1.

MNCs (Multinational Companies) are businesses with a global presence that operate in
multiple nations. They frequently struggle with managing diverse staff that includes workers
from many nations and cultures. MNCs use a variety of HRM (Human Resources
Management) strategies, including ethnocentric, polycentric, and geocentric approaches, to
handle this diversity. The ethnocentric approach in this context refers to a personnel strategy
in which managers from the parent nation are dispatched to foreign subsidiaries to fill
important roles.
The Ethnocentric Approach is one of the methods of international recruitment
wherein, the HR recruits the right person for the right job for the international businesses,
based on the skills required and the willingness of the candidate to mix with the
organization’s culture.
In the given hypothetical situation, Dow Limited’s Papua New Guinea subsidiary
employs both Australians and PNG nationals. The corporation pays Australians a lot more
pay than Papua New Guineans for the same tasks, which has made the locals of the host
country unhappy and demotivated. The circumstance demonstrates the drawbacks of the
ethnocentric strategy, which MNCs frequently favour.
MNCs favour the ethnocentric strategy for several reasons. First, the business can
make sure the subsidiary adheres to the same standards and procedures as the parent
business. The strategy also offers a high level of coordination and control between the
parents and subsidiary. Thirdly, by transferring information and skills from the parent’s firm
to the subsidiary, which helps in achieving the company’s goals and objectives.
However, this ethnocentric approach has certain limitation lets learn about this in
detail

 Decisions are made based on unrealistic comparisons:

The attitude of ethnocentrism
is always one of superiority. Someone from outside of an established culture is
making judgements about the behaviour of another group of people based on
viewpoints they have acquired without using wisdom. Although everyone on our
planet has their own idea of what is “normal”, we cannot generalise this finding to
other people. Even among members of the same culture or ethnic group, each
person lives independently. Their perspective and differences are unique. That means
the conclusion which people gets from this approach are based on generalizations
and opinions instead of facts. Because this information does not include the other
side of the equation and the conclusion, we reach using this approach are misleading
at best.

 It can impact every aspect of life if we allow it to do so:

Ethnocentric system demands
that we restrict our thought to other points of view. Since, no one else is right, we
are no longer able to choose to believe anything other than our own beliefs or views.
Because no one is willing to hear what anyone else has to say, societies eventually
 self-destruct. Instead of what is said outside the echo chamber, life becomes more
about what is spoken inside.

 Ethnocentrism drives people away from what they love:

In all facets of life, this
strategy is a “you’re with me” or “you’re against me” mentality. When using an
ethnocentric perspective, there is no middle ground. People are getting further away
from variety because these ultimatums only lead to connections between those who
hold similar beliefs. This will eventually make humanity weaker.

 Ethnocentrism encourage false conclusions:

Everybody has some degree of
ethnocentrism. What each of us considers to be “normal” is reflected in others. It is
simpler for us to comprehend generalisations than it is to comprehend unique
viewpoints that are different from our own. We quickly come to conclusions about
people using these generalisations. When meeting a stranger, it may only take a few
second to get an accurate opinion of them.

 Ethnocentrism can have deadly result:

When you witness an act of terrorism,
whether it be domestic or international, you are participating in ethnocentrism. It is
also ethnocentrism if you witness someone else using violence against someone. A
retaliatory response in society would not happen if the impression from ethnocentric
beliefs was not present in the first place, despite the fact that those in the minority
would occasionally rise up against these activities to engage in violence themselves.

 It hinders the work of cultural assimilation:

Because of ethnocentric approach,
ethnocentrism is one of the biggest social issues facing industrialised world today.
This strategy calls for people to alter who they are if the majority of people in a
community believe the difference to be something that renders a person unworthy
for inclusion rather than fostering unity through diversity.

Ethnocentrism is a dangerous philosophy to follow because it requires each person to make

assumption of the other without taking their perspective into account. It is more than a lack
of empathy; it is a complete disregard of the understanding needed to see through a
different set of circumstances. The advantages and disadvantages of ethnocentrism show us
that when we embrace the uniqueness of each identity, then we can find moments of
inspiration and innovation. When we are unwilling to accept a different perspective on life,
then there is no way for any of us to maximize the potential of who we are.
2. The world of international human resources may be complicated and
challenging. Our global organization could be impacted by unprecedented political events
and changes in how we operate, including hybrid working. To succeed in doing business on a
global scale, we must still continue to pay attention to talent is more mobile than ever
before and the integration of people management procedures.
We are confident that we are aware of the challenges associated with managing
foreign workers if our business employs personnel on overseas assignments. According to
estimates, 25-40% of assignments fails because of difficulties that expatriates have adjusting
to their new environment or jobs. Although this figure is concerning, there are steps you
may do to lessen failure. By giving prospective expatriates adequate pre-departure training
so they may better foresee potential issues and make successful plans.
Pre-departure training for expatriates is a broad term for a programme that briefs
soon to be expatriates on what to expect when living and working abroad. Well delivered
training allows employees to personalise learnings to anticipate and plan for challenges they
and their family may face when they move aboard.
Below are some components of pre departure training to be covered under
this training which will minimal the failures.
1. Develop Relationship Skills: Employees must master these soft skills to be excellent
team players, communicators and problem solvers. Employees should know the
tricks to tackle the hard situation by making a good relation with other person.

2. Learn the Language: Language proficiency can play a role in refining relationship
skills. One should seek opportunities to learn the language through specialised
training programs or coursework that will help to adjust effectively in the host
country.

3. Understand the culture and the market: Expats should become aware of what is
revered and what is seen badly from a cultural standpoint. Global alliances must be
forged by blending into the market rather than causing conflict or shame.

4. Know the simple differences: Additionally, one must get familiar with the
fundamentals of the industry they are operating in. These fundamentals, which
include everything from time zones to measurement systems, might help
expatriates adjust more easily.

5. Be prepared for the marketplace: While operating in the worldwide sector, it is

necessary information to understand the key components of international
marketplace. One of the knowledge bases required to maintain competitiveness is
having a thorough understanding of global commerce and monetary system
 6. Find a mentor or trusted partner: Utilising the knowledge of someone with
experience in the chose market can be instrumental in helping one adjust and
succeed.

7. Cross cultural training: It is generally accepted that effective from living in the host
country’s cultural, economic, legal and political environment. Without an
understanding of the host country’s culture, the expatriate is likely to face
difficulties during the international assignment.

8. Preliminary Visit: Spousal and Family preparation: Sending foreign workers on a

preparatory visit to the host nation is another training method that is helpful in
orienting them. The applicant, spouse, and family can evaluate their eligibility for
and interest in the job through a well arranged trip abroad. Such a trip also
introduces prospective expatriates to the local business climate and promotes more
through pre-departure planning.

As an HR administrator, we understand that it would be very crucial to measure the

effectiveness of the pre-departure training offered to our employees by an external
consultant. The effectiveness of the training can be estimated based on short term and long
term scope. We should measure the cognitive, practical and experiential of cross cultural
training and language training by doing a brief interview with the employees. This is because
expatriates who underwent thorough pre-departure training would exhibit cultural
proficiency earlier and would appear to have job satisfaction. The measurement can also
span to long term scope such as the performer of the employees host country. The short
term scope of measurement is very critical because it would provide opportunities to tackle
situations before the employees are sent to foreign countries.
CONCLUSION:
Since pre-departure training feature sections on fundamentals of ethics, culture
shock and cultural skill, it is very crucial for all employees who are to carry out international
assignments. Hence firms or MNCs should provide or the requirement for the fulfilment of
the training.

3.a) There are many challenges associated with expatriate

performance management. Although we have listed some below, they are likely to vary by
business. Ideally work to identify the challenges our company is likely to encounter and
attempt to mitigate them in the expatriate performance management plan. Below are some
challenges faced by MNCs are:

 ENVIRONMENTAL VARIATIONS:
In domestically and internationally performance
management system work in the same manner. Environmental variation includes
different growth rates, the immediate environment and difference in performance,
 usually mean international performance appraisal need to be unique to each
expatriate manager.

 TIME AND DISTANCE:

Time difference and local infrastructure will impact on
performance and appraisals. Improvements in technology make this less of an issue
than it was once. This is particularly true of expats working in underdeveloped
countries.

 CULTURAL ADJUSTMENT:
An employee’s performance is also get impacted through
the ability of employee to adjust with organizational culture within the subsidiary, as
well as wider culture within their new country. An understanding of the local
organization culture by the HR team, the management team and the employee will
facilitate the creation of a measurable international performance management
system.

 INCONSISTENCY OF IMPLEMENTATION:
The performance development will only be
successful if implemented consistently in company subsidiaries. Oversight of this may
be a challenge if most Human resources functions are centralised to headquarters,
meaning some employees thrive while others are left directionless.

 LIMITED BUDGET:
Companies wishing to deploy new performance management
software may not have the funding to do so since new software application involve a
lot of expenditure, such as the implementation charge and annual licencing fees.
Even if the software doesn’t fully satisfy the needs of the company, HR leader can
engage with other executives to explore for alternatives that are less expensive.

 POOR USE OF TOOLS:

The quality of work completed by managers and staff has a
significant impact on the program’s performance. Employees may submit either too
many or too few objectives, for instance. HR executives should set up a method to
verify that submission for performance reviews adhere to the correct criteria in order
to address these problems.

 LACK OF HR TECH SKILLS:

The HR team’s skill sets must be appropriate in order for
the performance management programme to be successful. For instance, one
individual may be responsible for leading the creation of the programme inside, and
teach staff members and leaders. Some of these responsibilities might be carried out
by the same personnel, but HR officials must be competent to handle them all in
order to run an effective performance management review programme.
These are some challenges faced by the management while implementing performance
appraisal

b) A performance appraisal, also called as performance review, is an evaluation

method that employers use to measure an employee’s contributions to their company.
Performance appraisal can occur whenever an employer deems it necessary. Some criteria
that are suggested for the performance appraisal of international employee and there are as
follow:

 PUNCTUALITY:
Punctuality refers to the degree to which an employee is on-time for
work. We can choose to include attendance in this performance factor. This will help
to know about the punctuality an employee dedicates to an organization.

 ACCOUNTABILITY:
Accountability is the process through which staff members accept
responsibility for their activities when a mistake is made and comprehend how their
work impacts the overall productivity of the workplace.

 QUALITY OF WORK:
When evaluating the quality of work, think of both the big
picture and small details. Provide example in your evaluation, such as how much of
the company target the employee has achieved. Also, include specific details
regarding a project where the employee did well or a meeting that needed
improvement. You may evaluate the overall calibre of the job they offer to our
organization based on the quality of their work.

 QUANTITY OF WORK:
Workload is a metric for gauging productivity in the office.
Assess the amount of work by contrasting the number of jobs they perform in a
specific amount of time with the demands placed on the business.

 TIME MANAGEMENT:
Time management is the process by which employees meet
deadlines and allot specific amount of time to certain tasks.

 GOALS AND TARGET ACHIEVEMENT:

Our criteria for judging employee performance
should include quantitative elements such as their goals and target achievement.
While much of a performance appraisal is qualitative and subjective the goals and
achievement elements is objective and measurable in clear numbers. For example, if
our sales rep has a target to close 25 new account each quarter and only close seven,
you can see that there is a problem with achieving the target.
 COMMUNICATION ABILITIES:
Communication skills of an individual with co-workers,
bosses, and/ or subordinates may be a significant performance evaluation
component. Interpersonal, written, and verbal are all included in this.