01/11/2023

Human Resource Selection and

Development Across Cultures
PHAM THI BICH NGOC

Major Challenges in IHRM

1. Enhancing global business strategy
2. Aligning HR issues with business strategy

3. Designing and leading change

4. Building global corporate cultures

5. Staffing organizations with global leaders

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IHRM Functions

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Staffing for Global Operations

Ethnocentric Approach Polycentric Approach

vUsed at internationalization stage of vOften used with multinational strategy
strategic expansion, with centralized vHost-country nationals (HCNs)
structure
vParent-country nationals (PCNs)

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Sources of Human Resources

vMNCs can use four basic sources for filling overseas positions:
v(1) Home-Country Nationals (Expatriates):
n Expatriate managers are citizens of the country where the multinational corporation is
headquartered
n Sometimes called headquarters nationals

n Most common reason for using home-country nationals (expatriates) is to get the
overseas operation under way

Sources for Human Resources

n (2) Host-Country Nationals:
n Local managers hired by the MNC

n They are familiar with the culture

n They know the language

n They are less expensive than home-country personnel

n Hiring them is good public relations

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Staffing for Global Operations

Global Staffing Approach Regiocentric Approach

vThird country nationals (TCNs) vCan produce a mix of PCNs, HCNs, and
vTranspatriates TCNs
vInpatriates: managers with global
experience who are transferred to the
organization’s headquarters country

Sources for Human Resources

n (3) Third-Country Nationals:
n Managers who are citizens of countries other than the country in which the
MNC is headquartered or the one in which the managers are assigned to work
by the MNC
n These people have the necessary expertise for the job

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Sources for Human Resources

n (4) Inpatriates:
n Individuals from a host country or a third-country national who are assigned to
work in the home country
n The use of inpatriates recognizes the need for diversity at the home office

n Use of inpats helps MNCs better develop their global core competencies

n MNCs can subcontract or outsource to take advantage of lower human resource

costs and increase flexibility

Strategic Mode, Organizational Variables,

and Staffing Orientation
Aspect of enterprise Ethnocentric Polycentric Regiocentric Global

Strategic orientation International Multidomestic Regional Transnational

Expatriates used for key Locals used for key Regional people used Best people used
Perpetuation
positions positions locally regionally anywhere

Evaluation and control Home standards applied Determined locally Determined regionally Globally integrated

Based on contribution
High at home; low in Based on contribution
Rewards Wide variation to local and worldwide
subsidiaries to regional objectives
objectives

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MNC Staffing
vMost MNCs start from their own pool of managers à polycentric or
regiocentric policy:
ØIncreasing pressure from local governments to hire locals
ØThe greater cost of expatriate staffing
ØImprovement in managerial and technical competence
Ø“all things being equal, a local national who speaks the language,
understands the culture and the political system, and is often a
member of the local elite should be more effective than an
expatriate alien”
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Factors influence staffing strategy

v Its stage of internationalization
v Its country of origin
v The task complexity of its foreign subsidiaries
v The cultural distance of the subsidiary from headquarters

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Selection Criteria for International Assignments:

Managers

v Adaptability v Motivation
v Independence v Support of spouse & children
v Self-reliance v Leadership
v Physical & emotional health
v Age
v Experience
v Education
v Knowledge of local language

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Selection Criteria for International

Assignments
vOrganizations examine a number of characteristics to
determine whether an individual is sufficiently adaptable.
ØWork experiences with cultures other than one’s own
ØPrevious overseas travel
ØKnowledge of foreign languages
ØRecent immigration background or heritage
ØAbility to integrate with different people, cultures, and types of business
organizations

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Looking Abroad for Workforce

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Skills MNCs Seek Within Countries

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Expatriate Selection Criteria

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Selection Criteria for International

Assignments
vThose who were best able to deal with their new situation had developed
coping strategies characterized by socio-cultural and psychological
adjustments including:
ØFeeling comfortable that their work challenges can be met
ØBeing able to adjust to their new living conditions
ØLearning how to interact well with host-country nationals outside
of work
ØFeeling reasonably happy and being able to enjoy day-to-day
activities

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Activities That Are Important for Expatriate Spouses

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International Human Resource Selection

Procedures
vAnticipatory Adjustment
Ø Training
Ø Previous experience
vIn-country Adjustment
Ø Individual’s ability to adjust effectively
Ø Ability to maintain a positive outlook, interact well with host nationals, and to perceive
and evaluate the host country’s cultural values and norms correctly
Ø Clarity of expatriate’s role in the host management team
Ø Expatriate’s adjustment to the organizational culture
Ø Non-work matters

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The
Relocation
Transition
Curve

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Factors affecting expatriate success

v Individual factors
Ø The ability to manage psychological stress
ØThe ability to communicate effectively
ØThe ability to establish interpersonal relationships
Ø Family situation
ØAdaptability
ØJob knowledge
ØRelational ability
ØOpenness to other cultures

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Factors affecting expatriate success

vJob and organizational factors
ØExpatriate job characteristics
ØJob level
ØExpatriate training
ØOrganizational supports
vContextual factors
ØCultural novelty
ØSocial support
ØFamily support

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Cross-Cultural Training Programs

vMajor types of cross-cultural training programs
ØEnvironmental Briefings
qProvide information about things such as geography, climate, housing, and schools
ØCultural Orientation
qFamiliarize the individual with cultural institutions and value systems of the host
country

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Cross-Cultural Training Programs

vCultural Assimilators
ØProgrammed learning techniques designed to expose members of one culture
to some of the basic concepts, attitudes, role perceptions, customs, and values
of another culture
vLanguage Training
ØProvide information about things such as geography, climate, housing, and
schools

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Cross-Cultural Training
vField Experience
ØSend participant to the country of assignment to undergo some of the
emotional stress of living and working with people from a different culture
vSensitivity Training
ØDevelop attitudinal flexibility

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Cross-Cultural Training Programs

vSteps in cross-cultural training programs
Ø Local instructors and a translator observe the pilot training program or examine written
training materials
Ø Educational designer debriefs the observation with the translator, curriculum writer, and local
instructors
Ø The group examines the structure and sequence, ice breaker, and other materials to be used in
the training
Ø The group collectively identifies stories, metaphors, experiences, and examples in the culture
that fit into the new training program
Ø The educational designer and curriculum writer make necessary changes in training materials

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Cross-Cultural Training Programs

vA variety of other approaches can be used to prepare managers for
international assignments including:
Ø Visits to the host country
Ø Briefings by host-country managers
Ø In-house management programs
Ø Training in local negotiation techniques
Ø Analysis of behavioral practices that have proven most effective

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Cross-Cultural Training Programs

vA variety of other approaches can be used to prepare managers for
international assignments including:
Ø Visits to the host country
Ø Briefings by host-country managers
Ø In-house management programs
Ø Training in local negotiation techniques
Ø Analysis of behavioral practices that have proven most effective

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Types of Training Programs

vGlobal Leadership Development
vThe Global Leadership Program (GLP)
ØA consortium of leading U.S., European, and Japanese firms, global faculty,
and participating host countries
qProvide an intensive international experience
qDevelop a global mindset
qInstill cross-cultural competency
qProvide an opportunity for global networking

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Tichy Development Matrix

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Review and Discuss

vWhat selection criteria are most important in choosing people for an
overseas assignment? Identify and describe the four that you judge
to be of most universal importance, and defend your choice.
vWhat are the major common elements in an expat’s compensation
package? Besides base pay, which would be most important to you?
Why?
vWhat kinds of problems do expatriates face when returning home?
Identify and describe four of the most important. What can MNCs do
to deal with these repatriation problems effectively?

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