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5 Global Human Resource Planning

Human resource planning provides the essential link between MNC strategy and people. involves: - scanning the environment for opportunities and threats - taking an inventory and assessment of the organizations current human resources - developing policies, plans, programs, and activities that provide the human talent to help carry out and achieve strategic plans - consideration about the nature of the present and future work demand and potentially viable sources of labour supply it should be responsive to both the short-term and long-term needs and plans of the organization and its worldwide operations

From Strategy to Decisions about Work Demand and Labour Supply

WHAT kind of human work and tasks need to be carried out - part of the WORK DEMAND - decisions about work organization and design o specific coordinated and integrated tasks, responsibilities and jobs for people to perform WHO will do this work - SUPPLY of appropriate human resources

External Environmental Scanning

Major overarching current trends, influences, and developments: - globalization - contingent work arrangements - technological advancements - changing demographics - national culture Other important challenges to be assessed: - labour market conditions and characteristics - opportunities and restrictions presented by foreign governments or other organizations o labour interests o global competition o cross-national cooperation and conflict o impact of broad economic forces and market changes on labour supply costeffectiveness

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Labour Market Conditions and Characteristics

Outsourcing of manufacturing operations to countries such as China, Vietnam, Romania, Malaysia, India, Brazil, Portugal, Mexico, and Thailand (= attractive labour markets) - labour supply is plentiful - adequate skill level - relatively inexpensive India and CEE comparative advantage through technical skills and low-cost labour forces increased demand for low-cost labour force eventually drives up the cost of labour for the MNC

Governments and other Labor Interest Organizations

In order to prevent offshoring/outsourcing labor governments - remove tax incentives for offshore outsourcing - impede or completely prohibit certain kinds of work from being sourced to other countries o those related to key industries and national security Host countries can: - require that MNCs staff their local operations with targeted levels of host country surpervisors and managers (with appropriate training) o for optimal FDI spillover of knowledge and skills - place joint venture requirements to encourage sharing of expertise - provide attractive incentives o tax breaks o exemptions from certain costly labour regulations - require significant company payments to address the social costs of employee job displacement (when the MNC determines to close operations) Local labor unions, international and local NGOs can: - place great pressure to improve HR policies and practices related to o labor standards o job security o equal opportunity o compensation and benefits o skill development

Global Competition
Companies compete both at home and abroad: - to attract and retain customers - for the human talent itself To succeed in the increasingly competitive global arena - ability to attract and deploy: - a motivated - innovative - team-oriented - cooperative Seite 2/32

responsive flexible competent workforce at all levels

Critical functions of HR planning - to continuously o watch the competition o scan the environment for the best practices in employee recruiting, selection, placement, work design, training and development, compensation, change and performance management, and other HR management practices

Cross-national cooperation and conflict

Several different regional and multinational trade treaties and agreements - Organization for Economic Cooperation and Development - The North American Free Trade Agreement - The Association of South East Asian Nations - European Union Important HR planning implications of these agreements: - joint venture formation - appropriate staffing to promote treaty country partnerships - standardization and harmonization of acceptable HR practices - formation and staffing of regional headquarters and HR functions - movement of workforce operations across participating national borders to take advantage of operational efficiencies - appropriate cross-cultural awareness skill development - awareness about important current and changing guidelines Other obstacles: - conflicts between countries o including localized and global terrorism - ongoing trade wars and skirmishes between countries - internal country instability and violence o guerrilla, civil warfare and coup dtat o social and political unrest demand for extra surveillance, security and protective services

Job Design for meeting Global Strategy Work Demand

Job analysis process - basis upon which key employment decisions related to recruitment, selection, training, performance appraisal, and compensation are made - major methods: o incumbent employee observation o interviews o questionnaires o keeping a diary or log Seite 3/32

o expert input by experienced managers or other professionals results in: o job description listing duties, responsibilities, working conditions, supervision or reporting arrangements, knowledge and skills required should be reviewed, discussed and revised regularly

Primary Factors influencing Global Work Design

Several potentially critical factors must be considered in the design of work: - cultural adaptation considerations - regulatory influence on work design - labor market skill levels - available technology and infrastructure - personal accommodation needs

Cultural Adaptation Considerations in Work Design

high vs. low power distance individualism vs. collectivism

Regulatory Influence on Work Design

Different governments specific restrictions about how work is organized and carried out - employee safety - working time and availability of overtime - work organization for breaks for rest, prayer time - business hours

Labor Market Skill Levels

High level of knowledge and skills - jobs with higher levels of complexity and technology - more tasks less educated labor force - fewer tasks involved for each job - greater number of workers might be required

Available Technology and Infrastructure

- Availability and development of technology in the local area of business operations - Surrounding infrastructure supporting business a) technology is unavailable o need for more employees to handle many simplified tasks

Personal Accomodation Needs

Unique circumstances of individual employees - long commutes - longer, but fewer work days - telework design Seite 4/32

Alternative Forms of International Work Arrangements

extensive travel short-term foreign assignments expatriate assignments inpatriate assignments virtual expatriate assignments multinational virtual teams

Extensive Travel - almost constant travel to various business locations o regular and frequent customer contact o active coordination of various geographically dispersed business partners o ongoing supervision that cannot be replaced completely by virtual contacts - can be part of : o early and developing phase of business development o regional assignment Short Term Foreign Assignments (secondments) Duration: From a few months to a year - are on the rise with increasing priorities for cost saving and localization of talent - can provide an interesting break, challenge and professional development opportunity Expatriate Assignments Durations: 3 years or longer - need to fill a critical skills gap by transferring operating knowledge and techniques and general management skills to the distant subsidiary - allowing the MNC to more directly provide coordination and control - knowledge transfer o cognitive domain concrete knowledge about procedures, techniques, and methods for accomplishing tasks o emotional intelligence or affective domain productive attitudes and values, higher-level thinking, team building, and problem-solving skils major purposes: - filling a critical skills gap with accompanying knowledge/ skill transfer for optimal MNC control - supporting individual learning and global competency development for future company leadership - organization development of the host operation and MNC as a whole Vladimir Puck - demand-driven foreign site work - learning-driven international assignments Gary Oddou - 2 types of expatriates o Those assigned to go abroad to fix a problem Seite 5/32

o Those identified as high potentials for the firm who are assigned abroad to build global business competencies Particular purposes of organizational development served by expatriate assignments: - effecting global workforce socialization to common values and priorities - widespread global orientation and core competency development - development of informal networks - organizational learning - effective global knowledge management Disadvantages - expatriate assignments can be very expensive o maintenance costs of expatriates in a host country range from three to ten times the cost of domestic employees with similar responsibilities - frequency of premature terminations of expatriate assignments of failure to achieve the assignment goals - over-reliance on the use of expatriates for management and leadership responsibilities in foreign operations can lead to limited development of other members of the MNC workforce not coming from MNC headquarters overall underutilized and underdeveloped global talent pool - strict and exclusive use of expatriates for managing foreign operations can significantly diminish the breadth of experience-based perspectives about foreign markets that can be returned back to MNC headquarters o limiting the MNCs ability to innovate and compete on a global scale Inpatriate Assignments = a work assignment featuring the transfer of foreign managers from their host country operation locations to global or regional headquarters on a semipermanent or permanent basis Major purpose: - increase the foreign inpatriate managers understanding of company strategy, culture, and critical operations and practices - upon return this manager can exert greater control on the foreign operation consistent with MNC headquarters - knowledge transfer (with perhaps greater credibility as someone originating form the host country workforce) - enrich the MNC management team by adding a multicultural perspective to global strategy development limitations and costs - challenges of cross-cultural adjustment - premature assignment terminations - assignment failure to meet goals and objectives Virtual Expatriate Assignments = assignments that combine short travel trips with virtual interaction through telephone and cyberspace (e-mail, video teleconferencing, the Internet, company-controlled intranet sites) - allows executives to take an assignment without subjecting them and their families to the culture shock of a move abroad Seite 6/32

expose the employee to valuable developmental global management issues, while still permitting closer touch with the home office

Global Virtual Teams - formation and continued growth of complete or partial working arrangements known as global or multinational virtual teams - 3 design components o Responsible for formulating and/or implementing decisions that are important to their organizations global strategy o Use a substantial amount of communications technology to support group member interactions o Comprise members working and living in different countries - Knowledge-based teams o Formed to improve organizational processes o Develop new products o Satisfy complex customer problems - Distinct advantage o Ability to perform work asynchronously o Helping organizations bridge different time zones effectively o Enabling teams to be productive over more than one work period - Enhance flexibility and innovation capability - Basic sociotechnical challenges in making them work effectively o Managing conflict Over differing cultural backgrounds With much greater distances Delayed or asynchronous periods of interaction Synchronous interaction in groups - more orderly process - verbal and nonverbal cues help o regulate the flow of conversation o facilitate turn taking in discussion o provide immediate feedback o convey subtle meanings Asynchronous communication - typically found in multinational virtual teams - conveyance of cues is hindered - feedback is delayed - interruptions or long pauses in communication often occur Global virtual teams must find workable solutions - obstacle of asynchronous communications - temporally coordinating their interactions and flows of information o work schedules and deadlines o developing trust o aligning the pace of efforts among group members o agreeing on the time spent on particular tasks Seite 7/32

Sources of Global Labor Supply for Meeting Work Demand

regular or standard employees non-standard or contingent employees

Regular or Standard Employees full-time or permanent employees - are considered full members of the organization - are at the core of the organizations employment picture - recipients of full benefits Non-core employees - serve as layers beyond the core that provide work as needed and as afforded by the organization - protective buffer for their core employee counterparts - are the first ones to lose their jobs or to have their working hours diminished 3 major groups of regular employees - parentcountry nationals (PCN) - host-country nationals (HCN) - third-country nationals (TCN) Parent-Country Nationals (PCNs) - citizens (legal residents) of the home country of the parent company, or the country where the primary headquarters is located - particular strength of a PCN as a labour source: o his/her understanding of the company culture, priorities, and strategy and what it takes to be successful within the MNC - particular limitations o possible lack of familiarity with and difficulty in personally adjusting to a foreign business location of the MNC (lack of foreign-site adaptabilitiy) Host Country Nationals (HCNs) = citizens or residents of a country that hosts, or provides local property and facilities, for MNC operations abroad Particular strengths: - familiarity with the local culture, common business practices, and economic conditions limitations: - may initially lack a clear understanding of the predominant national and organizational culture of MNC headquarters, or its business priorities, accepted and expected business practices, and strategic mind-set - might not share a common language with PCNs o serious challenge to effective communications and business interactions Third-Country Nationals (TCNs) when staffing a foreign operation in a host country, new employees could be citizens or residents of a different third country apart from the parent or host country - useful alternative labor source for filling work demand where the focus is on obtaining the most cost-effective labor Seite 8/32

overall regiocentric strategy o regional employees are assigned as TCNs to nearby host country operations disadvantages - possible lack of understanding of the local HCN culture - difficulties with local public sentiment and governmental obstruction - language difficulty - may not have a clear understanding of MNC strategic priorities, accepted business practices, organizational culture Contingent or Non-Standard Workforce = on call employees those who work on a flexible basis as needed or contingent to an organizations work demand have neither an explicit nor implicit contract for continuing employment represent a rapidly growing source of labor for filling global work demand

Reasons for Major Growth of the Contingent Labor Sector

Promoting Company Flexibility o meet increasing global competitive demand o economical as needed basis o number of workers and working hours are easily adjustable Supply Factors o large sectors of the labor may be available to work only on a part-time basis women (childcare, household management) senior citizens (extra income, variety in live) Screening Function o management may sample temporary employees through their performance before hiring them on a regular basis o employees get to know the organization o may enhance the effectiveness of new standard-employee staffing decisions Technological Change o significant changes in technology lead to greater demand for contingent employment arrangements because outsourcing or reassigning work outside the company automation of work and robotics rapid changes demand flexibility and diminish need for long-term employment Employment Legislation and Deregulation o forms of employment legislation on behalf of full-time (benefits, etc) might create an economic motive for companies to increase their use of part-time and other non-standard employees o deregulation companies use more flexibility in their staffing practices o governments actively encourage the use of non-standard employees to reduce unemployment Worldwide Growth in Numbers of Small Businesses o use of consultants, contractors, and special service vendors Seite 9/32

o no fixed costs arrangements can be terminated at the end of the contract period Changes in Employer-Employee Relationships and Expectations o increased sense of employees of being their own free agents and not committed on a long-term basis to a single employer Changes in Employee Personal-Life Needs and Lifestyle Preferences o dramatic increase in the number of working mothers o rise of two-career family demand for flexible working arrangements Major Forms of Contingent or Non-Standard Employees Part-Time Employees o most common source of the growing contingent labor force o work less on an ongoing basis o global part-time workforce continues to be dominated numerically by women Temporary Employees o another major source of contingent workers o are increasingly used to supplement the regular workforce on an ongoing basisdepending on the workload o often supplied by temporary services agency o floaters in-house company employees typically not eligible for full company benefits Employee Leasing o a company might transfer all employees, a large part of the employees, or sometimes only the employees of a separate facility or site to the payroll of an employee-leasing firm or Professional Employer Organization (PEO) joint-employment relationship o the PEO then leases the workers back to the client company saving the company on HR operational costs can also provide positive MNC tax benefits o disadvantages may be hard to lease back loyalty and commitment (source of competitive advantage) Contracted Services o special tasks of a non-recurring nature, requiring a high level of independence, professional judgement, discretion, and skill o frequently performed on a contract basis by individuals e.g. consultants, groups of professionals Outsourced Services o when a company contracts with an organization to provide the ongoing, full managerial responsibility over a specific function o companies must carefully address skill and language requirements, labor costs by market, alternative talent pools, workforce training requirements, and work design requirements MNC Concerns Regarding Contingent Employees heavy reliance on non-standard employees may lead to reduced job satisfaction Seite 10/32

o reduction of workforce loyalty, commitment, and subsequent reduced productivity outsourcing arrangements employees work for outsourcing service firms no direct control o no direct control of work quality, decreased worker commitment, loyalty, and competence concern about customer perception of company products or services provided by offshore employees significant costs in image and public relations HR Planning for the Long-Term regularly scanning the environment for threats and opportunities in the external labor supply o related to meeting immediate and short-term work demand for carrying out MNC objectives study external trends and conditions o firms long-term survival and competitiveness internally consider the MNCs organizational culture and core capabilities Country Labor Forecasting environmental scanning should consider o national birthrate statistics o health conditions and mortality o the nature and quality of educational systems within a country o changing demographic trends in workforce participation clearer picture of the nature of the global labor force available Planning for Global Capability shared organizational core competencies and culture workforce alignment or shared mind-set plan HR activities and policies plan selection, training, performance management, and remuneration practices companies have increased their number of young managers involved in extended foreign assignment experiences in order to develop greater company-wide global leadership capability expatriate assignment, repatriation, placement, ongoing career development global talent management Global Succession Planning effective succession planning o minimizing disruption and confusion o implementing company strategy and achieving organizational goals o reduce chance and uncertainty o ensure the availability of senior executive leadership talent for future company guidance Seite 11/32

involves o making a projection of future needs for senior managers within the firm o careful selection from pools of promising manager candidates o flexible plan is formulated to ensure that successors develop the core competencies needed o management and HR should work collaboratively with the identified, interested high-potential individuals o formal training, international virtual teams, short-term foreign assignments, extended foreign assignments

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6 Global Staffing
involves actively filling jobs in a timely fashion with appropriately qualified individuals from inside or outside the MNC and consistent with the MNCs strategy ability to attract qualified workers and keep the workplace adequately staffed o careful assessment through HR planning of external labor market conditions and government actions o effectiveness of the organizations overall reward system attract and retain workers involves: moving employees into, throughout, and out of an organization retaining desirable employees employee deployment and movement decisions and activities o recruitment o selection o transfer o promotions o layoffs o firing o retirement o total compensation package and reward system Recruitment involves considering both internal and external sources to produce viable candidates to apply to fill a given work demand Selection involves gathering appropriate information and deciding from among those candidates who to choose to fill the work demand

General Factors Affecting Global Staffing

Employee recruitment and selection decisions are influenced by firms business strategy stage of international development specific foreign market experience host government restrictions and incentives host country sociocultural restrictions plans for individual and organization development situational factors economic trends and conditions nature and duration of the international work itself MNC resources available for staffing availability of willing and able candidates

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MNC Business Strategy

Staffing should seek to fit and reinforce the purposeful direction and priorities of the MNC being consistent with o ethnocentric o polycentric o regiocentric o geocentric general strategic approaches in operating foreign wholly owned subsidiaries e.g. MNC follows a strategic alliance strategy (focusing on core competencies) employ outsourcing through increasing the outsourcing of non-core back-office operations resort to a broader level of external partner selection in complementary alliances (international joint ventures) Ethnocentric Approach characterized by all or most key positions at a foreign operation being filled by parentcountry nations (PCNs) o PCNs are often utilized in earlier stages of internationalization optimize control for the purpose of transmitting company culture and instituting and implementing company procedures and methods o for more experienced MNCs heavy use of PCNs for managing foreign operations due to the perceived lack of qualified local home-country national (HCN) talent need for strategic control o often in Japanese, Korean and German firms they persist with PCNs predominating in foreign operation management o bc of greater operational challenges posed by cultural distance or by nature of industry o if product complexity and/or product safety concerns are high disadvantages and costs of ethnocentric staffing o expatriates represent a considerable direct cost adjustment process takes considerable time learning curve time span of costly suboptimal performance, mistakes, poor decisions o limits the the promotional and developmental opportunities of HCNs increased dissatisfaction related costs of lower productivity increased turnover o significant pay gap between PCNs and HCNs PCN based on home country rates, inducement premiums, allowances HCN lower local rate Polycentric Approach similar to multidomestic strategy o involves customizing company products, services, and practices to meet the often differing market and nonmarket circumstances, needs, laws, and accepted practices of individual countries and regions Seite 14/32

each major overseas subsidiary is usually somewhat independent and is typically managed by a local HCN major advantages o strong familiarity of operation management with local social norms and customs o language fluency o costs that are typically less than an expatriate assignment o no foreign adjustment problems for an employee and any accompanying family members o can win the support and confidence of the local government and people major disadvantage o lack of effective flow of information and productive interaction between MNC headquarters and the foreign subsidiary language and cultural differences us versus them stereotypes lack of local meaningful interaction and common experience between PCNs and HCNs o lack of international professional skill enhancement and career development opportunities for HCNs o suboptimal sharing of valuable knowledge and information and cross-cultural understanding o lack of valuable global competency development opportunities for PCN managers and executives lead to lower effectiveness MNC headquarters strategic management team Regiocentric Approach the firms operations or particular functions are structured by multiple country areas or major economic regions o predominance of HCN staffing at the local subsidiary o former HCN managers (now TCNs) with cross-border assignments gain useful albeit less culturally distant international career experience but still generally limited to this regional level little chance of promotion to the top management strategic team back at the parent company headquarters advantages o may contribute to building useful international competencies disadvantages o risks developing multiple independent national units with little common links and identification with MNC headquarters o less-than-optimal exchange of knowledge and resources Geocentric Approach considers and selects the best talent for important jobs throughout the world operations of the MNC, regardless of nationality works well where products/services involve minimal cultural differentiation o electronics, automotive industry advantages Seite 15/32

o increased global leadership development opportunities for HCN o increased opportunities for cross-cultural learning and knowledge sharing throughout the firm, with meaningful cross-border interactions o greater opportunity for developing a common MNC identity and mind-set o a more widespread development of key global competencies throughout the MNC leading to a distinct competitive advantage in human capital restrictions o where local governments require certain levels of HCN professional and managerial presence in their host country operations o or place significant documentation and qualification requirements for hiring foreign nationals disadvantages o prove prohibitively expensive to implement fully due to compensation adjustment needs and relocation expenses International Joint Ventures (IJV) Issues of potential cross-cultural conflict, control, and temporary versus permanent (that is, one-way) staffing assignments major strategic mode of entry into foreign markets advantages o competitive advantage due to cultural diversity broader range of perspectives for managing the IJV o negative outcomes can be minimized by focusing more on expertise and interpersonal skills many MNCs now hire local talent and train them in company strategy, culture, and procedure local in the host country or as inpatriates at MNC headquarters then place them in key leadership positions back in the local host country IJV Stage of International Development Progression of businesses through various stages of international development, or internationalization 1) export activity 2) development of foreign sales offices 3) licensing agreements 4) foreign direct investment with manufacturing facilities 5) international division formation 6) multinational status 7) integrated global enterprise some businesses bypass stages acquisitions joint ventures born global new ventures Specific Foreign Market Experience MNCs with little experience o staff operations with local management Seite 16/32

local HCN managers TCNs o reluctant to hire an experienced HCN or TCN from outside the MNC short-term hiring full-time consultancy basis Government Restrictions and Incentives Safeguarding responsibility on behalf of their working citizens require MNC to demonstrate that HCNs are not available to fill certain managerial or technical professional positions o entry visas and work permits to PCNs and TCNs work permit is granted generally only for an expatriate and not for an accompanying spouse or partner certain number of HCNs might have to be hired at particular levels o minimal percentage of supervisor and management level positions must be staffed by HCNs o enforced by governments and NGOs especially in developing countries incentives by governments to encourage MNCs foreign direct investment and significant HCN staffing o tax, tariff, local labor force training Sociocultural Considerations general social norms women in international staffing General Social Norms Influence of social expectations and cultural preferences in the workplace Consideration of such factors as o gender o age o consanguinity (family ties) o previous friendships nepotism = hiring extended family members Women and International Staffing Cultural norms and expectations might need to be considered when making staffingassignment decisions about women in other countries o especially involving work and supervisory interactions with men women still lag significantly behind their male MNC expatriate counterparts o assumption held by male managers that women have less interest than men in obtaining international work experience (expatriate assignment) and concerns about success potential o even though a majority of women on expatriate assignments were successful Seite 17/32

advantages of women overseas o high visibility o not necessarily subject to the same traditional gender-based restrictions in local business interaction o positive self-fulfilling prophesy or halo effect foreign business persons might expect the female expatriate to be extremely capable and talented (as she was able to overcome all of the gender-biased obstacles) o social skills building trusting relationships with employees and customers good listening skills less direct and confrontational communication approach emphasis on cooperation over competition

Plans for Individual and Organizational Development

Immediate stuffing decisions can be influenced by longer-range goals and objectives of the firm related to individual employee development or the development of the organizations capability as a whole o selection of HCN for inpatriate assignments reverse knowledge-transfer strategy for building greater capability at company headquarters considering diverse perspectives and meeting the demands of global diversity enhancing the capability of the MNCs strategic management team in making decisions Situational Factors Influencing Staffing Decisions important situational determinants of international stuffing nature and duration of the task or work assignment financial resources of the MNC available for staffing availability of qualified and willing candidates economic trends and conditions

Global Recruitment of Human Resources

involves finding and encouraging qualified individuals to apply for a job opening important areas o geographic scope of recruitment o internal vs external candidates Geographic Scope of Recruitment geocentric approach o worldwide scope of sources for locating qualified potential job candidates o searching for top talent regardless of national pedigree broad scope o when particular professional skills are highly sought after but are in short supply e.g. to fill critical national nurse shortages narrow scope Seite 18/32

o when recruiting for executive-level employees o found mostly at or near company headquarters o needed for new foreign operations that lack an MNCs proprietary knowledge and expertise subject to an ethnocentric staffing orientation web-based recruiting o low costs o dramatic increase of the geographic area for recruitment other costs and restrictions related to the overall staffing effort o candidate travel for interviews o dealing with difficult country visa and immigration policies might minimize the geographic recruitment area Internal versus External Candidates Search for candidates inside or outside the organization? BUT many MNCs (Merck, 3M, IBM) encourage an internal recruitment promotion from within o advantages of this approach where effective human resource information systems (HRIS) are in use qualified candidates are easier to identify and contact significant savings in time and financial resources work performance background and development progress are readily available of potential candidates boost on employee morale and motivation, increasing retention and productivity reduction in training and socialization time and costs awareness of the unique organizational culture, priorities, procedures, and overall business practices of existing employees o additional advantages (Harvey and Novicevic) internal candidates are easier to persuade to take an assignment abroad internal candidates are familiar with the value of international career within the organization internal candidates are more likely to be trusted in the organization recruiting employees from the outside benefits o fresh new ideas and viewpoints o reduce training costs o provide additional greatly needed human resources without overusing and overburdening existing internal staff o greater objectivity and flexibility in making critical decisions disadvantages o lack of verifiable information on the external candidates past experience o higher recruitment costs o little knowledge and experience regarding company culture and strategy o lack of a history with MNC headquarters to develop trust and ongoing support Global Recruitment Methods INTERNAL usage of formal and informal means to search for potential employees inside the MNC Seite 19/32

primary internal methods o job posting o skills inventories o internal network referrals Job Posting company newsletters bulletins computerized intranet in-house communication systems o include information about the nature of the position major qualifications required how to apply or bid for this job opportunity Skills Inventories facilitate an internal search for employees with interest and requisite skills Internal Network Referrals informal communication there must be an open sharing of career interest information Global Recruitment Methods EXTERNAL advertising employee referrals field recruiting internships Internet and related software professional recruitment firms Advertising direct advertising o can reach a large number of potential applicants in a number of ways o should fit the local culture and regulatory conditions o should be directed at reaching the intended audience Employee referrals employees are typically provided a financial reward and/or gift for referring a candidate who is eventually hired especially in small- to medium-sized operations tends to be very effective in attracting qualified and loyal new employees the newly recruited employee tends to know what to expect from the job and the company o decreasing the likelihood of early departure nepotism (hiring of family members) disadvantages o less workforce diversity o some countries over-reliance can lead to accusation of discrimination and costly litigation

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Field Recruiting professional internal recruiters are sent out into the extern environment in field recruiting activities o domestic or international college career centers o company- or government-sponsored outplacement service centers o school- or local government-sponsored career fairs o meeting of professional associations Internships companies are increasingly working closely with domestic and international university programs to develop internship arrangements o part-time basis during a school year o full-time during a summer prior to graduation in change for pay or academic credit provide valuable experiential learning and resume-building experience for student recruitment tool o attracting very capable students international internship o valuable trial test of an individuals ability to adapt and adjust to a foreign work environment disadvantage o might not be appropriate when employees need to be hired fairly quickly o tend to require considerable company time in planning and supervision The Internet and Related Software is reducing the cost and time needed to fill many positions able to improve on traditional advertising o targeting specialised websites o electronic newsletters o bulletin boards effectively designed websites o realistic job and working environment previews for potential candidates potential drawbacks of e-recruiting (by Sparrow) o attracts too many applicants to process effectively and in a timely manner o challenge when the recruiting company is not well known o attracts questionable data of highly variable quality o inherent discrimination against other qualified candidates (mostly male candidates applying) Professional Recruitment Firms agencies e.g. Adecco or Manpower o provide temps or employees that work for the company for a limited period executive search firms e.g. Korn/Ferry International o assist only with the external recruitment of senior executives temp-to-hire Seite 21/32

o provides employees from entry to middle management levels initially on a temporary basis o afterwards these employees are hired by the company on a regular basis when future work demand employee fit warrant such a decision often used as a probationary test

Global Selection of Human Resources

executive level selection decision determines what kind of leadership is going to guide the organization and shape its future

General Principles and Practices of Employee Selection

Triangulation = to measure something from three different angles to achieve an accurate assessment the more kinds of measures are used the more accuracy in predicting the future success of a candidate if only one approach or measure is used the quality of that decision will be vulnerable to the limitations of that particular measure Focus on Job Relevance Investment in Developing Interviewing Skills employment interview is the most frequently used method for employee selection it often has one of the lowest validity rates what to avoid o interviewer domination o asking questions unrelated to the job o premature judgments of the candidate approaches o behavioural interview approach requires the candidate to describe specific experiences in the past in which he or she demonstrated an important job-related behavior o situational interview approach requires the candidate to describe how he or she would solve a particular problem relevant to the job Influence of Culture on Selection Measures differential effects of culture nonverbal behaviour personality tests

Selecting Employees for Foreign Assignments

Focus on the Most Important Criteria for Success most important selection criteria depends on the nature of the international assignment o extended assignment in very different culture candidates local language fluency Seite 22/32

ability to adjust ability to relate in a sensitive way with other cultures o shorter assignments little cultural distance selection criteria o interpersonal skills o personal intent and motivation for obtaining international work experience o cross-cultural sensitivity o adaptability o tolerance for ambiguity o overall inquisitiveness o technical competence Methods for Selecting Employees for a Foreign Assignment a psychometric approach for predicting international management competencies a experiential approach an overall clinical risk assessment approach Psychometric Approach general approach using personality tests challenges o difficulty in measuring predictive success and reliability o questionable quality of data Experiential Approach emphasizes the expatriate candidates direct experience with many of the realities of the future assignment 3 main forms o assessment center technique places the candidate in various relevant situations and with common and critical tasks that he or she likely would face in the foreign assignment in-basket exercises relevant job assignments work simulation o foreign site preview visit (familiarization trip) more time and expense invitation to visit the actual area of the proposed foreign assignment o developing an internal international cadre of talent pool significant HR planning long time perspective o clinical risk assessment approach investigates candidate competencies and ability to adjust and other factors affecting success adaptability of the accompanying partner dual-career difficulties nature of supporting structure in the foreign assignment cultural distance and technical difficulty of the assignment accountabilities and responsibilities Seite 23/32

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7 Global Workforce Training and Development

for providing training or planning the training agenda, an awareness of important issues and potential valuable contributions of training for various members of the global workforce is essential for achieving long-range effectiveness and even company survival formation of centralized corporate universities o help to spread a common culture and values o drive change simultaneously across the whole organization measurable behavior immediate learning goals long-range learning goals training corresponds to efforts designed to address immediate learning needs within an organization development corresponds to efforts aimed at meeting longer-range learning objectives commonly reserved to middle managers and higher executives Strategic Role of Training and Development in the Global Marketplace training plays a central role in the effective implementation of organizational strategy 5 ways in which training can assist organizations in gaining competitive advantage o Quality and Customer Satisfaction o Decreasing Costs o Organizational Learning and Knowledge Management o Global Alignment o Building Global Talent Quality and Customer Satisfaction reliability consistent quality performance Decreasing Costs satisfying customer needs at lower costs than other firms reduce costs for the customer for products and services o reduce rejects and unacceptable performance o reduction of wasted time shortened learning curve o agility, or ability of an organization to learn and adopt to needed change swiftly

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Organizational Learning and Knowledge Management tacit knowledge o capability possessed by an individual based on his or her overall level of experience and expertise o shared through team working arrangements Global Alignment various training activities and related efforts can be used to help build internal employee alignment, or a common mind-set o brings control and consistency o offsets the unavoidable uncertainty and rapid change training can build a common commitment and sense of values to guide decisions o shared attitudes Building Global Talent development of high-potential employees into effective managers and leaders o think and compete effectively on a global scale training o develop general international competencies e.g. international adjustment skills o specific knowledge and skills specific foreign language ability knowledge of local laws Fundamental Concepts and Principles for Guiding Global Training and Development to help guide decisions regarding employee training and development Domains of Learning cognitive domain of learning o most training is aimed at increasing knowledge, awareness, and understanding o intellectual and rational thinking processes affective domain of learning o deals with emotions, feelings, values, beliefs, attitudes, expectations motivation o e.g. pre-departure training efforts (expatriates) psychomotor domain of learning o relates to the acquisition of new physical skills typing, correct enunciation of previously unfamiliar and difficult vocal sounds in a new foreign language, becoming accustomed to driving on the opposite side of the road o combination of the intellect, and motor coordination o mastery tends to require significant practice o deep level of learning over-learning Levels of Learning within the cognitive domain CASE Seite 26/32

o C = basic comprehension of a message, rule, or principle o A = next level, involves the ability to analyze a problem situation and break it up into an effective examination of the most important parts of the situation o S = ability to synthesize or reassemble the parts to form a clear total picture or diagnosis of a solution or set of alternative solutions to the problem o E = at the deepest level of learning, pertains to evaluate the most appropriate action to take based on existing objectives or determining the decision that would yield the greatest value Principles of Adult Learning familiarity relating to previous experience pragmatic or problem-centered personal influence and control perception of self-direction, influence, and control on the learning process values of mutual trust and respect, openness, and honesty Sensitivity to Cross-Cultural Differences Systems Approach to use the training effectively and create desirable impact on employee and organizational training systematic, scientifically based procedure Phase 1: Conduct Needs Assessment whether a training need exists careful need assessment is important for ensuring that training is o designed and implemented cost-effectively o supported and reinforced by work design and supervision the reward system the overall workplace environment examines at o the organizational level organizational performance objectives available resources possible supportive changes from the organizational culture and reward system o the job and work operations level nature of the particular performance to be mastered training content for new knowledge and skills causes of performance problems (if existing) prevailing conditions in which the work is performed should include input from as many sources as possible o the individual level needs or characteristics of the trainee(s) language skills technical and basic skills cultural influences Seite 27/32

Phase 2: Develop Training Objectives identify what specific behaviors the intended trainees are supposed to be able to perform expected conditions in which the behaviour is to be performed Phase 3: Design and Develop Training selection of training method or combination of methods possibly adjusting or redesigning the work environment cardinal rule: o the most cost-effective method to use depends upon the training objectives experiential methods o practice, role playing, international travel, work experience in foreign culture o very effective training methods o require expense and time other methods o readings o computer-assisted media o brief live presentations Phase 4: Test and Revise Training Prototype trial test of the training prior to its widespread usage Phase 5: Implement Training Phase 6: Evaluate Training in terms of its effectiveness in achieving the training objectives

Training Transfer
to encourage effective positive transfer of the training there are several things that managers can do before, during, and after the training takes place before the training o clear commitment obtained from accepted leaders and top management for the training powerful influence on perception of workers through: adequate budget allocation for the training supportive public statements participating in the training themselves clear support for the new behaviors being trained o careful review and possible revision of pertinent company policies, procedures, and workplace conditions during the training o use of practice on-the-job training role playing experiential exercises following training o encouragement by the supervisors to use the new skills o functional integration of other human resource activities Seite 28/32

performance appraisal and compensation

Training Imperatives for the Global Workforce key imperatives for global training o building global competencies for international professionals o building global alignment o pre-departure and on-site expatriate training o special training considerations for female expatriate assignment success o HCN training

Building Global Competencies for International Professionals

professional global competencies o e.g. cross-cultural awareness/sensitivity managing cross-cultural conflict working in and managing international teams emotional intelligence managing tension of duality (i.e. think global, act local) open, nonjudgmental personality etc KSAO knowledge, skills, abilities, and other characteristics 4 pillars of a global mindset (Stephen Rhinesmith) o Business Acumen working understanding of effective principles and practices of functional disciplines broader strategic management knowledge o Paradox Management appreciation and ability to make effective decisions within uncertainties and complexities o Self-Management ability to monitor, care for, adapt, and renew oneself to maintain strength and vitality amid the ongoing demands of rapid change, uncertainty, complexity, and other stressful working conditions o Cultural Acumen appreciation and interest in other cultures sensitivity to and flexibility in dealing with cross-cultural differences 4 major strategies Four Ts (transfer, training, travel, teams) for development of vital global professional competencies: Transfer to New Assignment or Job ongoing practice in using extended international-work-assignment transfer as a rich experiential training ground for future leaders Seite 29/32

Training more controlled, structured learning activities with fairly limited topics and specific learning objectives most formal strategy of the four T and with the greatest focus on sharing explicit knowledge program on a global strategy change management managing virtual work teams international negotiations and conflict-management skills Travel can provide a rich source of exposure and experience-based knowledge about foreign cultures and different behavioural norms divers economic and political environments, different and often insightful business practices Teams cross-functional task forces enduring teams at middle or senior levels fairly autonomous and self-managing virtual teams experiences of interactions with team members of other national and cultural backgrounds can provide a rich exchange of tacit knowledge and capability

Building Global Alignment

Externally provided controls are intended to help align the workforce with the goals and objectives of the organization o close supervision by expatriates o rules o performance-management techniques internal cognitive alignment o common mind-set and shared knowledge represent a unifying language that provides alignment in thought and action, facilitating effective interactions and collaborative synergies across the MNC alignment of both mind and heart = normative integration or cohesion management o through informal learning channels

Expatriate Training Considerations

Training can enhance the speed and effectiveness of expatriate adjustment and performance in the assignment and minimize costly expatriate assignment failure Important considerations for expatriate training: Pre-Departure Training provide useful information and a sense of personal control in addressing challenges training should provide positive but realistic expectations forms of training o cross-cultural awareness o strategic training Seite 30/32

o job training actual content and form of training depends on various factors: o Job Toughness does the new job require different working conditions, equipment, or legal or union restrictions? o Cultural Toughness the degree to which the values, norms, and attitudes of the foreign culture match the expatriates home culture o Communication Toughness difficulty and amount of frequency of communication involved with HCNs and in the foreign environment different norms and rules for written, oral, and interpersonal communication; frequency of foreign communication required; difficulty in learning the predominant foreign language; length of foreign assignment; modes of communication used Special Training Considerations for Female Expatriates Female expatriates represent a significant but greatly underutilized resource Local Norms and Values Regarding Women Information should be provided on local norms, values, and perceptions about expected female role behaviour and attitudes toward women managers Attitudes and Norms Regarding Expatriate Women versus HCN Women Expatriate women are often not held to the same gender role expectations as are women form the local culture Behaviors to Avoid Avoid unnecessary HCN offense with or misinterpretation of their behaviour Networking with Successful Female Expatriates HCN Training Considerations Operative Level o new employee orientation o entry job skills o parent company predominant language o expatriate and home country cross-cultural awareness training Supervisory and Middle Management o Supervision and technical operations management o Home country cross-cultural awareness o Expatriate coaching o Liaison role between parent company expatriates and lower-level HCNs Upper Management o Advanced technical system operations Seite 31/32

o o o

Business-level (subsidiary) strategy Parent company (MNC) strategy Parent company (MNC) culture

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