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CHAPTER 17 MANAGING GLOBAL HUMAN RESOURCES 599<br />

summarize whatever you can find out about their international<br />

employee selection and training HR policies.<br />

3. Choose three traits useful for selecting international<br />

assignees, and create a straightforward test to screen<br />

candidates for these traits.<br />

4. Use a library or Internet source to determine the relative<br />

cost of living in five countries as of this year, and explain<br />

the implications of such differences for drafting a pay<br />

plan for managers being sent to each country.<br />

5. The HRCI Test Specifications Appendix (pages<br />

633 640) lists the knowledge someone studying for<br />

the HRCI certification exam needs to have in each area of<br />

human resource management (such as in Strategic<br />

Management, Workforce Planning, and Human Resource<br />

Development). In groups of four to five students, do four<br />

things: (1) review that appendix now; (2) identify the<br />

material in this chapter that relates to the required<br />

knowledge the appendix lists; (3) write four multiplechoice<br />

exam questions on this material that you believe<br />

would be suitable for inclusion in the HRCI exam;<br />

and (4) if time permits, have someone from your team<br />

post your team s questions in front of the class, so<br />

the students in other teams can take each others exam<br />

questions.<br />

6. An issue of HR Magazine contained an article titled<br />

Aftershocks of War, which said that soldiers returning<br />

to their jobs from Iraq would likely require HR s<br />

assistance in coping with delayed emotional trauma.<br />

The term delayed emotional trauma refers to the personality<br />

changes such as anger, anxiety, or irritability and<br />

associated problems such as tardiness or absenteeism<br />

that exposure to the traumatic events of war sometimes<br />

triggers in returning veterans. Assume you are the<br />

HR manager for the employer of John Smith, who is<br />

returning to work next week after 1 year in Iraq. Based<br />

on what you read in this chapter, what steps would you<br />

take to help ensure that John s reintegration into your<br />

workforce goes as smoothly as possible?<br />

EXPERIENTIAL EXERCISE<br />

A Taxing Problem for Expatriate Employees<br />

Purpose: The purpose of this exercise is to give you practice<br />

identifying and analyzing some of the factors that influence<br />

expatriates pay.<br />

Required Understanding: You should be thoroughly familiar<br />

with this chapter and with the Web site www.irs.gov.<br />

How to Set Up the Exercise/Instructions:<br />

Divide the class into teams of four or five students. Each team<br />

member should read the following: One of the trickiest aspects<br />

of calculating expatriates pay relates to the question of the<br />

expatriate s U.S. federal income tax liabilities. Go to the Internal<br />

Revenue Service s Web site, www.irs.gov. Scroll down to<br />

Individuals, and go to Overseas Taxpayers. Your team is the<br />

expatriate-employee compensation task force for your company,<br />

and your firm is about to send several managers and<br />

engineers to Japan, England, and Hong Kong. What information<br />

did you find on the site that will help your team formulate<br />

expat tax and compensation policies? Based on that, what are<br />

the three most important things your firm should keep in<br />

mind in formulating a compensation policy for the employees<br />

you re about to send to Japan, England, and Hong Kong?<br />

APPLICATION CASE<br />

BOSS, I THINK WE HAVE A PROBLEM<br />

Central Steel Door Corporation has been in business for<br />

about 20 years, successfully selling a line of steel industrialgrade<br />

doors, as well as the hardware and fittings required for<br />

them. 129 Focusing mostly in the United States and Canada,<br />

the company had gradually increased its presence from the<br />

New York City area, first into New England and then down<br />

the Atlantic Coast, then through the Midwest and West, and<br />

finally into Canada. The company s basic expansion strategy<br />

was always the same: Choose an area, open a distribution<br />

center, hire a regional sales manager, and then let that<br />

regional sales manager help staff the distribution center and<br />

hire local sales reps.<br />

Unfortunately, the company s traditional success in<br />

finding sales help has not extended to its overseas operations.<br />

With the introduction of the new euro European<br />

currency in 2002, Mel Fisher, president of Central Steel<br />

Door, decided to expand his company abroad, into Europe.<br />

However, the expansion has not gone smoothly at all.<br />

He tried for 3 weeks to find a sales manager by advertising<br />

in the International Herald Tribune, which is read by businesspeople<br />

in Europe and by American expatriates living and<br />

working in Europe. Although the ads placed in the Tribune<br />

also ran for about a month on the Tribune s Web site,<br />

Mr. Fisher so far has received only five applications. One<br />

came from a possibly viable candidate, whereas four came<br />

from candidates who Mr. Fisher refers to as lost souls<br />

people who seem to have spent most of their time traveling<br />

aimlessly from country to country, sipping espresso in sidewalk<br />

cafés. When asked what he had done for the last 3 years,<br />

one told Mr. Fisher he d been on a walkabout.<br />

Other aspects of his international HR activities have<br />

been equally problematic. Fisher alienated two of his U.S.<br />

sales managers by sending them to Europe to temporarily<br />

run the European operations, but neglecting to work out a<br />

compensation package that would cover their relatively high<br />

living expenses in Germany and Belgium. One ended up

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