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Chapter 7

GMS 520 Chapter Notes - Chapter 7: U.S. Route 3, Sensitivity Training, Extraversion And Introversion

Global Management Studies
Course Code
GMS 520
Glenn Asano

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GMS 520
Chapter 7 Part 2
Staffing, Training, and Compensation for Global Operations
- Strategy
- Organizational Structure
- Factors specific to subsidiary, e.g. duration of foreign ops, technology, production and
marketing techniques
- Host country factors, e.g. economic, technological development, political stability,
ownership and staffing laws, sociocultural setting
- Choice also often depends on availability of qualified managers in host country
- Ethnocentric = results in higher level of authority and decisionmaking to HQ rather than
in polycentric approach
- **ALL PHASES of IHRM should support desired strategy of firm
- Initial phase of setting up criteria for global selection = consider which overall staffing
approach/es most support strategic approach, transpartriates and inpatriates for global
- Also consider long term goals
- Flexible approach: consider if position can be suitably filled by HCN
- More rigor in process means lower failure rate
- Selection process – decision tree – next stage of selection depends on assessment of
critical factors re: job/candidate
- Simplest process = local because less training in culture/local biz practices but more
training in MNC process, tech, culture
- If no national person but needs lots of interaction with local, need screening and training
- Start operations by choosing from own managers. As more internationalization, move to
predominantly region/polycentric policy because:
oIncreasing pressure from govt to hire local/other legal issues
o$$$$ for expatriate staff, esp if have 2x taxes for parent company employee in
both coutnries
- Also: improvement in skills in most countries
- BUT: still concerned re strategic control over subsidiaries, need to develop managers
with global perspective
Expatriate selection
- Long standing practice of sleecting based on domestic track record and technical
expertise- MUST ALSO consider cross-cultural awareness and interpersonal skills
- Successful expats possess 3 major global mindset attributes
1. Intellectual Capital/knowedge/skills/understanding/cognitive complexity
2. Psychological capital- ability to f(x) well in host country by accepting different
cultures, desire to learn from new
3. Social capital- ability to build trusting relationships with local stakeholders
- Also if expat personal situation is okay
- Greatest predictive value of success: stress tolerance and extraversion
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