The shifting boundaries of global staffing: integrating global talent management,alternative forms of international assignments and non-employees into the discussion

Abstract

Global staffing has been a key theme in research in IHRM for a number of decades. Our review confirms that it continues to be an important contemporary area of research in IHRM. In the current paper, we review three key contemporary issues in global staffing research, namely, the emergence of global talent management and potentially a more strategic approach to global mobility, specifically changing patterns of global mobility, and the emergence of the non-employees as key alternatives in the global staffing literature. The paper also charts a future research agenda in each of these areas.     

Emerging issues and challenges in global staffing: a North American perspective

Multinational enterprises (MNEs) recognize that human resources play an important role in gaining a competitive advantage in today's highly competitive global business environment. While all aspects of managing human resources are important, staffing, continues to be an essential IHRM activity that helps MNEs in their need for coordination and control across widely dispersed units. As such, researchers and practitioners alike are interested in addressing the key issues and challenges in staffing the several types of employees that comprise the global or multinational workforce. We focus on three issues that have emerged in recent years regarding how MNEs staff their multinational workforce including: 1) managing different types of employee groups; 2) selection and management of employees posted to international assignments; and, 3) receptivity to international careers among early career individuals. We review these and then describe an empirical study conducted on the third issue.     

A model of multinational enterprise subsidiary staffing composition

A large proportion of the multinational enterprise (MNE) literature focuses on parent country national (PCN) expatriates. The high costs of managing and supporting PCNs on foreign assignments, however, have made these assignments less attractive for MNEs and, as a result, MNEs are more actively exploring ways to effectively utilize third country nationals (TCNs) and host country nationals (HCNs), as well as PCNs to satisfy international subsidiary staffing needs. Grounded in the person–environment (P–E) fit theory, we delineate three environmental dimensions (strategic, national and organizational) to offer some propositions that may serve to guide this exploration. These propositions are based on an integrative model that examines the MNE subsidiary staffing composition under different combinations of strategic, national and organizational dimensions. We conclude with suggestions for future research.     

Managing the HR dimension of international project operations

While much is known about the role of HRM in achieving positive outcomes in foreign subsidiary and international joint venture contexts, there has been a paucity of research into HRM issues in international project operations. In this paper, we develop an analytical framework to demonstrate the HR activities of each stage of the international project lifecycle, drawing upon supporting data from a study of Australian firms in international development projects. The discontinuous, complex and unique characteristics of international projects produce distinct IHRM challenges: for the supplying firm, particularly staff deployment and HR planning; and for project workers, in terms of career trajectory and job security.     

Higher education in flight: a new direction for international assignments research

This paper draws attention to the significant internationalisation of the higher education sector and role of international assignments in supporting and driving this. The paper then proceeds to identify the similarities and unique features of the sector in the context of international assignments which we argue, primarily revolve around alternative forms, namely international frequent flyers and short-term assignments. Finally, a model is proposed that may facilitate higher education institutes in more effective international assignment utilisation.     

A preliminary model of spouse influence on managerial global assignment willingness

Using family systems theory as a conceptual framework, this research study proposes and tests a preliminary model that explains spouse willingness to relocate internationally and manager willingness to assume a global assignment. Previous research from the global assignments, international job relocation and dual-career couples' literatures has found that spouse attitudes often influence the attitudes of expatriates. However, few research studies have been conducted to determine the factors that influence spouse attitudes toward both short- and long-term global relocation opportunities. The present study attempts to build understanding in this under-researched area of international human resource management. By understanding more about this important phenomenon, top decision-makers and international human resource professionals can better identify and select those candidates who have family situations that will predispose them to accept global assignments. Data from questionnaires completed by 427 global managers and 167 spouses were used to test hypotheses that examined the relationships between individual, family and organizational, factors and spouse criterion variables. An additional hypothesis was tested to measure spouse influence on manager global assignment willingness. The data in the study were analysed by conducting structural equation modelling. Theoretical, methodological and practical contributions from the present study are provided.     

Examining the overseas staffing options utilized by Australian headquartered multinational corporations

MNCs need to use a range of options to manage their international operations. The aim of this study was to enhance understanding of how MNCs staff international management positions using a sample of top Australian MNCs across a range of industries. The rationales executives gave for their MNCs' staffing of international management supported selecting managers with higher competency levels for complex overseas assignments. Staffing options were chosen to reduce risks from cultural friction, divergent goals, and asymmetry in knowledge between the parent company and the host operation, chiefly through staffing by parent country nationals (i.e. long-term expatriates, Australians or Westerners already living in the host country or abroad, domestic international managers). Host country managers were used to reduce risks that arose from not being responsive to the host environment and to avoid costs, and when they were least risky to the firm. By contrast, the staffing options also served practical purposes, including deploying expatriate managers to provide skills (competencies) and, less frequently, to develop managers for future management positions in the organization.     

Factors affecting international staffing in Chinese multinationals (MNEs)

While the existing models explain factors determining approaches to international staffing of multinational enterprises (MNEs) from developed countries, there is little known about MNEs of developing and transforming economies. This qualitative empirical research explores the factors determining international staffing in Chinese MNEs and argues that Western models are generally applicable to the Chinese context. However, the same categories of determining factors have sometimes different underlying meanings or varied contents. Contrary to the prevailing literature, this study shows international experience is a catalytic agent of change rather than a determinate of international staffing approach. Moreover, some factors that have not been much considered in the literature have been evidenced to be important factors affecting international staffing particularly in Chinese MNEs. Further study directions and implications for practitioners are also discussed.     

International work in domestic jobs: an individual explanation

Australian firms are attempting to internationalize and to become global companies. One way of staffing the forays into international business is by incorporating international work into domestic jobs. This study sought to understand the factors related to the amount of international work Australians perform in their domestic jobs. Alumni from an Australian university were surveyed, providing 1,046 full-time domestic employees working in a range of industries. Regression analysis showed that, beyond individual and organizational controls, employees performed more international work in domestic jobs when they worked in organizations at higher than at lower international levels with human resource support, worked in jobs at higher rather than at lower managerial levels and had international skills. However, there was no or little link with employees' international attitudes or family situation. As predicted, the managerial level of the job made a difference to the effects of the work environment. Working in MNCs and domestic organizations with operations abroad was related to the amount of international work in domestic jobs performed by senior managers and executives more than by lower and middle managers or subordinates and supervisors. Analysis of open-ended responses shows the major reasons Australians take up domestic international work are money, professional development and challenging content. The major reasons they would not are family commitments and disruption, in contrast to the quantitative results in which family factors are unimportant. The difference between the quantitative and qualitative results and the importance of family factors, international skills versus attitudes and human resource support are discussed.     

The implications of turning down an international assignment: a psychological contracts perspective

Previous research has generally focused on employees’ willingness to accept international assignments and the rewards that are often associated with them. Little is known, however, about the potential career consequences of declining an international assignment. In this conceptual paper, psychological contract (PC) theory is used to develop propositions outlining factors that are likely to determine whether employees who turn down an international assignment will be viewed as having failed to live up to their obligations, by both the organization and themselves. Our theoretical model suggests that when the PC is breached due to the refusal of an international assignment, it may lead to reduced investments in the employee and, in turn, lower levels of objective and subjective career success for those who have spurned the offer to work abroad. We also address how the consequences of declining international assignments will affect perceptions of choice and international assignment refusal rates within organizations. We close by discussing directions for future research that can further examine the ideas and propositions developed in this paper.     

MNC's competitive strategies,experiences, and staffing policies for foreign affiliates

This study investigates the relationship between the strategic role of a multinational corporation's (MNC) foreign affiliates and its international staffing policy. Specifically, this study examines how an MNC's decision on expatriation is affected by strategic roles assigned to foreign affiliates: global integration of activities versus local market seeking. An empirical study is conducted using a sample of 808 foreign affiliates of Japanese firms. The research findings suggest that strategic roles of foreign affiliates alone may not adequately explain the international staffing policies of Japanese MNCs. Rather, we found a significant moderating effect of international as well as host country experience on staffing practices for foreign affiliates. While the staffing policies of MNCs striving for improving global efficiency of their operation are moderated by both international and host country experience, those seeking a specific local market position are influenced only by host country experience.     

The effect of international staffing practices on subsidiary staff retention in multinational corporations

This paper contributes to the scarce body of research on employee turnover in multinational corporations' foreign subsidiaries and addresses some key issues related to dealing with turnover of local staff. Based on a literature review, I conceptualize locals' perceived career prospects and their organizational identification as key variables mediating the relationship between international staffing practices and local staff turnover. In a second step, the paper develops instruments that help international firms to retain their subsidiary staff. Specifically, I focus on how international staffing practices need to be configured to ensure employee retention and I derive moderating factors. My arguments are integrated into a framework for the effect of international staffing practices on subsidiary staff retention in multinational corporations.     

Protecting expatriates in hostile environments: institutional forces influencing the safety and security practices of internationally active organisations

Abstract

The operations of internationally active organisations continue to encroach on hostile locations that are vulnerable to the negative consequences of crises such as political upheaval, terrorist attacks or natural disasters. Yet research into how firms ensure the physical and psychological safety and security of international staff in these locations is limited. This article reports an empirical study exploring the expatriate safety and security practices of 28 internationally active organisations from three industries that commonly operate in hostile environments. We unveil starkly different approaches across the three industries, and label these approaches ‘regulatory’ (mining and resources), ‘informal mentoring’ (news media) and ‘empowering’ (international aid and development). We use institutional theory to propose that these configurations reflect legitimacy-seeking choices that these organisations make in response to the various institutional environments that affect each sector. Our results provide a platform for initial theory building into the interrelated elements of organisations’ safety and security practices, and the institutional factors that shape the design of these.     

Designing and implementing global staffing systems: Part I—Leaders in global staffing

The creation of global HR systems remains a real challenge. This article provides an indepth look at six organizations—Agilent Technologies, Dow Chemical Company, IBM, Motorola, Procter and Gamble, and Shell Oil—that have instituted globally standardized staffing tools and systems. The systems they have created and the challenges they have faced are described. © 2003 Wiley Periodicals, Inc.     

The intercultural communication motivation scale: An instrument to assess motivational training needs of candidates for international assignments

The Intercultural Communication Motivation Scale (ICMS) is a tool to assess the intercultural communication motivation of candidates for international assignments. The ICMS performed well in four studies conducted with undergraduate students in New Zealand, the United States, the United Arab Emirates, and Germany. Generally showing a stable fi ve‐factor structure, high test‐retest correlations, very high Cronbach's alphas, and almost no social desirability bias in self and peer evaluations, the ICMS is sensitive enough to detect test‐retest differences. Thus, socially responsible strategic international HR programs can use this scale to reliably evaluate employees and their families for specifi c international locations. © 2009 Wiley Periodicals, Inc.     

RPMInter-work: a multi-agent approach for planning the task-role assignments in inter-organisational workflow

ABSTRACT

Workflow management is a core component of modern Enterprise Information Systems (EISs) infrastructure that automates the execution of critical business processes. One of the particular interests of the security community is how to ensure the completion of the workflow execution in the presence of authorisation constraints. These constraints present some restrictions on the users or the roles that are authorised to execute the workflow tasks. The goal is to enforce the legal assignments of access privileges to the executors of the workflow tasks. Despite the variety of approaches proposed in this context, an approach dedicated to the inter-organisational workflows is still missing. In this paper, we take a step towards this goal by proposing a multi-agent-based model, named RPMInter-Work (task-Role assignment Planning Model for Inter-organisational Workflow). Our approach aims to perform the planning of the task-role assignments in inter-organisational workflow in presence of authorisation constraints that are related to task-role assignments. In our research work, this planning problem is formulated as a DisCSP (Distributed Constraint Satisfaction Problem). Our proposed contribution is based on the requirements of inter-organisational workflows, in particular, the autonomy of the participating organisations and the respect of their privacy. A prototype of RPMInter-Work is implemented using JADE (Java Agent DEvelopment) platform and some evaluation results of this prototype are exposed in this paper.     

Repatriation: what do we know and where do we go from here

Abstract

The unparalleled growth in multinational corporations in recent decades has witnessed a commensurate rise in the deployment of expatriates to foreign subsidiaries and their subsequent repatriation. However, despite considerable progress in our understanding of the expatriation phase of international assignments, the literature on repatriation remains fragmented and incomplete. Plagued with problematic re-adjustments, high turnover rates, and a range of other obstacles, there is an urgent need for an improved understanding of repatriation. This study systematically reviews the repatriation literature over the previous four decades, identifies its major themes, gaps and limitations, and provides a framework that consolidates the literature and prompts future work in several important new directions.     

Human resources and sustained competitive advantage: a resource-based perspective

This paper integrates the theories and findings of micro-level organizational behaviour/human resource management research with the macrolevel resource-based view of the firm, specifically presenting a firm's human resources as an important potential source of sustained competitive advantage. Unlike practice-oriented discussions that assume the role of human resources as a source of sustained competitive advantage, we use the theoretical concepts from the resource-based view of the firm (Wernerfelt, 1984; Barney, 1991) to discuss how human resources meet the criteria for sustained competitive advantage in that they are valuable, rare, inimitable and non-substitutable. The implications for developing human resources as a source of sustained competitive advantage are discussed, particularly examining the role of HR practices and managers in this process.     

International human resource management: a North American perspective,a thematic update and suggestions for future research

This research explores the direct influence of pay referents and procedural justice on pay satisfaction, job satisfaction and organization satisfaction, and the mediating role of these three aspects of satisfaction between forms of justice and unionization propensity. To test the importance and directions of these relations, we used a LISREL-type structural equation model. The findings showed that the three equity referents of organizational justice (internal, external and individual) are linked to pay satisfaction, and that distributive justice is a better predictor of pay satisfaction than procedural justice perceptions. In contrast, procedural justice is a better predictor of organizational satisfaction and job satisfaction than are distributive justice perceptions. The final model suggests that job satisfaction and organization satisfaction significantly influence propensity to join a union compared with organizational justice perceptions. The paper also specifies the limitations of the study and its practical implications, and makes suggestions for future research.     

Subsidiary staffing,cultural friction,and subsidiary performance: Evidence from Korean subsidiaries in 63 countries

Drawing from the notion of cultural friction and based on the agency theory rationalization of multinational enterprise (MNE) headquarter–subsidiary relationship, we examine the impact of cultural friction in foreign subsidiaries on subsidiary performance. We argue that cultural friction, arising due to a high presence of parent country nationals (PCNs) in culturally distant locations, has a detrimental effect on subsidiary performance. This effect is the strongest when the cultural friction is at the top management team (TMT) level and the weakest when friction is at the regular employee level. However, this relationship is contingent on factors that work as drags or lubricants for cultural friction between PCNs and host country nationals (HCNs). We identify governance mode and language differences between home and host countries as drag parameters and host country experience and subsidiary interdependence as lubricants that condition the effect of cultural friction on subsidiary performance. Empirical findings based on a longitudinal sample of 7,495 foreign subsidiary observations of 467 Korean MNEs in 63 countries during 1990–2014 provide robust support for our theoretical predictions.