Globalization and the process of internationalization of the companies involve more and more the field of HRM. Many companies underestimate the difficulties linked to the management of its employees when they growth. Through this case study, we will see the main challenges in international staffing and show why staffing choices are primordial to ensure effective strategic outcomes for MNE's.
1. Consider the three candidates in Exhibit A below. If forced to make a decision tomorrow, which candidature should Alistair choose for the job? What major factors should determine his choice? In the Quality compliance at the Hawthorn Arms case study, Alistair Mackay has short listed three possible candidates for the role of Quality compliance Manager. It is a three-year assignment in Hungary to work for the new joint venture involving Trianon, an Anglo-French avionics firm and a Hungarian government-backed-firm.
[...] Indeed, HCNs or TCNs may not be really informed about the company identity and culture. That is why the best option is to expatriate a PCN to transfer the corporate identity to the subsidiary. This is the first joint venture for Trianon aside the UK, Germany and France, so the selection process must be done carefully; international staffing has become a significant challenge for firms, in terms of financial and in strategic terms (Scullion & Collings 2006).4 Henri Genadry, general Director of Joint ventures needs a “quality compliance manager” to keep tight control on this joint venture operation. [...]
[...] The IHRM policies are strongly related to the company strategy. In fact, HR department have an impact on the good communication and the comprehension of the values and policy of top management. That is why it is a must for the HR staff to consider international business operations issues and get involved in the company's strategic decisions. They are obviously aware of the company business's needs, so they do everything possible to realize and achieve those specific needs. The first effect of this aspect is an increased involvement in the longer-term concerning strategic directions of the organization. [...]
[...] Especially in today's globalisation forcing companies to build up a strong competitive advantage (Subramaniam & Venkatraman, 2001).14 Conclusion The IHRM is a key function in the process of going international because its role is to allocate resources in order to achieve the goals of the company but if they make wrong choices, assign the wrong worker, it will cost the company a lot of money and a waste of time. That's why success in international business requires that HRM policies be congruent with the firm's strategy. References 1. Dowling, P. J., Feisting, M. & Engle, A. [...]
[...] D International Human Resource Management: Managing People in a Multinational Context, 5th edition, Thomson, South Melbourne, Victoria Bartlett, C., & Ghoshal, S. (1989). Managing across borders: The transnational solution Ancona, D.G., & Caldwell, D.F. (1988). Beyond task and maintenance: Defining external 4. Scullion, H. 1994,'Staffing Policies and Strategic Control in British Multinationals', International Studies of Management and Organization. Scullion, H. [...]
[...] The second variable to take into consideration for the company is the candidate's Technical ability. It is a relevant point regarding the expatriate's adjustment and his ability to transfer information from the headquarter to the subsidiary.5 According to a survey done about the expatriates selection of firms make their candidate's selection on their technical and managerial skills or competencies for the job.6 The position filling is the most common reason for an international assignment. The need to get clear information from the subsidiaries to the headquarter is the reason why MNEs would select a PCN.7 We talk then about Cross-cultural suitability, that is to say expatriates have to adapt themselves in the host country. [...]
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