INTERNATIONAL STAFFING

International Staffing in MNCs

Introduction1

Discussion1

Recruitment1

International Recruitment1

International Staffing2

Approaches to International Recruitment2

Factors Influencing International Staffing3

Cross-National Differences3

Nationality of an MNC4

Structure and orientation of an MNC4

Sector of an MNC5

Nature of a Subsidiary5

Attitude of Managers5

International Assignments & Expatriates5

Motives for International Assignments6

References7

International Staffing in MNCs

Introduction

The role of the HRM function is noticeably implemented across different countries. International human resource management (IHRM) is continuously progressing due to clear effects of globalization. Globalization tremendously speeding up the processes related to expanding markets and consumer tastes, rising investments internationally, and rapid advancement in technology (Harzing & Pinnington, 2010, p.27).

Discussion

The complexity of IHRM may include the factors of extensive HR activities, need for a broader perspective, extensive involvement in an employee's lives, mix of expatriates and local workforce, intensive external influences, and the expansion of risk exposure (Dowling et al., 2008, p.1).

Recruitment

It refers to attracting potential candidates for a particular job. It is important to check; the person-organization fit and person-environment fit (Ployhart, 2006, pp.869-870).

International Recruitment

In today's fast paced world; a number of companies adopt international recruitment strategies to meet their demands for skilled human resource. Economists often regard it as an unhealthy practice; as it does not allow domestic companies to utilize their potential. The procedures of international recruitment vary from country to country (Buchan & O'May, 1999, pp. 3).

International Staffing

The MNCs activities are strengthening the need of international staffing in order to recruit the potential candidates for global operations. The IHRM staffing decisions are influenced by the choices between the nationals of the host country and parent country. The employees are referred to as expatriates when they have nationality of one country and temporarily working in another country.

Example

Finland's MNC Nokia uses the term expatriate for employees who are moved out of a country. Another term inpatriate is often used to signify an employee who is transferred in a country. The MNCs are involved in three staffing policies including;

Parent country national (PCN) is a policy in which MNCs recruits an employee whose nationality is similar to that of the MNC itself.

Host country national (HCN) is a policy in which an employee possesses a nationality similar to that of MNCs local subsidiary.

Third country national (TCN) is a policy in which an employee's nationality is neither similar to that of headquarter of an MNC nor the local subsidiary (Harzing & Pinnington, 2010, p.187).

Approaches to International Recruitment

Ethnocentric approach is used by an MNC who wants to hire the PCNs at a higher position in their subsidiaries. This approach is adopted on the basis of few reasons including their perception of an MNC that there is a lack of skills and capabilities in the HCNs.

Polycentric approach is adopted by an MNC who wish to appoint the HCNs in their subsidiaries. This approach is advantageous due to the elimination of language barriers, the cost of hiring and work permit. It also boosts the morale of HCNs because of chances of promotional opportunities.

Geocentric approach is followed by an MNC who appoints employees irrespective of their ...