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Staffing and Developing the Multinational Workforce

Staffing and Developing the Multinational Workforce. Ibraiz Tarique & Randall Schuler. Overview. Important Terms Types of employees in the multinational workforce (MWF) Major issues and challenges of staffing and developing the MWF. Important Terms.

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Staffing and Developing the Multinational Workforce

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  1. Staffing and Developing the Multinational Workforce Ibraiz Tarique & Randall Schuler

  2. Overview • Important Terms • Types of employees in the multinational workforce (MWF) • Major issues and challenges of staffing and developing the MWF

  3. Important Terms • Multinational Enterprise (MNE) – a firm that operates in two or more countries • Multinational Workforce (MWF) – the workers in a multinational enterprise • Expatriate – an employee posted or assigned to another country for more than a year

  4. The Multinational Workforce • The task of international human resource management (IHRM) professionals in MNEs is to build a competent, high-performing workforce that gains and sustains a competitive advantage throughout the global marketplace (Briscoe & Schuler, 2004).

  5. Types of Employees in the MNE • Parent country nationals (PCNs) • Host country nationals (HCNs) • Third country nationals (TCNs)

  6. Parent Country Nationals • Employees of the MNE who are citizens of the country where the MNE’s corporate headquarter is located

  7. PCN Competencies • Familiarity with the MNE’s corporate culture • Ability to effectively communicate with headquarters • Ability to maintain control over the subsidiary operations

  8. Host Country Nationals • Employees of the MNE who work in the foreign subsidiary and are citizens of the country where the foreign subsidiary is located

  9. HCN Competencies • Familiarity with the cultural, economic, political, and legal environment of the host country • Ability to respond effectively to the host country’s requirements for localization of the subsidiary’s operations

  10. Third Country Nationals • Employees who are neither citizens of the host country nor citizens of the country where the enterprise is headquartered

  11. MNE Concerns for its Workforce • The workforce should be competent: • Cultural competencies • Skills for the job • Company knowledge and loyalty • Flexibility • Ability and will to manage complexity

  12. Staffing a Multinational Workforce • Global staffing refers to the process of acquiring, deploying, and retaining a global workforce in organizations with operations in different countries (Scullion & Collings, 2006)

  13. How the MNE Obtains and Develops Its People • Human resource planning • Recruitment of competent employees • Performance appraisals • Compensation policies • Development initiatives

  14. Recruitment from the MNE Perspective • Potential employees may be attracted to the enterprise through organizational attributes such as: • Geographical dispersion • Type of ownership • Level of internationalization

  15. Qualities of Recruits to MNEs • Extroverted and open to new experiences • Affected by their early international life experiences

  16. Recruitment From the Individual’s Perspective • Individuals are more receptive to global assignments in locations culturally similar to their own • Male assignees were more willing to accept a foreign assignment and more willing to follow their partners than female ones

  17. Selection • Identify critical job dimensions – maintaining business contacts, technical competence, etc. • Cross-cultural competencies – adjustment to the foreign culture and ways of doing business

  18. Developing a Multinational Workforce • Refers to a wide variety of international training activities and international development activities used by MNEs to develop the competency base of their employees (Caligiuri, Tarique, & Lazarova, 2005)

  19. Cultural Competence Training • Organizations recognize the importance of international training and development activities • Cultural competencies enable individuals to be more effective in the new cultural environment

  20. Cross-cultural Training • A planned intervention designed to increase the knowledge and skills of expatriates to live and work effectively and achieve general life satisfaction in an unfamiliar host culture (Kealey & Protheroe, 1996:145)

  21. Cross-cultural Training Design • Identifying the type of employee • Determining the specific cross-cultural competency need • Establishing short-term and long-term learning goals • Developing and delivering instructional content • Evaluating whether the program was effective

  22. Qualities of the Global Leader • Higher in conscientiousness • More open and extroverted • Greater family diversity • More likely to be fluent in another language

  23. Global Careers • Expatriation provides the opportunity to acquire overseas knowledge, and repatriation creates the opportunity to transfer and apply this knowledge in the organization

  24. Conclusion • MNEs face challenges and issues related to staffing and training their multinational workforce • Training programs can increase the cultural effectiveness of the workforce

  25. Conclusion • Future research might focus on: • Developing a global mindset • Non-traditional staffing methods • Developing uniform staffing and training methods

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