As organisations become globalized, there is an
increasing challenge to use expatriates on international assignments to
complete strategically critical tasks. The use of expatriates in MNCs like
Starbucks is not only for corporate control but also to facilitate entry into
new markets and to develop international management competencies. These
appropriate controls will ensure that Starbucks’ strategic goals are met and
deviations from standards are corrected so that their subsidiaries act in
accordance with the headquarters’ policies. MNCs
can use 4 basic sources for filling the positions, such as home-country
nationals, host-country nationals, third-country nationals and inpatriates.
Starbucks which is a very successful MNC, has adopted sources of human
resources that suits with the operation they are operating in particular
countries. For instance, Starbucks prefer human resources practices by using
practices at home and then adapting to their host countries like Malaysia.
Starbucks’ policies and practices are mainly formed in compliance with local
labour laws and culture.
headquarter is based in Seattle, in the US. However, since the organization is
a global MNC, the company employs people from all over the globe. Starbucks
currently have 2 types of workers which include nationals from home-country and
nationals from host-country.
national is a manager who is a citizen of the US where Starbucks is
headquartered. The manager has received an assignment from the headquarters to
work with Starbucks at its foreign outlet in Malaysia. The manager is considered
a home-country national, which is also known as an expatriate because he is
currently working abroad at one of Starbucks’ outlets in Malaysia. The reason
why Starbucks use home-country nationals because they wanted to provide more
promising managers in their subsidiary in Malaysia with more promising managers
with international experience to give the Starbucks Malaysia the knowledge and
expertise for them to learn before handing it over to the local managers.
nationals is when the manager working for Starbucks is a citizen of Malaysia
where Starbucks’ subsidiary is located, and Starbucks is headquartered in the
US. Starbucks employ host-country nationals because these employees are
familiar with the culture and know the language. They also believe hiring
locals will give good relations and public image to the organization. This
approach is believed can help Starbucks to reduce hiring cost as the locals
will not require working permits.