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STAFFING

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STAFFING

Staffing

• Factors affecting approaches to staffing

• General staffing policy on key positions at headquarters

and subsidiaries

• Constraints placed by host government

The Immigration Reform and Control Act of 1986 (IRCA) bars employers from hiring individuals who are not legally entitled to work in the U.S. Employers must verify work eligibility by completing Form I-9 along with required supporting documents. IRCA also prohibits employers from discriminating in hiring, firing, recruiting, or referring on the basis of national origin or citizenship status.

H-1B workers may be employed temporarily in a specialty occupation or as a fashion model of distinguished ability. A specialty occupation requires theoretical and practical application of a body of specialized knowledge along with at least a bachelor’s degree or its equivalent. An H-1B alien may work for any petitioning U.S. employer for a maximum period of six years.

Beware…..!!!!!!

What works at

home does not

necessarily

work abroad

A 4 day strike and pay rises of 10-15% were part of the cost

paid by a south Korean textile firm for an incident involving

one of the expatriate managers in its Vietnamese factory. A

Vietnamese worker was confronted by his south Korean

boss. Speaking in Korean, the manager yelled at him for

being in the wrong place in the factory. As he did not

understand her, the Vietnamese did not respond. The south

Korean manager kicked and slapped him – as in south Korea

it is common for employers t0 scold or even beat employees

if they make a big mistake. Here though such behaviour

resulted in 10 of the Vietnamese co-workers retaliating in

kind. The manager was rushed to hospital and the workers

went on strike. The south Korean was subsequently

deported.

Approaches to staffing

• Staff availability

• Ethnocentric

• Polycentric

• Geocentric

• Regiocentric

IBUS 618 Dr. Yang 6

Ethnocentric

• Strategic decisions are made at headquarters;

• Limited subsidiary autonomy;

• Key positions in domestic and foreign operations

are held by headquarters’ personnel;

• PCNs manage subsidiaries.

Advantages:

• To ensure new

subsidiary complies

with overall corporate

objectives and policies

• Has the required level

of competence

• Assignments as control

Disadvantages:

• Limits the promotion

opportunities of HCNs, leading

to reduced productivity and

increased turnover

• Longer time for PCNs to adapt

to host countries, leading to

errors & poor decisions making

• High cost

Polycentric

• Each subsidiary is a distinct national entity with

some decision-making autonomy;

• HCNs manage subsidiaries who are seldom

promoted to HQ positions;

• PCNs rarely transferred to subsidiary positions.

Advantages:

• Employment of HCNs eliminates language barriers,

avoids adaptation of PCNs, reduces the need for

cultural awareness training programs

• Employment of HCNs allows a multinational company

to take a lower profile in sensitive political situations

• Employment of HCNs is less expensive

• Employment of HCNs gives continuity to the

management of foreign subsidiaries (lower turnover of

key managers)

Disadvantages:

• Difficult to bridge the gap between HCN subsidiary

managers and PCN managers at headquarters

• HCN managers have limited opportunities to gain

experience outside their own country

• PCN managers have limited opportunities to gain

international experience

• Resource allocation and strategic decision making will be

constrained when headquarter is filled only by PCNs who

have limited exposure to international assignment

• 2012, July: Indian Information Technology companies

supported nearly 2.8 lakh jobs in America in the year 2011 by

way of foreign direct investment through acquisitions of IT

companies. India invested nearly $ 5 billion in foreign direct

investment. Top Indian IT companies like TATA, HCL

technologies India's fourth largest software export, Infosys and

Wipro stepped in United States to set up their subsidiaries and

recruited American nationals from colleges and experienced

professionals who had the local knowledge and domain

expertise. local employees have the requisite knowledge and

understanding of culture, people and were in a particular

region.

IBUS 618 Dr. Yang 14

Geocentric

• A global approach - worldwide integration

• View that each part of the organization makes a

unique contribution

• Nationality is ignored in favor of ability

• Best person for the job

• Color of passport does not matter when it comes to

rewards, promotion and development

15

Advantages:

• Ability of the firm to develop an international executive team

• Overcomes the federation drawback of the polycentric approach

• Support cooperation and resource sharing across units

Disadvantage:

• Host government may use immigration controls in order to increase HCNs employment

• Expensive to implement due to increased training and relocation costs

• Large numbers of PCNs, HCNs, and TCNs need to be sent across borders

• Reduced independence of subsidiary management

Geocentric Staffing Requirements

Regiocentric

• Reflects a regional strategy and structure;

• Regional autonomy in decision making;

• Staff move within the designated region, rather

than globally;

• They are not normally moved to the company

headquarters.

Advantages:

• Allow interaction between executives transferred to regional headquarters from subsidiaries in the region and PCNs posted to the regional headquarters

• Provide some sensitivity to local conditions

• Help the firm to move from a purely ethnocentric or polycentric approach

Disadvantages:

• Produce federalism at a regional rather than a country basis and constrain the firm from taking a global stance

• Staff’s career advancement still limited to regional headquarters, not the parent country headquarters

Determinants of IHRM Approaches and

Activities

Reasons for International Assignments

• Position filling,

• Skills gap, launch of new endeavor, technology transfer

• Management development

• Organizational development

• Need for control, transfer of knowledge, competence, procedures and practices into various locations

Types of International Assignments

Short term: up to 3 months

• Troubleshooting

• Project supervision

• A stopgap until a permanent arrangement is found

Extended: up to 1 year

• May involve similar activities as short-term assignments

Long term: from 1 to 5 years

• The traditional expatriate assignment

Traditional

• Filling position,

management development

• 12-36 months

• Family joins the assignee

• Formal selection

• Advantages

– Good relation, constant

monitoring

• Disadvantages

– Dual career options,

expensive, less flexibility

Short term

• Skill transfer / problem

solving

• 6-12 months

• Unaccompanied by family

• Informal, little bureaucracy

• Advantages

– Flexibility, cost effectiveness

• Disadvantages

– Poor relationship, side effects,

work permit issues

Non-standard Assignments

• Commuter assignments – weekly or bi-weekly basis

• Rotational assignments – short period followed by break in home country, oil rigs

• Contractual assignments - R & D

• Virtual assignments – manage from home, international assignment, heavy reliance on communication technologies, frequent visits to host

country but……..

The Role of an Expatriate

• Agent of direct control – Formal control, Direct supervision

• Agent of socialization – Informal control, expected behaviors

• Network builder – Developing social capital, communication,

• Boundary spanner – representatives in host country, bridge external-internal contexts

• Language node – familiar with host language

• Transfer of competence and knowledge – cross fertilization of ideas, ability and motivation of expatriate

The Role of Non-expatriates

• People who travel internationally yet are not considered expatriates as they do not relocate to another country

• IB travelers, Road warriors, Globetrotters, Frequent fliers, Flexpatriates

• Much of international business involves visits to foreign locations

• Sales staff attending trade fairs

• Periodic visits to foreign operations

Cont’d

A Glamorous Life

• International business travelers cite the positives as:

• Excitement and thrills of conducting business deals in foreign locations

• Life style (top hotels, duty-free shopping, business class travel)

• General exotic nature

Cont’d

But a High Level of Stress!

• Home and family issues

• Work arrangements

• Travel logistics

• Health concerns

• Host culture issues

Various Roles of Corporate HR

Centralized HR

Companies

Decentralized HR

Companies

Transition HR

Companies

Large well-resourced

HR departments Small HR departments

Medium-sized HR

departments

Key role: Managing all

high-grade management

positions worldwide

Key role: Managing

corporate managers

Key role: Management

and development of senior

managers and expatriates

Key activities: Planning

international assignments

and performance

management globally,

identifying high-potential

staff

Key activities:

Influencing operating

units to support

international

assignments, supporting

decentralized HR

Key activities: Persuading

divisional managers to

release key staff using

informal and subtle

methods, strategic staffing.

Source: Based on H. Scullion and K. Starkey, in Search of the Changing Role of the Corporate Human Resource Function in the International

Firms, International Journal of Human Resource Management, V 11, N 6 (2000) pp. 1061-1081.

HANK

OU