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Human Resources Insights
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| HASA Newsletter 201501 |
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Humble Opinions about Paradox of Talent Management for MNCs in China
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Date：2011-02-13Author：张臻 (Kevin Cheung)Category：Talent Management Source：HASA |
Keyword：Talent Management 人才管理 |
Details
can hardly differentiate who has better advantages from an individual perspective.
Expatriates do have advantages in terms of culture, language, comprehension of decisions from head office. All those strengths are definitely owned by foreign managers, whereas expatriate managers cost much much more than local ones. They may also confront embarrassment when they implement those strategies locally. Moreover, some expatriate managers don’t work for local business with long-term commitment. A local assignment just appears a rotary appointment and counters in the bargaining for better positions after they return to headquarters. Short-term financial performance might be improved regardless of sustainability.
Over ten years ago, a famous telecom company produced and sold a big brand of mobile phone. However the senior managers were very disappointed about their performance in China but could not find the reason. They hired a marketing firm to conduct a survey and found it was the shape and functions of the cell phone. They changed a new design house and hired a new marketing director from Hong Kong for their China operations. The result was of course very positive. What’s interesting is that quite a few companies operate very well in their original nations but fail in China markets. Just compare McDonald’s with KFC.
The true cause hidden in some cases is not merely an issue of localization or de-localization. A crux in MNC’s governance is the centralization or decentralization. Despite we advocate “think globally, act locally”, local managers actually have less powers to determine strategies for local markets. Big MNCs normally have long reporting lines and matrix organizational structures. That design initially intend
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