Global Talent Management and Staffing in MNEs: Volume 32

The International Human Resource Management literature has paid less attention to the selection of expatriates and the decision-making criteria with regard to such selection, than to issues relating to expatriates’ role, performance, adjustment, success, and failure. Yet, before expatriates commence their assignments, they need to be selected. The purpose of this book chapter is to provide an overview of issues related specifically to expatriate selection. In particular, the chapter traces the chronological development of selection over the last five decades or so, from prior to 1970 until present. The chapter subsequently identifies five expatriate selection criteria that have been applied in regard to traditional international assignments, but are also relevant to alternative assignments.

We begin by reviewing expatriate selection historically and its position within expatriate management based on changing business environments. Then, drawing from over five decades of literature on international assignments, we identify and discuss five organizational, individual, and contextual level criteria for selecting expatriates.

Emphasis on different issues tends to characterize expatriate selection during the various decades since the literature has taken up the topic. The chapter describes those issues, following a chronological perspective. In addition, the chapter organizes the various selection criteria in five clusters: organization philosophy, technical competence, relational abilities, personal characteristics, and spouse and family situation.

While there are studies on expatriate selection, there is more to be understood with regard to the topic. Provided all other expatriation phases are subsequent, if selection is not understood in detail, the foundations of studying phases and processes that take place once expatriates are selected may not be sound. While the scholarly conversations of other expatriate-related issues should continue, the international human resource management literature can absorb more analyses on selection. A better understanding of expatriate selection will assist its better management. The chapter provides a basis for human resource management professionals to be able to map the various criteria for selection, and decide, under particular circumstances, which ones to prioritize and why.

The chapter brings clarity to a topic that has remained less researched when compared to other areas of interest related to expatriates and their international assignments by tracing the historical development of this important phase of the expatriation process. In addition, the chapter organizes a number of selection criteria along five core areas and discusses each of them to gain insights that help explain expatriate selection in greater detail.

South Korean multinational enterprises (MNEs) have developed rapidly since the late 1950s. This chapter investigates South Korean MNEs’ talent management, more specifically international recruitment and selection policies and practices in their Chinese operations.

Using the snowball method through Chinese and Korean networks we recruited ten Korean MNEs to participate in this research. We conducted semi-structured interviews with key individuals within the organisations.

It reveals that South Korean MNEs tend to adopt the polycentric approach or a mixed approach of being polycentric and ethnocentric to international staffing, with the number of expatriates reducing gradually over time. South Korean MNEs adopt ‘one-way selection’ in recruiting and selecting expatriates and localise recruitment procedures and selection criteria for host-country nationals.

South Korean MNEs have paid inadequate attention to: firstly, expatriates’ career development; and secondly, personal and family issues emerging from expatriation and repatriation. This study highlights these issues.

In this chapter, we focus on expatriate CEOs who are assigned by the parent company to work in a subsidiary and compare them to those who themselves have initiated to work abroad as CEOs. Since we do not know much about these individuals, we direct our attention to: (1) who they are (demographics), (2) what they are like (personality), and (3) how they perform (job performance).

Data was sought from 93 assigned expatriate CEOs and 94 self-initiated expatriate CEOs in China.

Our findings demonstrate that in terms of demography, self-initiated CEOs were more experienced than assigned CEOs. With regard to personality, we found difference in self-control and dispositional anger: Assigned expatriate CEOs had more self-control and less angry temperament than their self-initiated counterparts. Finally, we found assigned expatriate CEOs to rate their job performance higher than self-initiated CEOs.

Although there may not always be immediate benefits, career consideration often plays a role when individuals choose whether to become an expatriate. For many years, organizations have used expatriation to develop talented managers for high-level positions in the home country. Recently, however, a new trend has emerged. Talented top managers are no longer expatriated only from within parent companies to subsidiaries. Self-initiated expatriates with no prior affiliation in the parent company are increasingly used to fill top management positions in subsidiaries.

The purpose of this chapter is to provide an overview of SIEs’ career development through international assignment. In particular, the research focus is on career capital acquirement and development of SIEs through their international assignment in China.

We review studies on SIEs and comparative studies between SIEs and OEs. We apply the career capital theory to discuss SIEs’ career capital development in terms of knowing-how, knowing-why and knowing-whom through expatriation assignment in China.

This chapter focuses on SIEs’ career capital accumulation through international assignments in China, and we develop three propositions that will guide future studies: the knowing-whom career capital development of SIEs through expatriation is increased more in network quantity than network quality in China; the knowing-why career capital development of SIEs through expatriation is influenced by the age and career stage of SIEs; and the knowing-how career capital development of SIEs through expatriation — task-related skills and local engagement skills — is influenced by the SIE’s intercultural ability and organization support respectively.

In practice, a better understanding of SIEs’ career capital development in terms of knowing-how, knowing-why and knowing-whom help companies make the decision to select the relevant staffing pattern. This study also has practical implications in relation to the design and selection of the training, learning and development activities provided to the employees.

The chapter contributes to the expatriate management literature by focusing on SIEs’ career development through their international assignment in China. SIEs’ career development is related to their cross-cultural adjustment and has impacts on the completion and success of the expatriation assignment.

The purpose of this study is to understand the multiple aspects of readjustment of repatriates and to identify determinants relating to the readjustment, to enable MNEs (multinational enterprises) to utilize the advantages and retain the valuable knowledge that repatriates offer to the organization for talent management.

This study conducted a quantitative work involving questionnaire responses of 192 repatriates who returned to Japan after international assignments in MNEs.

Based on the results of the analysis using this Japanese data, the discussion is summarized in the following three points. First, it is important to seek determinants for the readjustment by focusing on all the aspects of ‘repatriation adjustment’ because the determinants of subordinate aspects are not always identical. Second, ‘organizational factors — work duties’ play a vital role in the readjustment to the organization different from the readjustment to daily life. Further, organizations benefit from providing assistance to both the repatriates and the family of the repatriates to ensure that they are able to successfully readjust to life in the home country.

This study performed a comprehensive analysis of the subordinate concepts of the ‘repatriation adjustment’ dividing it into four aspects of job and private life. Factors related to the readjustment were classified into three factors by using a framework that analyses issues repatriates face by classifying these into changes occurring over time and changes due to cultural differences, and show a logical framework that elucidates the repatriation adjustment factors.

I build on a strong foundation of prior studies about expatriate compensation in general to provide an overview of changes in expatriate compensation, from home- to host-based approaches, during the past 10 years.

Underpinned by findings from academic and practitioner literature, I review and integrate studies of expatriate compensation and global talent management to outline the challenges and opportunities home- and host-based compensation approaches present to MNEs.

Home-based compensation is becoming an outdated and overly expensive model that is often ineffective in moving MNEs’ global competitive advantage to where it needs to be, leaving host-based approaches as the only alternative. But the use of host-based “cheaper” compensation approaches can also lead to unintended outcomes for MNEs in terms of unforeseen opportunity costs (such as the loss of critical talent) arising from shortsighted compensation decisions.

I argue that expatriate compensation works best when it is not based on an employees’ home-country status but instead on the role that he or she performs locally. I suggest a host-based compensation approach — global compensation — that is based on the worth of the position rather than where the individual has come from. Such an approach is more equitable because it is performance-based thereby eliminating overpaying and perceived unfairness. It is much simpler to administer than home-based compensation because it represents an extension of most MNEs already existing domestic (home country) pay-for-performance model.

Despite more than 10 years of new compensation practices being implemented and reported by global mobility practitioners, very little has been studied or written by scholars about some of the recent changes in expatriate compensation over the past decade. The chapter addresses this gap in academic literature.

The aim of this chapter is to focus on the role human capital, innovative recruitment practices and cross-cultural staffing policies have on organizational performance. This facilitates a better understanding about how entrepreneurial thinking is encompassed into an organizational context by utilizing global talent management practices.

The chapter discusses the linkage between global talent management and corporate entrepreneurship literature by providing a number of research propositions.

The chapter highlights how it is important for entrepreneurial organizations to focus on global talent management for their global competitiveness.

This conceptual paper is based on corporate entrepreneurship as the underlying theoretical framework for global talent management, which means the results should be interpreted from an entrepreneurial perspective.

Global talent management is becoming increasingly popular as a way to integrate organizations corporate entrepreneurship goals with their strategic objectives.

More organizations are taking a social perspective that encompasses a global mindset for talent management in order to facilitate more entrepreneurial thinking.

This chapter stresses the importance placed on hiring and retaining talented individuals who can contribute to innovative and risk taking outcomes in global organizations.

This study examines the interactive effects of work values and organisational commitment on localisation.

This study draws on human capital theory, and reports on a survey of 200 expatriate managers working in Qatar.

We find that localisation is negatively associated with work values and positively associated with organisational commitment. Furthermore, work values appear to influence organisational commitment.

Despite a surfeit of literature on localisation of human resources, few studies previously have explored its relationship with work values and organisational commitment. This chapter presents empirical research on the issue from Qatar, a country in a region which remains under-researched in the literature.

This chapter reports the current status of management practices in the Central and Eastern Europe (CEE) region as seen by international expatriates. Based on the results and expert insights, we aim at giving guidance to MNE leaders and strategy makers as well as operative HRM staff and other expatriate managers how to best exploit the value-added opportunities in the CEE region by adopting the region-specific talent management and staffing policies and practices.

This study is based on the views of 1108 managers on the local management in six CEE countries: Bulgaria, Czechia,¹

In this chapter, the term Czechia is used to refer to the Czech Republic.

MNEs have been able to successfully capitalize on the economic integration and growth of the CEE region during the past 25 years. A new generation of competitive local managers is now growing into leadership positions, but MNEs need to find a more sophisticated way to retain those in the region in order to be able to exploit growth opportunities in future too.

Because the national cultural differences between the six analyzed CEE countries remain very characteristic and divergent, talent management and staffing strategies and policies of MNEs must be adopted and fine-tuned accordingly. Language and communication difficulties, knowledge of the standards management techniques are not a challenge anymore. Instead local management’s soft skills, leadership values and attitudes need to be developed now simultaneously with increasing wages, as the most talented local staff and management is readily relocating into higher-wage countries.

The originality and scholarly interest of this study lies in its cross-cultural, comparative approach. The originality and practical interest of this study is that it gives clear recommendations to MNE and expat managers. Furthermore the presented results have been tested during critical forum discussions with more than 60 CEE-experienced managers, expatriates, and the representatives several foreign chambers of trade and commerce held at the Central European University Business School in spring 2015.