Staffing and Developing the Multinational Workforce Ibraiz Tarique & Randall Schuler

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

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

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). 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).

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

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

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

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 Employees of the MNE who work in the foreign subsidiary and are citizens of the country where the foreign subsidiary is located

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

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

MNE Concerns for its Workforce The workforce should be competent: The workforce should be competent: Cultural competenciesCultural competencies Skills for the jobSkills for the job Company knowledge and loyaltyCompany knowledge and loyalty FlexibilityFlexibility Ability and will to manage complexityAbility and will to manage complexity

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

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

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

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

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

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

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) 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)

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

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) 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)

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

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

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

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

Conclusion Future research might focus on: Future research might focus on: Developing a global mindsetDeveloping a global mindset Non-traditional staffing methodsNon-traditional staffing methods Developing uniform staffing and training methodsDeveloping uniform staffing and training methods