Page 87 - DMGT548_GLOBAL_HRM

Global HRM

Notes 5. The ………… approach option utilises the best people for the key jobs throughout the
organisation, regardless of nationality.

5.2 Issues in Staff Selection

There are various issues which have to be taken care before selecting the expatriates for an
international assignment. The main advantages and disadvantages of utilising the various
nationality groups available to the multinational that is, Parent-country Nationals (PCNs),
Third-country Nationals (TCNs) and Host-country Nationals (HCNs) is analysed prior to
selection.
1. Managers Selection: The advantages and disadvantages of selecting the various managers
are analysed as:

(a) Parent-country Nationals
Advantages
(i) Organisational control and coordination is maintained and facilitated.
(ii) Promising managers are given international experience.
(iii) PCNs may be the best people for the job because of special skills and experiences.

(iv) There is assurance that subsidiary will comply with company objectives, policies,
etc.
Disadvantages

(i) The promotional opportunities of HCNs are limited.
(ii) Adaptation to host country may take a long time.
(iii) PCNs may impose an inappropriate HQ style.

(iv) Compensation for PCNs and HCNs may differ.
(b) Third-country Nationals
Advantages
(i) Salary and benefit requirements may be lower than for PCNs.
(ii) TCNs may be better informed than PCNs about host-country environment.

Disadvantages
(i) Transfers must consider possible national animosities (example, India and Pakistan).
(ii) The host government may resent hiring TCNs.

(iii) TCNs may not want to return their own countries after assignment.
(c) Host-country Nationals
Advantages
(i) Language and other barriers are eliminated.
(ii) Hiring costs are reduced, and no work permit is required.

(iii) Continuity of management improves, since HCNs stay longer in positions.
(iv) Government policy may dictate hiring of HCNs.
(v) Morale among HCNs may improve as they see career potential.

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