Expatriates

Staffing :Shortfall of qualified managers in emerging markets. 4 characteristics that provide meaning for new recruits: brand, purpose, opportunity, culture. Strategic Human Resource Management (SHRM) – recognized the HRM helps determine strategy & implements it. Despite the downward shift in the global economy, # international assignments keeps growing. Ethnocentric Staffing Approach: fill key managerial positions with people from headquarters – PCNs, parent company nationals (usually during internationalization stage). Pros: PCNs familiar with company goals, products, technology, policies, procedures, can get things done at HQ. Cons: lack of opportunity for local managers to develop & poor adaptation and lack of effectiveness of PCN. Used when inadequate local managers & if high need to maintain close contact with HQ, high technical ability required, concern for loyalty. Why? German – develop international mgmt skills, Japan & UK – set up a new operation, US – fill a skill gap. Approach results in highest IHRM problems. Polycentric Staffing Approach: hire HCNs – host country nationals to fill key positions. Used with multinational strategy. Pros: familiar with local culture & already have connections, more likely to be accepted inside and outside subsidiary, less expensive. Cons: coordinating between parent and sub including conflicting loyalties. Global Staffing Approach: best managers are recruited no matter where they are from. Can use TCNs – third country nationals. Good for global strategy. Pros: greater pool of qualified applicants – results in shared learning, more cultural flexibility & adaptability, seen as acceptable compromises, can be cheaper. Transpatriate, replacing expatriate, a person who moves all over the world, may never return home between. Regiocentric Staffing Approach: recruit in a region, i.e. recruit in Latin America for a position in Chile.

Managing Expatriates: Selection: 3 global mindset attributes for successful expatriate: 1)...