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EXPATRIATES AS INSTRUMENT IN INTERNATIONAL MANAGEMENT

EXPATRIATES AS INSTRUMENT IN INTERNATIONAL MANAGEMENT

EXPATRIATES AS INSTRUMENT IN INTERNATIONAL MANAGEMENT


Set of flashcards Details

Flashcards 18
Language English
Category Micro-Economics
Level University
Created / Updated 28.05.2016 / 01.06.2016
Licencing No Copyright (CC0)
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Expatriate

Definition

Someone sent abroad by their company

Why are expatriates important?

• Important mechanism to coordinate the international activities of an MNC
• …to create coherence in the company
• …create a common understanding and common culture.

Three Staffing options for subsidiaries

  • Parent country nationals (PCNs) -->EXPATRIATE
    • Residents of the international business’s home country
  • Host country nationals (HCNs)
    • Residents of the host country
  • Third-country nationals (TCNs) -->EXPATRIATE
    • Not citizens of the firm’s home or host country

Ethnocentric staffing model

  • PCNs (Parent-Country) for higher-level foreign positions
  • Expat PCNs most effective representing HQ views

Polycentric staffing model

  • HCNs know the local market best
  • Fewer cultural problems
  • Less expensive than ethnocentric

 

But:

  • limited opportunity to gain experience
  • gap can form between host country managers and parent country managers

Geocentric staffing model

Hire the best person available, regardless of where that individual comes from

Objectives of Expatriates (5)

  • Supporting subsidiary operations
  • Coordination mechanism
  • Knowledge Transfer
  • Incentive in the career path of executives
  • Development of manager

Necessary Skills and Abilities for Expatriates to do the job and to work in a Foreign Location

  • Job:
    • Technical
    • Functional
    • Managerial
  • Location:
    • Adaptability (Tolerance for ambiguity, Tolerate multiple perspectives)
    • Location-specific skills
    • Personal characteristics