As companies expand, it becomes necessary to find mangers that are skilled in markets internationally. In order for the organization to increase profits and the scope of their operations, these managers will need to overcome the many challenges that are present amongst differing cultures. By selecting both host-country nationals and transferring suitable managers from within the organization, MNCs can experience great success in developing markets throughout the world. The selection, training, and management of expatriates are the most important jobs in human resources today.
It is the job of the organization to communicate what global managers need to know in order to be successful. Cultural education should supplement technical skills to yield a more favorable experience for both the employee and the employer. According to Deresky (2006), companies should “make sure that the foreign assignment and the reintegration process are positive experiences” (p. 380). A favorable experience will allow for the organization to benefit from the investment in their global management cadre while promoting expatriate assignments to other employees. Schell and Solomon recommend that organizations address potential difficulties to prospective expatriates early in the process of selection. “In many companies, people about to go on expatriate assignment have no idea of the challenges they will face or the unique skills they need to thrive in a foreign culture” (Schell & Solomon, 1997, p. 94). Cultural education should supplement technical skills to yield a more favorable experience for both the employee and the employer.
While the selection of expatriates is of critical importance, repatriation can be an equally vital task. Deresky (2006) asserts that “the management of the reentry phase of the career cycle is as vital as the management of the cross-cultural entry and training” (p. 379). If employees see that an expatriate assignment aided the career of a co-worker, the organization is more likely to get more quality applicants applying for those positions. The global nature of business in the 21st century makes it critically important for organizations to recruit and retain the best of their global management team.
References
Deresky, H. (2006). International Management: Managing Across Borders and Cultures, 5th Ed. Pearson Prentice Hall.
Schell, M. & Solomon, C. (1997). Capitalizing on the Global Workforce: A Strategic Guide for Expatriate Management. McGraw-Hill.
Keyword: management cadre, global economy, international business, exchange rates, economic incentive, foreign investment
Thursday, January 22, 2009
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What are your thoughts on exploitation of foreign labor? Pouring of US Investment dollars into societies that treat workers like dogs? Expatriates working in countries whose leaders sole mission is to find ways to weaken the US?
ReplyDeleteEthics aside...are there any business models that you know of that are set up to train workers to understand the cultures they are about to embrace?
The first statement clarifies that these are “US investment dollars.” In The Intelligent Investor (1973), Benjamin Graham defines an investment operation as “one which, upon thorough analysis promises safety of principal and an adequate return” (p. 18). The importance of the distinction between investment and speculation is significant in the discussion of foreign ventures.
ReplyDeleteIf we assume that the American investors are assured of satisfactory return, the organization is in the right to profit from expatriate and/or HCNs labor. The single goal of the organization is to maximize return for shareholders. Developing markets abroad and benefiting from comparative and competitive advantages are ideal principles of global business. Provided that there is not a direct ethical impasse, the business should move on this strategy. The larger implications of nations attempting to undermine the US economy are beyond the scope of the organization itself.