Staffing of international business will provide the detail insight about all the requirement of the Global HR

1. STAFFING OF INTERNATIONAL BUSINESS
Presented By: Kiran Kumar Borra (14PGDM019) : 9912209277
E-mail: kiranphaniborra@outlook.com

2. In Indian Aspect: HRM
Human resource management is an art of getting things done by HR through Planning,
Organization, Staffing, Directing, Controlling, Motivation in an organization is Human
Resource Management.
In Global Aspect: IHRM
International business must procure, motivate, retain and effectively utilize services of
people both at the corporate office and at the foreign plant. The process of procuring,
allocation, effectively utilizing human resources in an international business is called
International Human Resources Management.
DEFINATION OF HRM AND IHRM

3. Human resource management (HRM) refers to the activities an organization carries out to utilize its
human resources effectively
These activities include:
•determining the firm's human resource strategy
•staffing
•performance evaluation
•management development
•compensation
•labor relations
INTRODUCTION OF HRM

4. •HRM can help the firm reduce the costs of value creation and add value by better serving
customer needs.
•HRM is more complex in an international business because of differences between
countries in labor markets, culture, legal systems, economic systems, and so on
•HRM must also determine when to use expatriate managers (citizens of one country
working abroad), who should be sent on foreign assignments, how they should be
compensated, how they should be trained, and how they should be reoriented when they
return home
INTRODUCTION Cont…

6. International Human Resource Planning is the process by which an organization ensures that it has
the right number & kind of people at the right place and at the right time, capable of effectively and
efficiently completing those tasks that help the organization achieve its overall objectives..
There are six key issues in international HRP are as follows:
• Identifying top management potential early.
• Identifying critical success factor for future international management.
• Providing developmental opportunities.
• Tracking and maintaining commitment to individuals in their international career paths.
• Tying strategic business planning to HRP and vice-versa.
• Dealing with multiple business units while attempting to achieve globally and regionally focused.
DEFINITION OF IHRP

7. • Each Organization needs personnel with necessary qualifications, skills, knowledge, experience &
aptitude .
• Need for Replacement of Personnel - Replacing old, retired or disabled personnel.
• Meet manpower shortages due to labour turnover - Indian Airlines, Gas Authority of India headless
for 10 months.
• Meet needs of expansion / downsizing programmers - As a result of expansion of IT companies the
demand for IT professionals are increasing. PSU’s offering VRS to employees to retrench staff and
labour costs. DOT.COMs firing staff
IMPORTANCE OF HRP

9. DIFFERENT SOURCES OF EMPLOYEES

10. • First, the initial cost of airfare, living expenses and transportation in the host country.
• The second expense incurred with bringing expatriates in to the international operation is
the training involved in making sure the people going to the host country are familiar with,
laws, rules, culture, languages and expectations in the new country.
CHALLENGING ASPECTS

11. • Linking staffing plans with the evolution of the MNC.
• Staffing orientation/ approach of staffing
• Managing expatriates
• Female expatriates
INTERNATIONAL EMPLOYEE SELECTION BASED ON FOUR ISSUES IN
THE CONTEXT OF STAFFING GLOBAL BUSINESS:

12. Staffing strategies differ based on the life cycle of the MNCs like:
• Setting up the host unit
• Establishing the technology team to begin core operational activities.
• Full blown operations of the host unit with significant role in establishing global objectives
and targets,
• Strong operational leadership at the unit level while globally consolidating with parents.
LINKING STAFFING PLANS WITH THE EVOLUTION OF THE MNC:

13. • Ethnocentric policy
• Polycentric policy
• Geocentric policy
• Regiocentric policy
APPROACHES TO STAFFING

14. “ Home country’s culture is to be imposed on subsidiaries”
MNC’s exports its HR Policy from Home country to foreign location.
•Strategic decisions are made at headquarters
•Key positions in domestic and foreign operations are hold by headquarters’ personnel
ETHNOCENTRIC POLICY

15. • They Should be able to adjust in family, cultures and personality problems to avoid failure.
• To succeed, should enjoy local entertainment, develop local
relationships and communicate with locals.
• To achieve success, expatriates to have open attitude and take training towards host –
country.
Under ethno centric, lines of communication are one – directional, i.e. advice from
headquarters. In fact, home country attitude and culture
dominates.
THREE FACTORS ARE TO BE CONSIDERED IN THE STAFF

16. “MNC’s seeks to adapt to the local cultural needs of subsidiaries ”
•Each subsidiary is a distinct national entity with some decision-making autonomy
•Host-country nationals manage subsidiaries who are seldom promoted to HQ positions
•Parent company nationals hold key headquarter positions
POLYCENTRIC

17. • It eliminate the high cost of relocating expatriate manager and families.
• Offer a great degree of autonomy in decision making to subsidiary heads.
• Host country nationals are less expensive than parent country used and Training Host
country’s nationals results in low cost
• Better local knowledge
• Reduce personal problems
• Host country managers can protect a MNC from hostile treatment by host Government.
• Here subsidiary is allowed some autonomy but financial controls are kept.
• Top people are limited to subsidiary and not for corporate position.
POLY – CENTRIC: HERE PRIMARY POSITIONS ARE FILLED BY NATIONALS FROM
HOST COUNTRY( HCNS)Y. ADVANTAGES OF THIS ARE:

18. • A global approach - worldwide integration
• View that each part of the organization makes a unique contribution
• Nationality is ignored in favor of ability:
• Best person for the job
• Color of passport does not matter when it comes to rewards, promotion and
development.
GEOCENTRIC

19. • Reflects a regional strategy and structure;
• Regional autonomy in decision making;
• Staff move within the designated region, rather than globally.
REGIOCENTRIC

20. Nationals Advantages Disadvantages
PCN Org. control and
coordination are
maintained & facilitated
Promising managers are
given international Exp
The promotional opportunities of HCNs are
limited.
Adaptation to host country may take a long time.
HCN Language and other
barriers are eliminated.
Hiring costs are
reduced and no work
permit is required
Control and coordination of HQ may be
impeded
HCNs have limited career opportunity
outside the subsidiary
TCN Salary and benefits
requirements may be
lower than for PCNs.
TCNs may be better
informed than PCNs
about the host country
environment.
Transfer must consider possible national
animosities (e.g. India and Pakistan) The host
government may Present hiring
of TCNs.

21. • Political and legal concerns
• Level of development in foreign locations
• Technology and the nature of the product
• Organizational life cycle
• Age and history of the subsidiary
• Organizational and national cultural differences
CHOOSING AN APPROACH TO IHRM

22. ISSUES IN EMPLOYEE SELECTION

23. •International selection is a two way process between the individual and the organization. A
prospective candidate may reject the expatriate assignment either for personal reasons, such
as family considerations, or for situational factors.
•However, after an extensive review of literatures on the selection of expats, the researcher
identified 18 variables and grouped them into four categories
•Technical Competency
•Relational Skills
•Ability to cope with variables and
•Family Situation
SELECTION CRITERIA FOR INTERNATIONAL STAFFING

25. • Interview – structured interview
• The monitoring and targeting of disadvantaged group – (staffing practices
• are strongly influenced by norms and values that are not covered by the law)
• Psychological Testing- mentally fit for international assignment
• Assessment centre – Competency assessment
SELECTION TECHNIQUES OF EXPATRIATES:

26. • Screening the applicant’s background on the basis of work experience with cultures
other than one’s own, previous overseas travel, knowledge of foreign language and
overall Performance.
• Testing the candidate's ability to adapt to the new culture and environment.
• Testing the ability of the spouse and family members of the candidates to the foreign
culture and environment.
• Predicting the adjustment of the candidate
• Testing the skill of adjustment with the host nationals.
• Job duties and responsibilities
SELECTION TECHNIQUES IN GENERAL, IMPORTANT STEPS ARE

27. • They must be willing and motivated to go overseas
• They must be technically able to do the job
• They must be adaptable
• They must have good inter personal skills and able to form relationship
• They must have good communication ability and
• They must have supportive families
THEREFORE EXPATRIATE MUST MEET 6 BASIC CRITERIA:

28. • Self-oriented
Expresses adaptive concern for self-preservation, self-enjoyment, mental hygiene.
• Perceptual
Accurately understands why host nationals behave the way they do.
• Others-oriented
Cares about host national co-workers and affiliates with them.
• Cultural-toughness
Able to handle the degree to which the culture of the host country is incongruent with that
of the home country.
MENDENHALL AND ODDOU’S MODEL SUCCESSFUL EXPATRIATE
SELECTION

29. Rosalie Tung studied the factors that contributed to expatriate success and
identify different variables that affect success. She groups them into 4 general
categories:
1. Job competence
2. Personality traits
3. Relational abilities
4. Environmental variables and family variables
Which are further divided into two heads: general factors and specific ones
EXPATRIATE’S SUCCESS FACTORS:

30. GENERAL FACTORS SPECIFIC ATTRIBUTES
JOB Competence Technical skills: knowledge of HQ and host country operations, general
managerial skills, administrative
competence and creativity
Relational Traits Social Skill: Ability to tolerate ambiguity, Courtesy and tact Respect,
kindness and behavioral flexibility Cultural empathy and ethnocentrism
Integrity confidence and emotional stability
Personality Traits Diplomatic Skill: Believe in the mission Congruence of assignment with
career path Interest in overseas experience Willingness to acquire new
behavior patterns and Attitudes Interest to learn Host country language and
practice Adopting attitude of Non – verbal communication Ability to
interact with business associates
Environmental and
Family variables
Motivational Skill: Willingness of the spouse to live Overseas Adaptability
and supportiveness of spouse Stability of marriage

31. RECENT TRENDS IN INTERNATIONAL STAFFING

32. CURRENT EXPATRIATE PROFILE

34. • Expatriate failure: premature return of the expatriate manager to his/her home country
• Cost of failure is high:
• Estimate = 3X the expatriate’s annual salary plus the cost of relocation (impacted by
currency exchange rates and assignment location)
EXPATRIATE PROBLEM

35. • Family concerns
• Accepted new position in the company
• Completed assignment early
• Cultural adjustment challenges
• Security concerns
• Career concerns
• Quality of life
• Remuneration
REASONS FOR EARLY RETURN

36. • Reduce expatriate failure rates by improving selection procedures
• An executive’s domestic performance does not (necessarily) equate his/her overseas
performance potential
• Employees need to be selected not solely on technical expertise but also on cross-cultural
fluency
REDUCING EXPATRIATE FAILURE

37. • Inter-company networking
• Job-hunting assistance
• Intra-company employment
• On-assignment career support
FAMILY-FRIENDLY POLICIES

38. ADAPTABILITY TO CULTURE CHANGE
Adaptability Of Men Expatriate
∗ Faster adjustment after first year
when the age group is 30-35 and
higher level of satisfaction.
∗ Gradual adjustment after third
and forth year when the age
group is 25-30 and medium
lSlow adjustment after first year
when the age group is 30-35 and
lower level of satisfaction
Adaptability Of Women Expatriates
Slow adjustment after first year when the age
group is 30-35 and lower level of satisfaction .
Faster adjustment after third and forth year
when the age group is 25-30 and medium level
of satisfaction

39. •People who travel internationally yet are not considered expatriates as they do not relocate
to another country.
•Road warriors, globetrotters, frequent fliers.
•Much of international business involves visits to foreign locations, e.g.
•Sales staff attending trade fairs.
•Periodic visits to foreign operations.
ROLES OF NON-EXPATRIATES

40. •A Glamorous life
•Excitement and thrills of conducting business deals in foreign locations
•Life style (top hotels, duty-free shopping, business class travel)
•General exotic nature
NON-EXPATRIATES ENJOY POSITIVES AS:

41. FEMAIL EXPATRIATES ???....

42. BARRIERS TO FEMALES TAKING INTERNATIONAL ASSIGNMENTS

43. CAUSES OF LOW REPRESENTATION OF FEMALES

44. • Better at Relationship skills
• Novelty – foreign clients believe that those who are expatriated are the best.
• Role Models
ADVANTAGES OF FEMALE EXPATRIATE