Preview

Main Challenge in International Staffing

Powerful Essays
Open Document
Open Document
843 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Main Challenge in International Staffing
ADRIEN KARCHER EIM4 UB1

International Human Resources Management

2nd Assignment : Describe the main challenges in International Staffing.

Ever since the globalization began, companies became more aware of the competitive environments they operate in. It is obvious that a competitive advantage such as technology, resources and quality can be imitated. It’s the peoples that a company employs that makes the difference. Making the right selection and most efficient use of it will surely provide the advantage needed. In this assignment, we will define in a first part the four main approaches to staffing within International Human Resource Management and what are the advantages and disadvantages of each approach to international management.
In a second part we will speak about recruitment and selection of the staff in foreign subsidiaries.

Heenan and Perlmutter identified approaches to manage foreign subsidiaries which are, ethnocentric, polycentric, geocentric and regiocentric. In this part we will examine the connection between this approaches and staffing practices as well as the advantages and disadvantages of this differents approaches.
The first approach is called ethnocentric. Employees from headquarters base it on the occupation of a key position. It is assumed that expatriates can manage subsidiaries more efficiently. This is because expatriates are more informed about the company's goals and objectives, strategies compared to the local managers. This method is used when expanding globally and there is need of good communication, cooperation and control of activities. Consequently, PCNs are assigned to top management positions who implement strategic decisions coming from headquarters. Hence, the selection of expatriates will depend on the technical knowledge required or the type of international expansion a company is planning. The ethnocentric approach provides the parent company with more control, which is vital when expanding to

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Regiocentric staffing policy involves hiring and promoting employees based on specific regional context where subsidiary is located. This approach is used when regional employees are needed for important positions. However, both employees from host countries and a third country are employed. The disadvantage of using this type of policy is that sometimes employees from home or host countries are not unselected. Instead, employees from a third are selected to subsidiary in which they may face cultural differences.…

    • 296 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    b) polycentric staffing approach- HCNs, or host country nationals are hired to fill key positions. This is more effective in a multinational approach when a company wants to act "local." People in and outside the subsidiary will more readily accept this system. This approach provides a role model for upwardly mobile personnel. It is also usually less expensive to hire locals who are more instrumental in dealing with problems as they arise. There is, however, difficulty with this approach in the areas of coordinating goals between the main and regional offices and the conflicting loyalties of a host country national .…

    • 811 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    The purpose of this paper is to summarize the advantages and disadvantages of the different international staffing approaches with special focus on the positive impacts as well as on the challenges of expatriation.…

    • 1310 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    Expatriate Management

    • 1171 Words
    • 5 Pages

    Peterson, R. B., Napier, N. K., & Shul-Shim, W. (2000). Expatriate management: A comparison of MNCs across four parent countries. Thunderbird International Business Review, 42(2), 145-166. Retrieved from http://search.proquest.com/docview/202784562?accountid=8289…

    • 1171 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Globalization

    • 856 Words
    • 4 Pages

    Cited: Vance, Charles, and Yongsun Paik. Managing a Global Workforce: Challenges and Opportunities in International Human Resource Management. Armonk, NY: M.E. Sharpe, 2011. Print.…

    • 856 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    International Marketing

    • 15278 Words
    • 62 Pages

    Learning Objectives After reading this chapter you will be able to    Understand and evaluate different staffing options that are available to MNCs Differentiate between the main motives for using international assignments in MNCs Identify different forms of international assignments and assess their distinct advantages and disadvantages  Explain why the selection, preparation and repatriation form an integral part of…

    • 15278 Words
    • 62 Pages
    Powerful Essays
  • Powerful Essays

    Cross Cultural Management

    • 9033 Words
    • 37 Pages

    Colakoglu, S. and Caligiuri, P. (2008), “Cultural distance, expatriate staffing and subsidiary performance: the case of US subsidiaries of multinational corporations”, The International Journal of Human Resource Management, Vol. 19 No. 2, pp. 223-39.…

    • 9033 Words
    • 37 Pages
    Powerful Essays
  • Powerful Essays

    [ 5 ]. Prahalad, C. K. and Doz, Y. L. (1981) 'An Approach to Strategic Control in MNCs, Sloan Management Review, Fall: 5-13.…

    • 2555 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Sole Trader Accounting

    • 601 Words
    • 3 Pages

    According to (Heenan & Perlmutter, 1979) organisations may be ethnocentric if the staffs of the subsidiary are parent country nationals. This means that the key positions in the subsidiary are held by foreign nationals or expatriates in the subsidiary. The other typology applicable in this context is the geocentric approach which states that there has to be a good mix of both employees i.e. parent company and the subsidiary, and the most competent individual is chosen regardless of nationality. As mentioned in the case, most of the financial institutions have employed a mix of various nationalities working globally in the subsidiaries in Hong Kong, Singapore and Germany etc. The major reasons why a global bank is interested in expatriation of staff includes position filling, enhancing subsidiary bank performance, banking knowledge and know-how transference to the local environment, better control over operations and quality of service maintenance.…

    • 601 Words
    • 3 Pages
    Good Essays
  • Good Essays

    CHAPTER OBJECTIVES When they have read this chapter, students will: ¶ ¶ ¶ ¶ ¶…

    • 5780 Words
    • 24 Pages
    Good Essays
  • Satisfactory Essays

    This thesis aims to studying the prevalent IHRM activities of MNCs in the recent years which…

    • 24874 Words
    • 92 Pages
    Satisfactory Essays
  • Good Essays

    When organizations operate overseas, they must decide whether to hire parent country nationals, host-country nationals, or third-country nationals for the overseas operations. Usually, they hire a combination of these. In general, employees assigned to work in another country are called expatriates. In the GM example, the U.S. and Australian managers working in Great Britain would be expatriates during those assignments. The extent to which organizations use parent-country, host-country, or third country nationals varies. In Venezuela, Pfizer’s strategy to begin selling its medicines to clinics serving the…

    • 484 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Need Guidance

    • 4908 Words
    • 20 Pages

    4. A polycentric staffing policy uses host-country nationals to manage foreign subsidiaries and parent-country nationals for the key positions at corporate headquarters. This approach can minimize the dangers of cultural myopia, but it can create a gap between home and host-country operations. The policy is best suited to a multidomestic strategy.…

    • 4908 Words
    • 20 Pages
    Good Essays
  • Powerful Essays

    Expatriate Management

    • 10412 Words
    • 42 Pages

    The world is becoming more and more global and to be successful, many companies have to compete on the global playing field. This is due to the fact that costs associated with the development and marketing of new products are too great to be amortized only over one market and production costs can be cheaper elsewhere around the world. This globalization of companies is making it more important than ever to understand how multinational enterprises can operate more effectively. One major component of this understanding is the field of human resource management (HRM), and in particular, the field of international human resource management (IHRM).[1]…

    • 10412 Words
    • 42 Pages
    Powerful Essays
  • Best Essays

    Proposal Hrm

    • 3719 Words
    • 15 Pages

    International Human resource management (IHRM) describes as human resource management issues and problems arising from the internationalisation of business, and the HRM strategies, policies and practices that global firms pursue in response to the internationalisation process. The process of globalisation - the integration of markets, new markets increased foreign direct investment by many multinational companies (MNCs), global organisations and cross-border integration of production and services. MNCs with distinctive competencies can potentially realise…

    • 3719 Words
    • 15 Pages
    Best Essays