International Recruitment Policy

The key strategic issue in these orientations is the degree of domination of the MNE headquarters over subsidiary management Ethnocentrism Key management positions filled by parent-country nationals Best suited for international businesses International Recruitment Policy Polycentric Host-country nationals manage subsidiaries Parent companies nationals hold key headquarter positions Best suited to multi-domestic businesses International Recruitment Policy Geocentric Seek best people, regardless of nationality Best suited to global and trans-national businesses International Selection Policy Employment for managerial positions in foreign subsidiaries place heavy emphasis on the use of EXPATRIATES, i.e., an employee who is working and temporarily residing in a foreign country They are PCNs from the parent country operations, TCNs transferred to either HQ or another subsidiary, and HCNs transferred into the parent country They are transferred as they help in transfer technology to a foreign operation, developing managers with global perspectives, worldwide organizational culture, etc International Training & Development Improved job knowledge and skills at all levels of the organization Improved morale of the human resource Improved profitability and more positive attitudes towards profit-orientation Improved relation between boss and subordinated Improved understanding of culture of various countries Performance Appraisal Problems: Unintentional bias

 Host-nation biased because of cultural differences Home-country biased by distance and lack of experience working abroad Expatriate managers believe that headquarters unfairly evaluates and under appreciates them Personnel managers of U.S. multinationals stated that foreign assignment are either detrimental or immaterial to ones career Guidelines for Performance Appraisal More weight should be given to onsite managers evaluation as they are able to recognize the soft variables Expatriate who worked in same location should assist home-office manager with evaluation If foreign on-site managers prepare an evaluation, homeoffice manager should be consulted before completion of formal the terminal evaluation International Compensation Expatriate pay should be equal to what he is getting at home. Thus Expats pay Is mostly based on the balance sheet approach so that they are able to maintain the same standard of living Includes allowances like car allowances Involves Profit Sharing & ESOP International Labor Relations Degree to which organized labor can limit the choices of an international business Aims to foster harmony and minimize conflicts between firms and organized labor International Labor Relations Concerns Multinational can counter union bargaining power with threats to move production to another country Multinational will keep highly skilled tasks in its home country and farm out only low-skilled tasks to foreign plants International Labor Relations Strategy Attempts to establish international labor organizations

 Attempts to achieve international regulations on multinationals through such organizations as the United Nations Future Of IHRM Development of global unions and global bargaining Global payroll/compensation options Global employment companies Evolving international labor standards and ethics Increasing attention to global crisis management Focus on developing a global learning organization