The decision of international staffing in
MNC depends on following factors:
General staffing policy on key positions in
HQ and subsidiary.
The ability of organization to attract the right
The constraints placed by the host
government on hiring policies.
Results in the staffing of key positions in
the MNC by PCNs.
MOTTO this works in my country,
so it must work in all other
Lack of qualified HCNs particularly senior
A desire to maintain good communication,
coordination, tighter control and a unified
corporate culture linked with corporate HQ.
A desire to transfer parent firm’s core
competencies to a foreign subsidiary more
Organizational control and coordination is
maintained and facilitated.
Promising managers are given
Assure that subsidiary will comply with
Limits the promotion opportunities of HCNs
which may lead to reduced productivity and
increased turnover among that group.
The adaptation of expatriate managers to
new environment takes time during which
these expatriates make poor decisions.
Income packages of expatriates are 4
times higher than locals.
The MNC with this approach staff its
foreign subsidiaries with HCNs and its
home office with PCNs.
MOTTO When in Rome, do
as the Romans do.
Eliminates language barriers.
Avoids adjustment problems of expatriates
and their families and removes the need for
cultural awareness training.
Gives continuity to the management of
foreign subsidiaries, thus reduces turnover.
The gap between HQ and subsidiaries
increased which becomes difficult to be
Limited career opportunities for HCN and
This approach utilizes the best people
for key jobs through out the
organization, regardless of nationality.
Highly competent employees are available
not only at HQs but also in subsidiaries.
International experience is a condition for
success in top positions.
Managers with high potential are constantly
ready to be transferred from one country to
Enables an MNC to develop an
international executive team.
Overcome the federation drawback of
Host govt. pressurizes MNC to employ high
number of HCNs.
Expensive to implement because of
training and relocation expense.
Requires more centralized control of
Refers to the functional rationalization
on a more than one country basis.
Regionally oriented approach where an
MNC divide its operations into
geographical regions and transfer staff
within those regions.
Allows interaction between executives
transferred to regional HQs.
A step for MNC to move from purely poly or
ethnocentric or geocentric approach.
It provides federalism at regional basis
rather than country basis. This serves as a
barrier in taking a global stance.
Limits career progression opportunities to
the regional level.
ISSUES IN STAFF
Use of selection tests
Other factors in expat selection
The major challenge in international
staffing is Expatriate selection.
Incase of expat selection, main issue is
the Expatriate Failure.
The premature return of an expatriate
before completion of assignment is
referred to as Expatriate Failure.
It incurs direct as well as indirect cost
on the organization.
Associated relocation expenses
Loss of market share
Difficulties in dealing with the host govt.
Loss of self esteem
Loss of self confidence
Loss of prestige among peers
Loss of promotional opportunities
Ability to adapt
Wrong Candidate selection
Job fails to meet expectations
Quality of life
Cross cultural suitability
Country cultural requirements
USE OF SELECTION
OTHER FACTORS IN EXPAT
Dual career couple
Female international managers