Managing International Staff

Our business unit is preparing for global growth, with our first international deal closing in New Zealand. Several of the major challenges we face are balancing ‘business as usual’ with preparing for international expansion (including hiring internationally, sourcing new offices) and preparing staff for potential re-deployment. Although I agree with the approach discussed in (Kramar, et al., 2014), in which finding local nationals is a more viable option.

International experience is also one of the factors that push a MNC to implement the home-country HRM policies across their subsidiaries. It depends on how long a MNC has been active in their international operations that impact the nature of their decision while implementing HR policies across their subsidiaries. Having a lack of international experience, a MNC will make their subsidiaries adopt their home-country policies (The effect of corporate-level organisational factors on the transfer of human resource management practices: European and US MNCs and their Greek subsidiaries, Barbara Myloni,July 2006). A MNC with more international experience is less likely to adapt their home-country policies as the more a firm gains international experience, the less dominant their home-country HR policies become.

Expatriate staff understands the company’s values. Every company has a cherished value that distinguished its operations from other companies and by recruiting expatriate staff, the company’s value is certainly guaranteed to continue in the foreign

The appropriate staffing strategy is to rely on country and company characteristics, perceived needs and staffing outlook. They need to invest in training the employees or contract a company to train their employees in order to build a strong human resource department. The reason for this is because a lot of the expatriates will be working for the company and this is part of their culture and they know how to run the airlines. Human resource department and upper management need to know and understand the tradition, legal and political regulations of the organization in selecting the best employees. With this way, there will be no problems for them adapting to the new culture and the cost connected with expatriates compensations cost will not be enormous. The polycentric approach for Arik Airlines is that they will be able to better guide the company on local market conditions, politics, laws and culture at each foreign location. It also provides for sound training for host country nationals and thereby opening greater possibilities for career advancement (Steers & Nardon, 2005). It can also create major coordination problems for headquarters based on language, cultural and loyalty differences. Polycentric can reduce adjustment problems of the home country national managers that are sent from home office since there will be less managers taking jobs overseas. Like the ethnocentric, this approach may limit career advancements for host country nationals because the company may believe that they are needed in home country nationals. Third country national staffing is the ability of a candidate to represent the company’s interest and transfer corporate technology and competencies. The USA or the host country may not have the best

Managing HR in MNC is different from the way the HR is being managed in the country, According to Morgan (1986) there are three factors that differentiate between IHRM and domestic HR: First, the countries of operations such as the -country where a subsidiary may be located, the host-country where the subsidiaries are located, and other countries. Second, the different types of employee, in international environment the HR management have to deal with the host-country nationals (HCNs), expatriates or home-country nationals (PCNs) and third country nationals (TCNs), for example if L’Oreal hired an Indonesian employee in their Indonesian subsidiary the employee is a HCNs, and when manager from L’Oreal Headquarter in France came to work in Indonesian subsidiary the manager is a PCNs, and if L’Oreal employs manager neither from Indonesia nor France to work in their Indonesian subsidiary the manager is TCNs. Third, is the way HR practices (eg. staffing, compensation, training, and etc) are conducted. Although IHR practices seems to have the same activities as domestic HR, in IHR the manager will be dealing with different environment and diversity of employees from different cultural background. Moreover, as mentioned earlier dissimilarities between domestic and international HR management mostly due to profound differences between host and home countries in term of culture,

As a Human Resource Director, it is my duty to launch a performance management system. There are many different systems that would benefit this 5-year-old company but the one most beneficial has to be put in place. All factors have to be addressed when deciding on the system. The age of the company which is 5 years old. This is significant because the same performance management tool that a 50-year-old company would use may not be valuable to this company. Another factor that must be addressed is the average age of the employees. The average 33-year-old may respond differently then would a 55-year-old seasoned employee to an employee performance management system.

Multinational companies have long wrestled with the challenge of effectively governing and managing a global workforce. Striking the right balance between a globally consistent strategy and local flexibility requires ongoing monitoring, supported by a keen understanding of local regulations, cultures and demographics.

Contemporarily, multinationals are moving aggressively to localize their operation in China by hiring Chinese talent to fill expatriates. Thus, the Motorola shift to localize management and cultural issues to handle talent wars. The importance of guanxi is realized when the expatriate managers were unwilling to pass knowledge along to the Chinese because they wanted to hang on their jobs. According to Xing (2003), they resolve this problem by adopted the Chinese policy by giving the expatriates an additional incentive

Expatriate staffs are ignorant of the local culture. Recruiting a local staff eliminates the cost of training an expatriate on intercultural issues. Because the expatriate staff is unfamiliar with the local culture, there will often be the struggle to acclimatized and adapt to the new culture. Additionally, the expatriate staff does not know how the employment system in the host country is so to recruit local staff will pose an enormous challenge for the expatriate staff (Malamud & Rotenberg, 2010). Additionally, expatriate staffs will not efficiently and effectively network with local stakeholders because of language and cultural

The environment in which business competes is rapidly becoming globalized. More and more companies are entering international markets by exporting their products overseas, building plants in other countries, and entering into alliances with foreign companies. Global competition is driving changes in organizations throughout the world. Companies are attempting to gain a competitive advantage, which can be provided by international expansion. Deciding whether to enter foreign markets and whether to develop plants or other facilities in other countries is no simple matter and many human resource issues surface. (Noe, Hollenbeck, Gerhart, and Wright; 534)

INTERNATIONAL MANAGEMENT: CULTURE, STRATEGY, AND BEHAVIOR, EIGHTH EDITION Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY 10020. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Previous editions © 2009, 2006, and 2003. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited

The world’s economy has developed and changed dramatically throughout the years and continues to do so. We are quickly moving away from a world where each country’s economy is isolated and more towards a world with an interdependent global economic system. This interdependent global economic system is commonly referred to as globalization (Saee 2005). The book written by John Saee, Managing Organizations in a Global Economy: An Intercultural Perspective, suggests that the growth of global trade, cross-border investments, mass migration, large-scale tourism, and much more has turned the world into more of a “global village” (Saee 2005).

A selection of perceived and valid reasons encourage Multi National companies (MNCs) to recruit Parent country nationals (PCNs) for managerial positions at overseas subsidiaries rather than employing Host or Third Country Nationals (HCN/TCNs). The reasons range from a good ‘fit’, of the person to their environment (Tarique, 2006) and, the employees actual capabilities of doing the job. However, limitations exist when adopting this approach in various aspects of the process.

There are three international business strategies that firms can peruse. The first is ethnocentric staffing model. This is when a parent-country uses people from that reason to staff the higher- level forging positions. This helps in a few ways one being that the person that is hired knows the area and he demographic better and able to better assist the firm. A second strategy is the polycentric staffing model. This is when the firm uses host-country nationals throughout the company. This helps ensure that the employees are better able to deal with the local market. The third, and last, strategy is the geocentric model. This is when a firm puts parent-country host-county and third-country nationals all in to the same group and hires the person that is best suited for

Coca-Cola, a multi-national beverage corporation and manufacturer, started as a medicine sold in a small pharmacy that John Pemberton made in his backyard. This brand grew world wide through strategic marketing and affective global management. Managing a company globally is a tough task because there are several factors that affect a global workforce. The first challenge one may think of when determining the factors that affect the management of a global workforce may be the difference in language. This factor is actually small when compared to other differences needing to be addressed when businesses plan to become multinational. Major factors may include the differences in