Note that the version presented here is a condensed extract from a substantially more complete original paper. It is thus the aggregate of the various HRM systems used to manage people in the multinational corporation, both at home and overseas. Strategic human resource management SHRM is used to explicitly link HRM with the strategic management processes of the organization and to emphasize coordination or congruence among the various human resource management practices.
This definition shows that managing people is one of the aspects of SIHRM, both domestic and international. Taylor et al. This means low internal consistency with the rest of the company and high external consistency with the local environment. This approach is consistent with a polycentric approach to MNC management Taylor et al.
In the polycentric approach the MNC treats each subsidiary as a distinct national entity with some decision making autonomy. This means high internal consistency and low external consistency. The parent company is replicating the HRM policies and practices used in the home country to its overseas affiliates, leaving the overseas affiliates with almost no autonomy. An integrative SIHRM orientation attempts to take the best approaches and use them throughout the organization in the creation of a worldwide system.
This approach is consistent with the geocentric approach that recognises that each part affiliates and headquarters makes a unique contribution with its unique competence. Staffing subsidiary locations focuses on using the most qualified personnel regardless of nationality, which includes both local and home country nationals, but also third country nationals, which are managers from neither the parent nor the host country. All aspects of people management and thereby the process of managing expatriates on international assignments apply to all companies engaged in transferring people across national borders.
This paper will therefore not distinguish between companies in different internationalisation stages. The Process of Managing Expatriates It is very important to develop a basic framework for the discussion of how to manage expatriates on global or international assignments.
Black et al. They identify a Global Assignment Success Cycle to conceptualize the term people management through. They view people management as a set of activities instead of a function of a specific department. This means that each activity builds upon the others as the process becomes an integrated package. No matter how many specific phases the process is divided into the process of managing and supporting expatriates on international assignments can be divided into three broader phases; before the assignment, during the assignment and after the assignment.
The phase before the assignment would usually contain identification, selection, training and development, and compensation. The argument for putting compensation in the phase before the assignment is that it is typically agreed upon before the expatriate go on the assignment.
This paper will look at the stages recruitment and selection, training and development, adjustment, integration, repatriation.
These stages are chosen since it seems like they have the highest impact on the success or failure of the process. Before the Assignment This phase contains selection and training of the expatriate.
The time before the assignment can vary, sometimes the international assignment arises because of problems that have to be fixed quickly, other times it is a process that expands over several months. No matter how long the time horizon is the company should pay attention to the selection and training stages in the process of managing expatriates. Selection Some international assignments arise because of a problem in a subsidiary.
When this is the case, many companies have a strong desire to fix the problem as fast as possible, resulting in an obsession with the technical and managerial qualifications of the candidates and their presumed ability to solve the short-term problem.
This process, however, ignores the human resource department and their ability to help. They only consider a narrow range of potential candidates. This process also overlooks the ability of the candidates and their families to adjust to and function effectively in a new cultural environment. This technically oriented selection process can easily result in costly premature returns or ineffective performance throughout the assignment Black et al.
This triggers the need for recruitment and selection. In recent years the trend has moved towards viewing expatriate assignments as unattractive. This makes the selection process more about finding people who are willing to go rather than selecting the best candidate from a large pool of applicants Selmer, If this is the case the selection process might become less important. However, even though there might only be a slight number of potential candidates there will presumably always be a need for some kind of selection, for which reason this stage is described and discussed here.
According to Forster , one of the main reasons put forward for a purported high failure rate among expatriate employees is the inadequate selection criteria used by many multinational corporations. Others state that selection can influence the adjustment; if you choose the right people they are more likely to adjust to the foreign culture and environment and thereby succeed in the international assignment.
This is essential for the company making selection of great importance Anderson, When companies send people on international assignments they want the highest possible return on investment. For this to be possible, according to Black et al. Furthermore, when a company increases its global reach and moves through various stages of globalization, it needs to pay more attention to the selection process, which becomes increasingly important.
Researchers have identified several factors that should be considered in the selection of successful international managers. These factors include, among others: strategic factors, conflict resolution skills, leadership skills, communication skills, social skills, flexibility and stability, technical ability, cross-cultural suitability, family requirements, MNE requirements, language, and gender-related factors Black et al.
Many researchers Black et al. After the company has decided which selection criteria are most appropriate and relevant, it needs to determine how to evaluate candidates effectively on those criteria. There is a wide range of selection tools available; however, most companies tend to rely on a very limited range Black et al. Some of the most used selection methods are: biographical and background data, work samples and interviews. These methods each have their strengths and weaknesses for which reason a combination of selection methods would be optimal to use in selecting the right candidate Black et al.
Harris and Brewster are questioning the selection process and they show that the expatriate selection is often an ad-hoc process. They suggest that the selection process can be started through a casual conversation about an assignment between executives chatting around the coffee machine. Another thing to consider is who should evaluate the candidates.
Most often, only one individual, the line manger with the overall responsibility for the international unit, makes the decision, although others may also be involved in the selection process. The human resources department is often underutilized; it often plays an after-the-fact role.
Sending an expatriate to a foreign country often involves sending a whole family. This is achieved by evaluating the candidate from a systems perspective that includes family as an integral part Black et al. Community Find out more and connect with our diverse student body, faculty, and alumni community as they share insights on a wide range of topics.
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