Multinational Corporations' Staffing Approaches In China

1873 words - 7 pages

The significant improvement in communication technologies marked the arrival of the newmillennium. It is one of the most important innovations which shrunk the geographical distances between nations and redefined the physical boundaries of trade. According to Tye and Chen (2005), to cope with the changes of business environment, companies need to maintain their competitive advantage by operating on a global level. Globalization is no longer simply a trend but the norm in the world economy nowadays. To take advantage of the new global economy, companies are branching out around the world with offices and divisions in one or more countries. The growing economic interdependence of countries has proved to be beneficial as movement of labor force between nations resulted from such increasing global trade has expanded our geographical reach.
With the rise of the global economy, managing a global workforce becomes the greatest challenge to human resource management. International Human Resource Management (IHRM) is becoming increasingly important and needs to be integrated in a company’s strategy. IHRM is about the management of human resources around the globe (Adler and Ghadar, 1990). Nowadays, companies can benefit from the access to a greater labour pool. Meanwhile, MNCs need to be aware of the local culture of the subsidiary employees. As the overall employment of the whole company is becoming more culturally diversified, formulating HR policies and practices proved to be a challenge for a lot of companies due to the different cultural contexts.
Companies can incorporated one of the three approaches into their international strategy, which influences the way they manage and staff their subsidiaries (Francesco and Gold, 1998; Treven, 2000):1. EthnocentricWith this approach, key decisions are made at the headquarters in the home country and the management practices from the home country are transferred to the subsidiaries. To ensure consistency of these practices, managers from the home country occupy important positions in the subsidiaries.
2. PolycentricEach subsidiary manages on a local basis with a local manager at the head. Local managers have more knowledge about the local circumstances than a manager from another country would have and are familiar with the local business ethics. The local management develops its own management practices that are appropriate for their subsidiary.
3. Geocentric or globalThis is a globally integrated approach. MNCs will try to combine the best of headquarter and local practices in order to come up with HR-practices that can be implemented globally. With this approach, selection of employees is based on competency rather than nationality.
The type of management approach will influence the recruitment and selection procedures of a company. If a company uses an ethnocentric approach, the top positions at the headquarters and subsidiaries will be reserved for home country nationals, citizens of the country...

Find Another Essay On Multinational Corporations' Staffing Approaches in China

Comparison in ELL Teaching Methods in Canada and China: Identifying Effective Teaching Approaches in ESL Instructions for Chinese Speaking ELL Student

1599 words - 7 pages The purpose of the study is to compare divergent teaching methods in Canada and China, and to identify which teaching approaches are effective to Chinese ELL students. The research contains pre- and post-tests, and one open-ended survey for 20 Chinese ELL students at one university in Canada. English as a communication tool holds prominent position in Chinese curriculum (Liu, 2012). Learning English as a Second Language (ESL) has seen its boost

Staff Selection for a Multinational Enterprise

2904 words - 12 pages markets and foreign direct investment (FDI) have amplified penetratingly in the precedent decades. Escalating internationalization has had a remarkable influence on the competitive spot of numerous countries. 1.1.2 Role of (MNE) in staffing approaches. Operating internationally, a Multinational Enterprise (MNE) has many vital decisions to make, how to, best structure the organisation in order to manage business effectively. “According to (Schuler et

Title

1165 words - 5 pages culture, ethical issues, and fair trade issues. And the advent of the Multinational Corporation will be largely explained. Finally, as example, the difference between the managerial styles of USA and Japan will be considered and the managerial styles of China will be described. Keywords: Management, Globalization, Trade With the expansion of the market in the world, the rise of production, and the number of customers, the management

strategies

2335 words - 10 pages its franchisee (Deresky 2011). 4) Off-Shoring: International trade is increasing as the time goes on. Off-Shoring has become one of the most popular methods to enter new foreign market. Many multinational corporations have adapted the strategy of off-shoring. Off-shoring is a type of out sourcing. Main reason for off-shoring is the low cost. Many organization of U.S.A have developed factories in china and produce their products in china because

Are Developing Countries"Winners" or "Losers" of Globalization?

2352 words - 9 pages . Multinational corporations play a huge role in globalization by opening its factories abroad, usually in developing countries, such as, China, India, Vietnam and Bangladesh, in order to find a cheap labor force, escape from taxes and environmental regulations. Multinational corporations promise countries economic development and prosperity, but in reality they put workers under terrible conditions by creating sweatshops and using child labor. Despite

Critical review of Jagersma and van Gorp(2003)"Still searching for the pot of gold: doing business in today's China" in Harvard Business Review

1466 words - 6 pages , multinationalcorporations begin to pay great attention to Chinese market for being a profitable investor whilst Chinese government adopts to encourage their entering.Pieter K. Jagersma and Desiree M. van Gorp studied on western multinational corporations entering China market, which the title of the their review is "Still searching for the pot of gold: doing business in today's China". The purpose of the article is to provide current situations of

Major Alternative Staffing Approaches for international operations

817 words - 3 pages of the parent company. They are in a much better position to report to the company, especially where there is an inadequacy of managerial skills at the local level. It is the preferred method with a centralized approach to globalization.b) polycentric staffing approach- HCNs, or host country nationals are hired to fill key positions. This is more effective in a multinational approach when a company wants to act "local." People in and outside the

Managing Corporate Culture Through Globalization

1209 words - 5 pages techniques in order to produce a product or service to take to the market. These approaches to international business are only a portion of the equation of the multinational corporations. All organizations were founded by entrepreneurs and the vision, beliefs, and principles of the organization are reflections of that individual. As growth follows, the organizational culture takes on the values of a small group of partners or close associates whose

Compare and contrast Hofstede's cultural dimensions of Australia and one other country

2251 words - 9 pages For any international organization, it is of enormous significance to understand cultural differences and make good use of them in the global context. National culture may be thought of as the values, beliefs, perceptual orientations, and norms typical of the members of a particular society (Trompenaars, 1997). Management techniques inconsistent with national culture can lead to conflict between multinational corporations (MNCs) and its

Human resource management in China

3502 words - 14 pages Human Resource Management has been considered as the important part of management in enterprise in the modern society because it influences on the whole member of company. Consequently, it is likely to value to look about Human Resource Management.This essay is written about Human Resource Management in the People¡¯s Republic of China and South Korea, and it will focus on recruitment and staffing, training and development and

The Responsability of a Corporation to Provide for the Host Country

2212 words - 9 pages which violated many rights, all that could have been avoided if the social responsibilities that Texaco had were examined in depth with positive obligations. Abiding by the local government laws is not enough. Multinational corporations need to take on greater social responsibility approaches to act rationally. Other shareholders believe that if they abide by the local laws and cause no harm to society that they are not doing anything wrong. If

Similar Essays

Multinational Corporations In China And Local Human Capital Development

2215 words - 9 pages relationship and discuss the extent to which the Chinese parties in this relationship have actually accrued the benefits that they expect to receive. In particular, a large part of the expected benefit is to come from the transfer of best management practices by the foreign multinational corporations to Chinese firms, thereby developing the human capital of China. I will look to the recruiting practices of MNC’s in China to assess this level of benefit

Multinational Corporations In China: Case Study

1056 words - 4 pages McDonalds, the leading fast food industry nowadays, is a Trans National Cooperation. Due to the lower production costs and potential market, McDonalds has been expanding its production and selling line in China. It is seen to see it bring forth a positive consequence to China. Economically. The existence of McDonalds on China's soil increases the employment rate (though the Central Government keeps claming that the unemployment rate is 0

Obligations Of Multinational Corporations When Operating In Third World Countries

1009 words - 4 pages Moral challenges for business in the United States are difficult enough when you consider the balancing profit interests against the needs of consumers, employees, governments and special interest groups. Multinational corporations mainly refer to large corporations based in Western Europe, North America, and Japan who operate manufacturing and other business facilities in underdeveloped countries.These large global companies exert enormous

Knowledge Flow Transfers In Multinational Corporations By Ordóñez De Pablos

1143 words - 5 pages Ordóñez de Pablos, P. (2004). Knowledge flow transfers in multinational corporations. Knowledge properties and implications for management, 8(6), 105-116. doi: 10.1108/13673270410567666 In this article Ordóñez de Pablos aims to analyse “knowledge flows transfer within multinational corporations, with particular emphasis in replicating headquarters’ human resource management systems in subsidiaries to a certain extent” (p.105) Data is drawn from