International Human Resource Manangement

1. Staffing Foreign
Subsidiaries with Parent
Country
By Santhosh Kumar K,
International Human Resource
Management

2. Contents:
Meaning of Parent, Host, Third Country
Nationals.
Meaning of Expatriate and Repatriate.
Approaches to Global Staffing.
Types of Training Provided before
Staffing.

3.  Parent Country Nationals
 Host Country National
 Third Country Nationals
A host-country national (HCN) is an employee
who is a citizen of a country in which an
organization's branch or plant is located, but
the organization is headquartered in another
country.
or expatriate. In an international firm, a PCN
is a person whose nationality is the same as
that of the firm, but different from the
country in which they are working: for
example, a Japanese manager working for a
UK-based subsidiary of a Japanese company.
In an international firm, a TCN is a person whose
nationality is different from that of the firm, and of the
country in which the firm is operating: for example, a
UK manager working for an Australian-based subsidiary
of a Japanese company.
Meaning

4. Meaning
 Expatriate:
A person who has citizenship in at least one country,
but who is living in another country. Most expatriates
only stay in the foreign country for a certain period of
time, and plan to return to their home country
eventually, although there are some who never return to
their country of citizenship.
 Repatriate:
Repatriation generally refers to the
termination of the overseas assignment
and coming back to the home country
or to the country where the HQ is
located or to the home subsidiary from
where he/she was expatriated.
Expatriate
Repatriate

5. Meaning of Staffing
Approaches to Global Staffing
Top Management Values:
The term ‘Staffing’ relates to the
recruitment, selection, development,
training and compensation of the
managerial personnel. Staffing, like all
other managerial functions, is the duty
which the apex management performs
at all times Nature of Staffing
Staffing is an integral part of human
resource management. It facilitates
procurement and placement of right
people on the right jobs.
• Ethnocentric staffing
Companies primarily hire expatriates to
staff higher-level foreign positions.
• Polycentric staffing
When more host-country nationals are
used throughout the organization, from
top to bottom.
• Regiocentric staffing
Regional groups of subsidiaries
reflecting organization’s strategy and
structure work as a unit.
• Geocentric staffing
Uses worldwide integrated business
strategy. Chooses the best person to
work at subsidiary. Manager selection
is based on competency not on
nationality.

6. Approaches of Staffing
Ethnocentric
Approach
• Key
management
positions held
by parent-
country
nationals
• Appropriate
during early
phases.
Polycentric
Approach
• Host-country
nationals hired
to manage
subsidiaries
• Parent-country
nationals
occupy key
positions at
corporate HQ.
Geocentric
Approach
• Seeks best people
for key jobs,
irrespective of
nationality
• Underlying
principle of a
global corporation
Regiocentric
Approach
• Variation of
staffing policy to
suit particular
geographic areas
• Provides a
'stepping stone'
for a firm wishing
to move from an
ethnocentric or
polycentric
approach to a
geocentric
approach
categories of employees can be hired – parent country nationals (PCNs), host country
nationals (HCNs) & third country nationals (TCNs)

7. Types of Training Provided Before Staffing
Cultural training – understanding the culture
of host country, enhance effectiveness,
familiarization trip before formal transfer.
Language training – manager’s ability to
interact, help build rapport and improve
manager’s effectiveness.
Practical training – adjust to day to day life in
host country, establish a routine, successful
adaptation, support network of friends.