Staffing and Developing the Staffing and Developing the Multinational WorkforceMultinational Workforce

Ibraiz Tarique & Ibraiz Tarique &

Randall SchulerRandall Schuler

OverviewOverview

Important TermsImportant Terms

Types of employees in the Types of employees in the multinational workforce (MWF)multinational workforce (MWF)

Major issues and challenges of Major issues and challenges of staffing and developing the MWFstaffing and developing the MWF

Important TermsImportant Terms

Multinational Enterprise (MNE) – a Multinational Enterprise (MNE) – a firm that operates in two or more firm that operates in two or more countriescountries

Multinational Workforce (MWF) – the Multinational Workforce (MWF) – the workers in a multinational enterpriseworkers in a multinational enterprise

Expatriate – an employee posted or Expatriate – an employee posted or assigned to another country for more assigned to another country for more than a yearthan a year

The Multinational WorkforceThe Multinational Workforce

The task of international human The task of international human resource management (IHRM) resource management (IHRM) professionals in MNEs is to build a professionals in MNEs is to build a competent, high-performing competent, high-performing workforce that gains and sustains a workforce that gains and sustains a competitive advantage throughout competitive advantage throughout the global marketplace (Briscoe & the global marketplace (Briscoe & Schuler, 2004). Schuler, 2004).

Types of Employees in the MNETypes of Employees in the MNE

Parent country nationals (PCNs) Parent country nationals (PCNs) Host country nationals (HCNs)Host country nationals (HCNs) Third country nationals (TCNs)Third country nationals (TCNs)

Parent Country NationalsParent Country Nationals

Employees of the MNE who are Employees of the MNE who are citizens of the country where the citizens of the country where the MNE’s corporate headquarter is MNE’s corporate headquarter is located located

PCN CompetenciesPCN Competencies

Familiarity with the MNE’s corporate Familiarity with the MNE’s corporate cultureculture

Ability to effectively communicate Ability to effectively communicate with headquarterswith headquarters

Ability to maintain control over the Ability to maintain control over the subsidiary operationssubsidiary operations

Host Country NationalsHost Country Nationals

Employees of the MNE who work in Employees of the MNE who work in the foreign subsidiary and are the foreign subsidiary and are citizens of the country where the citizens of the country where the foreign subsidiary is located foreign subsidiary is located

HCN CompetenciesHCN Competencies

Familiarity with the cultural, Familiarity with the cultural, economic, political, and legal economic, political, and legal environment of the host country environment of the host country

Ability to respond effectively to the Ability to respond effectively to the host country’s requirements for host country’s requirements for localization of the subsidiary’s localization of the subsidiary’s operations operations

Third Country NationalsThird Country Nationals

Employees who are neither citizens Employees who are neither citizens of the host country nor citizens of the of the host country nor citizens of the country where the enterprise is country where the enterprise is headquarteredheadquartered

MNE Concerns for its WorkforceMNE Concerns for its Workforce

The workforce should be competent:The workforce should be competent:• Cultural competenciesCultural competencies• Skills for the jobSkills for the job• Company knowledge and loyaltyCompany knowledge and loyalty• FlexibilityFlexibility• Ability and will to manage complexityAbility and will to manage complexity

Staffing a Multinational WorkforceStaffing a Multinational Workforce

Global staffingGlobal staffing refers to the process refers to the process of acquiring, deploying, and retaining of acquiring, deploying, and retaining a global workforce in organizations a global workforce in organizations with operations in different countries with operations in different countries (Scullion & Collings, 2006)(Scullion & Collings, 2006)

How the MNE Obtains and How the MNE Obtains and Develops Its PeopleDevelops Its People

Human resource planningHuman resource planning Recruitment of competent Recruitment of competent

employeesemployees Performance appraisalsPerformance appraisals Compensation policiesCompensation policies Development initiativesDevelopment initiatives

Recruitment from the MNE Recruitment from the MNE PerspectivePerspective

Potential employees may be Potential employees may be attracted to the enterprise through attracted to the enterprise through organizational attributes such as:organizational attributes such as:• Geographical dispersionGeographical dispersion• Type of ownershipType of ownership• Level of internationalizationLevel of internationalization

Qualities of Recruits to MNEsQualities of Recruits to MNEs

Extroverted and open to new Extroverted and open to new experiencesexperiences

Affected by their early international Affected by their early international life experienceslife experiences

Recruitment From the Individual’s Recruitment From the Individual’s PerspectivePerspective

Individuals are more receptive to Individuals are more receptive to global assignments in locations global assignments in locations culturally similar to their own culturally similar to their own

Male assignees were more willing to Male assignees were more willing to accept a foreign assignment and accept a foreign assignment and more willing to follow their partners more willing to follow their partners than female ones than female ones

SelectionSelection

Identify critical job dimensions – Identify critical job dimensions – maintaining business contacts, maintaining business contacts, technical competence, etc.technical competence, etc.

Cross-cultural competencies – Cross-cultural competencies – adjustment to the foreign culture and adjustment to the foreign culture and ways of doing businessways of doing business

Developing a Multinational Developing a Multinational WorkforceWorkforce

Refers to a wide variety of Refers to a wide variety of international training activities and international training activities and international development activities international development activities used by MNEs to develop the used by MNEs to develop the competency base of their employees competency base of their employees (Caligiuri, Tarique, & Lazarova, 2005) (Caligiuri, Tarique, & Lazarova, 2005)

Cultural Competence TrainingCultural Competence Training

Organizations recognize the Organizations recognize the importance of international training importance of international training and development activities and development activities

Cultural competencies enable Cultural competencies enable individuals to be more effective in individuals to be more effective in the new cultural environmentthe new cultural environment

Cross-cultural TrainingCross-cultural Training

A planned intervention designed to A planned intervention designed to increase the knowledge and skills of increase the knowledge and skills of expatriates to live and work expatriates to live and work effectively and achieve general life effectively and achieve general life satisfaction in an unfamiliar host satisfaction in an unfamiliar host culture (Kealey & Protheroe, culture (Kealey & Protheroe, 1996:145) 1996:145)

Cross-cultural Training DesignCross-cultural Training Design

Identifying the type of employee Identifying the type of employee Determining the specific cross-Determining the specific cross-

cultural competency need cultural competency need Establishing short-term and long-Establishing short-term and long-

term learning goals term learning goals Developing and delivering Developing and delivering

instructional content instructional content Evaluating whether the program was Evaluating whether the program was

effective effective

Qualities of the Global LeaderQualities of the Global Leader

Higher in conscientiousnessHigher in conscientiousness More open and extrovertedMore open and extroverted Greater family diversityGreater family diversity More likely to be fluent in another More likely to be fluent in another

languagelanguage

Global CareersGlobal Careers

Expatriation provides the opportunity Expatriation provides the opportunity to acquire overseas knowledge, and to acquire overseas knowledge, and repatriation creates the opportunity repatriation creates the opportunity to transfer and apply this knowledge to transfer and apply this knowledge in the organization in the organization

ConclusionConclusion

MNEs face challenges and issues MNEs face challenges and issues related to staffing and training their related to staffing and training their multinational workforcemultinational workforce

Training programs can increase the Training programs can increase the cultural effectiveness of the cultural effectiveness of the workforceworkforce

ConclusionConclusion

Future research might focus on:Future research might focus on:• Developing a global mindsetDeveloping a global mindset• Non-traditional staffing methodsNon-traditional staffing methods• Developing uniform staffing and training Developing uniform staffing and training

methodsmethods