staffing foreign subsidiaries with parent country

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

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Page 1: Staffing foreign subsidiaries with parent country

Staffing Foreign Subsidiaries with Parent

Country

By Santhosh Kumar K,

International Human Resource Management

Page 2: Staffing foreign subsidiaries with parent country

Contents:Meaning of Parent, Host, Third Country

Nationals.

Meaning of Expatriate and Repatriate.

Approaches to Global Staffing.

Types of Training Provided before Staffing.

Page 3: Staffing foreign subsidiaries with parent country

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

Page 4: Staffing foreign subsidiaries with parent country

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.

ExpatriateRepatriate

Page 5: Staffing foreign subsidiaries with parent country

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 timesNature 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.

Page 6: Staffing foreign subsidiaries with parent country

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)

Page 7: Staffing foreign subsidiaries with parent country

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.

Page 8: Staffing foreign subsidiaries with parent country