Staffing The Multinational Enterprise Case Study

Great Essays
Staffing the Multinational Enterprise:
1. Parent country nationals: most IHRM literature revolves around PCNs. PCNs are defined as employees that live and are employed in the home country of the MNEs headquarters. When these individuals are assigned and transferred a position in a subsidiary to the company that is located in a foreign country, the individuals are referred to as expatriates. Once they have returned from their assignment abroad as an expat to the home country of the MNEs headquarters, they are referred to as repatriates.
2. Host country nationals: it is common that MNE choose to recruit employees who are of local origin of the foreign subsidiaries country to assume positions below the top level of management.
An increased trend
…show more content…
− Studies have found that aside from the expatriates desire for an exotic foreign experience, there are two main driving factors that motivate employees to become expatriates. These two factors are: a higher salary and “perceived increased career opportunities” within the firm once the expatriation is over. In terms of career opportunities, expatriation does play a significant role according to Michael Angus the chairman of Unilever “Most people who rise toward the top of our business will have worked in at least two countries, probably three”.
Companies are concerned with:
Globalization that is taking place within in the firm
− Creating and generating increased revenues in new potential markets abroad
− Management of costs and risks involved in moving
…show more content…
Brownout: IA occupies their position for the full duration of the assignment, but executes their task poorly and inefficiently. This can be both costly in terms of inadequate projects that are initiated by the IA as well as damaging to the relationship of the company to both current and potential local employees. 3. Turnover upon repatriation: takes place when the IA leaves the company within a year of being repatriated.

CHAPTER 6
Transition and development (T&D) is portrayed as one of the most crucial factors that differentiate successful MNE’s from less successful MNE’s.
What makes a competent workforce?
• Work teams that retain the ability to collaborate on a global scale
• Teams that are able to preform cross-cultural preparation and identify the significance of this process
• Effective leadership qualities which are globally applicable and effective

Training in the Multinational Enterprise
Human capital is identified as MNEs most important competitive advantage.
The instructional ADDIE (analysis, design, development, implementation, evaluation) model was developed to be applicable on various stages of T&D.
The book identifies two approaches to training:
• Localized approach: includes learning about and adapting to cultural practices, learning about laws and legislations that are incorporated in the training process of the employee and local

Related Documents

  • Improved Essays

    & Crawford, K., 2012, p67). A business’s unique culture is a powerful tool for achieving goals, therefore making it important for managers to understand and assess all facets of it. Management must also ensure that staff members are given sufficient training to reflect the values of the business (Chapman, S., Devenish, N. & Dhall, M., 2011,…

    • 1151 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    The choice of market location is done in a cautious but efficient way with profitability being the primary goal (Hermannsdottir, 2008). Dunning’s Eclectic Theory For a company to become international it has to have a competitive advantage in the domestic market. The core competences give the firm the prospect to last in the domestic market and once this is established, the company will then decide whether and where to internationalise by evaluating the macroeconomic environment of the new country (Dematias, 2012).…

    • 819 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    Strategic Analysis Presentation H&M To what extent can H&M’s important resources and capabilities be sustained? -Describe resources and capabilities. VRIO framework The resources and capabilities of an organisation contribute to its long-term survival and potentially to competitive advantage.…

    • 1038 Words
    • 5 Pages
    Decent Essays
  • Improved Essays

    Sainsbury Case Study

    • 1322 Words
    • 6 Pages

    1.0 Introduction Cultural differences influence an organisation’s ability to penetrate a foreign market. As Ahistrom and Bruton (2009) note comprehending culture is vital to understanding the differences in business globally (p. 36). Various cultures have different management, communication, and negotiation styles that are influenced by societal values and norms. Therefore, companies that penetrate a new market have culture to contemplate besides a country’s legal structure, economic position, and competitors. Consequently, some multinational companies will employ different strategies such as diversification, product development, franchise, or mergers in order to penetrate foreign markets with distinct cultures.…

    • 1322 Words
    • 6 Pages
    Improved Essays
  • Great Essays

    According to Koch’s opinion, there was only very limited opportunity to influence possible modifications because the individual assessment centres were conducted by external consulting firms. Additionally, Koch questioned the validity of the information obtained from the centres, as well as the personnel selection system as a whole. ComInTec had little interest in empirically evaluating the validity of the assessment centres and statistically analyzing the outcomes of such personnel selection procedures. Koch also felt the need to improve the contents of the structured interviews that were based on the candidate’s current situation, as opposed to the candidate’s previous work experience. Koch firmly believed that what happened in the past was likely to be repeated in the future, and therefore had very little appreciation for selective interviews that did not consider the candidate’s past.…

    • 9739 Words
    • 39 Pages
    Great Essays
  • Improved Essays

    Furthermore, some expatriates face problems in the host country while carrying out the assignment such as cultural shock, high level of stress as well as issues related with the host country’s rules and regulations. The expatriates fail in the assignment due to these various factors occurs in host country.…

    • 802 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    As there are advantages to using expatriates, as well as some weaknesses. The first weakness is not familiar with the culture and language of the target market. Expatriates sent overseas are often not prepared for the experience. They are less introduced in ways that countries receiving them and sometimes cannot meet the challenges created by the cultural gap. Inability to adapt to the local culture sometimes leads to failure of expatriate managers or cultural conflict or bad image "foreign".…

    • 2569 Words
    • 11 Pages
    Great Essays
  • Improved Essays

    The task becomes easier for employees and they can see a very clear path towards their goal (Khan 2010). The training helps in increasing the worker skills, knowledge, behaviors and capacities which leads towards the success of an organization (Olaniyanand Lucas 2008). In this competitive world, to sustain in the market an organization must train its employees in order to make them more resourceful, innovative and enhancing their performance. ( Falola, Osibanjo, and Ojo, 2014). According to the (Amir and Amen, 2013) ,in this modern era organizations face different challenges because of the technology, in order to cope up with these challenges they provide training to their…

    • 704 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Remote Project Management

    • 722 Words
    • 3 Pages

    Remote Project Management The old business scene comprised of project groups gathered inside of individual organizations. Representatives and stakeholders would work together inside a physical location to complete the project. A remote project team is a group of individuals united for a project.…

    • 722 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    International Spotlight: Russia 1. What are some current issues facing Russia? What is the climate for doing business in Russia today? A few issues are facing Russia that can affect the business environment that MNC will need to be a concern about.…

    • 804 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    The case study of the Expatriate Management at AstraZeneca organization appears to have many topics the organization has done well to include how to treat these types of employees when their work requirements take them to another country for an uncertain amount of time. There are always possible lessons learned that may not be so much for the organization but rather the employee and their quality of life when they become an expatriate. The requirements for this task may be difficult but the organization can help with what is required along the way from the very beginning to the end of the assignment. The article does not talk about family relations which could be something done better. Management of an expatriate can be a crucial task…

    • 1469 Words
    • 6 Pages
    Decent Essays
  • Improved Essays

    Introduction Mckinsey and Company is one of the best case for the transformational change administration associations. They've recognized a couple of strategies that help drive effective transformational change to any substantial scale change, for example, set from great to awesome execution, cutting expenses, or pivoting an emergency. These strategies incorporate setting clear, optimistic targets; making a reasonable structure; keeping up vitality and contribution all through the association; and practicing solid administration. They observed that a couple approaches in every range are most firmly related with fruitful changes of both fleeting execution and long haul corporate adequacy, or "wellbeing." Offshoring is the act of basing some…

    • 867 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Managing in the Global Environment What does it take to Manage in the global environment? It takes leaders who will honor their commitment and move with time. To be able to manage in the global environment managers most pay close attention to every different internal and external behavior globally. When trying to do business globally it can be a hug challenge. Therefore, it is important for managers in all size and type of organization to understand the global setting.…

    • 856 Words
    • 4 Pages
    Superior Essays
  • Improved Essays

    Globalization and International trade have been around since silk and spices were being traded along the Silk Road. We have come a long way since then due to the growth in technology, communication, and transportation. With handheld computers allowing us to facetime across the world and transportation making it easy to travel from one side of the world to the next in a matter of days, the idea of doing business globally has changed drastically—including the impact of management. The International business field includes managers across many different cultures. With this being so, managers may experience a culture shock when traveling abroad, deal with different ethical issues, and have to adapt to diverse managerial styles in different countries.…

    • 738 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Where is My Job Going? The outsourcing of American jobs has contributed to the substantial unemployment rate and financial instability facing American workers, effecting the security and economy of our country. Outsourcing is where a company will send specific jobs to be performed by people in another country. American companies are taking advantage of the cheap and uninsured labor by sending the jobs overseas, which is causing a spike in unemployment rates in our American economy.…

    • 823 Words
    • 4 Pages
    Improved Essays