Question

Managing employees in a global context often means putting the correct "type" of international employee in the right position. When a company decides to go abroad, managers instantly become faced with issues such as: Who should manage the foreign subsidiary? A person from headquarters, or a person from the local country? Correct assessment of such questions requires a careful analysis of the factors at hand.In this exercise, please read the mini-case and answer the questions that follow.Patricia Lee is the VP of international operations for an American retail clothing company with operations primarily in North America and Western Europe. Patricia is in charge of setting up her company's expansion into China and must create a strategy for the types of employees working in the new Chinese operations. Patricia realizes that understanding the local styles and culture is very important, as the Chinese market is very different from the countries her company has entered so far. Furthermore, there is a good deal of suspicion on the part of local citizens about whether her company will create local jobs or just try to "make a quick buck" in the quickly growing Chinese economy. At the same time, a good deal of integration with headquarters is required in order to keep costs low.What types of host-country nationals should Patricia seek to hire?A. people familiar with the local culture and fashion industryB. people familiar with the local culture and fashion industry, but not used to working with people from other culturesC. none: she should only employ parent-country nationals

Answer 1

A. people familiar with the local culture and fashion industry.

why is the statement (A) correct

Since the Chinese market is very different from the countries her company has entered so far, it is important for Patricia to hire people who are familiar with the local culture and the fashion industry. They will be able to better understand the local customer preferences and help the company to adapt its product offerings to meet those preferences. Additionally, the suspicion on the part of local citizens about whether the company will create local jobs or just try to make a quick buck can be alleviated by hiring local employees, as they will be seen as contributing to the local economy. However, it is also important to ensure that the local employees are comfortable working with people from other cultures, as there will be a good deal of integration with headquarters required to keep costs low. Therefore, option A, people familiar with the local culture and fashion industry, is the best choice. Option B, people familiar with the local culture and fashion industry, but not used to working with people from other cultures, is not the best choice because it is important for the employees to be able to work effectively with colleagues from other cultures. Option C, none: she should only employ parent-country nationals, is not the best choice because it does not take into account the importance of understanding the local culture and the local market.