatriation fails. It is the most overlooked phase.
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