Sole Trader Accounting
Why might expats be of interest to a global bank?
With the advent of globalisation, organisations often face a global rather than a local audience that has different needs and wants. The global organisations may formulate subsidiaries in the global environment to fulfil those needs and market their products. Similarly, Globalisation has triggered a deep impact on the financial industry as well including banks, investment companies, insurance firms and credit unions etc. They are drawn to those markets that provide them with better returns as well as skilled personnel to staff their processes (Karreman & Pennings, 2009). However, the financial institutions are at liberty to employee either local employees, international staff or a mix of both.
According to (Heenan & Perlmutter, 1979) organisations may be ethnocentric if the staffs of the subsidiary are parent country nationals. This means that the key positions in the subsidiary are held by foreign nationals or expatriates in the subsidiary. The other typology applicable in this context is the geocentric approach which states that there has to be a good mix of both employees i.e. parent company and the subsidiary, and the most competent individual is chosen regardless of nationality. As mentioned in the case, most of the financial institutions have employed a mix of various nationalities working globally in the subsidiaries in Hong Kong, Singapore and Germany etc. The major reasons why a global bank is interested in expatriation of staff includes position filling, enhancing subsidiary bank performance, banking knowledge and know-how transference to the local environment, better control over operations and quality of service maintenance.
Position filling takes place in a bank when there is a scarcity of competent and qualified local staff at key managerial and technical positions of the bank (Storey, 2007). In this regard, expatriation takes place and is particularly useful for the banks well-being. This leads
With the advent of globalisation, organisations often face a global rather than a local audience that has different needs and wants. The global organisations may formulate subsidiaries in the global environment to fulfil those needs and market their products. Similarly, Globalisation has triggered a deep impact on the financial industry as well including banks, investment companies, insurance firms and credit unions etc. They are drawn to those markets that provide them with better returns as well as skilled personnel to staff their processes (Karreman & Pennings, 2009). However, the financial institutions are at liberty to employee either local employees, international staff or a mix of both.
According to (Heenan & Perlmutter, 1979) organisations may be ethnocentric if the staffs of the subsidiary are parent country nationals. This means that the key positions in the subsidiary are held by foreign nationals or expatriates in the subsidiary. The other typology applicable in this context is the geocentric approach which states that there has to be a good mix of both employees i.e. parent company and the subsidiary, and the most competent individual is chosen regardless of nationality. As mentioned in the case, most of the financial institutions have employed a mix of various nationalities working globally in the subsidiaries in Hong Kong, Singapore and Germany etc. The major reasons why a global bank is interested in expatriation of staff includes position filling, enhancing subsidiary bank performance, banking knowledge and know-how transference to the local environment, better control over operations and quality of service maintenance.
Position filling takes place in a bank when there is a scarcity of competent and qualified local staff at key managerial and technical positions of the bank (Storey, 2007). In this regard, expatriation takes place and is particularly useful for the banks well-being. This leads