Chapter 8-9.docx

The International Workforce Planning and Staffing Process -- Chapter 08 [International Workforce Planning] - Workforce The enterprise's present employees - Labor Pool Potential employees (the labor market) from which a firm attracts and hires its work force - Staffing Decision Successfu...

The International Workforce Planning and Staffing Process -- Chapter 08 [International Workforce Planning] - Workforce The enterprise's present employees - Labor Pool Potential employees (the labor market) from which a firm attracts and hires its work force - Staffing Decision Successful organizations of the future will be those that can attract the best global talent and nurture, develop, and retain it [Factors that Impact International Workforce Planning] - Availability of data Lack of accurate data about labor forces. IHR professionals must develop such data from independent sources. Such data is available from international or local consultancies. Other firms that have prior experience in that foreign local - Population characteristics: Shortages and Surpluses More people retiring than entering the labor force to replace them. Because of that importing of workers and the exporting of jobs, through foreign direct investment (FDI), cross-border JVs and partnerships, outsourcing and subcontracting, and off-shoring. - Increasing diversity of labor forces and workforces People with the education and skills needed in today's global economy are increasingly available everywhere - Labor mobility: emigration and immigration Experiencing migration - Brain drain and job exporting Their educated and skilled citizens leave for jobs with better pay in the developed countries. To export the work and jobs from the developed economies to developing countries, through subsidiaries, JVs, outsourcing, and off-shoring [International Staffing Approaches] the employees who are hired in one locale and are relocated for varying times and purposes to other locales. +-----------------------+-----------------------+-----------------------+ | | Advantages | Disadvantages | +=======================+=======================+=======================+ | *Ethnocentric | - MNC to fill key | - costly because | | Staffing Approach* | positions in | PCNs. | | | subsidiaries when | | | - Hire from the HQ | local talent is | - tension between | | country and send | not available. | PCNs and | | employees on | | home-country | | international | - HQ to control and | nationals (HCNs) | | assignment to the | coordinate | (e.g., because of | | subsidiaries | subsidiary | compensation | | | operations. | differences. | | - A strong need for | | | | the HQ to control | - Allows parent | - prevents or slows | | the subsidiaries. | country nationals | the career | | | (PCNs) to acquire | development | | - Subsidiaries are | international | process of HCNs | | in early stages | experience | | | of development. | | | | | | | | - lack of local | | | | talent. | | | | | | | | - Because of global | | | | business | | | | strategy. | | | +-----------------------+-----------------------+-----------------------+ | *Polycentric Staffing | - access to local | - Locals may not be | | Approach* | communities and | committed to the | | | markets. | MNE. | | - to use locals | | | | from the | - sends a signal to | - Locals may not be | | subsidiary | the local | able to acquire | | country | community and | international | | | government that | experience. | | - Localizing | the subsidiary is | | | operations | committed to the | - For locals, | | becomes | local culture. | career | | competitive | | development and | | advantage | - less costly than | promotion | | | using PCNs. | opportunities may | | - MNC with | | be limited. | | multidomestic | | | | business strategy | | | | are use this | | | | approach | | | +-----------------------+-----------------------+-----------------------+ | *Regiocentric | - reduces costs by | - a lack of | | Staffing Approach* | sharing resources | multi-cultural | | | within a region. | perspective. | | - Favor using | | | | people from the | - Managers can | - Career | | region. | develop region | opportunities are | | | specific-expertis | limited. | | - strong need to | e. | | | organize | | - Not easy for | | subsidiaries into | - MNEs are able to | region-based | | regions. | respond to the | managers to move | | | specific needs of | to company HQs. | | - Each region works | a region. | | | as a unique unit. | | | | | | | | - MNE has several | | | | regional | | | | headquarters. | | | | | | | | - Key positions are | | | | filled by TCNs | | | | and HCNs. | | | +-----------------------+-----------------------+-----------------------+ | *Geocentric Staffing | - Employees can | Managing a large | | Approach* | develop a | number of | | | geocentric | international | | - Source talent | mindset. | assignees can be | | from anywhere in | | costly. | | the world | - The MNE hires the | | | | best talent | Managing work | | | | authorizations in | | | - Career | several countries is | | - MNE has a network | opportunities for | a complex process | | of subsidiaries | top performers | that requires a very | | of centralization | are truly global. | high level of | | and | | communication. | | decentralization. | - Employees can | | | | work with other | | | - highly integrated | employees from | | | process across | different | | | subsidiaries. | geographic, | | | | cultural, and | | | - MNEs that have a | regional | | | transnational | backgrounds. | | | business strategy | | | +-----------------------+-----------------------+-----------------------+ [Traditional International Assignees and Local Nationals] Parent-country nationals (PCNs) - Employees of the MNE who are citizens of the country where the MNE's corporate headquarter is located. Host-country nationals (HCNs) - Employees of the MNE who work in the foreign subsidiary are citizens of foreign subsidiary. Third-country nationals (TCNs) - Employees of the MNE who are citizens of a country other than the parent country or the country of the subsidiary who work in one of its foreign subsidiaries (they either citizens of host country or foreign subsidiary located country) Strengths Weaknesses ----- ------------------------------------------------------------------------------ --------------------------------------------------------------------------------- PCN familiar with the MNE's corporate cultural values, goals, and objectives Cross-cultural adjustment International experience may lead to career opportunities clash with the local government's policy of promoting local hires. costly HCN familiar with the local cultural, economic, political and legal environment. lack familiarity with parent country culture. less costly lower or reduce the ability to maintain control over the subsidiary operations. respond effectively to the host country's requirements for localization may not be the most qualified. accepted by the local colleagues, workers, and government officials. Low loyalty to HQ TCN compromise between PCNs and HCNs. lack familiarity with parent country culture and MNE corporate culture. less expensive to maintain than PCNs. Mobility may be limited add skills not available in country of the subsidiary. may not be accepted well by the local nationals. add diversity/ multiculturalism to the work environment. easier to relocate *Expatriates or international assignees* means when PCNs are transferred to another country, to work in a foreign subsidiary or other type of operation of the MNE for more than one year. When expatriates return home, they are referred to as repatriates. [Purpose(s) of assignments] *Demand-Driven* Purposes include using IAs as general managers or directors for subsidiary start-ups and to roll-out new products; for technology transfer; to solve problems; to perform functional tasks such as accounting, sales, and manufacturing; and for organizational control *Learning-Driven* The learning-driven purposes include management development, transfer of knowledge and the socialization of locals into the corporate culture and values. [Types of International Assignees] +-----------------------------------+-----------------------------------+ | Local hires or nationals | employees are hired locally | +===================================+===================================+ | Domestic internationalists | employees who never leave home | | | but conduct international | | | business | +-----------------------------------+-----------------------------------+ | International commuters | These are employees who live in | | | one country (typically their home | | | country) but who work in another | | | (host) country and regularly | | | commute across borders to perform | | | aspects of their work | +-----------------------------------+-----------------------------------+ | Frequent business trips | international trips usually | | | include travel | | | | | | to a variety of countries or | | | continents to visit MNE sites or | | | customers. | +-----------------------------------+-----------------------------------+ | Short-term international | these are employees on | | assignees | assignments that last less than | | | one year but more than a few | | | weeks | +-----------------------------------+-----------------------------------+ | International assignees | This is an international | | | assignment that lasts more than | | | one year and includes full | | | relocation. | +-----------------------------------+-----------------------------------+ | Localized employees | situation where an employee is | | | sent to work in a foreign country | | | but is hired as a local employee | +-----------------------------------+-----------------------------------+ | Permanent cadre or globalists | These are employees who spend | | | essentially their whole careers | | | in international assignments, | | | moving from one locale to | | | another. | +-----------------------------------+-----------------------------------+ | Stealth assignees | This is the term used to describe | | | international assignees who are | | | relocated by their managers | | | without ever informing HR so that | | | they do not show up in the | | | records, benefits, and support | | | systems. | +-----------------------------------+-----------------------------------+ | Immigrants (A) | This refers to traditional TCNs, | | | employees who are hired to work | | | in a foreign subsidiary but whose | | | home of citizenship is another | | | country, | +-----------------------------------+-----------------------------------+ | Immigrants (B) | These are people hired by the | | | parent firm | | | | | | to work in the parent country. | +-----------------------------------+-----------------------------------+ | Internships | | +-----------------------------------+-----------------------------------+ | Returnees | these are emigrants who are hired | | | to return to their home countries | | | to work for the firm there. | +-----------------------------------+-----------------------------------+ | Boomerangs | These are individuals who have | | | emigrated and are hired by firms | | | in the firm's parent country to | | | return to their original homes or | | | are foreigners with experience in | | | the | | | | | | firm's parent country, who have | | | returned to their original homes | | | and are now hired to work in the | | | foreign (to the firm, but home to | | | the individual) country. | +-----------------------------------+-----------------------------------+ | Second generation expatriates | These are naturalized citizens | | | and are sent on foreign | | | assignments to countries other | | | than their countries of birth. | +-----------------------------------+-----------------------------------+ | Just-in-time expatriates | These are ad hoc or contract | | | expatriates, who are hired from | | | outside the firm just as they are | | | needed and just for one | | | assignment. | +-----------------------------------+-----------------------------------+ | Reward or Punishment assignees | These are employees who are late | | | in their careers, sent to a | | | difficult locale or undesirable | | | assignment as a way to sideline | | | them to finish out their careers, | | | rather than have to discipline or | | | terminate them because of | | | marginal performance. | +-----------------------------------+-----------------------------------+ | Outsourced employees | That is, the firm moves work to | | | another country, subcontracting | | | to a local firm to do the work | +-----------------------------------+-----------------------------------+ | Virtual international employees | | | (Ies) | | +-----------------------------------+-----------------------------------+ | Self-initiated foreign workers | This term refers to individuals | | | who travel abroad (usually as | | | tourists or students) but who | | | seek work as they travel and are | | | hired in the foreign location, | +-----------------------------------+-----------------------------------+ | Retirees | hiring of a firm's retirees for | | | short-term foreign assignments | +-----------------------------------+-----------------------------------+ [International Staffing Choices: Implications for MNEs] A white text with black text Description automatically generated INTERNATIONAL RECRUITMENT, SELECTION, AND REPATRIATION -- Chapter 09 [Recruiting, Selecting, and Repatriating] - ***Recruiting*** - ***Selecting*** - ***Repatriating*** refers to the process of bringing international assignees (IAs) and their families back "home" from their foreign assignments. [Staffing with expatriates or international assignees] - Secondment - the assignee remains employed by the home country (or headquarters organization) and work for the foreign subsidiary in the host country. - Transfer of employment - the employee is terminated in the home country and is then rehired by a different (new) employer in the foreign (host) country. - Dual employment - working for two or more employers - Global Employment Company (GEC) or Professional Employer Organization (PEO) - this option enables employers to hire a foreign work force through an existing foreign company that is already established. Maybe for a short period. [The international recruitment function] Internal recruiting - Global talent management inventories: electronic records of work-related information for employees from throughout the organization including their knowledge, skills and abilities, education, past performance, interests, etc. - Attendees from in-house global leadership programs: educational programs designed - Former/current expatriates: individuals who have been on foreign assignments or are currently on an assignment - Nominations: recommendations from current or potential supervisors - Internal job posting/intranet: - International succession planning programs: internal programs designed to prepare high-potential employees for overseas positions External recruiting sources Employee referrals: recommendations from current employees or expatriates - Job fairs: - Company Internet sites: - Executive search firms: recruiting firms - Professional Associations or Networks: like (e.g., LinkedIn) - Competing firms: recruiting existing employees from other firms is referred to as employee raiding, which can be unethical or illegal in certain environments or countries - Global Leadership Programs in Universities and Colleges *Receptivity to international careers* - which refers to an individual's attitude toward international careers [Factors influence an individual's receptivity] - Job suitability/technical ability - Cultural adaptability - Personality characteristics - Desire for foreign assignment - The maturity of the candidate - Ability to handle foreign language(s) - Possession of a favorable outlook on the international assignment. - Length of the foreign assignment - Overseas health care plans - Income tax equalization policy - Host country housing assistance - Spouse job assistance - Spouse's willingness to travel overseas - Children's education allowance - Prior international experience - Age - Gender - Family status - Marital status - Education - Destination country - Opportunities for career support - Company culture - Career and repatriation planning *Employer reputation (also known as employer brand)* - evaluation by potential candidates of an organization as a desirable place of work and to seek international experience. Based on the signals or messages the organization sends to individuals outside the organization. These signals can come through the media (e.g., newspapers and business magazines), former employees, recruiting advertisements, customer reactions to company products and services, and company websites, and can include information about potential compensation, benefits, prestige, and career advancement. Talent shortages occur in countries during times of economic boom, as well as in times of economic uncertainty. This is more serious in in the service sector, especially when economic conditions improve. [The International Selection Function] Selection decisions 1. Successful expatriate experience - fully analyze the requirements in both technical and cultural terms of the jobs to which expatriates will be assigned as well as of the country of assignment 2. Shortage of Potential IAs - Increasingly the problem of selection of international assignees involves finding employees with the necessary skills to function successfully. Dual career families, disruption of employees' lives, employee work-life balance concerns, and uncertainty about the impact of a foreign assignment on their careers, employees are becoming increasingly reluctant to take on IAs -- or reluctant to relocate to many locales. 3. Competency Profile - The competency profile of an assignee is an important aspect of the selection decision making process.  (One of the things which is not in the picture) Personality characteristics: enable international assignees to be open and receptive to learning the norms of new cultures, to initiate contact with host nationals, to gather cultural information. The Big Five personality -- Extroversion, Conscientiousness, Emotional stability, Openness to experience. In addition to these criteria, selections for international transfer are also most successful when the following factors are also evaluated - The maturity of the candidate - Ability to handle foreign language - appropriate personal characteristics - International Experience - Time (prior, current and future international experiences) - Work and non-work (work or study) - Number of times traveled abroad - Number of days lived abroad - number of different countries a person has traveled A diagram of a selection method Description automatically generated  [Mistakes and Failures International Assignment Failures] Expatriate Failure - Usually defined in terms of early return home or termination, but could also be defined in terms of - Poor quality of performance in foreign assignment - Employee not fully utilized during assignment - Personal dissatisfaction with experience (by expatriate or family) - Lack of adjustment to local conditions - No acceptance by local nationals - Damage to overseas business relationships number of surveys and studies have found that the most important factors in the early return of expatriates lie in the inability of their families or themselves to adjust to the foreign assignment. To the extent that preparation is provided, often the parent company will provide that preparation only for the new transferee, not to his or her family. In addition, after arrival in the foreign locale, IAs have the advantage of personal contacts and involvement with their colleagues at work, while their spouses and families are often left on their own to "figure out" their new surroundings and to develop local relationships, often with little under standing of the culture and an inability to speak or read the language. [Reasons for Expatriate Failure] - Inability of spouse/partner to adjust or spouse/partner dissatisfaction - Inability of expatriate to adjust - Other family-related problems - Mistake in candidate/expatriate selection or just does not meet expectations - Expatriate's personality or lack of emotional maturity - Expatriate's inability to cope with larger responsibilities of overseas work - Expatriate's lack of technical competence - Expatriate's lack of motivation to work overseas - Dissatisfaction with quality of life in foreign assignment - Dissatisfaction with compensation and benefits - Inadequate cultural and language preparation - Inadequate support for IA and family while on overseas assignment [MNE mistakes in IA selection] - Decision to relocate people made with too little lead time. - Assignees not provided with any or adequate cultural training or language training - Spouses/partners not included in the decision to relocate - Spouses/partners and children not included on pre-assignment visits - Spouses/partners and children not included in language lessons - Spouses/partners and children not included in cultural training - Spouses/partners do not receive counseling on jobs and other opportunities - Spouses have no home office contact [Challenges to successful staffing with IAs] - Spouses or partners - Language - Family -- Requesting for sponsorship for the family - Women expatriates - the key factors in women not receiving overseas assignments was that selecting execu tives generally assumed that women would not be accepted in the foreign culture - Lifestyle - Localization or "going native" - Career development - Costs of international assignments - Inpatriation  A white paper with black text Description automatically generated