1
Q
Why are there so many expats in Dubai?
A
- good sense of knowledge, well-rounded
- Emirates don’t want to get into the construction field, they are comfortable where they are hence they hire expats to do their job
2
Q
Ethnocentric Approach (ethnicity)
A
- staffing subsidiary from the headquarters of the parent company
- for example foreign embassies will have a Canadian staff
3
Q
Advantages of the ethnocentric approach
A
- need to maintain good communication, coordination and control with HQ
- firms that are in the earlier stages of internationalization can avoid risks in the environment
4
Q
Disadvantages of the ethnocentric approach
A
- opportunities are limited for HCNs which reduces productivity and increases turnover
- expatriate managers adapting to the host country will take time and PCNs make poor decisions
- income gap between PCNs and HCNs
- expatriates overseas will experience a high cost of living
5
Q
Polycentric approach (locals)
A
staffing subsidiary with locals (host country nationals)
6
Q
Advantages of the polycentric approach
A
- eliminates language barriers
- avoids issues with expatriate managers and their families
- removes expenses for cultural training programs
- less expensive even if premium is paid to hire high quality candidates
7
Q
Disadvantages of the polycentric approach
A
- range of cultural differences such as personal values and attitudes
- limited opportunities to gain experience outside their own country making it difficult to earn senior positions
8
Q
Regiocentric approach (region)
A
- staffing subsidiary from the region (Schengen)
- Europe is the continent
- EU is the arrangement of certain countries in Europe
- Schengen is a subset within Europe which includes 26 countries who have freedom of movement (passport stamped in Portugal means you won’t need it stamped again in countries like Spain, Germany, France)
- Eurozone is the currency adoption
9
Q
Advantages of the regiocentric approach
A
- maintains interactions between managers transferred to regional HQ
- demonstrates common sense within the environment
10
Q
Disadvantages of the regiocentric approach
A
- produces federalism in a region and constrains MNEs to develop a global perspective
- regional barriers so MNEs cannot advance to the next position
11
Q
Geocentric approach (globally)
A
staffing the subsidiary with anyone around the world
12
Q
Advantages of the geocentric approach
A
- enables MNEs to develop an international executive team to develop a global perspective
- overcomes the federation of the polycentric approach
- supports cooperation and resource sharing across units
13
Q
Disadvantages of the geocentric approach
A
- utilizes immigration controls to have a higher number of citizens employed and if not applicable, they will need training
- MNEs need to offer extensive documentation if they wish to hire a foreign national, this can be time-consuming
- it can be expensive due to the relocation and training involved
14
Q
Advantages of PCNs
A
- organizational control and coordination are maintained
- managers promise to give international experience and skills
- subsidiary complies with MNEs objectives
15
Q
Disadvantages of PCNs
A
- promotional opportunities of HCNs are limited
- takes time to adapt
- compensation differs in PCNs and HCNs
16
Q
Advantages of TCNs
A
- salary and benefit requirements are lower than PCNs
- more informed about the host country environment
17
Q
Disadvantages of TCNs
A
- need to consider national oppositions (India/Pakistan)
- the host government may resent in hiring TCNs
- TCNs might not want to return home
18
Q
Advantages of HCNs
A
- language and other barriers are eliminated
- no work permit is required
- lower costs
- continuity of management improves
19
Q
Disadvantages of HCNs
A
- limited career opportunities
- control and coordination of HQ may be delayed
- hiring HCNs gives limitations to PCNs and foreign experience
- may encourage federation of nationals than global units
20
Q
Determinants of staffing choices - context specificities
A
MNEs tend to staff culturally distant subsidiaries with PCNs which has a positive effect on labour productivity. For ex: education system directly related to staff availability
21
Q
Firm specific variables
A
relevant variables are MNE structure and strategy, international experience, corporate governance and organizational culture
22
Q
IHRM practices
A
selection, training and compensation
23
Q
What are the roles of expats?
A
- maintain direct control over subsidiaries
- control subsidiary’s activities by sending expats
- instill corporate values in subsidiaries
- develop interpersonal connections
- gather information for HQ
- expats being able to speak the foreign language and have local knowledge
- sharing ideas with home and host country
24
Q
Why do we need non-expats despite technology
A
- build relationships with others
- cultures cannot be interpreted online, you need the face to face interactions
- Edward Halls’ framework about implicit and explicit communication, understanding body language and building trust before conducting business
25
Challenges for non-expats
- home and family life
-work intensification
- travel arrangements
- health concerns
- lack of cross cultural training
26
Why are there international assignments?
- filling in a managerial or technical gap due to a lack of skills in certain areas of the organization
- staff cannot move into other parts of the organization, additional training will be required
- organization development: control, transfer of knowledge, procedures and practices
27
Short term assignments
- several days to 3 months
- involves trouble shooting, supervision, oversight
28
Extended assignments
- up to one year, similar activities to short term assignments
29
Long term assignments
- 1-5 years, traditional expatrations
30
Commuter assignments
- expats who fly in and fly out of neighbouring countries
- done on a weekly or biweekly basis to solve problems regarding the assigned employee
31
Rotational assignments
- includes both job rotation and overseas assignment so that employees can pick up new skills and one day can become a regional manager
-commonly used in hardship locations like the mining industry
32
Contractual assignments
- expats on a contract for 6 months to a year
- conducting research and development
33
Virtual assignments (not real expats)
- using technology to do their work
- can cause issues in effective communication, how much work should be done and cultural misunderstandings
34
Self-initiated assignments
- an individual conducts work on their own and not tracked by management
35
What is the role of inpatriates
- responsible for sharing local knowledge to HQ and conduct corporate activities in the local market
- socialize and learn from specific routines and behaviours that can enable future management tasks
Exam Prep
flashcards
Decks in class (7)
# Cards
