Discuss about the Staffing and Training for Global Operations.
This report consists of critically analyzing the management challenges and strategies that are utilize while staffing and training of employees for global operations. Due to globalization and advancement of Industrial Revolution, it is mandatory for all the companies to go global as most of the businesses face challenges from restricted economic policies and competition. The advancement in the Information Technology and the Telecommunications has rapidly transformed the global business strategies with increasing the dimensions of trade between nations. However, most of the multinational companies have always played a significant role in transporting goods and services across the globe effectively. Thus, when the company goes global and maneuvers in different countries, policies, procedures relating to employee training, employee hiring and staffing are largely affected, and the human resource managers are obligatory to have a sound global perspective of business that will help them to formulate and implement human resource policies effectively (Beaverstock, 2017). This report consists of addressing the importance of efficiency in the staffing process for a company when the company operates in further countries. The report also explains the critical elements of international human resource management in relative with training, staffing, hiring and compensating an employee. This assessment also highlights the different modes of global staffing in relation with management expertise and the analysis of various factors of global operations (Zhou, 2015).
In modern days, most of the managers of large multinational corporations have realized that the importance of Human Resource practices to make certain the prosperity and competitive advantages of their business operations. There are many challenges that are faced by the organization staffing polices that include difficulty to control discrete operations geographically.
Difficulty in finding local managers with best background and experience obtained from non- traditional sources (Kang & Shen, 2016). There are various impacts of an organization international activity on human resource that varies according to the distinct stages of internationalization, the universal nature of any particular firm and specific choice of the industry. Moreover, most of the large companies tend to become global on the due course of their business operations because of which the organization existing human resource starts to work in different working conditions globally without any valuable experiences in international operation. Therefore, most of the organization needs to hire, train and maintain employees that are able to work in multinational conditions (Guo, Rammal & Dowling, 2016). The organization also retains their talented employees while expanding their business globally. Global staffing has become one of the critical issues of International Management the main reason behind this that there has numerous growing awareness that the success of international business is mainly depended upon recruitment and selection of qualified employees and retaining senior managers. Staffing is one of the most complex procedures of International Trade. The performance of expatriates has become one of the major problems in international firms and the multinational firms are facing rising of cost in both financial and human terms. The need of global staffing and training is increasingly day-to-day due to the demand of multinational corporations to develop multicultural global workforce (Collings, 2014).
There consists of various policies that are related to strategies and in the various stages of Internalization. These strategies are combination of Ethnocentric, Polycentric, Regeiocentric and all the global considerations.
Ethnocentric Approach: Ethnocentric approach is a type of approach when the company hires expatriates to staff their high-level foreign employees. The focus of the company is to use home country nationals to staffs their senior managerial employees post for its international operations. The emphasis of ethnocentric approach is more likely to be used when a company is entering into its internationalization phase or trying to make a strategic expansion. The primary need for this approach is to fill up the gap with key managerial positions with employees from headquarters of the parent country. The employees of parent country are very much familiar with the organizations goals, technologies and policies and all the business operations that provides a great advantage while using this approach (Wach & Wojciechowski, 2014).
Polycentric Approach: The polycentric approach is a type of approach where the staffing policy and management viewpoint are oriented towards staffing employees with the help of local talent. One of the most advantages of a polycentric approach is that it provides local managers to their organizations. Moreover, a local manager is been able to familiar with business operations and management decisions with local custom, fluency in languages, culture of the people and the cost associated with local managers are less than staffing an expatriates. The firm takes polycentric approach due to the problems of the business such as difficulty in coordinating business activities and the objectives between the subsidiary and the parent company (Neelankavil, 2015).
Regeiocentric Approach: In Regeiocentric approach, the firm recruits employees for their international operations based on ‘best in the region’ and it is done on a regional basis. This staffing approach is a mixture of parent country employees, host country employees and the third country nationals that are used depending upon the precise needs of the organization (Zhou, 2015).
The use of this approach is increasing due to the advantage that it reduces the duplication cost of support services and most of the multinational companies are choosing their employees on regional basis (Moller, 2014).
Global Approach: The global approach is a type of approach where the staffing method is done when the company’s recruits and place the best qualified person into their positions despite of the country the employees belong to. Therefore, by using this approach the business focuses on building a global management team and its employees are free to move towards any geographic area. The global approach initiates in staffing best manages and they are recruited and selected from within or outside of the company. The biggest advantage of the global approach of staffing is that, it includes provision towards great pool of qualified managers and thus it helps to develop and maintain an international executive base (Guo, Rammal & Dowling, 2016).
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