Staffing in International

context

Submitted to
Yogesh pahuja

Business activities e.g. taxation, international relocation,

expatriate remuneration, performance appraisals, crosscultural training and repatriation.

Increased complexities e.g. currency fluctuations, foreign HR

policies and practices, different labor laws.

Increased involvement in employees personal life e.g.

personal taxation, voter registration, housing, childrens
education, health, recreation and spouse employment.

Complex employee mix cultural, political, religious, ethical,

educational and legal background.

Increased risks e.g. emergency exits for serious illness,

personal security, kidnapping and terrorism.

 The management of human resources in global

corporations.
The management of expatriate employees.

The comparison of human resource management

practices in a variety of different Countries.

High failure rates of expatriation and repatriation

Deployment getting the right mix of skills in the organization regardless

of geographical location

Knowledge and innovation dissemination managing critical knowledge

and speed of information flow

Talent identification and development identify capable people who are

able to function effectively

Barriers to women in IHRM

International ethics

Language (e.g. spoken, written, body language)

1. Recruitment and selection

2. Performance evaluation

3. Compensation and benefits

4. Training and development
5. Labor relations

Also, management of expatriate workers

16-5

 Firms that centralize decision making at headquarters typically

favor home-country managers
Firms that decentralize decision making to the subsidiary level
often employ host country nationals.

Since most companies do not fall at one extreme or the other,

most companies have a combination of both home and host country
managers.

Parent-Country
National (PCN)

Host Country
National (HCN)

Third Country
National (TCN)

HCNs
Less cost
Preference of
host country
govt.
Knowledge of
environment
Language
facility

PCNs
Talent available
within company
Greater control
Company
experience
Experience
provided to
corporate
executive

TCNs
Broader
experience
International
outlook
Multilingualism

HCNs

PCNs

HCN may not be familiar

with the firms corporate
culture.

The
promotional
opportunities of HCNs
are limited

Control & coordinati0n of

HQ may be impeded.
HCNs have limited career
opportunity.
Hiring
HCNs
limits
opportunities for PCNs to
gain foreign experience.
Hiring
HCNs
could
encourage a federation of
national rather than global
units

Adaptation
to
host
country may take a long
time
PCNs may impose an
inappropriate HQ style
Compensation for PCNs
and HCNs may differ

TCNs
Transfers must
consider possible
national
animosities(e.g, India
and Pakistan)
The host government
may resent hiring
TCNs
TCNs may not want
to return to their own
countries after
assignment

Ethnocentric

Regiocentric

Types Of
Internation
al Staffing
Policy

Geocentric

Polycentric

Ethnocentric

All key managerial positions are filled by parent-country

nationals.

Consistent with international strategy

Disadvantage: cultural myopia

The cultural differences & environmental differences will be

huge and expatriates may not be able to cope up with. Thus
resulting in costly management mistakes.

e.g., Procter & Gamble Associate with higher incidence of

IHRM problems

Polycentric

Key positions are filled with HCNs

Host country nationals manage subsidiaries

Consistent with multidomestic strategy

Disadvantage: create a gap between home and host operations

Geocentric or global

Best managers are recruited from within or outside the company

regardless of nationality, TCNs used by European MNCs,
transpatriates, some U.S. companies (Philips, Heinz, Unilever, IBM)
Help build an informal management network
Disadvantage: may be subject to the immigration policies

Regiocentric

Recruiting on a regional basis.

For example, an US based firm could create three regions;
Europe, the Americas, and Asia-pacific.
European staff would be transferred throughout the
European
region (say a Briton to Germany, a French
national to Belgium, and a German to Spain).
Eg:Ford Motor Company.

Disadvantage: produce federalism at a regional rather than

a country basis and constrain the organization from taking a
global stance.

Skills and abilities

necessary to do the
job:
Technical
Managerial
Functional

Skills and abilities

necessary to work in
foreign location:
Adaptability
Location-specific
skills(language etc)
Personal
characteristics

IMPROVED CHANCES OF SUCCEEDING

IN AN INTERNATIONAL JOB
ASSIGNMENT

Today, as businesses globalize, the market for

executive talent is also globalizing.

Top management teams are increasingly diverse in

their members.

While most MNCs do not hire new college graduates

to take foreign positions immediately, many hire
graduates with the intention of sending them abroad in
the future.

Expatriates require cross-cultural abilities that enable

the person to operate in a new environment.

This includes: cultural empathy, adaptability,

diplomacy, language ability, positive attitude,
emotional stability and maturity.

Effectiveness skills are defined as the ability to

successfully translate the managerial or technical
skills into the foreign environment.

Adjustment of the spouse can be positively correlated

with the adjustment of the expatriate manager.

Inclusion of the family members especially spouse

essential in the selection process.

Reluctance of the company to delve in to the private

lives of their employees can become a constraint in
selecting the right couple.

The host country may be an important

determinant.

Some regions and countries are considered

"hardship postings- remote areas away
from major cities or modern facilities, or wartorn regions with high physical risk.

Situational factors have an influence on the selection

decision.
This also affect the selection ratio - that is
PCN:TCN:HCN

Other situational factors are:

The mode of operation involved input from local

partner in selecting staff
The duration of the assignment essential if family is
accompanying the manager
The amount of knowledge transfer inherent in the
expatriates job in the foreign operation the nature of
the job and the essential skills required to do that job.

The ability to speak a second language is an aspect often linked

with cross-cultural ability.

Language skills may be regarded as of critical importance for

some expatriate positions, but lesser in others.

Communication skills rather than specific language skills was an

important selection criteria for the top subsidiary management
position.

Differences in language are recognized as a major barrier to

effective cross cultural communication.

Language problems were largely viewed as mechanical and

manageable problems that could be solved individually.

Another component to language as a situation factor in the

selection decision.

At the international level, human resource

development professionals are responsible for:
1. training and development of employees located in
subsidiaries around the world.
2.

specialized training to prepare expatriates for

assignments abroad, and

3.

development of a special group of globally minded

managers.

Cross cultural training tools.

Cultural
Briefings

Explain the major aspects of the host country culture, including customs,
traditions, everyday behaviours.

Area Briefings

Explain the history, geography, economy, politics and other general

information about the host country and region.

Cases

Portray a real life situation in business or personal life to illustrate some aspect
of living or working in the host culture

Role Playing

Allows the trainee to act out a situation that he or she might face in living or
working in the host country

Culture
Assimilator

Provides a written set of situations that the trainee might encounter in living or
working in the host country

Field
Experiences

Provide an opportunity for the trainee to go to the host country or another

unfamiliar culture to experience living and working there for a short time

Advantages of CCT

People Learn About Themselves.

Encourage Confidence

Break down barriers

Build trust

Motivate

Open horizons

Develop Interpersonal skills

Develop listening skills

People Use Common Ground

Career Development

The selection process in international firms is

particularly important because of the high cost of
expatriate failure.

Expatriate failure is the early return of an

expatriate manager to his or her country because of
an inability to perform in the overseas assignment.

Spouses in 90% of cases come back early .They

faces isolation, loneliness, boredom.

Financial package, cost in foreign country may be

higher. Example's family overseas in Japan may
face such a situation.

Lack of inability to adapt. In host country they

have to face uncertainties ,relate with people with
different values and beliefs. this happens when
no training is given on cultural nuances.

Poor programmers for career support and

repatriation.

Lack of support from HQ.

Inadequate preparation, training and orientation

prior to assignment.

Managers sent on foreign assignments may

experience culture shock, a psychological
phenomenon that may lead to feelings of fear,
helplessness, irritability, and disorientation.

Direct costs:
Airfares
Associated relocation

expenses
Salary and benefits
Training and development

Costs vary according to:

Level of position
Country of
destination
Exchange rates
Whether failed
manager is replaced
by another expatriate

Damaged relationships with key stakeholders in the

foreign location

Negative effects on local staff

Poor labor relations

Negative effects on expatriate concerned

Family relationships may be affected

Loss of market share

Firms are now beginning to pay more attention to

repatriation-bringing a manager back home after a
foreign assignment has been completed.

Individuals that successfully adapted to the foreign

environment may experience culture shock upon
returning to their own country.

Regarding non-cultural issues leading to success or

failure overseas, managers tend to be more successful
in foreign assignments when 5 conditions are met:

They can freely decide whether or not to accept a

foreign assignment
They have a realistic understanding of the new
job and assignment

 They

have a realistic expectation of a

repatriation assignment.

They have a mentor in the parent firm who will

look out for their careers

There is a clear link between the foreign

assignment and the managers long-term career

path.

Compensating expatriate managers can be a complex

process because factors such as differences in
currency valuation, standards of living, lifestyle
norms, and so forth must be taken into consideration.

A cost-of-living allowance may be given to managers to

offset differences in the cost-of-living in the home and
host countries.

A hardship premium (also known as a foreign service

premium) may be paid to mangers who accept
assignments in relatively unattractive locations.

Special benefits packages that may be provided to

expatriate managers include housing, education, medical
treatment, travel to the home country, and club
memberships

REPATRIATION AS A STEP OF CAREER

DEVELOPMENT
Means PNCs, TCNs, or even HCNs finish their overseas
assignment & come back to their home headquarters & which
leads to reverse cultural shock.

Effects

Anxious.
Dissatisfied.
Co-workers may not be interested in hearing his experience.
Repatriates job may not make as much use of internationally
acquired KSAs as it could.

Making Most of repatriates ksas

Serving as trainer or mentor for CCT programs.
Acting as long distance supervisor to other
expatriates.
Join the pool of international managers.

TOPICS COVERED

Other issues in strategic HRM

International performance appraisal.

International compensation.

International labour relations.

The need to manage change

The need to respect local cultures

The need to understand a corporations culture

The need to be flexible

The need to learn

Thank you