Posted at 10.05.2018
Multinational firms today have regarded the critical role that recruiting play in global competitiveness. Specifically, a developed pool of global leaders is vital for operating successfully outside of the home market.
Many multinational companies (MNCs) use expatriate assignments as a command development tool. These MNCs often send their professionals and professionals internationally so that they can develop their understanding of the international financial environment and their capacity to work and
Manage effectively across countrywide edges (Tung, 1998).
Repatriates, who've completed a worldwide task, can help set up and increase an MNC's international business because they have got first-hand knowledge of particular cultural contexts, including information about specific market segments and customers. Repatriates know how the company is perceived in another country and are part of a worldwide sociable network that can progress the company's business around.
1. 2). Motive for sending managers in another country as expatriates
The three Swedish companies uses ethnocentric approach to their international hospitality procedures are adopting a home country orientation. Home country os's and
Procedures are create in their international subsidiaries (web host country).
The first company uses the ethnocentric methodology because they are targeting a local marker strategy which is applicable the coordinator country and we can say this is why that they are using the ethnocentric method.
On the other hand their major motive is transfer of skills. The knowledge of SCA and how it operates is important to those are sent in foreign countries.
While Handeisbanken's major motive of sending professionals overseas as expatriates is to aid the establishment of the corporate culture and acquiring international experience managers can often hope to reach higher positions within the lender upon return. Also the main reason for mailing managers in foreign countries as expatriates in from the development of the Handeisbanken.
And that is why Handeisbanken is using the ethnocentric solution to send their managers abroad.
Finally Electrolux is enlarging and motivating the freedom among it's personnel and success of sponsor country nation will be the two major motives for sending managers overseas as expatriates and using the ethnocentric method.
According to Collings et al. (2007) there is more than one reason behind this, it can be related to three basic reasons
There is not any appropriate HCN available
Developing managers through international experience
And growing organizations
Furthermore Dowling and Welch (2004) present five role of expatriates:
Agent of direct control
Agent of socialization
Boundary spanner and terminology node
The Colligs et al (2007)'s their theory is recent and well established previous research. learning about the planned role of research will futher investigate MNC's purpose.
The ethnocentric procedure has a great deal of negatives.
Lack of promotional opportunities of host country nations which might reduce the production and higher labour turnover
It takes a lot of time to understand the local dynamics which might result incorrect decisions.
It is very costly to employee a an expatriates in international location
The purpose for sending director as expatriate depends upon the company center policies which is different from one other. Some directed as control mechanism while some send international experience.
Although expatriation is one of the "more informal and refined" mechanisms of coordination being used progressively by MNCs (1991).
The process in addition has been defined in terms which reflect a knowledge of
difference and local sensitivities.
2. 0. Literature review
According to the Business
International Report (1991) (Producing Effective Global Managers for the
1990s), cited by Harris & Brewster (1999), the study reveals that most MNCs'
international assignees are suggested by their immediate supervisor an.
2. 1. The procedure of expatriate selection in MNCs
No matter how many specific phases the process is divided into the
process of managing and encouraging expatriates on international assignments
can be divided into three broader stages; before the task, during the
assignment and following the assignment. The stage before the assignment
would usually contain identification, selection, training and development, and
compensation. The argument for putting reimbursement in the stage before
the project is that it is typically agreed upon prior to the expatriate go on
the assignment. During the assignment stages such as adjustment,
2. 2. Comparing the situation companies
in SCA the process of selecting expatriates will not too much change from the procedure of normal selection worker, although they will not clearly described but SCA consider has some requirements depending on specific situation.
Although SCA doesn't have pool of possible candidate exist because when a need for an expatriate arise they didn't openly advertise and there is some examination of IQ competences of expatriate applicants.
At Handelsbanken vacancies are openly advertised internally they differ from SCA in aspect of family engagement which plays a significant role in the success of the expatriates.
Moreover Electrolux they are really giving chance for the younger people as expatriates, often identified as high potential. But they have a whole lot of weakness in their selection process like there is absolutely no specific training for many who appoint the expatriates even they does not determine expatriates candidates IQ competence,
Typology of international managers selection has been marketed by Hariss and Brewester (1999) where they detailed a four different ways of how MNC select their expatriates. It appoints the actual fact that the process can be either formal and casual and it can be conducted wide open and close manner these processes are being described by the next characteristics :
Degree of training for selectors
Degree of identified measures
Degree of identified criteria
Degree of advertising vacancies
Degree of -panel discussion
View of nomination
According to Harvey and Novicevic (2004) have described and eight steps process they claim that a manageable significant steps is needed to be able to get information associated with the components of selection.
This assumption accounts for the fact that a lot of studies of selection criteria for
expatriates realize that current competence is the main focus. You can find substantial
evidence in the literature that technological competence sometimes appears as an essential factor by
According to question the typology produced by Hariss and Brewester (1999) is very important because it is targeted about how expatriate selection is in fact done in MNCs.
3. 0. The requirements of expatriate selection in MNCs
3. 1. The relevant theories
Expatriate selection is somewhat more difficult than selecting employees for a domestic position. Unfortunately, this is not realised by companies involved with international staff selection. Typically, companies look at the technical competence of the average person and that is all. Human relations skills, understanding of sponsor country culture, ability to conform and language skills are dismissed or cared for as relatively small issues. Yet, research suggests that the most crucial items that make for success within an expatriate assignment are human relations skills, an understanding of sponsor country culture and an capability to conform (Robinson 1979). Technical competence is way down on the set of required qualities. Corresponding for some expert thoughts and opinions "failure of projects. . . in up to 80% of cases is due to personal adjustment rather than lack of technical skills" (Holmes and Piker 1980).
3. 2. To compare the three companies
In SCA they believe that technical capacity, cross-cultural suitability and family requirements are a few of the most crucial factors to consider when selecting expatriates, also they consider the existing job performance when selecting expatriates.
Meanwhile Handelsbanken the category of expatriate candidates are not considered a particular criterion. They believe having family shouldn't be a downside or advantage when choosing among expatriate which we can see they are not see a significant factor them.
Electrolux also put emphasis on the current job performance as both above but they did not see more significant the host-country's dialect which is the most important to them because of their market communication.
The capability to adopt
What is seen as the traditional MNC view of expatriation.
Lannier (1979) discovered as typical the view a good manager in a single country
will be a good manager in every countries. The idea has been made frequently but I don't think this assumption is suitable for today's world, because the of ethnical difference and environmental factors effect.
Expatriates professionals must have the ability to adopt to change. They also need to find out a something about the sponsor country's culture.
Organizations examine lots of characteristics to find out whether an individual is sufficiently flexible.
The need for the language
This assumption accounts for the fact that a lot of studies of selection requirements for
expatriates realize that current competence is the main focus. There exists substantial
evidence in the books that technological competence sometimes appears as a crucial factor by
Cross social suitability
From previous experience, hard to accept the new environment and difficult to use effectively are main problems for some expatriates (Brewster and Harries, 1999).
Pre-departure training, like words and very sensitive training is very important for enhancing expatriates' culture awareness and cross-culture suitability (Dowling et al. , 1999).
However, lots multinationals' cross-culture training is insufficient. Some are insufficient, some are incomplete ( Brewster, 1995; Waxin et al. , 1997, Selmer, 2000). Why these exact things happen? Because it is rather hard to judge the effectiveness of such training (Marie-France Waxin et al)
Teaching expatriate employees in one culture to organize with people of another culture is the purpose of cross-culture training (Brislin and Peterson, 1986; Mendenhall and Oddou, 1991)
Cross-cultural personality evaluation is usually combined with behavioral interviews to form an entire picture of specific competencies, weaknesses and talents. Applicants should keep these desirable characteristics in mind when undergoing assessment.
In the circumstances of the three companies every company put an focus on their core beliefs like SCA puts there focus on cross-cultural suitability, complex capability and family requirements while Handelsbanken sets there most emphasis on technical potential. This shows as that there standards of expatriate selection depends on what's important to every company or what there centering to achaive.
4. 0. Recommendation and conclusion
The solution to make an application for selecting expatriates is determined by the company's center values or what is the main compared to that company. Example if the company priority is to hire parent nations staff or when there may be luck of certified candidates for host nations worker or want to ensure that the business culture and worth to be uniformed it is better to put into action the ethnocentric approach although it is difficult to implement. This approach pays to if local market strategies can be applied in overseas countries or if the company is concentrating on home country customers
While polycentric strategy is suitable if host country marketing strategies are focusing on coordinator countries customer. Which is when company using host country countries in the subsidiary of MNC operating for the reason that country and its basic premise is that parent or guardian country nationals is only going to carry positions in the organization headquarters.