Staffing Policies - Pros N Cons

Competing in global markets entail many factors and centralization of its human resource practices is certainly vital to improve global competitiveness and empower employees for global assignments. To achieve success in global marketplace, the challenge of all businesses regardless of their size is to understand global corporate cultural differences and invest in human resources which includes selecting and retaining talented employee, training and development whilst encouraging employees to be innovative and creative. Employees selected to work in foreign locations should be prepared beforehand with adequate cross-cultural training. For an organization to be successful in the international marketplace, it must be concerned with this fit from both an internal and

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.

Performance criteria and goals are best established by combining the values and norms of each local environment with the home-office’s performance standards. An individual country profile should be developed and should take into account the foreign subsidiary’s environment. This profile should be used to review any factors that may have an effect on the expatriate employee’s performance. Such factors include language, culture, politics, labor relations, economy, government, control, and communication.

As the director of human resources for MediTravel, an organization that assists individuals and Fortune 500 companies in locating cost-efficient medical procedures outside the United States, I have been directed by my CEO to expand our services into Thailand. Currently, MediTravel is contracted with hospitals in Mexico, Costa Rica, India, and Korea. The expansion into Thailand will afford our company the opportunity to provide cost saving, safe, and reliable health care for individuals and companies that want to reduce the amount of monetary resources spent on health care. This paper will

Working for respectable companies based in America and Great Britain can carry wonderful benefits. The Human Resource Department must give attractive packages to appeal to skilled workers when expanding outside of the US. Bridging the gap when salaries are not as attractive can be achieved by providing other befits like healthcare, covering the cost of additional educational expenses for employees, tuition cost for children. Benefits become expensive when working with scores of people nationally and internationally. Human Resource Management plans for these types of expenses based on location and country the organization will be expanding to, overhead cost must not exceed what the organization can afford. As the organization began recruiting members of the team, it is vital to have the correct personnel be hired. Hiring the wrong people for the job can be very costly. Starting with the leadership team who will be expected to train and ahead of time to be prepared to work with others in a new setting. With conflicts breaking out around world knowing who the company is working with cannot be taking lightly. Knowing who the stakeholders are and who the company adversaries are can save money and lives. Decisive leadership in an international context is essential to high productions and partnerships globally.

When companies engage in a cross-national border business, there is often the need to send employees among the parent country nationals (PCNs) to manage the company’s activities. This strategy of staffing is known as ethnocentric staffing and these employees are regarded as expatriate while the host country nationals (HCNs) are regarded as local staff (Robson & Society for Human Resource Management (U.S.), 2008).

While there are many various global issues that affect the International Human Resource Management to run efficiently, there are two key concepts that play a major role in understanding how to approach them with cohesive and a well coherent strategy; they are the International Human Recourse Management Strategy and Understanding the Cultural Environment. In the International Resource Management strategy, many companies will do their research in finding companies that offer the

The ethnocentric staffing policy approach chooses United States as top ranking employees international operations. We will give executive positions to US citizens located in the manufacturing state of Tamaulipas, Mexico. The main advantage of this staffing approach is that it allows the EcoPlay! to make sure that the people in the top positions are experienced in the business of the manufacturing industry. This is because the people in the host country, Mexico, does not have enough skilled workers for staffing top positions in the industry. The ethnocentric staffing policy approach is also employed to make certain the culture of the entire industry is unified rather than diversified. The problem we might encounter with this approach is that

Whinch-it can pursue one of several approaches to international staffing, with each having its advantages and disadvantages. These staffing methods include ethnocentric staffing method which the strategic decisions are made at the headquarters and the foreign subsidiaries have limited autonomy. If Whinch-it feels there are no qualified personals in the host country then ethnocentric approach will prove to be the best one. Having a parent company national will also maintain the communication, coordination and control links to corporate headquarters. Disadvantages of this staffing model include reduced productivity and high turnover as a result of limited promotional opportunities to the host country nationals. Another staffing method that can be used is polycentric, this models allows each subsidiary to be managed by a host country national with some decision making autonomy, this will eliminate some of the problems that ethnocentric have while also eliminating adjustment periods, language barriers and it gives continuity of management of foreign subsidiaries Dowling et.al 2008. Polycentric however has its disadvantages such as language barriers with parent company national and the loyalty to the PCN might be lower that the loyalty to the HCN’s nationality. Geocentric method of staffing takes no account of the

Human resource management functions in multinational companies are incredibly complicated by the need to adapt policies and procedures related to personnel, to differences between the countries, which is one of the branches. In particular, the countries cultural differences, differences in economic development and legal systems may require an international company adaptation programs of hiring, firing, training and remuneration for

Through the evolving process of globalisation, the global community grows increasingly interconnected and culturally diverse. Scholars such as Toh and DeNisi (2007) argued that HCNs have the ability to effect the success of expat integration and acceptance, by facilitating the expatriate with cultural and social support. If the HNC does not aid the expat in the transition, research has shown that this can hinder the expats success and adjustment to the different culture (Varma et al.,2012) as well as affecting their general professional performance (Caliguri et al.,2016).

Between the disparities, the economic areas of supply and demand of occupations globally, international organizations will soon need to compose their staff with a workforce that is highly diverse, and will need to manage thoroughly in order for then to work together. The human resource departments of these organizations will need to implement new recruitment strategies that can effectively match talent with the correct task even if it’s located on the other side of the world.

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,

Briscoe D., Schuler R., Tarique I., (2011). Internatonal Human Resource Management : Policies and Practices for Multinational Entreprise.

With regard to executive nationality staffing policies, “There are major four categories on the HRM within Multinational corporations : the ethnocentric approach, the