Describe, with examples, the THREE (3) staffing approaches that MNCs could adopt within the international business context. Also, discuss any TWO (2) advantages and TWO (2) disadvantages of each staffing approach.
Mr. Chan works in Malaysia but is a citizen of Singapore where his company is organized and
headquartered. Mr. Chan is an expatriate, who is a citizen of the company's home country
working in a foreign country. Ms. Hamidah is Mr. Chan's executive secretary in Malaysia, but
unlike Mr. Chan, she is a citizen of Malaysia and is considered a host-country national. She
is an employee hired by a foreign company to work in her own country. Mr. Alex works for the
same company as Mr. Chan and Ms. Hamidah in Malaysia, but he is an Australian. An
employee like Mr. Alex who is a citizen of one country but works in another country for a
company that is headquartered in a third country, is called a third-country national. Mr.
Chan, Ms. Hamidah, and Mr. Alex are examples of MNC’s staffing approach. MNCs face
different challenges with employee selection leading them to use certain staffing approaches.
The international HR department must have an innovative idea about the skills and availability
of human resources in different labour markets around the world. The HR department must
have the capacity to foresee the changes in these markets and exploit those changes
productively. A truly international HR department would insist on hiring people from all over the
world and place them throughout the international business operations of the organization.
There are various techniques and methods used by organizations to hire the right candidate
for a position. In particular, a firm’s staffing policy is concerned with the selection of employees
who have the skills required to perform a particular job and there are three main approaches
to staffing within international businesses.
Describe, with examples, the THREE (3) staffing approaches that MNCs could adopt within
the international business context. Also, discuss any TWO (2) advantages and TWO (2)
disadvantages of each staffing approach.
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