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The Strategy of Talent Localization in Multinational Corporations

The Strategy of Talent Localization in

Multinational Corporations

Li Linjie

Southwestern University of Finance and Economics School of International Business

The Strategy of Talent Localization in Multinational Corporations

[abstract] With China's accession to WTO, a large number of

multinational companies enter into Chinese market. It?s necessary for multinational Corporations to carry out the the Strategy of Talent Localization. The localization of talents is propitious to eliminate the cultural barriers in cross-border operations , and save the Economic cost as well. However ,there are also some problems in the process of localization of multinational talent. This article mainly discuss some of the problems of the the localization of talents, aiming to find some suitable solutions.

[Key words] Multinational Corporations Localization Talent

The Strategy of Talent Localization in Multinational Corporations

Introduction

As the furtherance of the worldwide economic integration and regional blocs, the internationalization of business has become an irreversible trend . The accelerated pace of China's WTO accession, making the multinational companies in China face an unprecedented

opportunities for development, but they also face fierce competition for market competition as well. Many strong and powerful multinational corporations have made new strategies to increase investment in China, including expansion, mergers , brand enterprises, enhance the level of branches, develop technology, and so on. But finally, it depends on the talent to achieve these goals. Given the worldwide shortage of key talent, the original talent allocation strategy can not adapt to the new development needs, so we must make strategic adjustments. Many multinational companies have the talent-“localization\strategic goals.

1. The necessity for Talent Localization in Multinational Corporations.

From the phenomenon that a number of multinational companies have to implement the strategic of Talent Localization ,we can see that the necessity for Talent Localization is obvious. Talent localized not only adapted to the needs of cultural differences in different countries , while

The Strategy of Talent Localization in Multinational Corporations

also reducing the economic cost to which meet the needs of multinational corporations.

1.1 The needs for cultural differences.

The essence of talent localization is cross-cultural management, which means that as the foreign branches of the host country implement management, they need to not only keep the advanced management mode from their home countries, but also use the local talent to adapt to the local environment ,so as to find new methods to manage and minimize the local constraints, aiming to be successful. When

multinational corporations contact Management methods,always they will be faced with the different culture, which is radically with their mother culture,as well as the different values 、thinking 、and all kinds of people determined by this culture. Cultural conflicts will adversely affect multinational corporations in many aspects, such as inefficient

management decisions, unified corporate objectives ,lacking of enterprise cohesion, a substantial increase in management fees, etc. all These will increase the difficulty of multinational operations, and may even lead to the failure of multinational enterprises. As the American scholar David ? A ? Felix said: \always because of the ignor of cultural differences --- ignoring basic or subtle understanding of the results.\companies need to address not only the general organizational structure,