International Human Resources
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Great people are a major resource in sucessful MNEs
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Need to get right person in right job at right time for right $$$
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Home country nationals
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Third-country nationals
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Managers may move between countries and cultures without losing their personal effectiveness
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Difficult to develop and maintain
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Expatriate selection
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Screening execs re: desire and potential for foreign assignment. Screen for tech exp, ability to adapt (self-monitoring, social skills, sensitivity) leadership.
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Expatriate failure
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Manager goes home due to bad results, rate of failure is droping, higher in emergin econs (India / China). Cost can be high
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Expat failure reasons
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Often failure of spouse / family to adapt
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Preventing failure
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Prep programs for general country understanding, cultural sensitivity, practical skills
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Comp packages should
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Motivate, maintain standard of living, reflect responsibilities, ensure after tax $$$ won't fall, maintain $$ equity among peers, compete with industry packages, be easy to admin
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Repatriation
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reintegrating the expatriate into the home country. Can pose work, $$, social problems. Find right job for returning manager.
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Balance sheet approach
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Equals $$$ so expats have same purchasing power / living standard
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Typical package includes
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Base salary, foreign service allowance, fringe benefits, tax differentials
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Activities to staff a company
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Difficult in international companies because of environmental, strategic and org challenges
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Time
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< 1 year
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Age
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Trend to younger and older workers
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Gender
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Mostly male but female is rising
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Economical
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Local hire usually requires less $$$ than an expat
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Nationalism
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Host countries prefer local managers
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Management development
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Giving top jobs to locals attracts and motivates local workers
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Employee Morale
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Local workers like to work for local managers for many social and cultural reasons
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Expat failure
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Expat failure can be $$$ and negative exp. Ceteris paribus locals less likely to fail
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Local innovation
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Locals understand local markets so a sense of innovation ops
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Assumptions
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adapts to differences between home & host, HQ strategy DM, local adapts to local market
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Advantages
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Acknowledges unique merits of country, least $$ staffing, makes host govt and staff happy
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Drawbacks
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Complicates controlling and coordinating, isolates ops, reduces incentive for global perspective
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Appropriate if
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Multidomestic
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Great HR = high productivity, comp advantage, value creation
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Company strategy and HRM should be integrated
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Ethnocentric
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Fill key positions with home country nationals
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Polycentric
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Host country nationals
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Geocentric
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Best people for key jobs regardless of nationality
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Command & control
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Expatriates are familiar with home country so can be counted upon to transfer processes
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Local talent gaps
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If shortage locally
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Social integration
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Symbolically and operationally integrates policies, fortifies culture
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Local implementation
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Expats offset breakdown of policies in transfer
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High turnover locals
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Expats have lower liklihood of defecting to a local company, Reduces IP loss.
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Management development
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Expat hard earned exp boosts knowledge and promotes exec leadership
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Assumptions
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Presumes ideals, values and proactices superior, HQ are DM locals follow orders
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Advantages
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Leverages core competance, developes MGMT team
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Drawbacks
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Superiority complex, arrogance, cultural illiteracy, may overlook local innovation ops
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Appropriate if
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International
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