Why Do Selection Factors for Parent Company Nationals (Pcns) Differ from Third Company Nationals (Tcns) and Host Country Nationals (Hcns)?

Introduction

The globalization of Business has had a significant impact on human resource management. The rapid expansion of global trade & geographical diversification are forcing organizations for the change in their management structure and human resource management. Another factor driving the need for international assignments is the global merger & acquisitions. Acquisitions of new business in an international context creates the need for appropriate staffing and allocation of human resources to the organization’s numerous international operations to ensure effective strategic outcomes. As international assignments are an important vehicle for staffing, it is critical that they are managed effectively and finding the right people to fill positions particularly key managers – PCN, HCN & TCN determines international expansion of the organization. Hence it is imperative to select the appropriate employee depending on the nature of the international assignment for achieving success of the assignments (Charles Vance, Yongsun Paik, 2006). This essay will focus on some of the selection factors of international staffing and the factors influencing selection process for international assignments

Theories & Models of Staffing Approaches

Before analyzing the selection factors for various national employees, a better understanding of international human resource management (IHRM) is required. A model developed by Morgan helps us to understand IHRM on the three dimensions.

Source : Adapted from P.V. Morgan, ‘International Human Resource Management : Fact or Fiction’, Personnel Administrator, vol 31, No. 9 (1986) p.44

National or country & employee categories involved in IHRM activities

o The host-country, where a subsidiary is located and Host Country Nationals (HCN) are the employees belongs to this country (eg. Dell Computers, Singapore)

o The home-country, where the firm is headquartered and Parent Country

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