international human resources can make or break an international organization. This chapter is about recruiting, training, retraining, selecting, compensating, international managers who will represent the company. Some company have competitive advantage in human resources, they are able to attract and retain the best managers. No strategy, vision or plan will be successful with out the right managers to develop and implement the plan. The challenges facing international human resources managers includes enchasing the firms global business strategy with the right managers, aligning human resources issues with business strategy, it also includes building a global corporate culture, designing and leading change as well as staffing the company with competent global leaders. Strategic international human resources is vital for success in the global arena.

There are different approaches to success in the global war for talented international managers. The first approach is the ethnocentric staffing approach, this approach involves using parent country nationals, PCN, for all international management positions. The managers are from the headquarters of the parent company. The advantages includes the fact that these managers are very loyal to the company, they are very familiar with the corporate culture of the company, the personal and executives at the head quarters, They also do not require much training about the company, its products, goals, technology, mission, policies and procedures. They can communicate easily with HQ. They do not require language training.in dealing with HQ. Most companies use this approach when the product is at the introduction or growth stage of the international product life cycle. They are better at maintaining control as CEO, or some other top management position in a foreign subsidiary. The disadvantages of this approach is the lack of opportunities, growth and development for the local managers. This can lead to low morale, resentment and corporate disunity in the foreign location. Other disadvantages includes lack of understanding of the language and culture of the host nation as well as the market. These managers have a hard time adapting to the new environment and the failure rate can be high. This approach can also be expensive. The second approach is the polycentric staffing approach, it involves using host country nationals, HCNs. This approach can be very effective when implementing a multinational or multidomestic strategy. These local managers understand the language, culture, the market, people and ways of doing business and getting things done quicker in the country. They understand the economy and can penetrate the market with ease. They are accepted in and outside the company and can give the company a good image as a company committed to the growth and well being of the country. These managers are also less expensive. The disadvantage of this approach is that, they lack the corporate culture, good communication with HQ. They require training by HQ from time to time to improve communication with HQ. They have difficulty ordinating with HQ, there are trust and loyalty issues, trust with intellectual properties of the company. By using this approach, HQ deprives itself of the opportunity of gaining overseas experience.

The next staffing approach is the geocentric or global staffing approach. This approach involves recruiting the best managers, from third countries. TCN. They are well qualified and can be very loyal. This approach enables the company to establish greater pool of qualified and willing international managers to choose from and develop further if and when needed. They already understand the host and parent country cultures, they are more flexible and can adapt to a situation easily. They are bilingual or multilingual and are a better acceptable compromise between host or parent country managers. They are also less expensive and can become TRANSPATRIATE, that can be assigned from one country to another. even on shot notice. The next approach is the region centric approach. This approach involves recruiting on a regional basis, e.g. within the Caribbean region, south America etc. This approach can have a mix of HCNs, PCNs, and TCNs. This approach can lead to INPATRIATES, International managers with global experience that are transferred to HQ to provide strategic goals and communication and establish global multicultural teams. These global talents can be an important assets to a multinational corporation.

For the advantages and disadvantages of these approaches, see Exhibit 9-3, page292. For the factors that can influence choice of staffing approach or policy, see Exhibit 9-4, page 293.

Expatriates needs intellectual capital, psychological capital and social capital mind set attributes to succeed as expatriates .Expatriate failure rates can be very high, over 50%.Most expatriates fail because of HQ selection criteria instead of assignment needs, also because of inadequate preparation, training and orientation as well as lack of support from HQ. Expatriates also fail because of their inability to adapt to local, or host culture and working environment, problem with spouse and children or lack of personal orientation and cultural shock. Expatriates needs cross-cultural training that enable them to relate to other peoples culture. When it comes to expatriate compensation, PCNs are paid according to the prevailing salary structure in the HQ plus numerous benefits, see exhibit 9-10.page 305.

HCNs are paid higher wage compared to prevailing management wage in the host country. TCNs and region centric compensation approach involves developing a compensation package different from the host or parent country.

Questions:

1 Why is the expatriate turnover and failure rate so high?

2 What is needed to be a successful expatriate.

3 Would you like to be an expatriate? yes or no, why

4 Which country or countries, or region would you like to work and live as an expatriate? Why?.