1. Building an International Workforce: Strategy and Selection
Chapter 12
Building an International Workforce: Strategy and Selection

2. Overview International human resource management
Options for staffing foreign operations
Selecting and developing employees
Considerations for expatriates
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3. International HR Management
Linked to international strategic planning
Well-developed workforce may provide competitive advantage
Difficult to emulate
Identify new business opportunities
Satisfied and committed staff with low turnover
Less likely to violate cultural norms and values
Better equipped to deal with rapid changes
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4. Cultural Differences Make It Harder for MNCs to
Share information and technology between home office and foreign locations
Spread innovations and knowledge throughout firm
Promote organizational changes
Minimize conflict between employees
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5. Dealing with Cultural Differences
International Human Resource Philosophy
Describes corporate values and attitudes about HR
Core international human resource policies
Define how employees around the world treated
Culturally sensitive policies
Type of employees
PCN, HCN, TCN
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6. Options for Staffing Parent-Country Nationals (PCNs) Expatriates
Traditional option
Citizens of country where headquarters located
Lack of expertise not available locally
Monitoring or control needed
Expensive and high failure rates
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7. Why use expatriates? Possible Benefits for Companies and Employees

8. Options for Staffing (cont’d)
Host-Country Nationals (HCNs)
Nationals from local country
Better grasp of local culture and business practices
Less expensive
Good public relations
Less control or unified corporate culture
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9. Options for Staffing (cont’d)
Third-Country Nationals (TCNs)
Nationals from other than home or local country
May have necessary skill set
Can be less expensive than expatriates
Need to consider conflict or rivalries between countries
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10. Developing International Talent
International cadre
Permanent expatriate
Inpatriates
Importance of international experience for career development
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11. Types of International Staff and Their Potential Movement Across Locations

12. Philosophies for Selecting & Developing Employees
Geocentric—stress ability and performance
Regiocentric—collaboration among subsidiaries, employees move from place to place
Polycentric—subsidiary is semi-independent and controls staffing
Ethnocentric philosophy—stress methods of home office
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13. Do You Measure Up? The Skill Profile for International Managers
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14. Developing International Skills
No one best way
Rotate promising employees through international assignments
Recruit foreign students
Training programs
Formation of international teams
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15. Cultural Considerations in Selection and Development
Hiring practices
Nature of questions
Interview procedures
Testing and comparisons
Training programs
Self-focused
Group-focused
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16. Assisting Women & Minority Expatriates
Hiring
Predeparture training
On-site support
Role modeling after repatriation
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17. Managing Diversity Two basic types Cross-national diversity
Interactions between rcns, hcns, and tcns
Intranational Diversity
Interactions between different races, ethnic groups, etc.
Increasing in the U.S.
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18. Four Diversity Strategies
Multiculturalism
Being open to positive aspects of all cultures
Separation
Rejection of all cultural values except own
Assimilation
Subordinate group conforms to dominant culture
Deculturation
Each group maintains its own culture
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19. Expatriate Considerations
Many expatriates are employed by MNC
1.3 million by U.S. companies alone
80% have spouses or partners
Many also want careers
Many have children
Concerns for safety and security
Impact on career development
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20. Selecting Expatriates
Candidates should be matched with goals and requirements of specific assignment
Critical predictors of success
Functional skills
Psychological factors
Family dynamics
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21. A Recommended Process for Selecting Expatriates

22. Expatriate Assignments: Factors That May Contribute to Success…or Failure
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23. Expatriates: The Consequences of Failure
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24. Screening Potential Candidates
Interviews
Including partners
Standardized tests
Adaptability
Emotional maturity
Performance in training exercises
Assessment of past accomplishments
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25. Training and Preparing Expatriates
Two main goals
Help employees be effective as quickly as possible
Minimize employee and family adjustment problems
Many companies don’t offer cross-cultural training
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26. Cross-Cultural Training Should Incorporate
Paying attention to cultural differences
Retention of knowledge about behavior that is culturally appropriate
Practicing culturally appropriate behavior
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27. Determining Cross-Cultural Training Needs
Importance of assignment
Length of assignment
Extent to which expatriate must interaction with local population
Cultural toughness
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28. Levels of Cross-Cultural Training Rigor
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29. How It Works: the Cross-Cultural Training Process
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30. Trends in Expatriate Preparation
Programs that challenge prejudices, assumptions, and attitudes
Create more open-minded expatriates
Transcultural competence
Programs that address family and dual-career issues
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31. Repatriation Issues Values change during foreign assignment
Reverse culture shock
Change in home environment
New structure, people
New job assignment
Disconnect, promotion/demotion, ambiguity
Reorientation to home living conditions and standards
i.e., No cook or gardener
Feeling unappreciated by home office
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32. Steps for Improving the Repatriation Process
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33. Leadership Challenges for MNCs
Diversity of contexts
Macro-level and micro-level factors
National and corporate values
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