International Staffing

Approaches &
Assignments

Md. Awal Al Kabir

Associate Professor
Jahangirnagar University

1
Factors affecting Staffing Approaches

 Factors affecting approaches to staffing

 General staffing policy on key positions at
headquarters and subsidiaries
 Constraints placed by host government
 Staff availability

2
Various Staffing Approaches

Ethnocentric
Polycentric
Geocentric
Regiocentric

3
Ethnocentric
 Strategic decisions are made at
headquarters;
 Limited subsidiary autonomy;
 Key positions in domestic and foreign
operations are held by headquarters’
personnel;
 PCNs manage subsidiaries.

4
Polycentric
 Each subsidiary is a distinct national
entity with some decision-making
autonomy;
 HCNs manage subsidiaries who are
seldom promoted to HQ positions;
 PCNs rarely transferred to subsidiary
positions.

5
Geocentric
 A global approach - worldwide integration;
 View that each part of the organization makes a unique
contribution;
 Nationality is ignored in favor of ability:
 Best person for the job;
 Color of passport does not matter when it comes to rewards,
promotion and development.

6
Regiocentric
 Reflects a regional strategy and structure;
 Regional autonomy in decision making;
 Staff move within the designated region,
rather than globally;
 Staff transfers between regions are rare.

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Ethnocentric Approach
Advantages: Disadvantages:
 To ensure new
subsidiary complies with
overall corporate
objectives and policies
 Has the required level of
competence
 Assignments as control
Limits the promotion opportunities
of HCNs, leading to reduced
productivity and increased
turnover among the HCNs
Longer time for PCNs to adapt to
host countries, leading to errors
and poor decisions being made
High cost
Considerable income gap, high
authority, and increased standard
of living may relate to lack of
sensitivity
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Polycentric Approach
Advantages:
Employment of HCNs eliminates language
barriers, avoids adaptation of PCNs, reduces
the need for cultural awareness training
programs
Employment of HCNs allows a multinational
company to take a lower profile in sensitive
political situations
Employment of HCNs is less expensive
Employment of HCNs gives continuity to the
management of foreign subsidiaries (lower
turnover of key managers)

9
Polycentric Approach
Disadvantages:
Difficult to bridge the gap between HCN
subsidiary managers and PCN managers at
headquarters ( language barriers, conflicting
national loyalties, cultural differences)
HCN managers have limited opportunities to
gain experience outside their own country
PCN managers have limited opportunities to
gain international experience
Resource allocation and strategic decision
making will be constrained when headquarter
is filled only by PCNs who have limited
exposure to international assignment

10
Geocentric Approach
Advantages: Disadvantage:
 Ability of the firm to Host government may use
develop an immigration controls in
international executive order to increase HCNs
team employment
 Overcomes the Expensive to implement
federation drawback of due to increased training
the polycentric and relocation costs
approach Large numbers of PCNs,
 Support cooperation HCNs, and TCNs need to
and resource sharing be sent across borders
across units Reduced independence of
subsidiary management
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Regiocentric Approach
 Advantages:
Allow interaction between
executives transferred to
regional headquarters from
subsidiaries in the region
and PCNs posted to the
regional headquarters
Provide some sensitivity to
local conditions
Help the firm to move from
a purely ethnocentric or
polycentric approach to a
geocentric approach
 Disadvantages:
Produce federalism at a
regional rather than a
country basis and
constrain the firm from
taking a global stance
Staff’s career
advancement still limited
to regional
headquarters, not the
parent country
headquarters
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Parent-Country Nationals
Advantages
Advantages Disadvantages
Disadvantages
 Organizational
Organizationalcontrol
controland
and  Promotional
Promotionalopportunities
opportunities
coordination
coordinationisismaintained.
maintained. of
ofHCNs
HCNsare
arelimited.
limited.
 Rising
Risingstars
starsare
aregiven
given  Time
Timeand
andperformance
performance
international
internationalexperience.
experience. costs
costsassociated
associatedwith
with
PCNs adaptation
adaptationto
tothe
thehost
 PCNsmaymaybe bethe
thebest
best host
people country.
peoplefor
forthe
thespecific
specificjob
job country.
due
duetotospecial
specialskills
skillsand
and  PCNs
PCNsmay
mayimpose
imposean an
experience.
experience. inappropriate
inappropriateHQHQstyle.
style.
 An
Anassurance
assurancethat
thatthe
the  Compensation
Compensationfor forPCNs
PCNs
subsidiary
subsidiarywill
willcomply
complywith
with and
andHCNs
HCNsmaymaydiffer.
differ.
company
companyobjectives
objectives&&
policies.
policies.

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Host-Country Nationals
Advantages
Advantages Disadvantages
Disadvantages
 Language
Languageand
andother
otherbarrier
barrier  Hiring
Hiringof
ofHCNs
HCNsmay
may
eliminated
eliminated encourage
encourageaafederation
federationofof
Reduced national
nationalrather
ratherthan
thanglobal
 Reducedhiring
hiringcosts
costs global
Continuity units
units
 Continuityofofmanagement
management
Government
 HCNs
HCNshavehavelimited
limitedcareer
career
 Governmentpolicy
policymay
may opportunity
require
requirehiring
hiringHCNs
HCNs opportunityoutside
outsidethe
the
subsidiary
subsidiary
 Possible
Possibleincreased
increasedmorale
morale  Control
Controland
andcoordination
coordinationof of
because
becauseof ofincreased
increased HQ
HQmay
maybe beimpeded
impeded
career
careerpotential
potential
 Hiring
HiringHCNs
HCNslimits
limits
opportunities
opportunitiesfor forPCNs
PCNstoto
gain
gainforeign
foreignexperience
experience
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Third-Country Nationals

Advantages
Advantages Disadvantages
Disadvantages
 Salary
Salaryand
andbenefit
benefit  Transfers
Transfersmust
mustconsider
consider
requirements
requirementsmay
maybebe national
nationalanimosities.
animosities.
lower
lowerthan
thanfor
forPCNs.
PCNs.  Host
Hostgovernment
governmentmay may
 TCNs
TCNsmaymaybe
bebetter
better resent
resenthiring
hiringTCNs.
TCNs.
informed
informedthan
thanPCNs
PCNs  TCNs
TCNsmay maynotnotwant
wantto
to
about
abouthost-country
host-country return
return to
totheir
theirown
own
environment.
environment. countries
countriesafter
after
assignment.
assignment.

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 Who is an expatriate?

 An employee who is working and temporarily

residing in a foreign country
 Some firms prefer to use the term “international
assignees”
 Expatriates are PCNs from the parent country
operations, TCNs transferred to either HQ or
another subsidiary, and HCNs transferred into
the parent country
 Global flow of HR

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International Assignments Create
Expatriates:

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Reasons for International Assignments

 Position filling, e.g.

 Skills gap, launch of new endeavor,
technology transfer
 Management development
 Training and development purposes, assisting
in developing common corporate values
 Organizational development
 Need for control, transfer of knowledge,
competence, procedures and practices
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 Types of International Assignments
on the basis of Time Frame

 Short term: up to 3 months

 Troubleshooting
 Project supervision
 A stopgap until a permanent arrangement is found
 Extended: up to 1 year
 May involve similar activities as short-term
assignments
 Long term
 Varies from 1 to 5 years
 The traditional expatriate assignment
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Types of International Assignments
on the basis of Nature

Commuter assignments
Rotational assignments
Contractual assignments
Virtual assignments

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Roles of an Expatriate
A Simple Management Network
 Agent of direct control
 Agent of socialization
G E
 Network builder B
 Boundary spanner C D
 Language node
 Transfer of competence
A F
and knowledge
Informal
Informalcontacts
contactsbetween
between
managers
managerswithin
withinaaMNE
MNE

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The Role of Non-expatriates
 People who travel internationally yet are not considered
expatriates as they do not relocate to another country
 Road warriors, globetrotters, frequent fliers

 Much of international business involves visits to foreign

locations, e.g.
 Sales staff attending trade fairs
 Periodic visits to foreign operations

 International business travelers cite the positives as:

 Excitement and thrills of conducting business deals in foreign
locations
 Life style (top hotels, duty-free shopping, business class travel)
 General exotic nature

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Stressors in International Assignment

 Home and family issues

 Frequent absences
 Work arrangements
 Domestic side of position still has to be
attended to
 Travel logistics
 waiting in airports, etc.
 Health concerns
 Poor diet, lack of sleep, etc.
 Host culture issues
 Limited cultural training
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