Hrm International Businss

Introduction

Since the 1970s, the increasing number of MNEs has been noticeable and MNEs has played a more and more critical role in international business. Nowadays, there are more 82,000 MNEs’ parents companies with 870,000 overseas branches around the world. 1 (World Investment Report, 2009) Loads of Countries’ economic strength has been enhanced with the growth of MNEs’ foreign direct investment. The size and strength of a country' MNEs have become the crucial measurement of the country's international competitiveness.

In the process of world economic globalization where china enters, Chinese enterprises also face the urgent internationalization request as the carrier of economic operation. However, the knowledge economy era gives a new challenge to the development of multinational companies. 2 (Robert L., 2007) The traditional resources can hardly make the multinational companies to obtain sustainable competitive advantage.

Many scholars believe that enterprise's human resources is the core of enterprise sustainable competitive potential resources. Therefore, the human resources development of the multinational company will be the key to form and maintain a competitive advantage. What’s more, in cases of giant MNEs’ expatriate failures, researchers point out that the vital factors are the staffing policy. 3 (Hugh S. et al 2006)

The staffing approaches includes ethnocentric, polycentric, geocentric and regiocentric. The former three most common in China also repent Japanese, German and American distinguished styles and characteristics of human resources staffing pattern respectively. What these three countries have achieved is successful and their experience we can use for references.

In this paper, I choose Japanese ，German and American MNEs in China as the research objects for the listed reasons below:

Firstly, three entirely different market economic pattern: Japan is the government's leading, Germany is social market-oriented and the United States is a market-oriented; Secondly, there representativeness make academia have done more in-depth and mature researches on them; Thirdly, their MNEs’ human resources staffing experiences arising from their high activeness in the field of overseas investment are abundant and valuable.

Thus, this paper will combine with the specific case to analysis the 3 staffing policies mentioned above on aspects of recruitment, training and development, performance management, compensation plans and so on. Then, I will make a comparison according to their characteristics and give the conclusion of staffing pattern of MNEs in China .At the end of the paper ,I will offer own recommendations for Host Companies in China when doing staffing policy selections.

The Ethnocentric Approach—Japanese MNE: Calsonic

High control from Japanese HC under Asian internal cultural conflicts

The ethnocentric staffing policy is a HR approach that arrange PCNs on the critical occupations in subsidiary companies. Japanese MNEs like Toyota, expatriates its HCNs to the SCs as key executives. The research revealed that 66% of Japanese MNEs put the Japanese as CEO in SCs. 4（Charles W.L. Hill，2010）

Calsonic ，as a Japanese MNE, is the typical of the MNE using the ethnocentric approach. Calsonic is responsible for the overall investment service and strategic planning in China, as well as providing special services to its branches in China. Calsonic (China) conducts Foreign Service of business, marketing and purchasing, meanwhile, develops a unified corporate strategy and an operating policy under the target of investment decisions and profit center in Chinese market of Japanese Calsonic. In 2008 Calsonic (China) planned to establish China Training Center, as a comprehensive management of education and training activities of Calsonic (China) to achieve the settled goal of training management.

Recruitment：Conservative talent localization

More than 2,500 employees in China serve Calsonic (China). Among employees in management level, 85% of the middle and upper managers are Japanese and 15% of Chinese managers are basically distributed on careers of first production line and business management in lower levels. 5 (Marie, 2003)

Senior managers of each subsidiary of Calsonic (China) are mainly chosen by Japan Calsonic Group, mostly in the way of internal selection. According to the requirement of Calsonic (China), Calsonic (Japan) selected candidates close to the selection criteria, and then pick out a more suitable candidate on the basis of elective standard stipulated.

Aimed at the elective standard of senior management of Calsonic (China), Calsonic (Japan) attaches great importance to the following qualities of candidates: a. diligent and pragmatic; b. having excellent expertise and rich experience; c. overseas work experience; d. motivated. Conversely, management capability is not the main factor that Japan counts.

In addition, out of consideration for Chinese market, Calsonic (China) has gradually conducted the policy of talents localization, so subsidiaries of Calsonic (China) have over 97% Chinese employees. Therefore, to maintain the consistency of the corporate culture is extremely significant.

Aimed at the election of Chinese staff, Calsonic (China) mostly assumes the form of agency introduction and needs talents with qualities below: a. of high passion for work; b. honest and hardworking; c. cultural adaptability; d. strong execution; e. challenging consciousness. Among these, Calsonic (China) values strong execution and cultural adaptability most.

Tailor-made trainings but rigid promotion policy

Calsonic (China) training center, established in 2008, comprehensively manage the education and training business of Calsonic (China), in order to realize the established training management goals. The company will focus on employees, supervisors and managers this three different levels of employees, provide some corporate culture, basic skills and a certain management course step by step in-depth. 6 (Nonaka,1995)

As for HCNs executives sent to china Calsonic (China) creates a new targeted training programme .It has 2 main parts :one lays emphasis on fundamental skills like Leadership in Action while the other is around with the issue of ‘culture adaptation’, and courses like enhancement of Chinese communication is included. All the trainings are tailor-made for the private, namely, manager can independently choose which one he need and attend when he is available.

Although Calsonic (China) training is novel and personalized, the promotion

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