Staffing The Multinational Enterprise Case Study

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Staffing the Multinational Enterprise:
1. Parent country nationals: most IHRM literature revolves around PCNs. PCNs are defined as employees that live and are employed in the home country of the MNEs headquarters. When these individuals are assigned and transferred a position in a subsidiary to the company that is located in a foreign country, the individuals are referred to as expatriates. Once they have returned from their assignment abroad as an expat to the home country of the MNEs headquarters, they are referred to as repatriates.
2. Host country nationals: it is common that MNE choose to recruit employees who are of local origin of the foreign subsidiaries country to assume positions below the top level of management.
An increased trend
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− Studies have found that aside from the expatriates desire for an exotic foreign experience, there are two main driving factors that motivate employees to become expatriates. These two factors are: a higher salary and “perceived increased career opportunities” within the firm once the expatriation is over. In terms of career opportunities, expatriation does play a significant role according to Michael Angus the chairman of Unilever “Most people who rise toward the top of our business will have worked in at least two countries, probably three”.
Companies are concerned with:
Globalization that is taking place within in the firm
− Creating and generating increased revenues in new potential markets abroad
− Management of costs and risks involved in moving
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Brownout: IA occupies their position for the full duration of the assignment, but executes their task poorly and inefficiently. This can be both costly in terms of inadequate projects that are initiated by the IA as well as damaging to the relationship of the company to both current and potential local employees. 3. Turnover upon repatriation: takes place when the IA leaves the company within a year of being repatriated.

CHAPTER 6
Transition and development (T&D) is portrayed as one of the most crucial factors that differentiate successful MNE’s from less successful MNE’s.
What makes a competent workforce?
• Work teams that retain the ability to collaborate on a global scale
• Teams that are able to preform cross-cultural preparation and identify the significance of this process
• Effective leadership qualities which are globally applicable and effective

Training in the Multinational Enterprise
Human capital is identified as MNEs most important competitive advantage.
The instructional ADDIE (analysis, design, development, implementation, evaluation) model was developed to be applicable on various stages of T&D.
The book identifies two approaches to training:
• Localized approach: includes learning about and adapting to cultural practices, learning about laws and legislations that are incorporated in the training process of the employee and local

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