This chapter has discussed the critical issues faced by organizations that conduct international business. Global human resource management is an important component of an organization's success in a global marketplace. For an organization to become a successful international enterprise, it must be sure that its HRM policies can accommodate a culturally diverse workforce. As students learn more about HRM, including selection, training, appraisal, and compensation, they should become capable of adapting and then applying principles of domestic HRM to an international organization.

1. International business continues to grow at a remarkable rate. In the coming years, a majority of corporations will have internationalized to one degree or another.
2. Any attempt to become an international organization must include a systematic evaluation of how HRM will adapt to the diverse cultural backgrounds of employees.
3. There are three sources of employees for an international organization:
   1. Parent country nationals (PCNs).
   2. Host country nationals (HCNs).
   3. Third country nationals (TCNs).
4. An ethnocentric corporation tends to view its HRM policies as the best method for dealing with employees and therefore relies on PCNs to fill key managerial and technical positions in its overseas operations.
5. In contrast, a geocentric corporation ignores national boundaries in favor of managerial expertise when filling key positions in the organization.
6. Currently, failure rates among expatriate managers are very high in many American corporations.
   The major reasons for the high failure rates are
   1. Selection processes that focus too much on technical skills and too little on cultural factors.
   2. Lack of systematic training for the overseas assignments.
   3. Too little involvement of family members in the selection decision.
   4. Lack of clear expectations about the role of the overseas assignment in the manager's career plans.
7. Family adjustment plays a critical role in an expatriate manager's success overseas.
8. The cost of keeping an expatriate manager on an overseas assignment can be as much as three times the cost of maintaining that same manager on a domestic assignment.
9. An important part of an expatriate manager's training should be an overview of the legal and ethical issues that are likely to be encountered on the overseas assignment.
10. Labor unions have begun to form international organizations to negotiate with the growing number of multinational and global corporations. To date, these international unions have met with only limited success.