Table of content

1) Introduction

2) Impact of MNC 3) Expatriate

4) Use of expatriate

5) Why should CCT programmes be provided 6) Expats in India

7) Conclusion 8) Bibliography

Introduction

A Multinational Corporation has been described as one that has production facilities or other fixed assets in at least one foreign country and makes its major management decisions in a global context. In marketing, production, research and development, and labor relations, its decisions must be made in terms of host-country customs and traditions. In finance, many of its problems have no domestic counterpart-the payment of dividends in another currency, for example, or the need to shelter working capital from the risk of devaluation, or the choices between owning and licensing. Economic and legal questions must be dealt with in drastically different ways. In addition to foreign exchange risks and the special business risks of operating in unfamiliar environments, there is the specter of political risk-the risk that sovereign governments may interfere with operations or terminate them altogether. Multinational corporations have many dimensions and can be viewed from several perspectives (ownership, management, strategy and structural, etc.) The following is an excerpt from Franklin Root (International Trade and Investment, 1994) Ownership criterion: some argue that ownership is a key criterion. A firm becomes multinational only when the headquarter or parent company is effectively owned by nationals of two or more countries. For example, Shell and Unilever, controlled by British and Dutch interests, are good examples. However, by ownership test, very few multinationals are multinational. The ownership of most MNCs are uninational. (see videotape concerning the Smith-Corona versus Brothers case) Depending on the case, each is considered an American multinational company in one case, and each is considered a foreign multinational in another case. Thus, ownership does not really matter. Nationality mix of headquarter managers: An international company is multinational if the managers of the parent company are nationals of several countries. Usually, managers of... Multinational corporations have many dimensions and can be viewed from several perspectives Multinational Corporation (MNCs) is a company that has production facilities or other fixed assets in at least one foreign country and makes its major management decisions in a global context; sometimes called transnational corporation (TNCs). Such companies have offices and/or factories in different countries and usually have a centralized head office where they co-ordinate global management. A large multinationals have budgets that exceed those of the small countries. Major multinationals are American, Japanese or Western European, for example Nike, Wal-Mart, AOL, Coca-Cola, Toshiba, Honda and BMW. (Multinational Corporation, n.d.) Besides that, there are a lot of multinational from other country for example Unilever which is from Dutch.

The Impact of Multinational Corporation

As a result, the important of MNC lies in their significant economics contribution. There are some advantages that facing of a host state when receiving MNC investment. Therefore, unemployment is reduced. MNC are major employers of labor and can help ease unemployment black spots.Besides that, new jobs are created in the host countries which are often relatively well paid. So, the workers for the host state will get the benefits from greater employment opportunities and often with facilities for improving skills. Other than that, once the new technology is transferred from the home country, the new manufacturing capacity is being developed. This may reduce the production costs and will help to produce more advanced hi-technology product. For instance, LG and SONY, which is well known producer in entertainment system that bringing ideas and expertise to the host countrys economy and also social. Moreover, there is a greater choice of goods and services are available. When there is a MNC in the state, the competition within the host state is... In a highly competitive global economy where the other factors of production- capital, technology, raw materials and information, are increasingly able to be duplicated the caliber of the people in an organization will be the only source of sustainable competitive advantage available to US companies. Therefore attention must be paid to and resources must be ploughed into the management of global talent to take the business forward. To do this attention must be paid to several areas, in particular to maximize long-term retention and use of international cadre through career management so that the company can develop a top management team with global experience and to develop effective global management teams. International assignments are becoming increasingly important for the reasons outlined by Jack Welch above; moving forward, top level managers need to have international experience in order for their company to remain competitive. An understanding of the management of expatriates is of growing importance due to the rapid increase in global economic activity and global competition. It is increasingly being recognised that expatriates play a vital role in success or failure of international business.

Expatriate
Todays global companies are increasingly looking for managers who are comfortable on the world stage. International companies use expatriate managers to varying degrees, some extensively and some sparingly. Many companies develop their managers for years before assigning the manager to an overseas position. Laying the foundation for a possible career in international business is hard work, and the experience of actually working internationally can be even harder. Managers in foreign assignments are usually given much broader responsibilities than they have experienced in their home country. After completing an international assignment, repatriation to the home country presents major challenges as well. Despite the challenges of international careers, more and more CEOs assert that international experience is an essential feature of a high-performance career. The Perspective of the Expatriate. Expatriates can be home-country nationals or third-country nationals. Home- country nationals are citizens of the country in which the company is headquartered, whereas thirdcountry nationals are citizens of neither the local assignment country nor the company headquartered country. 1. Trends in Expatriate Assignment. Expat staffing has been changing in recent years to shorter assignments, more junior level employee assignments, and employees from emerging markets being sent to developed countries. 2. The Young, the Old, and the Restless. Traditionally, an international assignment was seen as a midcareer opportunity for development. Now companies are looking to older and younger employees who are more mobile. Younger employees are given an early opportunity for international experience. More females are also seeking expatriate placements. 3. Impact of Market Disruption. Cost concerns are causing companies to seek flexibility in expatriate assignments. Some are temporary instead of permanent. Others are seeking third-country nationals and offering localized expatriate assignments that offer local terms and conditions, greatly reducing the compensation packages. 4. The One Constant. The challenge remains, companies around the world struggle to find executives willing and able to run foreign operations.

MANAGING EXPATRIATES Screening executives to find those with the greatest inclination and highest potential for a foreign assignment is the process of expatriate selection. Few MNEs have a large cadre of mobile and experienced expatriates to call on as needed. A. Selecting Expatriates There is no specific set of technical indicators that consistently distinguishes a good from a bad expatriate. It is a persistent challenge to judge a potential expatriate's adaptability to foreign places, people, and processes. Often it is determined by their willingness to go. Screening can be done in terms of technical competence, adaptiveness, and leadership ability. 1. Technical Competence. Technical competence (usually indicated by past performance) is a significant determinant of success in foreign assignments. The foreign subsidiary manager must understand both the technical necessities of a position and also how to adapt to foreign conditions, such as scaled-down plant and equipment, varying productivity standards and less efficient national infrastructure. 2. Adaptiveness. Three types of adaptive characteristics influence an expatriates success when entering a new culture. a. Self-Maintenance. Qualities such as personal resourcefulness are useful precisely because things do not always go as planned in a foreign environment. b. Satisfactory Relationships with Host Nationals. Whether called cultural empathy, others-orientation, or simply leadership, this orientation enhances an expatriate's ability to interact with new people. c. Sensitivity to Host Environments. Better interpreting how colleagues, customers, and competitors in the local market see events goes far to working well in a different country. 3. Leadership Ability. Leadership ability is increasingly seen as a key to an expatriates success since expatriates often assume a greater breadth and depth of leadership responsibility on a foreign assignment than they likely would in the home country. Communication skills, motivation, self-reliance, courage, risk-taking, and diplomacy become essential qualities for success. Skills and attitudes such as optimism, drive, adaptability, foresight, experience, resilience, sensitivity, and organization are necessary for expatriates to be successful Global business continues to grow rapidly in todays world. To keep pace with global competition, many international firms are expanding their business along with establishing their reputation internationally. In accomplishing this objective, firms need to send designated managers overseas for assignments to create international relationships and an international corporate presence. These managers are called expatriates. While many expatriates find their overseas assignment exciting, many of them are often faced with major challenges in adapting to a new country and the company culture. Differences in language, cultural values, family issues, social skills, and company expectations could be overwhelming for the expatriates. Inability to overcome these challenges could lead to the failure of an expatriate on assignments, which could be problematic given the high cost.

Use of Expatriates The world economy is moving away from the traditional economic system, where national markets were considered as distinct entities - which were isolated from each other by trade barriers, barriers of distance, time and culture - towards a modern economic system, where the national markets are merging into one huge global market. In many industries it is no longer meaningful to talk about the American market, the German Market or the Japanese market. Therefore, as the development in the international business environment are forcing companies to think of the world as one vast market, the companies are being forced to set up their manufacturing and marketing facilities in different foreign countries in order to do business globally. Ford Motors, for instance, has production plants in 38 countries and sales outlets in over 200 countries (Ford 1997 Annual report, www.ford.com). In this regard, there are in today's world a still increasing number of people, who are sent by companies on foreign assignments for a longer or shorter period of time - and it is those people that we in this paper will refer to as expatriates.

1. Why companies operate overseas Firms that are operating in a domestic market may find that they possess certain attributes that allow them capture international markets, but the rise of the multinational corporations (MNCs) confuses traditional micro economists because: "Operating overseas usually costs more than operating at home because a foreigner does not have the same contacts and knowledge of local customs and business practices as indigenous competitors" . As the use of expatriates in MNCs can seem confusing because of the cost involved in training and sending managers overseas, we therefore need to understand why firms then choose to produce in different countries and find the need to send their own people abroad. Dunning's Eclectic Theory offers a theoretical based approach to why corporations go abroad and consequently prefer to use expatriates. The fundamental starting point for Dunning's Eclectic theory is that firms exist to turn inputs into outputs and whether this is done at home or abroad it depends on an enterprise's resource endowments. Dunning's three criteria's - location and ownership; specific resource endowments; and the incentive to internalize the need to be met for firms to find it desirable to operate abroad - are briefly discussed in the paragraph below. 1.1 Resource Endowments Resource endowments are assets that are capable of generation of a future income stream for a corporation. Resource endowments can consist of tangible resources (manpower, capital and natural resources) and intangible resources (such as knowledge, organizational access to markets and information technology structures). 2. These two characteristics of resource endowments become uniquely important when location specific resource endowments exists. This is when the resources are originating from a specific country and are available to all firms that are located in that market but because these resources cannot be exported they lose their value. The second resources endowment criterion is called ownership specific resource endowments. Ownership specific endowments are internal organizational resources of the home country but are capable of being used with other resources in the home country or anywhere in the world. Examples of these are patents, trademarks and
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scale of economies. In the Eclectic theory the pattern of location endowments - that is resources available to all firms in a specific country - will likely explain whether firms supply a market by export or local production. The possession of ownership advantages, internal organizational resources, will determine which firm will supply a particular foreign market.

1.2 Internalization The above mentioned resource endowments, however, do not explain why companies use expatriates, but only gives an understanding of the markets in which corporations will operate. Expatriates first enter the picture when corporations have strong incentives to internalize activities. Typical, enterprises will engage in the type of internalization most suitable for the factor combination, market situations and government policies which they face: "When it is more profitable for this company to exploit its ownership advantages in another country itself rather than to sell or license them". Corporations will normally internalize for two main reasons: First, an enterprise may try to capitalize on the advantages of imperfections in the external mechanisms of resource allocations. Various aspects of market imperfections include actually structural imperfections, where there are barriers to competition and where Ricardian rents are earned. Cognitive market imperfections are the information about a product or a service that is unavailable and expensive to acquire. Second, enterprises will try to avoid the disadvantages that are apparent in the market. Examples of such disadvantages are the protection of property rights, the control of organizational information flows, the defense of a company's reputation, quality controls for good and services and where the market does not permit price discrimination. Dunning's Eclectic theory can shed some light on why enterprises go abroad and why corporations indulge in the use of expatriates. When a firm desires to extinguish bilateral monopoly because of market imperfections: that is, when some markets incurs lower cost through hierarchical co-ordination (FDI) than through co-ordination by market prices then the need to use expatriates becomes evident. When an enterprise has location and ownership specific resource endowments and finds the need to internalize these because of market imperfections then the expatriate is born. The expatriate will likely be used to take out the imperfections of the market by being the liaison for the organization to that market. Having a manger that knows and understands headquarters desires and wants is therefore of great importance when investing and operation in foreign markets.

The role of expatriates From the HR-literature we know that expatriates are divided into three types: PCNs (Parent Country Nationals); HCNs (Host Country Nationals); and TCNs (Third Country Nationals). As we in this paper assume that there is no need to define these types of expatriates, we will instead focus on the different roles of these expatriates by point of departure in the following four general approaches to international staffing :

1) Ethnocentric Approach: Because of a lack of qualified HCNs, PCNs occupy all key positions in the foreign operation, which means that the subsidiary is highly dependent on the headquarters' decisions. Some drawbacks from this approach could be limited promotion opportunities for HCNs, income gaps between PCNs and HCNs, and that PCNs cannot be involved in local matters. 2) Polycentric Approach: In this approach HCNs occupy positions in the foreign subsidiary. Some transfers of HCNs to headquarters also take place. The approach eliminates the language barriers, and typically HCNs are less expensive. Some drawbacks from this approach could be communication problems between headquarter and subsidiary and limited career opportunities for HCNs as they cannot be promoted to headquarter.

3) Geocentric Approach: In this approach the best people are selected for key positions regardless of their nationality. Nationality is not taken into account and a worldwide integration of employees takes place. In this approach an international team of managers is developed. Some drawbacks from this approach may be related to situations, where host governments prefer employment of locals because of i.e. labor issues.

4) Regiocentric Approach: Here a company's international business is divided into international geographic regions (i.e. the European Union). The staff can only transfer within these regions. In order to understand in the roles of expatriates, we then combine the above four approaches of international staffing with the earlier mentioned Electric Theory. In doing so, we then finally are able to suggest the major roles of expatriates as 1) securing transfer of technology/filling positions, as companies send the expatriates abroad in order to transfer their technology to the foreign subsidiary. I.e. in countries where qualified people are not available, companies send the PCNs to fill out the positions. This is mostly used by multinational and international firms. 2) securing the headquarter control, where the companies can exercise this control by using the PCNs in their foreign subsidiaries. In such situations firms try to incorporate the headquarters' culture into the foreign operations, which in some cases may create cultural problems. Especially MNCs tend to demand administrative and financial control in their foreign operations.

3) opportunity for international experience/ management development, as several firms find international experience highly important before promoting their employees. Foreign transfers are here important in order to learn foreign cultures and environments. In such situations qualified HCNs are available but managers are still transferred to foreign subsidiaries to acquire knowledge and skills. 4) securing organizational development, which also is called the "Geocentric approach". This role is performed only by the best people at the best places without nationality barriers. Transfers can take place from headquarter to subsidiary, from subsidiary to headquarter, or from subsidiary to subsidiary. Nationality of employees does not matter in this situation, as the objective of this staffing strategy is to get to know about different cultures, create international networks, decentralization, and interaction between managers of different nationalities. In general, this strategy is mostly followed by larger global companies.

THE NEED FOR EXPATRIATE TRAINING AND PREPARATION An analysis for the needs of expatriate training analysis has attracted considerable attention in the international literature of expatriate failure. Expatriate failure is always regarded as a result of lack of adequate training for expatriates and their spouses. Reviewing of the literature led the authors of this article to propose that training methods and MNC's support "both have an impact on the process of training and learning acquisition. Training aims to improve current work skills and behavior, whereas development aims to increase abilities in relation to some future position or job, usually a managerial one. Training can involve the changing of skills, knowledge, attitudes, or behavior. Also, training may mean changing what employees know, how they work, their attitudes toward work, or their interaction with their co-workers or supervisor. An emphasize is put on the importance of training and educating for expatriate managers in preparation for MNCs to minimize culture shock and maximize the manager's effectiveness and efficiency while working in a different culture.In her area of concentration, Scholes also provided a brief overview of the current practices of MNCs based in South Korean culture and suggested for further improvement in cross culture training and education for MNCs to become effective and productive in the global market. In fact, training characteristics (methods) and MNCs characteristics (management support) impact on the process of training and learning acquisition.

Training should be considered as a life-long endeavor to learn about other cultures due to the increasing use of expatriate assignments by MNCs. A successful expatriate manager must be sensitive to the host country's cultural norms. Also, this expatriate must be flexible enough to adapt to those cultural norms, and strong enough to make it through the inevitable culture shock. In addition, the expatriate manager's family must be familiarly capable of adapting to the new culture. To adapt to this new culture, MNCs will have to invest more heavily in international training programs . The key to successfully competing in the globalization business may be staffing by key expatriate positions that has accomplished leadership. These expatriate managers must have technical competence in the area of operation; otherwise, they will be unable to earn the respect to subordinates.

Technical competence has been almost the sole variable used in deciding whom to send on overseas assignments, despite the fact that multiple skills are necessary for successful performance in international assignments . In fact, expatriate failure is seldom a result of a lack of technical skills. Greater technical sophistication of the MNC allows for less reliance on language and culturally based norms that make international assignments difficult .In fact, the expatriate's material life dissatisfaction is strongly associated with turnover tendencies . With an appreciation of the role of culture in organizations comes a better understanding of management and organizational behavior around the world.

Leading & Managing People - Expatriate Multinational firms throughout the world are increasingly concerned about hiring, developing and retaining managers with international experience and global perspectives quoted by Briscoe and Schuler in 2004. The extraction will be from the most recent newspaper, journal and articles relating to the following topics in human resource management. 1) Expatriate Failure and the Selection policy 2) Training and development for cross-cultural 3) Performance appraisal for expatriate The expatriation was subjugated by professionals sent by their employers to foreign subsidiaries or headquarters.

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Why Do International Companies Use Expatriate Managers?

Long before the globalisation, the internet and advanced telecommunications many companies with an international orientation have applied expatriate managers - some even since the early days of international trade. The theme for this essay is critically to evaluate the reasons why international companies continue to use expatriate managers even though it is a very expensive option. The term expatriate originates from the Latin words ex patria (out of fatherland) and refers to an employee from one country that temporarily works and resides in another. Expatriates may either be send out for assignments from the parent company as parent-country nationals (PCNs), send in as an inpatriate to the parent company from the host country subsidiary as host-country nationals (HCNs) or send from one to another third country subsidiary as thirdcountry nationals (TCNs). Referring to the resource-based school, emphasizing the importance of organization-specific resources, the HRM strategy of using expatriate managers is an inside out strategy based on the human capital and capabilities of expatriate managers in acquiring a competitive edge by levering company core competences in new markets. An expatriate is typically an employee with a management and/or a technical key competence, or a younger employee with a high potential. Expatriate Management Many companies deal with expatriate executives/personnel in a variety of ways. In determining an expatriate there is no right or wrong way. The difference is determined by how the company is trying to meet their goals. The selection process for an expatriate varies significantly from one company to another. When a company has entered the international/global market, it is vital for that company to decide upon which method to use for determining their expatriate executive/personnel. The two methods available are outsourcing and promoting internally. This paper will focus upon promoting internally. Both outsourcing and promoting internally have their advantages and disadvantages. When trying to decide between outsourcing or promoting internally the company should consider these questions: 1. Have you looked at the cost of administering this function in house versus outsourcing? 2. Have you done some preliminary recruiting to see if experienced.HR staff with expatriate experience are available? What are the going salaries for these professionals? 3. Will performing the daily administrative details of the expatriate function consume an inordinate amount of time, even if you have experienced staff?

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4. Do fluctuations in the companys expatriate population make it difficult to maintain appropriate levels of HR staff assigned to get employees overseas, maintain them, and bring them home? 5. Have you identified the specific expatriate activities you would want to outsource and which ones you might effectively maintain in-house? 6. Have you discussed the pros and cons of outsourcing these services with other HR professionals or COs who are doing it now in order to get a better understanding of the issues?

Expatriates-To Have Or Not To Have? This is about expatriates and their pros and cons. It also is an attempt to ascertain whether MNCs really have the need for them. We start with the definition of expatriates and why they are needed. Furthermore, we have described as to why MNCs use expatriates for their international assignments in spite of the exorbitant costs involved. The advantages and disadvantages of expatriation and repatriation in todays global world have also been pinpointed. We have also discussed whether MNCs should continue using expatriates in their international assignments. In todays global world, most big companies have their offices or business in many different countries. This results in more and more foreign assignments for the workforce and new challenges. Thus, there is a need for expatriation. International Human Resource Management (IHRM) has gained utmost importance in recent years due to the hiring of a multi-cultural staff. Domestic HRM wouldnt be effective because expatriation involves different cultures and procedures altogether. MNCs have resorted to expatriates and have realised their importance in organisations. But, there are two sides to a coin. MNCs also have to deal with the problems that come along with the advantages.

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Developing successful expatriate managers: a framework for the structural design and strategic alignment of cross-cultural train

International assignments as a training and development tool Expatriates are trainers Expatriates show how systems and procedures work, ensure adoption, and monitor performance of HCNs International assignments a form of job rotation management development

MethodsTrainingManagementMethodsMultinational corporations TrainingManagement training ManagementCross cultural training Methods Research and experience indicate that expatriate adjustment and performance efficiency in multinational corporations (MNCs) can be improved significantly by cross-cultural training (CCT). The use of CCT in the corporate setting is very limited, however, primarily because such training is considered unnecessary or ineffective by most top management. Furthermore, the literature on CCT does not provide a framework for developing a comprehensive CCT program. The purpose of this article, therefore, is to provide a practical framework prescribing the structure, sequence, and content of CCT programs as well as to offer broad guidelines for aligning these programs with cross-border corporate and staffing strategies. Through the sequential process described, expatriate managers and their families can enhance their cross-cultural aptitude and awareness, gain substantive knowledge, and develop appropriate skills for functioning effectively in other cultures. Furthermore, MNCs can maximize returns from their human resources by implementing such CCT programs in accordance with strategic plans. Recently, a Fortune 500 company in the food and apparel industry began expansion into the European market for the first time. In anticipation of relocating many of its American employees to the European site, it sought advice on possible cross-cultural training programs or procedures for preparing these prospective expatriates for their new assignment. Similar to many multinational corporations, top management had very limited awareness of how beneficial CCT could be, what it should entail, how it should be applied, or who should be included. As a result of that inquiry, the following background information and program framework was developed in order to provide a better understanding of the key aspects of CCT.

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Why Should CCT Programs Be Provided ? As the magnitude of international business operations escalates in the 1990s, one of the greatest challenges facing MNCs is developing expatriate managers who can function successfully within other cultures. An estimated 20 to 40 percent of all expatriates sent on foreign assignments return prematurely,because of the manager's and/or the spouse's inability to adapt to the new culture. As a result, the need for cross-cultural training (CCT) to facilitate effective adjustment and performance is imperative for financial and strategic reasons. The financial cost of premature returns is high, with some studies estimating the costs of a failed expatriate assignment to be $50,000 to $150,000 . The true cost, however, of ill-suited or unprepared expatriates is the missed business opportunities in developing markets abroad. When expatriate managers are unable to maximize opportunities because of their limited cross-cultural skills, they prevent the MNC from successfully fulfilling its strategic goals. As a firm progresses through different phases of cross-border corporate strategies (international, multinational, global, and transnational), the skills needed of expatriates undergo a parallel shift. Because the degree of cross-cultural interaction increases with each phase, the focus of CCT must be aligned to address the needs of trainees operating within a given strategy. Furthermore, as MNCs tend to progress over time from a primarily ethnocentric staffing strategy to a polycentric strategy, the involvement of host country nationals and third country nationals in managerial responsibilities becomes increasingly salient. These managers, like their parent country counterparts, are susceptible to adjustment problems in the workplace due to cultural differences and misunderstandings. As a result, CCT must shift accordingly by providing these individuals with training opportunities comparable to those provided to expatriates. Despite this need for appropriate CCT from both a financial and strategic standpoint, only 30 to 45 percent of MNCs provide some form of CCT for their expatriates . Business organizations have cited a variety of reasons for this low use of CCT. The most prevalent reason is that such training is considered unnecessary or ineffective by top management . Research and experience indicate, however, that adjustment and performance efficiency in multinational corporations can be improved by CCT. Both a literature review and a meta analysis of over 20 empirical studies in the area of CCT effectiveness found that CCT has a strong and positive impact on cross-cultural skills development, cross-cultural adjustability, and cross-cultural job performance. As a result, top management can be assured that CCT eases the transition and adjustment of an expatriate and family, and improves the expatriate's on-the-job performance , thus saving the organization money in the long run as the number of ineffective managers and premature returnees decreases.

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Fortunately, some organizations, including Fortune 500 firms, are recognizing the multiple values of CCT and are beginning to include it in the preparation of their expatriate managers. For example, Motorola Inc. has opened a special center for cultural training at its headquarters in Illinois in order to make its managers "transculturally competent". Similarly, IBM conducts a number of internal cross-cultural executive-development programs. These sessions cover awareness and skills development which help expand executives' knowledge and understanding of other cultures. Furthermore, the virtues of such CCT are extolled by international human resource executives. For example, a personnel manager with British Petroleum Company in Brussels indicated that, among other benefits, CCT helped BP Oil managers adapt policies to fit varying national needs. Another human resource manager at Johnson Wax in Wisconsin reported that the firm's expatriate failure rate was less than 2 percent, which she attributed to the CCT for the company's international workforce of 13,000 employees spread across 19 countries. This type of success was echoed by Shell Oil which provided CCT to 800 employees in preparation for assignment to Saudi Arabia. As a result of this training, only three employees failed to survive the cultural adjustment. Such positive results have led some executives, including DuPont's manager of international human resource development, to view CCT as a strategic, rather than beneficient, choice that enables the company to maximize its competitive advantage in today's business world. Despite these acclamations, however, most companies that do provide CCT generally offer programs that are not comprehensive in nature; that is, the training is restricted to environmental briefing, basic culture orientation, and some language training . One explanation for such a limited focus may be the scant amount of literature on how to develop CCT programs. Previous studies have focused primarily on describing alternative approaches to CCT , providing frameworks for selecting CCT methods , and evaluating the comparative effectiveness of CCT methods , rather than offering a practical framework for designing a comprehensive program. According to research , the most important part of developing a CCT program is to determine the most appropriate training structure and sequence prior to selecting training methodologies. The purpose of this paper, therefore, is to specify the goals of CCT, to provide a basic program prescribing the structure, sequence, and content of CCT programs, to offer broad guidelines for aligning CCT with cross-border corporate and staffing strategies, and to discuss the appropriate time frame for CCT endeavors. Recommendations are based on both theory and practice, i.e., a review of the literature examining the theoretical basis for cross-cultural training, the author's 10-15 years experience in training both expatriates and host nationals in several organizations, and a review of the applied literature examining the issues other organizations have faced in this area.

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How international teams benefit the multinational

Fosters innovation, organizational learning and transfer of knowledge Assists breaking down of functional and national boundaries Encourages diverse inputs Assists in developing broader perspectives Develops shared value

Challenges Challenges for the HR function of the multinational firm Although people involved in international business activities face many of the same ethical issues as those in domestic business, the issues are made more complex because of the different social, economic, political, cultural and legal environments in which multinationals operate. Consequently, multinationals will need to develop self-regulatory practices via codes of ethics and behavioral guidelines for expatriate, TCN and local HCN staff. Firms which opt consciously or by default to leave ethical considerations up to the individual not only contribute to the pressures of operating in a foreign environment (and perhaps contribute to poor performance or early recall of the expatriate), but also allow internal inconsistencies that affect total global performance. When recruiting and selecting expatriates, their ability to manage with integrity could be a job-relevant criterion. The pre-departure training of expatriates and their orientation program should include an ethics component. This might include formal studies in ethical theory and decision making as well as interactive discussion and role playing around dilemmas which expatriates are likely to encounter. In an effort to sensitize managers to cultural diversity and to accept the point that home practices are not necessarily the best or only practices, there has been an emphasis in international business training on adapting to the way in which other cultures do business. Insufficient attention is generally given to when doing so results in unacceptable ethical compromises. In designing training programs to meet the challenges of multinational business, HR professionals must raise not only the issue of cultural relativities but also the extent to which moral imperatives transcend national and cultural boundaries.

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It is also important for the HR department to monitor the social (ethical) performance of its expatriate managers to ensure that as managers become familiar with the customs and practices of competition in the host country, they do not backslide into the rationalization that everybody else does it. The development of a truly international community is still in its infancy and there is not yet agreement about what should constitute a global ethic to resolve the conflicts which arise in such a community. However, there is an emerging consensus about core human values which underlie cultural and national differences and the content of guidelines and codes which help to operationalize the ethical responsibilities of multinationals

Many expatriate human resource (HR) policies, particularly in the area of compensation, remain rooted in the past because they continue to favor the expatriate over local staff and do not take into account the increasing qualifications and aspirations of these local employees. Inequitable treatment leads to low commitment and poor work performance among local staff. More importantly, inequitable treatment creates tension between local and expatriate employees and causes the local staff to be less willing to be cooperative or supportive of the expatriates with whom they have to work. Without local support, expatriates may experience greater difficulty adjusting to their new jobs and the new environment, which is a contributing factor in the failure of expatriates. To minimize these problems, HR practices of expatriating organizations should focus on providing more equitable compensation for local and expatriate employees, selecting expatriates who are truly worthy of the higher pay, and increasing the transparency of pay practices so that local employees can see the linkage between work inputs and compensation more clearly. Managers at the local organization should emphasize favorable referents for local staff, breed organizational identification among the employees, prepare the local staff for incoming expatriates, and encourage them to assist and mentor incoming expatriates. It is critical that multinational companies (MNCs) are aware that some existing HR practices have potentially unintended negative consequences and that neglecting the impact of these practices on local employees hurts the effectiveness

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Expats in India
y y y y y y

Market leaders like Nokia, LG, Suzuki, IBM and Samsung have seen the number of expats in their Indian subsidiaries swell. Nokia has nearly 100 Finns at key positions in India. Samsung has 25 Koreans LG has 30 Koreans Maruti has 15 Japanese Huawie has approx.125 Chinese working at their offices in India.

Recent trends in International staffing Work Force Diversity

y y y y

Diversity is a key metric on which organizations measure themselves. Diversity implies a workforce mix with fair representation of gender, ethnicities and races Organizations have diversity policies that drive focused hiring to ensure the desired workforce blend Diversity costs money, cash cost, opportunity cost and a heightened exposure to business risk, however organizations remain committed to it year after year

Off shoring
y y

Outsourcing of non-core standardized services is the new facet of globalization The spurt in hiring to staff these new-order companies in the emerging and the developing countries has hugely contributed to the revenue and growth of these countries On the other hand the outsourcing country, usually in the developed economies, stands to loose jobs to low cost and high skills countries making it outplacement and retrenchment a core activity

Background Checks
y y

Background checks are carried out to verify personal, professional and other mandated information related to safe employment of candidates Priced by quantum/scope of the personal and professional level of check that is being carried out, it is a core responsibility of the staffing team to ensure that the employee being on-boarded is cleared from all sides

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Recruiting sources
y y y

Increasing demand for resources has driven widespread innovation in sourcing Job portals and employee referrals are among the newer and more common sources Focus on hiring at entry level and then grooming employees for growth is a also gaining popularity as another high retention sourcing strategy

Dual Career Couples

y y y y y y

Managing dual career couples Find a job for the trailing spouse Commute/remote assignments Sabbaticals Intra-company employment On assignment career support

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Conclusion

There are some key issues which are concerned such asExpatriate Failure and the Selection policy-Expatriate facade many new challenges both in the workplace and the community. For instance, culture shock differences in work-related norms, isolation, homesick, housing, schooling, language, customs, cost of living and coping with his/her spouses problems of adapting to new environment. MNC is as follows:* the inability of the managers spouse to adjust to a different physical or cultural environment; * the managers inability to adapt to a different physical or cultural environment; * other family-related problems. And is these issues are taken care of by training programs and Expatriate management is done properly then the chances of failure will be less then.

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