You are on page 1of 9

Answer1

Dow Limited, an Australian mul na onal corpora on, employed both Australians and PNG
na onals. The compensa on package for Australians, however, was ten mes greater than
that for Papua New Guineans for the same task, which demo vated the workers in the host
na on. To maintain control over their subsidiaries, MNCs frequently favour the ethnocentric
method, which entails hiring exclusively residents of the parent country in the host
countries. However, this strategy could result in host country personnel being treated
unfairly and losing mo va on. The ethnocentric approach has drawbacks such as a lack of
sensi vity to regional cultures and customs, a challenge in hiring suitable expatriates, and
high expenditures related to expatriate assignments. To minimise discrimina on and
encourage diversity and inclusion in its subsidiaries, MNCs should take into account different
strategies, such as the geocentric strategy, which entails choosing the best candidate for the
posi on regardless of na onality.

Why do MNCs prefer an ethnocentric approach


The ethnocentric strategy is preferred by MNCs because it enables them to maintain control
over their subsidiaries and guarantee that their interests are appropriately represented.
With the excep on of higher-level interna onal posi ons, only na onals of the parent
country are chosen to work in the host countries under this strategy. This strategy is jus fied
by the fact that the staff from the parent na on would effec vely represent the interests of
the headquarters and have strong es to it. However, as seen in the instance of Dow Limited,
this strategy may result in discrimina on and demo va on among employees in the host
country.
the same's restric ons
The ethnocentric approach has drawbacks such as an insensi vity to local customs and
cultures, a challenge in hiring suitable expatriates, and high expenditures related to
expatriate assignments. To avoid discrimina on and encourage diversity and inclusion in its
subsidiaries, MNCs should take into account alternate strategies, such as the geocentric
strategy, which entails choosing the best candidate for the job regardless of na onality. An
alternate strategy is the polycentric approach, which keeps workers from the same region.
To promote sustainable development and prevent detrimental effects on local businesses
and economies, MNCs should work to strike a balance between their objec ves and the
interests of their host countries and local communi es.

Conclusion
To maintain control over their subsidiaries, MNCs frequently favour an ethnocentric
approach, however this strategy can demoralise and discriminate against personnel in the
host country. The ethnocentric approach has drawbacks such as a lack of sensi vity to
regional cultures and customs, a challenge in hiring suitable expatriates, and high
expenditures related to expatriate assignments. To avoid discrimina on and encourage
diversity and inclusion in its subsidiaries, MNCs should take into account alternate strategies,
such as the geocentric strategy, which entails choosing the best candidate for the job
regardless of na onality. The predicament encountered by Dow Limited, where Australians
received ten mes the pay for the same task as Papua New Guineans, demonstrates the
unfavourable effects of the ethnocentric perspec ve. To promote sustainable development
and prevent detrimental effects on local businesses and economies, MNCs should work to
strike a balance between their objec ves and the interests of their host countries and local
communi es.
Answer2
As the Group HR Director for a small business that is expanding interna onally, it is crucial to
make sure that staff are suitably trained for their responsibili es abroad. You're thinking
about hiring an outside consul ng company to provide pre-departure training because you
don't have the internal resources to do it. The external consultant's training programme
needs to include a number of topics, and evalua on procedures should be put in place, in
order to determine its success. Cultural sensi vity, language proficiency, cross-cultural
communica on, prac cal concerns, work and business prac ses, and emo onal and
psychological support are among the topics that will be covered in the pre-departure
training programme. These components work together to give employees the informa on
and abili es they need to successfully manage the opportuni es and challenges of overseas
assignments. Several evalua on techniques can be used to determine the training program's
efficacy. Assessments can be used to compare the knowledge and skills of employees before
and a er training. Par cipants' views on the applicability and calibre of the training can be
gathered through feedback surveys. If the training helped produce good results, it can be
determined by evalua ng post-assignment performance. Con nuous employee feedback
might reveal any training gaps or places in need of extra assistance. Finally, by comparing the
costs of the training with the advantages gained, doing a cost and return on investment
analysis may objec vely evaluate the program's performance.
There are a number of topics that should be covered to make sure the staff is adequately
prepared for their assignments when employing an outside consul ng company to conduct
pre-departure training for interna onal assignments. These elements o en consist of:

 Cultural Awareness: This part entails educa ng staff members about the tradi ons,
customs, and social mores of the host na on. It enables workers to adapt and
communicate more successfully by assis ng them in understanding and apprecia ng
poten al cultural differences.
 Language instruc on: Depending on the country of des na on, language instruc on
may be essen al. Basic language abili es should be made available to employees so
they can handle daily interac ons in both professional and social se ngs. This can
involve language use in terms of terminology, everyday expressions, and cultural
quirks.
 Effec ve cross-cultural communica on is essen al for the comple on of overseas
assignments. To promote successful collabora on with local colleagues, clients, and
consumers, training should put a strong emphasis on building abili es to traverse
communica on styles, nonverbal indica ons, and cultural sensi vity.
 Prac cal Considera ons: This sec on discusses numerous aspects of how to live and
work in the host na on. It covers things like housing, travel, healthcare, safety, legal
issues, and regional laws. Giving employees this knowledge enables them to
successfully handle their daily requirements and du es.
 Work and Business Prac ses: Employees should educate themselves on the standard
business and labour prac ses in the host na on. This entails being aware of the
managerial prac ses, decision-making frameworks, and nego a on tac cs used
locally. Employees can adjust their work habits and standards to the local
environment with the aid of this knowledge.
 Support on an emo onal and psychological level: Both professionally and personally,
interna onal assignments can be difficult. The emo onal and psychological effects of
working and residing overseas, such as coping with culture shock, homesickness, and
stress management, should be covered in training.

You can take into account the following evalua on techniques to gauge how well the
external consultant's pre-departure training programme worked:

 Pre- and post-assessments should be carried out to determine the knowledge,


abili es, and cultural awareness of the staff members. Comparing the outcomes will
help assess how well the instruc on has improved their comprehension.
 Surveys for Par cipant Feedback: Distribute surveys to par cipants to get their
opinions on the training course. Inquire about the training materials' applicability,
relevancy, and delivery quality. These comments can offer insigh ul informa on
about the program's advantages and shortcomings.
 Post-Assignment Performance: Evaluate how well personnel performed a er being
assigned to a foreign country. Assess their capacity to blend into the local culture,
collaborate well with neighbours, and produce the desired results. An associa on
between training and performance that is posi ve points to the program's efficacy.
 Encourage staff to offer ongoing feedback while working on their assignments.
Regular check-ins and clear lines of communica on can help find any training gaps or
places that need further assistance.
 Analyse the cost of the training programme and its return on investment (ROI) in
rela on to the advantages derived from the employees' improved performance,
higher cultural competency, and effec ve comple on of their assignments. An
objec ve evalua on of the program's effec veness can be obtained from this
approach.
You can evaluate the efficacy of the training delivered by the external consultant and make
informed judgements regarding upcoming training ini a ves by taking these factors into
account in the pre-departure training programme and u lising a variety of evalua on
techniques.

Conclusion: For interna onal assignments to be successful and for expatriates to develop
in their careers, pre-departure training is crucial. The training programme should
encompass a variety of topics, such as instruc on in cultural awareness, language
proficiency, useful informa on about the host na on, and details of the business' laws
and procedures. The difficul es that expats could encounter, such as culture shock,
homesickness, and loneliness, should also be included in the training. By conduc ng
surveys and interviews with the employees who have finished the training, it is possible
to evaluate the success of the pre-departure training programme offered by the external
consultant. Addi onally, the business can monitor how well the staff members perform
while on interna onal assignments and contrast it with that of staff members who did
not receive pre-departure training. Pre-departure trainings that are well-designed are
well worth the money since they help reduce the hazards of diverse workplaces and
maximise their advantages, such greater group decision-making and higher crea vity.
Answer 3A
Organisa ons must manage a number of
par cular difficul es when evalua ng
performance in an interna onal se ng. These
difficul es result from cultural dissimilari es, a
variety of business prac ses, varied
performance standards, and logis cal
difficul es.
The following are some significant difficul es in
evalua ng performance in an interna onal
se ng:

 Differences in culture: Expecta ons for performance and evalua on standards are
largely influenced by cultural norms and beliefs. Different cultures have different
ideas about what good performance looks like and how it should be evaluated. To
ensure fairness and accuracy in performance assessments, assessors must be aware
of and take these cultural quirks into account.
 Language and communica on hurdles can make it difficult to conduct an accurate
performance evalua on, par cularly when the employees and the assessors do not
speak the same language. It might be difficult to read feedback and evalua on
criteria accurately, which can result in misunderstandings and incorrect assessments.
This difficulty can be reduced with the employment of interpreters and translators
and clear communica on lines.
 Assessment of performance in a geographically sca ered organisa on adds to the
logis cal challenges. The process might become more me-consuming and resource-
intensive due to me zone differences, travel restric ons, and organising
examina ons across several sites.
 Legal and Compliance Considera ons: The laws and regula ons governing
performance management and employee evalua on differ from one country to the
next. Organisa ons must make sure that their evalua on procedures abide by
regional labour laws and regula ons, which could make the evalua on process more
difficult.
 Stereotypes and Unconscious Bias: Assessors need to be aware of how stereotypes
and unconsciously held biases might affect how they evaluate performance. Implicit
biases, stereotypes about par cular na ons or ethnici es, and cultural prejudices
can compromise the objec vity and impar ality of assessments. This difficulty can be
reduced by crea ng uniform evalua on criteria and training assessors to be
conscious of bias.
 Technology and Infrastructure: Access to reliable technology infrastructure and the
right evalua on tools may be necessary for evalua ng performance across worldwide
loca ons. For a performance evalua on to be effec ve, technology pla orms must
be made available consistently and staff must be trained in their use.

Conclusion
Organisa ons should invest in cross-cultural training, offer precise and consistent evalua on
criteria, adapt assessment procedures to local contexts, encourage open communica on
channels, and make sure assessors receive adequate training on bias awareness in order to
overcome these difficul es. In an interna onal se ng, consistent feedback, performance
check-ins, and ongoing development discussions can also aid in aligning performance
expecta ons and fostering a culture of con nuous improvement.
Answer 3b
It is crucial to take into account elements that are consistent with the company's overall
aims, values, and performance expecta ons while accep ng the unique difficul es and
cultural se ngs of overseas assignments when developing performance ra ng criteria for
interna onal workers.
Here are some recommenda ons for evalua on criteria for interna onal workers'
performance:

 Job-precise Goals and Objec ves: Establish precise goals and objec ves for each
employee's job that are both explicit and measurable. These objec ves should
complement the overarching corporate goals and serve as a benchmark for
performance evalua on.
 Cultural Competence and Adaptability: Assess a worker's capacity for interac ng
with, adjus ng to, and performing well in a variety of cultural contexts. Take into
account their sensi vity, communica on, and cross-cultural rela onship-building
skills.
 Assess a worker's skill in cross-cultural communica on, including their capacity to
recognise and interpret nonverbal signs, modify their communica on style, and work
produc vely with colleagues from different cultural backgrounds.
 Global Leadership and Management Skills: Assess a worker's capacity for leadership
in a global se ng. This includes their capacity to handle interna onal projects,
manage mul cultural teams, exhibit global strategic thinking, and encourage
diversity and inclusion.
 Examine an employee's performance in rela on to their accomplishment of local and
global corporate objec ves. Take into account their impact on revenue growth,
market expansion, client happiness, and opera onal effec veness in global
marketplaces.
 Assessing an employee's flexibility and capacity to adjust in the face of shi ing
company se ngs and global market dynamics is known as the "adaptability and
change management" process. Think about their capacity for embracing innova on,
adap ng to new problems, and driving organisa onal change in interna onal
opera ons.
 Evalua on of an employee's commitment to lifelong learning and growth in an
interna onal se ng. Take into account their involvement in training programmes,
the development of new abili es, and the use of learning to enhance performance.
 Teamwork & Collabora on: Assess a worker's capacity to collaborate across
geographically dispersed teams and with co-workers from various cultural
backgrounds. Think about their role in the success of the team, their ap tude for
u lising diversity, and their encouragement of a produc ve team environment.
 Problem-Solving and Decision-Making: Assess a worker's capacity for problem-
solving and making choices in an interna onal se ng. Examine their capacity to
weigh various viewpoints, analyse difficult circumstances, and come to well-informed
conclusions that are in line with organisa onal goals.

Conclusion: These standards may differ depending on the sector, corporate culture, and type
of overseas assignments and should be adjusted to the organiza on's unique needs and
objec ves. To ensure con nual development and improvement of overseas staff, the
appraisal process should be accompanied by regular feedback, performance discussions, and
coaching.

You might also like