Staffing Policies - Pros N Cons
The Pros and Cons of International Staffing
1. Introduction
There has been a rapid pace of internationalization and globalization over the last decade. Expanding business operations beyond national boundaries while continuing commitment to local markets requires more complex business structures. One of the most critical determinants of an organization 's success in global ventures is the effective management of its human resources.
The purpose of this paper is to summarize the advantages and disadvantages of the different international staffing approaches with special focus on the positive impacts as well as on the challenges of expatriation.
2. What is International Staffing?
International management encounters many problems above those faced by a domestic organization. Geographic distance and a lack of close, day-to-day relationships with headquarters represent a major challenge to multinationals. "It is essential, therefore, that special attention is given to the staffing practices of overseas units" (Pigors 1973: 690).
According to Pigors (1973: 690) there are three different sources of employees with whom an international company can be staffed. First, the company can send employees from its home country, which are referred to as expatriates, expats or home country nationals. Second, it can recruit host country nationals (natives of the host country), and third, it can hire third country nationals who are natives of a country other than the home country or the host country.
When international expansion of the company is in its infancy, management is heavily relying on local staff, as it is extremely respondent to local customs and concerns.
"As the company 's international presence grows, home-country managers are frequently
expatriated to stabilize operational activities (particularly in less developed countries). At later
The Pros and Cons of International Staffing
stages of internationalization, different companies use
1. Introduction
There has been a rapid pace of internationalization and globalization over the last decade. Expanding business operations beyond national boundaries while continuing commitment to local markets requires more complex business structures. One of the most critical determinants of an organization 's success in global ventures is the effective management of its human resources.
The purpose of this paper is to summarize the advantages and disadvantages of the different international staffing approaches with special focus on the positive impacts as well as on the challenges of expatriation.
2. What is International Staffing?
International management encounters many problems above those faced by a domestic organization. Geographic distance and a lack of close, day-to-day relationships with headquarters represent a major challenge to multinationals. "It is essential, therefore, that special attention is given to the staffing practices of overseas units" (Pigors 1973: 690).
According to Pigors (1973: 690) there are three different sources of employees with whom an international company can be staffed. First, the company can send employees from its home country, which are referred to as expatriates, expats or home country nationals. Second, it can recruit host country nationals (natives of the host country), and third, it can hire third country nationals who are natives of a country other than the home country or the host country.
When international expansion of the company is in its infancy, management is heavily relying on local staff, as it is extremely respondent to local customs and concerns.
"As the company 's international presence grows, home-country managers are frequently
expatriated to stabilize operational activities (particularly in less developed countries). At later
The Pros and Cons of International Staffing
stages of internationalization, different companies use