In staffing in international business, HR managers must determine when or where to expatriation. Expatriate workers are frequently assigned to key positions in overseas operations. Human resource managers must also decide on the issue of compensation. The compensation of expatriate workers must be examined along with compensation of local workers and the compensation of workers in the home country. Differences in compensation packages have significant implications on staffing success, expatriate performance and business performance. HR managers must also address the issue of repatriation. Repatriation happens when the worker needs to come back to the home country, usually to continue working for the company. Repatriation also happens when the expatriate worker retires. These issues have significant effects on the perspectives and performance of expatriate workers and local workers, and the effectiveness of IHRM in staffing.
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Staffing recruitment and selection of INTERNATIONAL HUMAN RESOURCES MANAGEMENT
1. INTERNATIONAL HUMAN
RESOURCES
MANAGEMENT(IHRM)
Aparrajitha Ariyadasa
( B.Sc (J’pura), B.Sc. (OUSL), Post. Grad. Dip. In IP Law(wales), LLM (Colombo)
Lecturer in University of Plymouth (UK), Lymkokwin (Malaysia), SLIIT, ICBT
Attorney-at-Law, Senior Partner ATD Legal Associates (www.atdlegalassociates.com),
atdlegalassociates@gmail.com
4/18/2019APARRAJITHA ARIYADASA 1
3. STAFFING
In staffing in international business, HR managers must determine
when or where to expatriation. Expatriate workers are frequently
assigned to key positions in overseas operations. Human resource
managers must also decide on the issue of compensation. The
compensation of expatriate workers must be examined along with
compensation of local workers and the compensation of workers in
the home country. Differences in compensation packages have
significant implications on staffing success, expatriate performance
and business performance. HR managers must also address the issue
of repatriation. Repatriation happens when the worker needs to come
back to the home country, usually to continue working for the
company. Repatriation also happens when the expatriate worker
retires. These issues have significant effects on the perspectives and
performance of expatriate workers and local workers, and the
effectiveness of HRM in staffing.
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5. EXPATRIATION
An expatriate is an employee who has
left his native land and is working and
temporarily residing in a foreign country.
A firm's employees who are transferred
out of their home base into some other
area of the firm's international operations
are referred to as expatriates.
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6. COMPENSATION
compensation is the results or rewards
that the employees receive in return
for their work. Compensation includes
payments like bonuses, profit sharing,
overtime pay, recognition rewards and
sales commission, etc.
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7. REPATRIATION
Repatriation is a process of returning back from a
international assignment to a home country after
completing the assignment or some other
issues. Repatriation is the last step in the
expatriation cycle and it involves readjustment
and re-entry of international managers and their
families back to their home country.
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8. Types of Staffing Policy Approaches in
International HRM (STAFFING MODELS)
Ethnocentric staffing
Polycentric staffing
Geocentric staffing
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9. ETHNOCENTRIC STAFFING
The ethnocentric policy approach to
staffing designates home country nationals
as top ranking employees in global
operations. For instance, executive
positions are given to Americans in an
office of an American company located in
Indonesia. The main benefit of this staffing
policy approach is that it allows the
organization to ensure that the people in
the top positions are experienced in the
business of the firm.
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11. This is especially the case where the host
country does not have enough qualified
workers for staffing top positions in the
organization. The ethnocentric staffing policy
approach is also used to ensure that the
culture of the entire organization is unified
rather than diversified. However, the problem
with the ethnocentric policy approach is that
it does not fully support the transfer of local
knowledge to the company. Also, this staffing
policy approach could block locals from
promotion in the organization.
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12. POLYCENTRIC STAFFING
The polycentric policy approach to staffing assigns home country
workers to top positions in the central offices or headquarters,
and overseas local workers to other positions. The main
advantage of this policy approach is that it facilitates
organizational learning on local markets. This staffing policy
approach also provides better opportunities for locals to improve
their careers through promotion. However, this promotion is
limited to key positions in the local operations, and does not
include central or corporate top positions. This staffing policy
approach is disadvantageous because it could create knowledge
and performance gaps between overseas managers and managers
in the home country. 4/18/2019APARRAJITHA ARIYADASA 12
14. GEOCENTRIC STAFFING
The geocentric policy approach to staffing assigns job
positions to any person best suited for the position,
regardless of the employee’s background, culture or
country of origin. The main advantage of this staffing
policy approach is that it is highly flexible. It can increase
the firm’s cultural knowledge about the different markets
and countries. However, a disadvantage of this staffing
policy approach is that it could be difficult to apply.
Immigration policies, costs of worker relocation and
diversity management create pressure on HR
management.
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17. RECRUITMENT IN IHRM
(Griffin/Pustay 2013, pp. 541-543).
Recruitment refers to searching for and
obtaining potential job candidates.
Selection is the process of evaluating the
candidates and deciding who should be
employed for a particular job The first
decision for IHRM is where employees for
the various positions should come from.
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20. The first decision for IHRM is where
employees for the various positions should
come from. Taking the example of a French
MNC with the need to fill an executive
position in a subsidiary in Romania, there
are three alternatives: a French national, a
Romanian national or a manager from a
third country. The general staffing options,
thus, are:
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21. PARENT COUNTRY NATIONALS FIRST
OPTION
in this case French employees, frequently have the
advantage of knowing the MNC and the
headquarters' strategies, values and procedures
very well. They share a common national culture
with the staff at the corporate headquarters and
have been socialized into the corporate culture.
They often have technical competence and
experience in the specific function for which they
are sent abroad. They facilitate communication
between the foreign subsidiary and the corporate
headquarters. 4/18/2019APARRAJITHA ARIYADASA 21
22. They support the implementation of the
corporate strategy in the host country. On the
other hand, they usually do not know the host
country very well and might have difficulties in
adapting to the new environment. The procedures
learned in the home country might not be
efficient in the host country and cultural
adjustment can be difficult. Furthermore, home-
country nationals are a very expensive option
since in addition to their usual salaries they
receive substantial additional payments during
their assignment abroad.
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23. HOST COUNTRY NATIONAL
■ A second option is to employ a host-country national. In
this case, a Romanian manager would be used to staff the
position in the Romanian subsidiary. Host-country
nationals have detailed market knowledge as well as local
relations. They understand the culture of employees and
of customers better and are capable of adapting the
company's strategy to the specific requirements of a local
market. However, in some host countries, candidates with
adequate qualifications and experience might be hard to
find. Also the reduced cultural conflicts in the host-
country might be offset by an increased number of
cultural conflicts between the subsidiary and the HQ.
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24. THIRD COUNTRY NATIONAL
■ As a third option, an MNC may also hire third-
country nationals. In the above example, this could
be a Hungarian manager who would be selected to
work for the French MNC in the Romanian subsidiary.
Reasons for this might be that the third-country
national is expected to adapt faster to the new
environment than a home-country national or that
he has gathered experience in a certain function
that is needed in the host country.
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25. The MNC might have a pool of internationally
experienced managers from different countries that
are used to fill positions in its different subsidiaries
regardless of nationality. Third-country nationals
might also be a compromise for the costs of the
assignment, since they still receive foreign service
premiums and other additional payments but might
have a lower base salary than a home-country
national. The third country national is a specific
type of expatriate.
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29. HOW TO MANAGE EXPATRIATE FAILURE?
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30. Selection criteria
As selection criteria for a position in an MNC, in particular in a
foreign subsidiary, it has to be noted that a candidate must
have two sets of competences (Griffin/Pustay 2013, pp. 543-
544): The skills and abilities necessary to do the job (i.e.
functional, technical and managerial skills) and the skills and
abilities necessary to work in a foreign location and/or with
employees from different countries. This includes adaptability
to new situations, location-specific skills (most notably the
language of the host country) and personal characteristics such
as cultural sensitivity, self-reliance, motivation to work
abroad, stable family situation, etc.
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34. Expatriate roles:
language node
agent of direct control
Agent of direct control ensure compliance to
company policies and is a direct control mechanism
for the parent company.
agent of socializing
agents of socialization during that phase of our
lives are the family, school, peers, and mass media.
Family is usually considered to be the most
important agent of socialization
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35. network builder
transferee of competence & knowledge
Thetransfer of competency or competencies from one work context to another.
boundary spanner
boundary spanning is a term to describe individuals within an innovation system who
have, or adopt, the role of linking the organization's internal networks with external
sources of information.
best practice
A best practice is a technique or methodology that, through experience and research,
has proven to reliably lead to a desired result. A commitment to using thebest
practices in any field is a commitment to using all the knowledge and technology at
one's disposal to ensure success
tacitness
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36. “
”
THANK YOU!
APARRAJITHA ARIYADASA
( B.Sc (J’pura), B.Sc. (OUSL), Post. Grad. Dip. In IP Law(wales), LLM (Colombo)
Lecturer in University of Plymouth (UK), LImkokwin (Malaysia), SLIIT, ICBT
Attorney-at-Law, Senior Partner ATD Legal Associates
(www.atdlegalassociates.com), atdlegalassociates@gmail.com
4/18/2019APARRAJITHA ARIYADASA 36
