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Managing Global Workforce, Screenshot 2025-05-29 at 14.51.11 - Coggle…
Managing Global Workforce
Perlmutter's Four Multinational Corporation Orientations
Ethnocentric:
HQ controls strategy and practices globally.
"One best way” from HQ’s perspective.
Management shares HQ’s ethnic background.
Polycentric:
Subsidiaries operate independently.
Adapt to local cultures and contexts.
“Many best ways” approach.
Regiocentric:
Operations coordinated regionally.
High alignment within regions, less with HQ.
Geocentric:
Integrated global network.
HQ and subsidiaries collaborate as a unified team. Subsidiaries are neither satellites taking orders nor independent bodies setting their own course.
“Team way” transcending borders.
Drivers of Globalization Strategy
Market
Homogeneity of customer needs
Availability of global distribution networks
Opportunities for shared marketing
Cost
Economies of scale
Transportation costs
R&D costs
Transferable technology advantages
Governmental
Trade policies
Technical standards and requirements
Regulatory climates
Competitive
Extent and methods of globalization by industry competitors
GI-LR Matrix
International:
Exports products/services; strategy and processes are home-country driven.
Example: German robotics firm with global clients.
Multidomestic:
Decentralized; subsidiaries develop local goals and strategies.
Example: Confectionery company with country-specific products.
Global:
Treats the world as one market; offers standardized products from HQ.
Example: Manufacturer of standardized appliances.
Transnational:
Combines global efficiency with local responsiveness; shares knowledge widely.
Example: Cosmetics company with regional customization and diverse talent strategy.
Upstream (decisions at HQ) &
Downstream (decision locally)
Identity Alignment (local identity embraced - Chai Tea) and
Process Alignment (unified & integrated systems)
Moving Work Across Borders
Outsourcing
Transferring work (e.g., services, production) to external vendors to cut costs and reallocate resources.
Can be domestic or international.
Offshoring
Relocating operations to another country for lower costs or strategic benefits.
Motivated by labor cost savings, resource access, tax benefits.
Challenges: rising wages, shipping costs, automation, political backlash, quality, cultural, and IP issues.
Onshoring
Moving operations to a lower-cost location within the same country.
Benefits: cost savings, local talent, fewer cultural/language issues.
Near-shoring
Outsourcing to nearby countries for proximity, cultural similarity, and shared regulations.
Examples: US to Mexico, UK to Eastern Europe.
Remote Teams
Used for global competitiveness and innovation.
Challenges:
Communication (languages, time zones, tech)
Engagement and connection
Trust building
Goal alignment
HR Strategies for Remote Teams:
Review communication plans.
Provide cross-cultural and diversity training.
Plan leadership site visits to build trust and alignment.
HR's Role In Moving Work Across Borders
Immigration
HR must understand immigration laws for:
Moving work abroad
Hiring foreign talent
Business travel and contractors
Immigration laws change with political shifts; HR should:
Stay updated on changes
Track employee status and locations
Conduct internal audits
Seek legal advice when needed
Global Job Classifications
Essential for consistency in workforce planning, compensation, and promotions across countries.
HR should implement a global job-leveling system and revise it regularly based on skills, responsibilities, and compensation data.
Business Travel
HR plays a key role in crafting effective, safe, and attractive travel policies.
Travel Risk Management Plans should include:
Communication protocols
Legal and visa considerations
Duty of care provisions
Compliance checks
Post-travel reviews
Travel Orientation should cover:
Logistics (visas, lodging, itineraries)
Medical info (insurance, emergencies)
Security (local risks, embassy contacts)
Conduct expectations (blending personal and business travel)
Centers of Excellence (COEs)
Specialized teams that provide strategic support and share expertise across the organization.
HR COEs may focus on:
Compensation
Employee welfare
Labor relations
Learning & development
COEs drive process improvement, standardization, and efficiency through data gathering and best practice sharing.
Managing Global Assignment
Approaches to Global Assignments
Strategic-Systematic Approach :check:
Views global assignments as long-term investments.
Develops future leaders with global experience.
Enhances coordination and control across global operations.
Promotes knowledge, technology, and value sharing organization-wide.
Tactical-Reactive Approach :no_entry:
Treats assignments as short-term expenses.
Used to solve immediate issues in foreign operations.
Inconsistent execution, reactive to problems.
Lacks integration of global values, products, and branding.
Implications
Tactical approaches risk higher assignment failure and miss out on:
Leadership development
Cross-cultural fluency
Institutional knowledge growth
Assignment Strategy Based on Business Model
Multidomestic/International Strategy:
Send their assignees to another country to manage a project or get a particular job done.
Choose average and good performers as assignees.
Global/Transnational Strategy:
Selects high-potential leaders.
Uses assignments for development and strategic goals.
Type of Global Assignments
An employee who is being reassigned to an international jurisdiction is now generally referred to as an international assignee, or IA
while “expat” now generally refers to anyone who is not a citizen of the country in which they reside and doesn’t intend to become a permanent resident).
• Globalists: Career-long international assignees, moving between global locations
• Local Hires (HCs): Employees hired within the host country
• Short-Term Assignees: Assigned for a few weeks to under a year, usually without relocating family
• International Assignees: Traditional expats on full relocation for 1–3 years
• Commuters: Regularly cross borders for work without relocating
• Just-in-Time Expats: Contract/ad hoc workers hired for one-time international assignments
Guidelines to Enhance Global Assignment Success
A. Strategic Approach
Align assignments with business/leadership strategy
Integrate with organizational goals
B. Holistic Planning
Consider family, legal, cultural, health & safety, and logistics
Assess risks for employee and organization
C. Candidate Assessment
Use correct selection criteria
Involve right stakeholders
Allow sufficient time for selection
D. Set Realistic Expectations
Avoid overselling the assignment
Communicate both challenges and benefits
Encourage conversations with repatriates
E. Training & Support
Cross-cultural and language training for assignees & families
Ongoing support to avoid isolation
Plan for contingencies
F. Health & Safety
Vaccinations and healthcare planning
Emergency contact systems
Security measures and evacuation planning
G. Repatriation Planning
Start early (before departure)
Ensure retention of repatriates
Provide reintegration support
H. Problem Resolution
Act quickly and thoroughly
Identify root causes post-response
Managerial Knowledge (Schell & Solomon): Managers should know
Country-specific knowledge
Assignment objectives and job functions
Cross-cultural adjustment processes
Cultural dimensions and potential challenges
Effective Assignment Management Checklist
Evaluate traits like flexibility, adaptability
Include spouse in cultural adaptability training
Mandate cross-cultural training
Clarify international assignment policy
Plan succession & repatriation early
Assign a dedicated point of contact
Provide orientation and debriefing
Build global knowledge databases
Foster intercultural competence
Tie ethics to accountability and local engagement
Ensure legal and labor law compliance globally
Global Assignment Process
Stage 1: Assessment & Selection
Goal: Right people in right roles at right time.
Key Activities:
Develop assignment-specific selection criteria.
Build and engage talent pool (including families).
Use multiple tools (interviews, surveys).
Analyze data, conduct interviews, and finalize selection.
Stage 2: Management & Assignee Decision
Key Activities:
Analyze assignment costs, benefits, ROI.
Prepare assignment plan and letter of assignment (MoU).
Candidate evaluates based on:
Career growth, incentives, learning
Family impact, education, location desirability
Stage 3: Pre-Departure Preparation
Focus: Equip assignee and family with survival knowledge.
Key Elements:
Visas & Work Permits: Manage documentation timelines and legal compliance.
Security Briefings: Personal/family safety + business risk.
Cross-Cultural Counseling:
Needs assessment
Country/business overview
Personal/family support programs
Settling-in assistance
Stage 4: On Assignment
Adjustment Phases: Honeymoon → Culture Shock → Adjustment → Mastery
HR Support Includes:
ID numbers, driver’s license, housing, banking
Track allowances, tax payments, renew visas
Coordinate emergency leave & home visits
Maintain mentor contact from home country
Start repatriation planning 6+ months before assignment ends
Stage 5: Completion – Repatriation & Redeployment
Repatriation:
Reintegration into home country & culture
Address reverse culture shock
Ensure skills are utilized, provide support services
Redeployment:
Next role may be in home, host, or new location
Risks of Poor Repatriation:
Missed opportunities
Adjustment struggles
Retention loss
