BU354 Chapter Notes - Chapter 14: Sensitivity Training, Performance Appraisal, Balance Sheet
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Staffing Max
- Host country nationals – HCN
oThis is an employee of the MNE who are citizens of the host country.
oAdvantages
Knows local culture, politics, economic situation
Shares common language and can communicate effectively
Less expensive than bringing employee from home country
Help parent country nationals better understand the environment
oDisadvantages
Lacks familiarity with parent country’s culture
- Parent country national – PCN
oEmployees of the MNE who are citizens of the country where the MNE corporate
headquarters resides
oAdvantages
Familiar with MNE corporate culture
Can communicate well with headquarters
Ensures MNE strategic objectives are understood and complied with
oDisadvantages
Can be expensive to send
Resentment due to possible inequities regarding reward/compensation
between PCN and HCN
Limited awareness of local culture
Work permit issues
oReasons to use
To fill positions when HCS aren’t available
To develop and mentor others
To support org development and change efforts
To provide lead-time for HCNs to reach acceptable performance
standards
- 3rd country national – TCN
oNeither citizens od the home or host country.
oadvantages
Identifies with global firm
mobile
culturally sensitive
highly developed language and cultural skills
odisadvantages
may not be perceived as legit rep of headquarters
may be culturally biased if TCH is from country with history of conflict
o3rd culture kids
find more resources at oneclass.com
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children of parents who’ve been sent on global work assignments
have become comfortable with many different cultures
don’t subscribe to any particular culture fully
- ultimate goal = optimize talent pool and do so in cost-efficient manner
Current Trends in Staffing Global Organizations – “The Assignment”
categories
oshort-term
a.k.a. flexpatriate
person on short-term assignment engaging in frequent travel without
relocation
typically less than 1 year
ointernational commuter
employees who frequently commute from home country to place of work
in another country
typically weekly/biweekly basis
ofrequent flyer
travels often on international business trips to accomplish specific task
oexpatriate
people sent on assignment outside home country for period of time
usually for more than 1 year
of special concern for orgs b/c of questions regarding whether they have
to relocate, length of assignment, whether they can bring family
inpatriates = TCN or HCN employees who relocate from foreign subsidiary or joint
venture to parent company
Key Elements of Successful Expatriate Experience
- Repatriation
- Candidate selection criteria
- Administrative processing
- Policies
otravel
Issues regarding the number of trips expatriates can take back to home
country and cost per trip
Considerations for food allowance and entertainment must be
considered
oRelocation
Most stressful situation employee encounters
The focus of a formal relocation policy is to transport an employee, the
family, and the household goods to the new site with minimal disruption
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Host country nationals hcn: this is an employee of the mne who are citizens of the host country, advantages. Less expensive than bringing employee from home country. Help parent country nationals better understand the environment: disadvantages. Parent country national pcn: employees of the mne who are citizens of the country where the mne corporate headquarters resides, advantages. Ensures mne strategic objectives are understood and complied with: disadvantages. Resentment due to possible inequities regarding reward/compensation between pcn and hcn. Work permit issues: reasons to use. To provide lead-time for hcns to reach acceptable performance standards. 3rd country national tcn: neither citizens od the home or host country, advantages. Highly developed language and cultural skills: disadvantages. May not be perceived as legit rep of headquarters. May be culturally biased if tch is from country with history of conflict: 3rd culture kids children of parents who"ve been sent on global work assignments. Have become comfortable with many different cultures.
