Superior University Lahore

Human Resource Management

Topic
Home Country National
Host Country National
Third Country National

M.COW-F19-055

Submitted to Madam Nighut Ullah

Submitted by Muntaha Haseen

 Superior University Lahore
Staffing Internationally

Learning Objectives

1. Be able to explain the three staffing strategies for international businesses and the
advantages and disadvantages for each.
2. Explain the reasons for expatriate failures.

One of the major decisions for HRM when a company decides to operate overseas is how the
overseas operation will be staffed. This is the focus of this section.

Types of Staffing Strategy

There are three major staffing techniques a company can implement when inflowing an
external market, with all having its benefits and disadvantages. The first plan is a home-
country national approach. This staffing tactic uses employees from the home country to live
and effort in the country. These entities are called emigrants. The second staffing tactic is a
host country national strategy, which means to workable people who were born in the country
in which the business is functioning. Finally a third country national tactic means to
employee people from a totally different country from the home country and host country.
Table; Advantages and Disadvantages of the Three Staffing Strategies. List of advantages
and disadvantages of every type of staffing tactic. Either strategy is selected, communication
with the home office and strategic arrangement with external processes need to ensue for a
successful endeavour.
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Expatriates

According to Simcha Ronen, a researcher on international projects, there are five classes that
determine emigrant success. They comprise job aspects, relational proportions, motivational
state, family condition, and language abilities. The prospect the assignment will be a success
be contingent on the qualities listed in Table Categories of Emigrant Success Forecasters with
Examples. As a result, the suitable variety process and training can avoid some of these
weaknesses. Family pressure, cultural stubbornness, emotional irresponsibility, too much
responsibility, and longer work hours (which draw the emigrant away from family, who
could also be facing culture shock) are some of the causes cited for expatriate failure.
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Most emigrants go through four stages of regulation when they move external for an
assignment. They include delight/honeymoon, battle, variation, and biculturalism. In the
ecstasy phase, the employee is eager about the new atmospheres and finds the culture striking
and motivating. In the resistance phase, the employee may start to make regular assessments
between home and host country and may pursue out reminders of home. Hindrance may
happen because of everyday living, such as language and cultural variances. During the
revision phase, the employee increases language skills and starts to adjust to life outside.
Sometimes during this stage, emigrants may even incline to discard their own culture. In this
stage, the emigrant is acceptance life abroad. In the last stage, biculturalism, the emigrant
embraces the new culture and begins to escalate his old life at home similarly as much as his
new life abroad. Many of the problems related with emigrant failures, such as family life and
cultural pressure, have reduced.

Figure: Phases of Expatriate Adjustment

Host-Country National

The advantage as shown in Table; Advantages and Disadvantages of the Three Staffing
Strategies, of hiring a host country national can be an important thought when scheming the
staffing tactic. First it is less expensive in both moving incidentals and training to hire a local
person. Some of the less understandable overheads though may be the fact that a host country
national may be more creative from the start, as he or she does not have many of the cultural
experiments related with an foreign assignment. The host-country national already knows the
culture and laws, for example. In Russia, 42% of defendants in an emigrant survey said that
companies functioning there are starting to replace emigrants with local authorities. In fact
many of the defendants want the Russian government to limit the number of emigrants
working for a company to 10%. When globalization first occurred, it was more likely that
emigrants would be sent to host countries, but in 2011 many global companies are
comfortable that the skills, knowledge, and aptitudes of managers happen in the countries in
which they function, making the hiring of a host-country national a favorable choice. Also
important are the connections the host-country nationals may have. For example, Shiv
Argawal, CEO of ABC Consultants in India, says, “An Indian CEO helps effect policy and
rules in the host country, and this is the feature that would make a global company reflect
hiring local ability as different to foreign flair.

Third-Country Nationals

One of the best examples of third-country nationals is the US military. The US military has
more than seventy thousand third-country nationals working for the military in places such as
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Iraq and Afghanistan. For example a employment firm hired by the US military called
Meridian Services Agency personnel hairstylists, construction workers and electricians from
all over the world to fill places on military cores. Best companies who exploit third country
national people are not new to multinational industries. The mainstream of businesses who
use third country national staffing have many processes already foreign. An example is a
multinational establishment based in the United States that also has processes in Spain and
transfers a Spanish manager to set up new procedures in Argentina. This would be different
to the business in the United States sending an American (emigrant) manager to Argentina. In
this case, the third-country national approach might be the better approach because of the
language aspect both Spain and Argentina speak Spanish, which can generate fewer costs in
the long run. In fact several American businesses are seeing the value in appointing third
country nationals for external assignments. In an International Assignments Survey 61% of
United State based businesses measured amplified the use of third country nationals by 61%
and of that number 35% have increased the use of third-country nationals to 50% of their
workforce. The core reason why businesses use third country nationals as a staffing approach
is the ability of a applicant to signify the company’s benefits and transfer corporate expertise
and capabilities. Sometimes the best person to do this isn’t based in the United States or in
the host country.