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Discussion response gerritt

Discussion response gerritt

Assignment, contribute original views build creatively on the views of others show intelligent critique of theory or practice add an international or cultural aspect to the class show originality in the application of theory clarify the theory being studied encourage the effective contribution of other members of the class

Deploying a management team into an EM is a process even more important than the product or service the MNC will provide into the EM. One thing I’ve noticed is that due to the scariest of employment in some developing countries you experienced more and more the phenomena of “who is prepare to go” or “I can earn a substantial bigger salary as an expatriate”.

Pelle (2007) the author highlights the importance to take into consideration factors like; diversity, culture, local empathy, technology and adaptability. The importance of the HR department in selecting the right team is also highlighted, what I did find is those who select the right candidates don’t know the EM or did not even been there before. One of the biggest faults MNC’s does make is to employ the “right” person from an office far away from the reality of such and EM using the current policies and procedures as compiled for a developing country environment. As Pelle (2007) indicates that those employees working form air conditioned office in glass cages will properly not be the right candidate, MNC must just guard that those same employees or executives make the decision regarding the employment of the expatriates being deployed in theses EM. Das (1993) is an excellent example of a CEO who knew the market and understand who is his consumers, who pays his salary, this emphasize the importance of those who will make the decision of who to use or deploy in an EM must know and understand the market also.

Expatriate or not?

“You cannot be all things to all people” (Das, 1993:43). Che Rose et.al (2010) describes the challenges of such a decision through the research of several authors and cites three different criteria; cross-cultural adjustments, premature return intention and job performance. The importance of the trait-like and state-like constructs is an indication how important the cultural and diversification of the specific EM will play in such a decision. It is advisable to employ and expatriate with a proven track record operating in EM and his or her knowledge of international operation and the MNC’s goals and vision, this person will be vital in bringing the gap between the interest of the shareholders and the diversity of the EM. Requirements of such an appointee are the cultural intelligence as cited by Pelle (2007) and Che Rosa (2010) refers to the ability to understand the multi-national diversity and cultures of the earmarked EM.

One of the first decision making factors will be is to determine what is the product or service you will implement or extract from the EM. In Pelle (2007) the resource requirements for the specific EM will be determined by the technology and managerial requirements of such project or service. If we look at Suzlon India the organization used local technical resources to start their wind mill operations, but as the development and the demand increase European technology and training was introduced to their local work force (Hang and Subramian, 2010). Majority of the MNC deploying into an EM will bring their own technical and senior managerial team into such an environment, it is important to make sure that the basic principles and procedures applying to minimum health and safety standards are ad hear to. One of the positions which can be sourced earlier and being introduced to the MNC’s principles and procedures is the local H/R and legal manager; I think it is important to have a well knowledge and experienced person from the EM who can advise and guide the MNC through their first introduction into the new market. Such an senior employee can be based at the MNC head office and go through the policies and procedures required and see how these can be adapted to the cultural and functions of knowledge, skills and abilities cited by Che Rosa et.al (2010) as important when deciding on employing local or international labour forces. That was the first thing I did in the DRC and it provide me with a knowledge base to make more informed strategic decisions.

Employing locals will always be a challenge; this decision can be a social development decision or a governmental requirement. These requirements must be remembered and be incorporated into the decision making process when deciding the employment of local or international individuals. In Eddy (2006) the importance of developing the local employees and enhancing their knowledge is important in building a more sustainable and better local business infrastructure. Eddy (2006) does mention that the organization they’ve interviewed installed local CEO’s, we need to go and examine the structure of these organizations that these CEO’s are not only the EM and the real decision makers are still the Executive team of the MNC based outside the developed country. As stated the importance for the MNC’s to train and educate the local work forces, doing so the MNC needs to remember that; culture, language, religion, social development, economic status and governmental requirements will impose huge challenges for such an MNC. Eddy (2006) highlights the benefits for MNC to overcome these challenges are to minimize the representativeness of expatriates which will save cost, improve corporate accountability and create a more committed recruit base. Through these strategies organizations can upgrade educational standards and facilities, clinics, infrastructure and by developing the employee create a positive culture towards the organization. Farrell and Mourshed (2013) explain one such an initiative study of “education to employment” where the McKinsey Global Institute interviewed several employers, employees and education institutes. Although 31% of the employees interviewed believe the organizations are doing a good job by providing jobs and education/training for the local market, there are signs that those who are well developed in the EM does leave to go and work in developing countries.

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