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Unit 9: Global HR Issues in the Host Context

conditions that this poses for Western executives. They suggest that hiring practices for Notes
key positions should take into account prospective Chinese employee’s guanxi. The
difficulty is being able to assess whether prospective employees have the right guanxi.
When hiring Chinese nationals for executive jobs because of their communication skills,
local contacts and understanding of the domestic market, many multinationals have found
that Chinese managers lack decision-making skills and are wary of taking personal
initiatives. Along with job-related skills and for problem solving in high-pressure, they
should have the right guanxi.
Mode of operation is a consideration for HCN employment. The attraction of an International
Joint Venture (IJV) is that a more experienced local partner can assist in identifying a suitable
workforce. It can use the existing human resources of the local partner, if this pool of labour is
considered to be sufficient in terms of skills and productivity levels.
However, this can lead to unexpected labour costs if the local partner regards the joint venture
operation as a convenient way of redeploying surplus employees who may not have the skills
required. Then, the multinational have to invest heavily in the training of HCN staff in the IJV,
leading to escalating training costs. The risk of poaching again is high. However, multinationals
will weigh labour availability and cost against strategic imperatives.

Task You are the HR manager of an organisation. Give a detailed outline for the
developing and retrenching the staff.

Self Assessment

Fill in the blanks:
9. Cost considerations by multinationals have resulted in development of ……… factories.

10. India is a market with relatively ……… labour.
11. The attraction of an ………… is that a more experienced local partner can assist in identifying
a suitable workforce.

9.3 Language Standardisation in International Business

Language is a vital tool. It is a means of communicating thoughts and ideas and it forges
friendships, cultural ties, and economic relationships. Language is not only a vehicle for the
expression of thoughts, perceptions, sentiments and values characteristic of a community but
also represents a fundamental expression of social identity. It is the common speech which
serves as a peculiar potent symbol of the social solidarity of those who speak the language.
Language retention helps maintain feelings of cultural kinship.
The adoption of official bilingualism has provided the younger generation managers with tools
and knowledge to excel not only at home but beyond the national borders. This has allowed
them to reach for the dreams and succeed in areas they may not have otherwise. The knowledge
of the English language is one of the most important tools. It is one of the international languages,
a tool of communication between countries, cultural groups, various companies and
organisations, communities and friends.
Language is knowledge and one of the key factors in competitiveness. Brains and knowledge
creates the prosperity and growth. In an advanced industrial society in an increasingly
interdependent world, the knowledge of other languages becomes indispensable. The advent of

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