{"id":155,"date":"2014-08-18T16:06:33","date_gmt":"2014-08-18T16:06:33","guid":{"rendered":"https:\/\/courses.candelalearning.com\/hrmanagement1xmaster\/?post_type=chapter&p=155"},"modified":"2014-10-05T17:06:20","modified_gmt":"2014-10-05T17:06:20","slug":"14-2-staffing-internationally","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/hrmanagement\/chapter\/14-2-staffing-internationally\/","title":{"raw":"14.2 Staffing Internationally","rendered":"14.2 Staffing Internationally"},"content":{"raw":" \r\n
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14.2<\/span> Staffing Internationally<\/h2>\r\n
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Learning Objectives<\/h3>\r\n
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  1. Be able to explain the three staffing strategies for international businesses and the advantages and disadvantages for each.<\/li>\r\n\t
  2. Explain the reasons for expatriate failures.<\/li>\r\n<\/ol>\r\n<\/div>\r\nOne of the major decisions for HRM when a company decides to operate overseas is how the overseas operation will be staffed. This is the focus of this section.\r\n\r\n<\/div>\r\n
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    Types of Staffing Strategy<\/h2>\r\nThere are three main staffing strategies a company can implement when entering an overseas market, with each having its advantages and disadvantages. The first strategy is a home-country national strategy<\/span>This staffing strategy uses employees from the home country to live and work in the country.<\/span><\/span>. This staffing strategy uses employees from the home country to live and work in the country. These individuals are called expatriates<\/span>An employee from the home country who is on international assignment in another country.<\/span><\/span>. The second staffing strategy is a host-country national strategy<\/span>To employ people who were born in the country in which the business is operating.<\/span><\/span>, which means to employ people who were born in the country in which the business is operating. Finally, a third-country national strategy means to employee people from an entirely different country from the home country and host country. Table 14.4 \"Advantages and Disadvantages of the Three Staffing Strategies\" lists advantages and disadvantages of each type of staffing strategy. Whichever strategy is chosen, communication with the home office and strategic alignment with overseas operations need to occur for a successful venture.\r\n
    \r\n\r\nTable 14.4<\/span> Advantages and Disadvantages of the Three Staffing Strategies\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
    <\/th>\r\nHome-Country National<\/th>\r\nHost-Country National<\/th>\r\nThird-Country National<\/th>\r\n<\/tr>\r\n<\/thead>\r\n
    Advantages<\/td>\r\nGreater control of organization<\/td>\r\nLanguage barrier is eliminated<\/td>\r\nThe third-country national may be better equipped to bring the international perspective to the business<\/td>\r\n<\/tr>\r\n
    Managers gain experience in local markets<\/td>\r\nPossible better understanding of local rules and laws<\/td>\r\nCosts associated with hiring such as visas may be less expensive than with home-country nationals<\/td>\r\n<\/tr>\r\n
    Possible greater understanding and implementation of business strategy<\/td>\r\nHiring costs such as visas are eliminated<\/td>\r\n<\/tr>\r\n
    Cultural understanding<\/td>\r\n<\/tr>\r\n
    Morale builder for employees of host country<\/td>\r\n<\/tr>\r\n
    Disadvantages<\/td>\r\nAdapting to foreign environment may be difficult for manager and family, and result in less productivity<\/td>\r\nHost-country manager may not understand business objectives as well without proper training<\/td>\r\nMust consider traditional national hostilities<\/td>\r\n<\/tr>\r\n
    Expatriate may not have cultural sensitivity<\/td>\r\nMay create a perception of \u201cus\u201d versus \u201cthem\u201d<\/td>\r\nThe host government and\/or local business may resent hiring a third-country national<\/td>\r\n<\/tr>\r\n
    Language barriers<\/td>\r\nCan affect motivation of local workers<\/td>\r\n<\/tr>\r\n
    Cost of visa and hiring factors<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/div>\r\n
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    Human Resource Recall<\/h3>\r\nCompare and contrast a home-country versus a host-country staffing strategy.\r\n\r\n<\/div>\r\n<\/div>\r\n
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    Expatriates<\/h2>\r\nAccording to Simcha Ronen, a researcher on international assignments, there are five categories that determine expatriate success. They include job factors, relational dimensions, motivational state, family situation, and language skills. The likelihood the assignment will be a success depends on the attributes listed in Table 14.5 \"Categories of Expatriate Success Predictors with Examples\". As a result, the appropriate selection process and training can prevent some of these failings. Family stress, cultural inflexibility, emotional immaturity, too much responsibility, and longer work hours (which draw the expatriate away from family, who could also be experiencing culture shock) are some of the reasons cited for expatriate failure.\r\n
    \r\n\r\nTable 14.5<\/span> Categories of Expatriate Success Predictors with Examples\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
    Job Factors<\/th>\r\nRelational Dimensions<\/th>\r\nMotivational State<\/th>\r\nFamily Situation<\/th>\r\nLanguage Skills<\/th>\r\n<\/tr>\r\n<\/thead>\r\n
    Technical skills<\/td>\r\nTolerance for ambiguity<\/td>\r\nBelief in the mission<\/td>\r\nWillingness of spouse to live abroad<\/td>\r\nHost-country language<\/td>\r\n<\/tr>\r\n
    Familiarity with host country and headquarters operations<\/td>\r\nBehavioral flexibility<\/td>\r\nCongruence with career path<\/td>\r\nAdaptive and supportive spouse<\/td>\r\nNonverbal communication<\/td>\r\n<\/tr>\r\n
    Managerial skills<\/td>\r\nNonjudgmentalism<\/td>\r\nInterest in overseas experience<\/td>\r\nStable marriage<\/td>\r\n<\/tr>\r\n
    Administrative competence<\/td>\r\nCultural empathy and low ethnocentrism<\/td>\r\nInterest in specific host-country culture<\/td>\r\n<\/tr>\r\n
    Interpersonal skills<\/td>\r\nWillingness to acquire new patterns of behavior and attitudes<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n
    \r\n\r\nSource: Adapted from Simcha Ronen, Training the International Assignee<\/em> (San Francisco: Jossey-Bass, 1989), 426\u201340.\r\n\r\n<\/div>\r\n<\/div>\r\nMost expatriates go through four phases of adjustment when they move overseas for an assignment. They include elation\/honeymoon<\/span>A phase of expatriate adjustment; the employee is excited about the new surroundings and finds the culture exotic and stimulating.<\/span><\/span>, resistance<\/span>A phase of expatriate adjustment; the employee may start to make frequent comparisons between home and host country and may seek out reminders of home. Frustration may occur because of everyday living, such as language and cultural differences.<\/span><\/span>, adaption<\/span>A phase of expatriate adjustment; the employee gains language skills and starts to adjust to life overseas. Sometimes during this phase expatriates may even tend to reject their own culture. In this phase, the expatriate is embracing life overseas.<\/span><\/span>, and biculturalism<\/span>A phase of expatriate adjustment; the expatriate embraces the new culture and begins to appreciate his old life at home as much as his new life overseas. Many of the problems associated with expatriate failures, such as family life and cultural stress, have diminished.<\/span><\/span>. In the elation phase, the employee is excited about the new surroundings and finds the culture exotic and stimulating. In the resistance phase, the employee may start to make frequent comparisons between home and host country and may seek out reminders of home. Frustration may occur because of everyday living, such as language and cultural differences. During the adaptation phase, the employee gains language skills and starts to adjust to life overseas. Sometimes during this phase, expatriates may even tend to reject their own culture. In this phase, the expatriate is embracing life overseas. In the last phase, biculturalism, the expatriate embraces the new culture and begins to appreciate his old life at home equally as much as his new life overseas. Many of the problems associated with expatriate failures, such as family life and cultural stress, have diminished.\r\n
    \r\n\r\nFigure 14.2<\/span> Phases of Expatriate Adjustment\r\n\r\n\"\"<\/a>\r\n\r\n<\/div>\r\n
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    Expat Failures<\/h3>\r\n