This paper is devoted to the problem of international selection of personnel. Efficient allocation of the resources is one of the most important criteria in the success of a company, especially when we are speaking about human resources. Hiring and then deploying people to positions where they can perform in the most effective way is the primary goal of most organisations, whether domestic or international.
Selection is the process of matching individual characteristics such as ability and experience with the requirement of the job. The main two differences between domestic and international selection are that managers should take into staffing orientation of particular ...view middle of the document...
In his type of orientation home-based policy and practice is viewed as superior
This approach is best to use when a team that is send from home has a primary goal to teach a particular skills or to upgrade some knowledge. Like that employees in host countries may gain experience.
In this policy each subsidiary is treated as distinct national entity and it is given some decision-making authority. Subsidiaries are managed by local people, however it is seldom that locals are promoted to headquarters positions and vice versa corporate headquarter employees rarely transferred to foreign subsidiary
This policy is best used when companies want to keep hiring cost low. Moreover, employees who are hired at subsidiary level would not have any problem adapting to the culture. Communication is smooth within the operation.
Is a truly global approach to operations as positions are filled at both headquarter and subsidiaries with “best person for the job”. Employees are selected regardless where they come from. This staffing strategy is reliable for all subsidiaries because best employees are selected and sent from the company’s worldwide network.
It is a staffing policy involves hiring and promoting employees based on specific regional context where subsidiary is located. International transfers generally restricted by region and has quite high degree of autonomy. Corporate policies and communication generally mediated through the regional headquarter. The disadvantage of using this type of policy is that sometimes employees from home or host countries are not unselected. Instead, employees from a third are selected to subsidiary in which they may face cultural differences.
Types of Employees
In a multinational companies with subsidiaries located all around the world it is possible t recognize three different types of employees: Parent country nationals (PCN), Host Country Nationals (HCN) and Third country nationals (TCN)
Parent country nationals
Person whose nationality is the same as that of the firm, but different from the country in which they are working.
Advantages | Disadvantages |
Familiarity with the parent organisation’s goals, objectives, policies and practices | Difficulties in adapting to the foreign language and the socioeconomic, political, cultural and legal environment |
Technical and managerial competence | Excessive costs involved in selecting and developing expat managers |
Effective liaison and communication with parent country staff | Family adjustment problems |
Source: Harzing and Van Ruysseveldt, 2007
Host Country Nationals
Local staff in other words.
Advantages | Disadvantages |
Familiarity with the socioeconomic, political and legal environment and with business practices in the host country | Difficulties in exercising effective control over the subsidiary’s operation |
Lower costs incurred in hiring staff in comparison to...