Talent available within company able to understand

- Talent available within company, able to understand
strengths and weaknesses of the person- Greater
organizational fit, able to apply more consistent
organizational culture- Company experience,
understands the core values of the company-
Valuable experiences provided to top execs
Éâ
Éã
þÙ
CONS OF HIRING FROM HOME COUNTRY (NATIONALS)
- Promotions in Host National Firms are limited-
Adaption to Host Countries may be limited (cultural
values and country etiquettes)- Expensive to send
expatriates to different countries (compensation
differences may be difficult to control)
Éâ
Éã
þÙ
PROS OF HIRING FROM HOST COUNTRY
- cheaper, more economically sounds- preference of
government of host country (provide more jobs to
local workers)- local knowledge and understanding of
culture- continuity (more incentives to stay longer,
grow with the company)
Éâ

Éã
þÙ
CONS OF HIRING FROM HOST COUNTRY
- less control- limited career opportunities outside of
the subsidiary- potential for disintegration of national
units rather than one global unit.
Éâ
Éã
þÙ
PROS OF HIRING FROM 3RD PARTY COUNTRIES
- comes with broad experiences outside of the firm-
International outlook- Able to speak multiple
languages
Éâ
Éã
þÙ
CONS OF HIRING FROM 3RD PARTY COUNTRIES
- Transfers may face national hostilities (may not be
well accepted in the working environment)- May not
fit or adapt well into the corporate environment- Host
government may dislike hiring from 3rd countries as
much as home countries
Éâ
Éã
þÙ
IMPORTANCE OF Global Human Resource
Management
- Global Competition (World is slowly becoming more
connected)- Market Access Opportunities (markets
around the world are able to access different

opportunities (resources, markets)- Availability of
skilled foreign talent (hiring skilled workers with
different skills)- International Mergers and
Acquisitions
Éâ
Éã
þÙ
Balancing Global Standardization and Localization
(GLOBAL STANDARDIZATION): Wanting company
around the world to be as TRANSPARENT as possible
(Global requirements)1. strategy and culture2.
Corporate culture3. Firm size and maturity
LOCALIZATION: being a good player in the market
you are working in.(host country context)1. cultural
environment2. institutional environment3. firm size
and maturity
Éâ
Éã
þÙ
AIM FOR GLOBAL STANDARDIZATION
- consistency- transparency- ease of administration-
efficiency and effectiveness- sense of equality
Éâ
Éã
þÙ
AIM OF LOCALIZATION
- respect for local cultures and traditions- adaption to
local institutional requirements (legislations,
government policies)- Fit with educational systems-
Fit with employee expectations
Éâ

Éã
þÙ
Standardization is more effective when NATIONAL
CULTURES are similar or when there is a STRONG
CORPORATE CULTURE with which all employees
identify
...
Éâ
Éã
þÙ
ETHNOCENTRIC VIEW
- Believes that home culture is superior- centralized
HR- Key positions should be held by nationals- Pay is
based on local market for host nationals, home
country for home nationals- Local alignment with
home office but LACK OF LOCAL insights and
expensive
Éâ
Éã
þÙ
POLYCENTRIC VIEW