Staffing for Global Operations

2406 Words Jun 21st, 2011 10 Pages
Importance of Training, Staffing, and Compensation for Global Operations
Ruby Bucsit

Abstract
In 21st century, we are seeing a big leap in the globalization of business and with this, the ability of management of an organization to work effectively across the cultural and national borders is playing a critical role in business success. Staffing management of multinational companies is a complex issue to the international human resource management (IHRM). With this stated, the statement, “Culture is a major variable for international management” is true in every sense. Keywords: expatriate, ethnocentric, polycentric, regiocentric, geocentric Introduction
Culture generally refers to patterns of human activity and the
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Standardize the same standards and policies are applied throughout the whole organization. (Wikipedia.org)
There are also disadvantage associated to ethnocentric approach are adaptability problems because the key person(s) are not from the local country, they may not understand the differences of culture and environment between their home country and local. Conflicts with local employees, using expatriate employees to staff international subsidiaries can lead to an increase in the number of foreigners being employed at subsidiaries. The differing cultures between the expatriates employees and local employees may cause misunderstanding. Local companies may think that parent companies do not trust them and this may disincentive effect on local management morale and motivations. High costs, parent companies need to pay travel, residential, salaries, and other such expenses for expatriate employees and in most cases, the salaries for expatriate employees are much higher than salary for someone local. After assignments, normally a long-term oversea assignment is several years. The corporations need to have necessary arrangements on where the expatriates will go, and what they will do when they finish their assignments. Expatriate may not be able to adapt back
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