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- Talent available within company, able to understandstrengths 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 execsÉâÉãþÙCONS 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)ÉâÉãþÙPROS 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 ofculture- continuity (more incentives to stay longer, grow with the company)Éâ
ÉãþÙCONS OF HIRING FROM HOST COUNTRY- less control- limited career opportunities outside of the subsidiary- potential for disintegration of nationalunits rather than one global unit.ÉâÉãþÙPROS OF HIRING FROM 3RD PARTY COUNTRIES- comes with broad experiences outside of the firm- International outlook- Able to speak multiple languagesÉâÉãþÙCONS 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- Hostgovernment may dislike hiring from 3rd countries as much as home countriesÉâÉãþÙIMPORTANCE 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 AcquisitionsÉâÉãþÙBalancing 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 maturityLOCALIZATION: being a good player in the market you are working in.(host country context)1. cultural environment2. institutional environment3. firm size and maturityÉâÉãþÙAIM FOR GLOBAL STANDARDIZATION- consistency- transparency- ease of administration- efficiency and effectiveness- sense of equalityÉâÉãþÙAIM OF LOCALIZATION- respect for local cultures and traditions- adaption tolocal institutional requirements (legislations, government policies)- Fit with educational systems- Fit with employee expectationsÉâ
ÉãþÙStandardization is more effective when NATIONAL CULTURES are similar or when there is a STRONG CORPORATE CULTURE with which all employees identify...ÉâÉãþÙETHNOCENTRIC 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 expensiveÉâÉãþÙPOLYCENTRIC VIEW