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5Global Human Resource Planning
Human resource planning provides the essential linkbetween MNC strategy and people. involves:
- scanning the environment foropportunities and threats- taking an inventory and assessmentof the organizations current human resources- developingpolicies, plans, programs, and activities that provide the human talent to
help carry out and achieve strategic plans
- consideration about the nature of thepresent and future work demandand potentially
viable sources of labour supply
it should be responsive to both theshort-term and long-term needs and plans of the
organization and its worldwide operations
From Strategy to Decisions about Work Demand and Labour Supply
WHAT kind of human work and tasks need to be carried out
- part of the WORK DEMAND
- decisions about work organization and design
o specific coordinated and integrated tasks, responsibilities and jobs for people to
perform
WHO will do this work- SUPPLY of appropriate human resources
External Environmental Scanning
Major overarching currenttrends, influences, and developments:- globalization
- contingent work arrangements
- technological advancements
- changing demographics
- national cultureOtherimportant challenges to be assessed:
- labour market conditions and characteristics
- opportunities and restrictions presented by foreign governments or other organizations
o labour interests
o global competition
o cross-national cooperation and conflict
o impact of broad economic forces and market changes on labour supply cost-
effectiveness
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Labour Market Conditions and Characteristics
Outsourcing of manufacturing operations to countries such as China, Vietnam, Romania,
Malaysia, India, Brazil, Portugal, Mexico, and Thailand (= attractive labour markets)
- labour supply is plentiful- adequate skill level
- relatively inexpensive
India and CEE comparative advantage through technical skills and low-cost labour forces
increased demand for low-cost labour force eventually drives up the cost of labour for the
MNC
Governments and other Labor Interest Organizations
In order to prevent offshoring/outsourcing labor governments- remove tax incentives for offshore outsourcing- impede or completelyprohibitcertain kinds of work from being sourced to other
countries
o those related to key industries and national security
Host countries can:
- require that MNCs staff their local operations with targeted levels of host country
surpervisors and managers (with appropriate training)
o for optimal FDIspilloverof knowledge and skills
- placejoint venture requirements to encourage sharing of expertise- provide attractive incentives
o tax breakso exemptions from certain costly labour regulations
- require significant company payments to address the social costs of employee job
displacement (when the MNC determines to close operations)
Local labor unions, international and local NGOs can:
- place greatpressure to improve HR policies and practices related to
o labor standards
o job security
o equal opportunity
o compensation and benefits
o
skill development
Global Competition
Companies compete both at home and abroad:
- to attract and retain customers- for the human talentitself
To succeed in the increasingly competitive global arena - ability to attract and deploy:
- a motivated
- innovative- team-oriented
- cooperative
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- responsive
- flexible
- competent workforce at all levels
Critical functions of HR planning
- to continuouslyo watch the competition
o scan the environmentfor the best practices in employee recruiting, selection,
placement, work design, training and development, compensation, change and
performance management, and other HR management practices
Cross-national cooperation and conflict
Several different regional and multinational trade treaties and agreements- Organization for Economic Cooperation and Development
- The North American Free Trade Agreement
- The Association of South East Asian Nations
- European Union
Important HR planning implications of these agreements:
- joint venture formation- appropriate staffingto promote treaty country partnerships
- standardization and harmonization of acceptable HR practices
- formation andstaffing of regional headquarters and HR functions- movement of workforce operations across participating national borders to take
advantage of operational efficiencies- appropriate cross-cultural awareness skill development
- awareness about important current and changing guidelines
Other obstacles:
- conflicts between countries
o including localized and global terrorism
- ongoing trade wars and skirmishes between countries
- internal country instability and violence
o guerrilla, civil warfare and coup dtat
o social and political unrest
demand for extra surveillance, security and protective services
Job Design for meeting Global Strategy Work Demand
Job analysis process- basis upon which key employment decisions related to recruitment, selection, training,
performance appraisal, and compensation are made
- major methods :
o incumbent employee observation
o
interviewso questionnaires
o keeping a diary or log
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o expert input by experienced managers or other professionals
- results in:
o job description
listing duties, responsibilities, working conditions, supervision or
reporting arrangements, knowledge and skills required
- should be reviewed, discussed and revised regularly
Primary Factors influencing Global Work Design
Several potentially critical factors must be considered in the design of work:- cultural adaptation considerations
- regulatory influence on work design
- labor market skill levels
- available technology and infrastructure
- personal accommodation needs
Cultural Adaptation Considerations in Work Design high vs. low power distance
individualism vs. collectivism
Regulatory Influence on Work DesignDifferent governments specific restrictions about how work is organized and carried out
- employee safety
- working time and availability of overtime
- work organization for breaks for rest, prayer time
- business hours
Labor Market Skill LevelsHigh levelof knowledge and skills
- jobs with higher levels of complexity and technology
- more tasks
less educatedlabor force
- fewer tasks involved for each job
- greater number of workers might be required
Available Technology and Infrastructure- Availability and development of technology in the local area of business operations
- Surrounding infrastructure supporting business
a) technology is unavailable
o need for more employees to handle many simplified tasks
Personal Accomodation NeedsUnique circumstances of individual employees
- long commutes
- longer, but fewer work days
- telework design
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Alternative Forms of International Work Arrangements- extensive travel
- short-term foreign assignments- expatriate assignments
- inpatriate assignments
- virtual expatriate assignments
- multinational virtual teams
Extensive Travel- almost constant travelto various business locations
o regular and frequent customer contact
o active coordination of various geographically dispersed business partners
o ongoing supervision that cannot be replaced completely by virtual contacts
- can be part of :
o early and developing phase of business development
o regional assignment
Short Term Foreign Assignments (secondments)Duration: From afew months to a year
- are on the rise with increasing priorities for cost saving and localization of talent
- can provide an interesting break, challenge and professional development opportunity
Expatriate AssignmentsDurations: 3 years or longer
- need to fill a critical skills gap by transferring operating knowledge and techniquesand general management skills to the distant subsidiary
- allowing the MNC to more directly provide coordination and control- knowledge transfer
o cognitive domain concrete knowledge about procedures, techniques, and
methods for accomplishing tasks
o emotional intelligence or affective domain productive attitudes and values,
higher-level thinking, team building, and problem-solving skils
major purposes:- filling a critical skills gap with accompanying knowledge/ skill transferfor optimal
MNC control
- supporting individual learningandglobal competency developmentfor future
company leadership
- organization developmentof the host operation and MNC as a whole
Vladimir Puck
- demand-driven foreign site work
- learning-driven international assignments
Gary Oddou- 2 types of expatriates
o Those assigned to go abroad to fix a problem
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o Those identified as high potentials for the firm who are assigned abroad to
build global business competencies
Particularpurposes of organizational development served by expatriate assignments:
- effecting global workforcesocialization to common values and priorities- widespread global orientation and core competency development- development ofinformal networks- organizational learning- effectiveglobal knowledge management
D isadvantages
- expatriate assignments can be very expensive
o maintenance costs of expatriates in a host country range from three to ten times
the cost of domestic employees with similar responsibilities
- frequency of premature terminations of expatriate assignments offailure to achieve
the assignment goals- over-reliance on the use of expatriates for management and leadership responsibilities
in foreign operations can lead to limited developmentof other members of the MNCworkforce not coming from MNC headquarters overall underutilized andunderdeveloped global talent pool
- strict and exclusive use of expatriates for managing foreign operations can
significantly diminish the breadth of experience-based perspectives about foreign
markets that can be returned back to MNC headquarters
o limiting the MNCs ability to innovate and compete on a global scale
Inpatriate Assignments= a work assignment featuring the transfer of foreign managers from their host countryoperation locations to global or regional headquarters on a semipermanent or permanent basis
Major purpose:
- increase the foreign inpatriate managers understandingof company strategy, culture,
and critical operations and practices
- upon return this manager can exertgreater controlon the foreign operation
consistent with MNC headquarters
- knowledge transfer(with perhaps greater credibility as someone originating form the
host country workforce)
- enrich the MNC management team by adding a multicultural perspective to globalstrategy development
limitations and costs
- challenges of cross-cultural adjustment- premature assignment terminations- assignmentfailure to meet goals and objectives
Virtual Expatriate Assignments= assignments that combine short travel trips with virtual interaction through telephone and
cyberspace (e-mail, video teleconferencing, the Internet, company-controlled intranet sites)
- allows executives to take an assignment without subjecting them and their families tothe culture shock of a move abroad
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- expose the employee to valuable developmental global management issues, while still
permitting closer touch with the home office
Global Virtual Teams- formation and continued growth of complete or partial working arrangements known
as global or multinational virtual teams
- 3 design components
o Responsible forformulating and/or implementingdecisions that are important
to their organizations global strategy
o Use a substantial amount ofcommunications technology to support group
member interactions
o Comprise members working and living in different countries
- Knowledge-based teams
o Formed to improve organizational processes
o Develop new products
o Satisfy complex customer problems
- Distinct advantage
o Ability to perform workasynchronously
o Helping organizations bridge different time zones effectively
o Enabling teams to beproductive over more than one work period
- Enhanceflexibility and innovation capability
- Basic sociotechnical challenges in making them work effectively
o Managing conflict
Over differing cultural backgrounds
With much greater distances
Delayed or asynchronous periods of interaction
Synchronous interaction in groups
- more orderly process
- verbal and nonverbal cues help
o regulate the flow of conversation
o facilitate turn taking in discussion
o provide immediate feedback
o convey subtle meanings
A synchronous communication- typically found in multinational virtual teams
- conveyance of cues is hindered
- feedback is delayed
- interruptions or long pauses in communication often occur
Global virtual teams mustfindworkable solutions- obstacle of asynchronous communications
- temporally coordinating their interactions and flows of information
o work schedules and deadlines
o developing trust
o aligning the pace of efforts among group members
o agreeing on the time spent on particular tasks
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Sources of Global Labor Supply for Meeting Work Demand
- regular or standard employees
- non-standard or contingent employees
Regular or Standard Employeesfull-time or permanent employees
- are consideredfull members of the organization- are at the core of the organizations employment picture
- recipients of full benefits
N on-core employees- serve as layers beyond the core that provide work as needed and as afforded by the
organization
- protective bufferfor their core employee counterparts
- are thefirst ones to lose their jobs or to have their working hours diminished
3 major groups of regular employees
- parentcountry nationals (PCN)
- host-country nationals (HCN)
- third-country nationals (TCN)
Parent-Country Nationals (PCNs)
- citizens (legal residents) of the home country of the parent company, or the countrywhere the primary headquarters is located
- particular strength of a PCN as a labour source:o his/her understanding of the company culture, priorities, and strategy and what
it takes to be successful within the MNC
- particular limitations
o possible lack of familiarity with and difficulty in personally adjusting to a
foreign business location of the MNC (lack of foreign-site adaptabilitiy)
Host Country Nationals (HCNs)
= citizens or residents of a country that hosts, or provides local property and facilities, for
MNC operations abroad
Particular strengths:
- familiarity with the local culture, common business practices, and economicconditions
limitations:
- may initially lack a clear understandingof the predominant national and
organizational culture of MNC headquarters, or its business priorities, accepted and
expected business practices, and strategic mind-set
- might not share a common language with PCNs
o serious challenge to effective communications and business interactions
Third-Country Nationals (TCNs)
when staffing a foreign operation in a host country, new employees could be citizens or
residents of a different third country apart from the parent or host country- useful alternative labor source for filling work demand where the focus is on
obtaining the most cost-effective labor
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- overall regiocentric strategy
o regional employees are assigned as TCNs to nearby host country operations
disadvantages
- possible lack of understanding of the local HCN culture
- difficulties with local public sentiment and governmental obstruction
- language difficulty- may not have a clear understanding of MNC strategic priorities, accepted business
practices, organizational culture
Contingent or Non-Standard Workforce= on call employees
those who work on aflexible basis as needed
or contingent to an organizations work demand
have neither an explicit nor implicit contract for continuing employment
represent a rapidly growing source of labor for filling global work demand
Reasons for Major Growth of the Contingent Labor Sector Promoting Company Flexibility
o meet increasing global competitive demand
o economical as needed basis
o number of workers and working hours are easily adjustable
Supply Factors
o large sectors of the labor may be available to work only on a part-time basis
women (childcare, household management)
senior citizens (extra income, variety in live) Screening Function
o management may sample temporary employees through their performance
before hiring them on a regular basis
o employees get to know the organization
o may enhance the effectiveness of new standard-employee staffing decisions
Technological Change
o significant changes in technology lead to greater demand for contingent
employment arrangements because
outsourcing or reassigning work outside the company
automation of work and robotics rapid changes demand flexibility and diminish need for long-term
employment
Employment Legislation and Deregulation
o forms of employment legislation on behalf of full-time (benefits, etc)
might create an economic motive for companies to increase their use of
part-time and other non-standard employees
o deregulation
companies use more flexibility in their staffing practices
o governments actively encourage the use of non-standard employees to reduce
unemployment Worldwide Growth in Numbers of Small Businesses
o use of consultants, contractors, and special service vendors
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o no fixed costs arrangements can be terminated at the end of the contract
period
Changes in Employer-Employee Relationships and Expectations
o increased sense of employees of being their own free agents and not committed
on a long-term basis to a single employer
Changes in Employee Personal-Life Needs and Lifestyle Preferenceso dramatic increase in the number of working mothers
o rise of two-career family
demand for flexible working arrangements
Major Forms of Contingent or Non-Standard Employees
Part-Time Employees
o most common source of the growing contingent labor force
o work less on an ongoing basis
o global part-time workforce continues to be dominated numerically by women
Temporary Employeeso another major source of contingent workers
o are increasingly used to supplement the regular workforce on an ongoing basis-
depending on the workload
o often supplied by temporary services agency
o floaters
in-house company employees
typically not eligible for full company benefits
Employee Leasing
o a company might transfer all employees, a large part of the employees, or
sometimes only the employees of a separate facility or site to the payroll ofan employee-leasing firm or Professional Employer Organization (PEO)
joint-employment relationship
o the PEO then leases the workers back to the client company
saving the company on HR operational costs
can also provide positive MNC tax benefits
o disadvantages
may be hard to lease back loyalty and commitment (source of
competitive advantage)
Contracted Services
o special tasks of a non-recurring nature, requiring a high level ofindependence, professional judgement, discretion, and skill
o frequently performed on a contract basis by individuals
e.g. consultants, groups of professionals
Outsourced Services
o when a company contracts with an organization to provide the ongoing, full
managerial responsibility over a specific function
o companies must carefully address skill and language requirements, labor costs
by market, alternative talent pools, workforce training requirements, and work
design requirements
MNC Concerns Regarding Contingent Employees
heavy reliance on non-standard employees may lead to reduced job satisfaction
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o reduction of workforce loyalty, commitment, and subsequent reduced
productivity
outsourcing arrangements employees work for outsourcing service firms no direct
control
o no direct control of work quality, decreased worker commitment, loyalty, and
competence concern about customer perception of company products or services provided by offshore
employees
significant costs in image and public relations
HR Planning for the Long-Term
regularly scanning the environment forthreats and opportunities in the external labor
supply
o
related to meeting immediate and short-term work demand for carrying outMNC objectives
study external trends and conditions
o firms long-term survival and competitiveness
internally consider the MNCs organizational culture and core capabilities
Country Labor Forecasting
environmental scanning should consider
o national birthrate statistics
o health conditions and mortality
o the nature and quality of educational systems within a country
o changing demographic trends in workforce participation
clearer picture of the nature of the global labor force available
Planning for Global Capability
shared organizational core competencies and culture
workforce alignmentor shared mind-set
planHR activities and policies
plan selection, training, performance management, and remuneration practices
companies have increased their number of young managers involved in extended foreign
assignment experiences in order to develop greater company-wideglobal leadershipcapability
expatriate assignment, repatriation, placement, ongoing career development
global talent management
Global Succession Planning
effective succession planning
o minimizingdisruption and confusion
o implementingcompany strategy and achieving organizational goals
o reduce chance and uncertaintyo ensuretheavailability of senior executive leadership talent for future company
guidance
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involves
o making a projection of future needs for senior managers within the firm
o careful selection from pools of promising manager candidates
o flexible plan is formulated to ensure that successors develop the core
competencies needed
o management and HR should work collaboratively with the identified,interested high-potential individuals
o formal training, international virtual teams, short-term foreign assignments,
extended foreign assignments
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6Global Staffing
involves actively filling jobs in a timely fashion with appropriately qualified individuals
from inside or outside the MNC and consistent with the MNCs strategy ability to attract qualified workers and keep the workplace adequately staffed
o careful assessment through HR planning of external labor market conditions
and government actions
o effectiveness of the organizations overall reward system
attract and retain workers
involves:
moving employees into, throughout, and out of an organization
retainingdesirable employees
employee deployment and movement decisions and activities
o recruitmento selection
o transfer
o promotions
o layoffs
o firing
o retirement
o total compensation package and reward system
Recruitment
involves considering both internal and external sources to produce viable candidates to applyto fill a given work demand
Selection
involves gathering appropriate information and deciding from among those candidates who to
choose to fill the work demand
General Factors Affecting Global StaffingE mployee recruitment and selection decisions are influenced by
firms business strategy
stage of international developmentspecific foreign market experience
host government restrictions and incentives
host country sociocultural restrictions
plans for individual and organization development
situational factors
economic trends and conditions
nature and duration of the international work itself
MNC resources available for staffing
availability of willing and able candidates
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MNC Business StrategyStaffing should seek to fit and reinforce the purposeful direction andpriorities of the MNC
being consistent with
o ethnocentric
o polycentrico regiocentric
o geocentric
general strategic approaches in operating foreign wholly owned subsidiaries
e.g.
MNC follows astrategic alliance strategy (focusing on core competencies)
employ outsourcing
through increasing the outsourcing ofnon-core back-office operations
resort to a broader level of external partner selection in complementary alliances(international joint ventures)
Ethnocentric Approach
characterized by all or most key positions at a foreign operation being filled by parent-
country nations (PCNs)
o PCNs are often utilized in earlier stages of internationalization
optimize controlfor the purpose of transmitting company culture and
instituting and implementing company procedures and methods
o formore experienced MNCs
heavy use of PCNs for managing foreign operations due to the
perceived lack of qualified local home-country national (HCN) talent
need forstrategic controlo often in Japanese, Korean and German firms they persist with PCNs
predominating in foreign operation management
o bc of greater operational challenges posed by cultural distance or by nature of
industry
o if product complexity and/or product safety concerns are high
disadvantages and costs of ethnocentric staffing
o expatriates represent a considerable direct cost
adjustment process takes considerable time
learning curve time span of costly suboptimal performance,
mistakes, poor decisions
o limits the the promotional and developmental opportunities of HCNs
increased dissatisfaction
related costs oflower productivity
increased turnover
o significantpay gap between PCNs and HCNs
PCN based on home country rates, inducement premiums, allowances
HCN lower local rate
Polycentric Approach
similar to multidomestic strategy
o involves customizingcompany products, services, and practices to meet the
often differing market and nonmarket circumstances, needs, laws, and accepted
practices of individual countries and regions
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each major overseas subsidiary is usually somewhat independent and is typically managed
by a local HCN
major advantages
o strongfamiliarity of operation management with local social norms and
customso language fluency
o costs that are typically less than an expatriate assignment
o no foreign adjustmentproblems for an employee and any accompanying
family members
o can win thesupport and confidence of the local government and people
major disadvantage
o lack of effective flow of information andproductive interaction between MNC
headquarters and the foreign subsidiary
language and culturaldifferences
us versus themstereotypes lack of local meaningful interaction and common experience between
PCNs and HCNs
o lack ofinternational professional skill enhancementand career development
opportunities for HCNs
o suboptimalsharing of valuable knowledge and information and cross-cultural
understanding
o lack of valuableglobal competency developmentopportunities for PCN
managers and executives
lead to lower effectivenessMNC headquarters strategic
management team
Regiocentric Approach
the firms operations or particular functions are structured by multiple country areas or
major economic regions
o predominance ofHCN staffingat the local subsidiary
o former HCN managers (now TCNs) with cross-border assignments
gain useful albeit less culturally distant international career experience
but still generally limited to this regional level
little chance of promotion to the top management strategic team back at
the parent company headquarters
advantages
o may contribute to building useful international competencies
disadvantages
o risks developing multiple independent national units with little common links
and identification with MNC headquarters
o less-than-optimal exchange of knowledge and resources
Geocentric Approach
considers and selects the best talentfor important jobs throughout the world operations of
the MNC, regardless of nationality
works well where products/services involve minimal cultural differentiationo electronics, automotive industry
advantages
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o increasedglobal leadershipdevelopmentopportunities for HCN
o increased opportunities forcross-cultural learningand knowledge sharing
throughout the firm, with meaningful cross-border interactions
o greater opportunity for developing a commonMNC identity and mind-set
o a more widespread development ofkey global competencies throughout the
MNC leading to a distinct competitive advantage in human capital restrictions
o where local governments require certain levels of HCN professional and
managerial presence in their host country operations
o or place significant documentation and qualification requirements for hiring
foreign nationals
disadvantages
o prove prohibitively expensive to implement fully due to compensation
adjustment needs and relocation expenses
International Joint Ventures (IJV)
Issues of potential cross-cultural conflict, control, and temporary versus permanent (that is,
one-way) staffing assignments
major strategic mode of entry into foreign markets
advantages
o competitive advantage due to cultural diversity
broader range of perspectives for managing the IJV
o negative outcomes can be minimized by focusing more on expertise and
interpersonal skills
many MNCs now hire local talent and train them in company strategy, culture, and
procedure local in the host country or as inpatriates at MNC headquarters then place them
in key leadership positions back in the local host country IJV
Stage of International Development
Progression of businesses through various stages of international development, or
internationalization
1) export activity
2) development of foreign sales offices
3) licensing agreements
4) foreign direct investment with manufacturing facilities5) international division formation
6) multinational status
7) integrated global enterprise
some businesses bypass stagesacquisitions
joint ventures
born global new ventures
Specific Foreign Market ExperienceMNCs with little experience
o staff operations with local management
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local HCN managers
TCNs
o reluctant to hire an experienced HCN or TCN from outside the MNC
short-term hiring
full-time consultancy basis
Government Restrictions and Incentives
Safeguarding responsibility on behalf of their working citizens
require MNC to demonstrate that HCNs are not available to fill certain managerial or
technical professional positions
o entry visas and work permits to PCNs and TCNs
work permit is granted generally only for an expatriate and not for an accompanying
spouse or partner
certain number of HCNs might have to be hired at particular levels
o minimal percentage of supervisor and management level positions must be staffed byHCNs
o enforced by governments and NGOs especially in developing countries
incentives by governments to encourage MNCs foreign direct investment and significant
HCN staffing
o tax, tariff, local labor force training
Sociocultural Considerations
general social norms
women in international staffing
General Social NormsInfluence of social expectations and cultural preferences in the workplace
Consideration of such factors as
o gender
o age
o consanguinity (family ties)
o previous friendships
nepotism= hiring extended family members
Women and International StaffingCultural norms and expectations might need to be considered when making staffing-
assignment decisions about women in other countries
o especially involving work and supervisory interactions with men
women still lag significantly behindtheir male MNC expatriate counterparts
o assumption held by male managers that women have less interest than men in
obtaining international work experience (expatriate assignment) and concerns aboutsuccess potential
o even though a majority of women on expatriate assignments were successful
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advantages of women overseas
o high visibility
o not necessarily subject to the same traditional gender-based restrictions in local
business interaction
o positive self-fulfilling prophesy or halo effect
foreign business persons might expect the female expatriate to be extremelycapable and talented (as she was able to overcome all of the gender-biased
obstacles)
o social skills
building trusting relationships with employees and customers
good listening skills
less direct and confrontational communication approach
emphasis on cooperation over competition
Plans for Individual and Organizational DevelopmentImmediate stuffing decisions can be influenced by longer-range goals and objectives of the
firm related to individual employee development or the development of the organizations
capability as a whole
o selection of HCN forinpatriate assignments
reverse knowledge-transferstrategy for building greater capability at companyheadquarters
considering diverse perspectives and meeting the demands ofglobal diversity
enhancing the capability of the MNCs strategic management team in making
decisions
Situational Factors Influencing Staffing Decisions
important situational determinants of international stuffing
nature and duration of the task or work assignment
financial resources of the MNC available for staffing
availability of qualified and willing candidates
economic trends and conditions
Global Recruitment of Human Resourcesinvolves finding and encouraging qualified individuals to apply for a job opening
important areas
o geographic scope of recruitment
o internal vs externalcandidates
Geographic Scope of Recruitment
geocentric approach
o worldwide scope of sources for locating qualified potential job candidates
o searching fortop talentregardless of national pedigree
broad scope
o when particular professional skills are highly sought after but are in short supply e.g. to fill critical national nurse shortages
narrow scope
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o when recruiting for executive-level employees
o found mostly at or near company headquarters
o needed for new foreign operations that lack an MNCs proprietary knowledge and
expertise
subject to an ethnocentric staffing orientation
web-based recruiting
o low costs
o dramatic increase of the geographic area for recruitment
other costs and restrictions related to the overall staffing effort
o candidate travel for interviews
o dealing with difficult country visa and immigration policies
might minimize the geographic recruitment area
Internal versus External CandidatesSearch for candidates inside or outside the organization?
BUT many MNCs (Merck, 3M, IBM) encourage an internal recruitment promotion fromwithin
o advantages of this approach
where effective human resource information systems (HRIS) are in use
qualified candidates are easierto identify and contact
significant savings in time andfinancialresources
work performance background and development progress are
readily available of potential candidates
boost on employee morale and motivation, increasing retention and productivity
reduction in training and socialization time and costs
awareness of the unique organizational culture, priorities,procedures, and overall business practices of existing
employees
o additional advantages (Harvey and Novicevic)
internal candidates are easier to persuade to take an assignment abroad
internal candidates are familiar with the value of international career within the
organization
internal candidates are more likely to be trusted in the organization
recruiting employees from the outside benefits
o fresh new ideas and viewpoints
o
reduce training costso provide additional greatly needed human resources without overusing and
overburdening existing internal staff
o greater objectivity and flexibility in making critical decisions
disadvantages
o lack of verifiable information on the external candidates past experience
o higher recruitment costs
o little knowledge and experience regarding company culture and strategy
o lack of a history with MNC headquarters to develop trust and ongoing support
Global Recruitment Methods INTERNAL
usage of formal and informal means to search for potential employees inside the MNC
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primary internal methods
o job posting
o skills inventories
o internal network referrals
Job Posting company newsletters
bulletins
computerized intranet in-house communication systems
o include
information about the nature of the position
major qualifications required
how to apply or bid for this job opportunity
Skills Inventories
facilitate an internal search for employees with interest and requisite skills
Internal Network Referralsinformal communication
there must be an open sharing of career interest information
Global Recruitment Methods EXTERNAL
advertising
employee referrals
field recruiting
internships Internet and related software
professional recruitment firms
Advertisingdirect advertising
o can reach a large number of potential applicants in a number of ways
o should fit the local culture and regulatory conditions
o should be directed at reaching the intended audience
Employee referrals
employees are typically provided afinancial rewardand/or gift for referring a candidatewho is eventually hired
especially insmall- to medium-sized operations
tends to be very effective in attracting qualified and loyal new employees
the newly recruited employee tends to know what to expectfrom the job and the company
o decreasing the likelihood of early departure
nepotism (hiring of family members)
disadvantages
o less workforce diversity
o some countries over-reliance can lead to accusation of discrimination and costly
litigation
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Field Recruiting
professional internal recruiters are sent out into the extern environment in field recruitingactivities
o domestic or international college career centers
o company- or government-sponsored outplacement service centers
o school- or local government-sponsored career fairso meeting of professional associations
Internships
companies are increasingly working closely with domestic and international universityprograms to develop internship arrangements
o part-time basis during a school year
o full-time during a summer prior to graduation
in change for pay or academic credit
provide valuable experiential learningand resume-building experience for student recruitmenttool
o attracting very capable students
international internship
o valuable trial test of an individuals ability to adapt and adjust to a foreign work
environment
disadvantage
o might not be appropriate when employees need to be hired fairly quickly
o tend to require considerable company time in planning and supervision
The Internet and Related Softwareis reducing the cost and time neededto fill many positions
able to improve on traditionaladvertising
o targeting specialised websites
o electronic newsletters
o bulletin boards
effectivelydesignedwebsites
o realistic job and working environment previews for potential candidates
potential drawbacks of e-recruiting (by Sparrow)
o attracts too many applicants to process effectively and in a timely manner
o challenge when the recruiting company is not well known
o attracts questionable data of highly variable quality
o inherent discrimination against other qualified candidates (mostly male candidates
applying)
Professional Recruitment Firms
agencies
e.g. Adecco or Manpower
o provide temps or employees that work for the company for a limited period
executive search firms
e.g. Korn/Ferry International
o assistonly with the external recruitment of senior executives
temp-to-hire
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o provides employees from entry to middle management levels initially on a temporary
basis
o afterwards these employees are hired by the company on a regular basis when future
work demand employee fit warrant such a decision
often used as aprobationary test
Global Selection of Human Resourcesexecutive level
selection decision determines what kind of leadership is going to guide the organization
and shape its future
General Principles and Practices of Employee Selection
Triangulation
= to measure something from three different angles to achieve an accurate assessment
the more kinds of measures are used the more accuracy in predicting the future successof a candidate
if only one approach or measure is used the quality of that decision will be vulnerable tothe limitations of that particular measure
Focus on Job Relevance
Investment in Developing Interviewing Skills
employment interview is the mostfrequently used method for employee selection
it often has one of the lowest validity rates
what to avoid
o interviewer domination
o asking questions unrelated to the job
o premature judgments of the candidate
approaches
o behaviouralinterview approach
requires the candidate to describe specific experiences in the past in which he or
she demonstrated an important job-related behavior
o situationalinterview approach
requires the candidate to describe how he or she would solve a particular
problem relevant to the job
Influence of Culture on Selection Measures
differential effects of culture
nonverbal behaviour
personality tests
Selecting Employees for Foreign Assignments
Focus on the Most Important Criteria for Success
most important selection criteria depends on the nature of the international assignmento extended assignment in very different culture
candidates local language fluency
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ability to adjust
ability to relate in a sensitive way with other cultures
o shorter assignments little culturaldistance
selection criteria
o interpersonal skills
o personal intent and motivation for obtaining international work experience
o cross-cultural sensitivity
o adaptability
o tolerance for ambiguity
o overall inquisitiveness
o technical competence
Methods for Selecting Employees for a Foreign Assignment
a psychometric approach for predicting international management competencies
a experiential approach
an overall clinical risk assessment approach
Psychometric Approach
general approach usingpersonality tests
challenges
o difficulty in measuring predictive success and reliability
o questionable quality of data
Experiential Approach
emphasizes the expatriate candidates direct experience with many of the realities of thefuture assignment
3 main forms
o assessment center technique
places the candidate in various relevant situations and with common and critical
tasks that he or she likely would face in the foreign assignment
in-basket exercises
relevant job assignments
work simulation
o foreign site preview visit (familiarization trip)
more time and expense
invitation to visit the actual area of the proposed foreign assignment
o developing an internal international cadre of talent pool
significant HR planning
long time perspective
o clinical risk assessment approach
investigates candidate competencies and ability to adjust and other factors
affecting success
adaptability of the accompanying partner
dual-career difficulties
nature of supporting structure in the foreign assignment
cultural distance and technical difficulty of the assignment
accountabilities and responsibilities
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7Global Workforce Training and Development
for providing training or planning the training agenda, an awareness of important issues andpotential valuable contributions of training for various members of the global workforce is
essential for achieving long-range effectiveness and even company survival
formation of centralized corporate universities
o help to spread a common culture and values
o drive change simultaneously across the whole organization
measurable behavior
immediate learning goals
long-range learning goals
training
corresponds to efforts designed to address immediate learning needs within an
organization
development
corresponds to efforts aimed at meeting longer-range learning
objectives
commonly reserved to middle managers and higher executives
Strategic Role of Training and Development in the Global Marketplace training plays a central role in the effective implementation of organizational strategy
5 ways in which training can assist organizations in gaining competitive advantage
o Quality and Customer Satisfaction
o Decreasing Costs
o Organizational Learning and Knowledge Management
o Global Alignment
o Building Global Talent
Quality and Customer Satisfaction
reliability consistent quality performance
Decreasing Costs
satisfying customer needs at lower costs than other firms
reduce costs for the customer for products and services
o reduce rejects and unacceptable performance
o reduction of wasted time
shortened learning curve
o agility, or ability of an organization to learn and adopt to needed change
swiftly
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Organizational Learning and Knowledge Management
tacit knowledge
o capability possessed by an individual based on his or her overall level of
experience and expertiseo shared through team working arrangements
Global Alignment
various training activities and related efforts can be used to help build internal employeealignment, or a common mind-set
o brings control and consistency
o offsets the unavoidable uncertainty and rapid change
training can build a common commitmentand sense of values to guide decisions
o shared attitudes
Building Global Talent
development ofhigh-potential employees into effective managers and leaders
o think and compete effectively on a global scale
training
o developgeneral international competencies
e.g. international adjustment skills
o specific knowledge and skills
specific foreign language ability
knowledge of local laws
Fundamental Concepts and Principles for Guiding Global Training and Development
to help guide decisions regarding employee training and development
Domains of Learning
cognitive domain of learning
o most training is aimed at increasing knowledge, awareness, and understanding
o intellectualand rationalthinking processes
affective domain of learning
o deals with emotions, feelings, values, beliefs, attitudes, expectations motivation
o e.g. pre-departure training efforts (expatriates)
psychomotor domain of learning
o relates to the acquisition of new physical skills
typing, correct enunciation of previously unfamiliar and difficult vocal sounds in
a new foreign language, becoming accustomed to driving on the opposite side of
the road
o combination of the intellect, and motor coordination
o mastery tends to require significant practice
o deep level of learning over-learning
Levels of Learning within the cognitive domain
CASE
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o C = basic comprehension of a message, rule, or principle
o A = next level, involves the ability to analyze a problem situation and break it up into
an effective examination of the most important parts of the situation
o S = ability to synthesize or reassemble the parts to form a clear total picture or
diagnosis of a solution or set of alternative solutions to the problem
o E = at the deepest level of learning, pertains to evaluate the most appropriate actionto take based on existing objectives or determining the decision that would yield the
greatest value
Principles of Adult Learning
familiarity
relating to previous experience
pragmatic or problem-centered
personal influence and control
perception of self-direction, influence, and control on the learning process
values of mutual trust and respect, openness, and honesty
Sensitivity to Cross-Cultural Differences
Systems Approach
to use the training effectively and create desirable impact on employee and organizational
training
systematic, scientifically based procedure
Phase 1: Conduct Needs Assessment
whether a training need exists
careful need assessmentis important for ensuring that training is
o designed and implemented cost-effectively
o supported and reinforced by work design and supervision
the reward system
the overall workplace environment
examines at
o the organizational level
organizational performance objectives
available resources
possible supportive changes from the organizational culture and reward
system
o the job and work operations level
nature of the particular performance to be mastered
training content for new knowledge and skills
causes of performance problems (if existing)
prevailing conditions in which the work is performed
should include input from as many sources as possible
o the individual level
needs or characteristics of the trainee(s)
language skills
technical and basic skills
cultural influences
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Phase 2: Develop Training Objectives
identify what specific behaviors the intended trainees are supposed to be able to perform
expected conditions in which the behaviour is to be performed
Phase 3: Design and Develop Training
selection oftraining methodor combination of methods possibly adjustingorredesigningthe work environment
cardinal rule:
o the most cost-effective method to use depends upon the training objectives
experiential methods
o practice, role playing, international travel, work experience in foreign culture
o very effective training methods
o require expense and time
other methods
o readings
o computer-assisted mediao brief live presentations
Phase 4: Test and Revise Training Prototype
trial test of the training prior to its widespread usage
Phase 5: Implement Training
Phase 6: Evaluate Training
in terms of its effectiveness in achieving the training objectives
Training Transfer to encourage effective positive transferof the training there are several things that
managers can do before, during, and after the training takes place
before the training
o clear commitmentobtained from accepted leaders and top management for the
training
powerful influence on perception of workers
through:
adequate budget allocation for the training
supportive public statements
participating in the training themselves
clear support for the new behaviors being trained
o careful review and possible revision of pertinent company policies, procedures,
and workplace conditions
during the training
o use of practice
on-the-job training
role playing
experiential exercises
following training
o encouragement by the supervisors to use the new skills
o functional integration of other human resource activities
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performance appraisal and compensation
Training Imperatives for the Global Workforce
key imperatives for global training
o building global competencies for international professionals
o building global alignment
o pre-departure and on-site expatriate training
o special training considerations for female expatriate assignment success
o HCN training
Building Global Competencies for International Professionals
professional global competencieso e.g.
cross-cultural awareness/sensitivity
managing cross-cultural conflict
working in and managing international teams
emotional intelligence
managing tension of duality (i.e. think global, act local)
open, nonjudgmental personality
etc
KSAO knowledge, skills, abilities, and other characteristics
4 pillars of a global mindset (Stephen Rhinesmith)
o Business Acumen
working understanding of effective principles and practices of functional
disciplines
broader strategic management knowledge
o Paradox Management
appreciation and ability to make effective decisions within uncertainties and
complexities
o Self-Management
ability to monitor, care for, adapt, and renew oneself to maintain strength andvitality amid the ongoing demands of rapid change, uncertainty, complexity, and
other stressful working conditions
o Cultural Acumen
appreciation and interest in other cultures
sensitivity to and flexibility in dealing with cross-cultural differences
4 major strategies Four Ts (transfer, training, travel, teams) for development of vital
global professional competencies:
Transfer to New Assignment or Job
ongoing practice in using extended international-work-assignment transfer
as a rich experiential training ground for future leaders
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Training
more controlled, structured learningactivities with fairly limited topics and specificlearning objectives
mostformalstrategy of the four T and with the greatest focus on sharing explicitknowledge
program on a global strategy change management
managing virtual work teams
international negotiations and conflict-management skills
Travel
can provide a rich source ofexposure and experience-based knowledge about
foreign cultures and different behavioural norms
divers economic and political environments,
different and often insightful business practices
Teams
cross-functional task forces
enduring teams at middle or senior levels
fairly autonomous and self-managing virtual teams
experiences of interactions with team members of other national and cultural backgrounds
can provide a rich exchange of tacit knowledge and capability
Building Global Alignment
Externally provided controls are intended to help align the workforce with the goals andobjectives of the organization
o close supervision by expatriates
o rules
o performance-management techniques
internal cognitive alignment
o common mind-setand shared knowledge represent a unifying language that
provides alignment in thought and action, facilitating effective interactions and
collaborative synergies across the MNC
alignment of both mind and heart = normative integration or cohesion management
o through informallearning channels
Expatriate Training ConsiderationsTraining can enhance thespeed and effectiveness of expatriate adjustment and performance inthe assignment and minimize costly expatriate assignment failure
Important considerations for expatriate training:
Pre-Departure Training
provide useful information and a sense ofpersonal controlin addressing challenges
training should providepositive but realistic expectations
forms of trainingo cross-cultural awareness
o strategic training
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o job training
actual content and form of training depends on various factors:
o Job Toughness
does the new job require different working conditions, equipment, or
legal or union restrictions?
o Cultural Toughness
the degree to which the values, norms, and attitudes of the foreign
culture match the expatriates home culture
o Communication Toughness
difficulty and amount of frequency of communication involved with
HCNs and in the foreign environment
different norms and rules for written, oral, and interpersonal
communication; frequency of foreign communication required;
difficulty in learning the predominant foreign language; length of
foreign assignment; modes of communication used
Special Training Considerations for Female Expatriates
Female expatriates represent a significant butgreatly underutilized resource
Local Norms and Values Regarding WomenInformation should be provided on local norms, values, and perceptions about expected
female role behaviour and attitudes toward women managers
Attitudes and Norms Regarding Expatriate Women versus HCN WomenExpatriate women are often not held to the same gender role expectations as are women form
the local culture
Behaviors to AvoidAvoid unnecessary HCN offense with or misinterpretation of their behaviour
Networking with Successful Female Expatriates
HCN Training Considerations
Operative Level
o new employee orientation
o entry job skills
o parent company predominant language
o expatriate and home country cross-cultural awareness training
Supervisory and Middle Management
o Supervision and technical operations management
o Home country cross-cultural awareness
o Expatriate coaching
o Liaison role between parent company expatriates and lower-level HCNs
Upper Management
o Advanced technical system operations
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o Business-level (subsidiary) strategy
o Parent company (MNC) strategy
o Parent company (MNC) culture