International Hrm
International HRM
Using expatriates to staff key positions in foreign operations is only one option available to MNEs.
What functions do expatriates serve for MNE’s?
Simply the overall purpose of expatriates is about developing social capital for the MNE.
Advantages of expatriates (PCN’s) include, monitoring closer control and harmonization of international operations and providing a wider global perspective. This process gives means that good workers are given international experience. It’s conceived that expatriates are the best people for the job and the subsidiary are more likely to comply with a PNC than a HCN. Disadvantages include high transfer costs and length of time, the possibility of encountering local government restrictions, and possibly that the expatriate will not adapt to the foreign environment as hoped which is a major cause of failure. Also when the expatriate is out there, they have very limited promotion opportunities. Risk is increased as there is a lot of work is done online now and this cause’s potential cultural misunderstanding risk.
Expatriates will always be needed ‘until we have people all over the world with the skills the skills they need, employers are going to have to continue to send expatriates.’(P.88, Dowling, P.J., Festing, M. & Engle, A.D.)).
Although a lot of money and time has went into equipping other country with the skills and education their behavior of still sending expatriates to fill key roles shows a lack of trust and believe by the parent country in my opinion, but as its their company they want to ensure that it does not fail, the decision they make will always leave some party/parties disappointed.
I believe that the while expatriate business is dying out as firms are replacing many expatriates with HCNs, as it’s cheaper.
Functions:
Position filling: This where the MNE has a need and they believe using a expatriate as the best alternative to fill it instead of using local sourcing of
Using expatriates to staff key positions in foreign operations is only one option available to MNEs.
What functions do expatriates serve for MNE’s?
Simply the overall purpose of expatriates is about developing social capital for the MNE.
Advantages of expatriates (PCN’s) include, monitoring closer control and harmonization of international operations and providing a wider global perspective. This process gives means that good workers are given international experience. It’s conceived that expatriates are the best people for the job and the subsidiary are more likely to comply with a PNC than a HCN. Disadvantages include high transfer costs and length of time, the possibility of encountering local government restrictions, and possibly that the expatriate will not adapt to the foreign environment as hoped which is a major cause of failure. Also when the expatriate is out there, they have very limited promotion opportunities. Risk is increased as there is a lot of work is done online now and this cause’s potential cultural misunderstanding risk.
Expatriates will always be needed ‘until we have people all over the world with the skills the skills they need, employers are going to have to continue to send expatriates.’(P.88, Dowling, P.J., Festing, M. & Engle, A.D.)).
Although a lot of money and time has went into equipping other country with the skills and education their behavior of still sending expatriates to fill key roles shows a lack of trust and believe by the parent country in my opinion, but as its their company they want to ensure that it does not fail, the decision they make will always leave some party/parties disappointed.
I believe that the while expatriate business is dying out as firms are replacing many expatriates with HCNs, as it’s cheaper.
Functions:
Position filling: This where the MNE has a need and they believe using a expatriate as the best alternative to fill it instead of using local sourcing of
Bibliography: Human Resource anagement in South Africa, Thomas Learning, 2006, 3d edition, Grobler, P., Warnich, S., Carrell, M.R., Elbert, N.F., Hatfield, R.D International Human Resource Management, South Western, Cengage Learning, 2008, Dowling, P.J., Festing, M. & Engle, A.D Notes from slides