Learning Objectives and Chapter Summary
1.
IDENTIFY the three basic sources that MNCs can tap in filling management vacancies in overseas operations in addition to options of subcontracting and outsourcing.
MNCs can use four basic sources for filling overseas positions: home-country nationals (expatriates), host-country nationals, third-country nationals, and inpatriates. The most common reason for using home-country nationals, or expatriates, is to get the overseas operation under way. Once this is done, many MNCs turn the top management job over to a host-country national who is familiar with the culture and language and who often commands a lower salary than the home-country national. The primary reason for using third-country nationals is that these individuals have the necessary expertise for the job. The use of inpatriates (a host-country or third-country national assigned to the home office) recognizes the need for diversity at the home office. This movement builds a transnational core competency for MNCs. In addition, MNCs can subcontract or outsource to take advantage of lower human resource costs and increase flexibility.
2.
DESCRIBE the selection criteria and procedures used by the organization and individual managers when making final decisions.
Many criteria are used in selecting managers for overseas assignments. Some of these include adaptability, independence, self-reliance, physical and emotional health, age, experience, education, knowledge of the local language, motivation, the support of spouse and children, and leadership.
Individuals who meet selection criteria are given some form of screening. Some firms use psychological testing, but this approach has lost popularity in recent years. More commonly, candidates are given interviews. Theoretic models that identify important anticipatory and in-country dimensions adjustment, offers help in effective selection.