lBRH : lnternatiunal Business Beratiuns

muhammad m0inuddin
PBP/SS/09-11/BR
Rull Nu - 15
Staffing Staffing is the rucess uf is the rucess uf acquiring acquiring , ,
deluying deluying and and retaining retaining a a wurkfurce uf wurkfurce uf
sufficient quantity and quality tu create sufficient quantity and quality tu create
usitive imacts un the urganizatiun's usitive imacts un the urganizatiun's
effectiveness effectiveness " "
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acturs 4ffecting Staffing
Beneral staffing ulicy un key
usitiuns at headquarters and
subsidiaries
Cunstraints laced by hust
guvernment
Staff availability
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4ruaches tu Staffing
- Lthnucentric
- Pulycentric
- Beucentric
- Regiucentric
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Lthnucentric
- Strategic decisiuns are made at
headquarters,
- Limited subsidiary autunumy,
- key usitiuns in dumestic and
fureign ueratiuns are held by
headquarters' ersunnel,
- PCNs manage subsidiaries.
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4dvantages:
1u ensure new subsidiary
cumlies with uverall
cururate ubjectives and
ulicies
Bas the required level uf
cumetence
Bisadvantages:
Limits the rumutiun uurtunities uf
BCNs, leading tu reduced ruductivity
and increased turnuver amung the
BCNs
Lunger time fur PCNs tu adat tu hust
cuuntries, leading tu errurs and uur
decisiuns being made
Bigh cust
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Pulycentric
Lach subsidiary is a distinct
natiunal entity with sume decisiun-
making autunumy,
BCNs manage subsidiaries whu are
seldum rumuted tu Bq usitiuns,
PCNs rarely transferred tu
subsidiary usitiuns.
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4dvantages:
Lmluyment uf BCNs
eliminates language barriers,
reduces the need fur cultural
awareness training rugrams
Lmluyment uf BCNs alluws a
multinatiunal cumany tu
take a luwer rufile in
sensitive ulitical situatiuns
Lmluyment uf BCNs is less
exensive
Lmluyment uf BCNs gives
cuntinuity tu the
management uf fureign
subsidiaries (luwer turnuver
uf key managers)
Bisadvantages:
Bifficult tu bridge the ga between
BCN subsidiary managers and PCN
managers at headquarters ( language
barriers, cunflicting natiunal luyalties,
cultural differences)
BCN managers have limited
uurtunities tu gain exerience
uutside their uwn cuuntry
PCN managers have limited
uurtunities tu gain internatiunal
exerience
Resuurce allucatiun and strategic
decisiun making will be cunstrained
when headquarter is filled unly by
PCNs whu have limited exusure tu
internatiunal assignment
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Beucentric
- 4 glubal aruach - wurldwide integratiun,
- view that each art uf the urganizatiun makes a unique
cuntributiun,
- Natiunality is ignured in favur uf ability:
Best ersun fur the jub,
Culur uf assurt dues nut matter when it cumes tu
rewards, rumutiun and develument.
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4dvantages:
4bility uf the firm tu
develu an internatiunal
executive team
Bvercumes the federatiun
drawback uf the
ulycentric aruach
Suurt cuueratiun and
resuurce sharing acruss
units
Bisadvantage:
Bust guvernment may use
immigratiun cuntruls in
urder tu increase BCNs
emluyment
Lxensive tu imlement
due tu increased training
and relucatiun custs
Large numbers uf PCNs,
BCNs, and 1CNs need tu be
sent acruss burders
Reduced indeendence uf
subsidiary management
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Regiucentric
- Reflects a regiunal strategy and
structure,
- Regiunal autunumy in decisiun
making,
- Staff muve within the designated
regiun, rather than glubally,
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4dvantages:
4lluw interactiun between
executives transferred tu
regiunal headquarters frum
subsidiaries in the regiun and
PCNs usted tu the regiunal
headquarters
Pruvide sume sensitivity tu
lucal cunditiuns
Bel the firm tu muve frum a
urely ethnucentric ur
ulycentric aruach tu a
geucentric aruach
Bisadvantages:
Cunstrain the firm frum
taking a glubal stance
Staff's career advancement
still limited tu regiunal
headquarters, and nut the
arent cuuntry
headquarters
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1ransfer uf Staff fur
lnternatiunal Business 4ctivities
Reasuns fur lnternatiunal 4ssignments
1yes uf lnternatiunal 4ssignments
Lxatriate and Nun-exatriates - their rules
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Reasuns ur lnternatiunal 4ssignments
Pusitiun filling
Skills ga, launch uf new endeavur, technulugy transfer
Hanagement develument
1raining and develument uruses, assisting in
develuing cummun cururate values
Brganizatiunal develument
Need fur cuntrul, transfer uf knuwledge, cumetence,
rucedures and ractices
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1yes uf lnternatiunal 4ssignments
Shurt term: u tu 3 munths
1ruubleshuuting
Pruject suervisiun
4 stuga until a ermanent arrangement is fuund
Lxtended: u tu 1 year
Hay invulve similar activities as shurt-term assignments
Lung term: varies frum 1 tu 5 years
1he traditiunal exatriate assignment
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Nun-standard 4ssignments
Cummuter assignments
Rutatiunal assignments
Cuntractual assignments
virtual assignments
Sume uf these arrangements assist in uvercuming the high
cust uf internatiunal assignments but are nut always effective
substitutes fur the traditiunal exatriate assignment.
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Rules uf an Lxatriate
4gent uf direct cuntrul
4gent uf sucializatiun
Netwurk builder
Buundary sanner
Language nude
1ransfer uf cumetence
and knuwledge
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Rules uf Nun-exatriates
Peule whu travel internatiunally yet are nut cunsidered
exatriates as they du nut relucate tu anuther cuuntry
- Ruad warriurs, glubetrutters, frequent fliers
Huch uf internatiunal business invulves visits tu fureign
lucatiuns, e.g.
- Sales staff attending trade fairs
- Periudic visits tu fureign ueratiuns
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Nun-exatriates cite the usitives as:
4 Blamuruus life
Lxcitement and thrills uf cunducting business deals in fureign
lucatiuns
Life style (tu hutels, duty-free shuing, business class travel)
Beneral exutic nature
But they exerience a Bigh level uf stress
Bume and family issues
- requent absences
wurk arrangements
- Bumestic side uf usitiun still has tu be attended tu
1ravel lugistics
- waiting in airurts, etc.
Bealth cuncerns
- Puur diet, lack uf slee, etc.
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Centralized BR
Cumanies
Becentralized BR
Cumanies
1ransitiun BR
Cumanies
Large well-resuurced BR
deartments
Small BR deartments
Hedium-sized BR
deartments
key rule:
Hanaging all high-grade
management usitiuns
wurldwide
key rule:
Hanaging elite cururate
managers
key rule:
Hanagement and
develument uf seniur
managers and exatriates
key activities:
Planning internatiunal
assignments and
erfurmance management
glubally, identifying high-
utential staff
key activities:
lnfluencing uerating units
tu suurt internatiunal
assignments, suurting
decentralized BR
key activities:
Persuading divisiunal
managers tu release key
staff using infurmal and
subtle methuds, strategic
staffing.
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Rule uf Cururate BR unctiun
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11/2/2011 mOIn - PGP/55/09-11/HR 21