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STRATEGIC PERSPECTIVES IN MNCs

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Strategies of international, multinational,
global & transnational organizations
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Parent-country Nationals

Advantages Disadvantages
; HCNs promotion
; Control and co-ordination by
opportunities are limited.
HQ is maintained.
; Adaptation to host country
; Promising managers get may take a long time.
international experience. ; PCNs may impose an
; PCNs may be the best inappropriate HQ style.
people for the job. ; Compensation differences
; Assurance that the between PCNs and HCNs
subsidiary will comply with may cause problems.
company objectives policies
etc.
Host-country Nationals
Advantages Disadvantages
: No problems with : HQ may have less control
language and culture. over operations.
: Reduced hiring costs. : HCNs may still have
limited career
: No work permits required. opportunities outside the
: Continuity of management subsidiary.
improves since HCNs stay : Hiring HCNs limits
longer in positions. opportunities for PCNs to
: Govt. policy may force gain overseas experience.
hiring of HCNs. : Hiring HCNs may
encourage a federation of
: Promotional opportunities disintegrated national
not limited - so higher units rather than one
morale among HCNs. integrated global unit.
áhird-country Nationals
Disadvantages
Advantages : áransfers must
consider national
: Salary and animosities.
compensation may be : Host government
lower than for PCNs. may resent áCNs as
: May be more familiar much as PCNs.
with host country than : áCNs may not comply
the PCNs. with HQ style of
management.
: áCNs may not want to
return after
assignment.
|nternational Recruitment and
Selection

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: empathy ability to handle alcohol
: flexibility curiosity
positive regard for others
: patience acceptability of assignment
: openness desire to be abroad
: reliability non ethnocentrism
high motivation
: confidence courtesy
: emotional stability adaptability
: communication skills tolerance for ambiguity
language skills
: tolerance for differences interest in host culture
: humor
: resourcefulness
: sensitivity
: teaching skills
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: Empirical literature give guarded support to the proposition
that cross cultural training has a positive impact on cross
cultural effectiveness.
: Cultural awareness training is not just for the employee
going overseas. It has numerous applications domestically
that will increase organizational effectiveness. Findings
indicate that it should be a regular part of personnel training
especially management development. The realities of a
more pluralistic society and international business make this
a necessity.
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: If compensation „ high then problems may
be encountered on return to head office
: If compensation „  adequate then there
may be no incentive to go for the
international assignment given the hardships
that are usually involved in doing so.
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Repatriation: Reverse Culture-
shock
JOB RELATED FACTORS SOCIAL FACTORS
: ͞Out of sight out of mind͟ : Expat assignment - different type
of social interaction (going from
: International experience a very close expat community to
devalued where everyone is very busy
: Loss of status and pay relatively with their own lives)
peaking : Problems of spouse returning to
: Changes in the HQ the workforce
: Lack of peer support for
teenagers