2 The Young the Old and the Restless T raditionally an international assignment

2 the young the old and the restless t raditionally

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2. The Young, the Old, and the Restless: T raditionally, an international assignment was seen as a midcareer opportunity for development. Now companies are looking to older and younger employees who are more mobile. Younger employees are given an early opportunity for international experience. More females are also seeking expatriate placements. 3. Rising Role of Women: Females currently comprise about 20% of all expatriates. 4 . Pressures to Economize: Cost concerns are causing companies to seek flexibility in expatriate assignments. Some are temporary instead of permanent. Others are seeking third-country nationals and offering “localized” expatriate assignments that offer local terms and conditions, greatly reducing the compensation packages. 5 . The One Constant: The challenge remains, companies around the world struggle to find executives willing and able to run
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foreign operations. STAFFING FRAMEWORKS FOR THE MNE HRM managers have designed frameworks to help guide staffing decisions. For most of these companies, staffing policy revolves around the decision of whether to run international operations with local workers in the host nation, expatriates sent from the home country, or third-country nationals. 1. THE ETHNOCENTRIC APPROACH . An ethnocentric staffing approach fills all key management positions with home-country nationals. a. Advantages of the Ethnocentric Framework. People transferred from headquarters are more likely to have a thorough understanding of the company’s core competencies and values. The leading reasons to staff foreign operations with expatriates include maintaining command and control consistent with headquarters’ policy, filling local talent gaps, using international assignments as a mechanism for social integration, safeguarding intellectual property in joint ventures, transferring best practices from other locations, counteracting high turnover among local employees, and as a management development tool to help managers develop a global outlook. Relying on people familiar with proven workplace methods and labor procedures helps companies cope with the stress of foreign situations. b. Drawbacks of the Ethnocentric Approach. This approach can, however, lead the company to adopt a narrow perspective in foreign markets and blinds the company to the benefit of exposure to different, and possibly better, ways of doing things. Ethnocentric staffing policies can leave local managers and workers unmotivated and demoralized. Local employees will likely resent someone coming from a foreign country who they see as no more qualified than they are. 2. THE POLYCENTRIC APPROACH . Host country nationals manage local subsidiaries. a. Advantages. Control costs, cater to host-country nationalism, develop local management talent, boost employee morale, counteract high expat failure rates, maximize local adaptations for particular products.
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  • Fall '07
  • Nicholson

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