When expanding into international markets, there are predominantly three different staffing arrangements in which the organisation can consider. These include Parent Country Nationals (PCN’s); which includes employees from where the headquarters of the organisation is located, Host Country Nationals (HCN’s); which includes individuals from where the subsidiary is located as well as Third Country Nationals (TCN’s); which are individuals from a country different from the parent country, employed in the host country.
With reference to the Scenario provided in the unit L G, pp 5 - 7, what do you think are the advantages and disadvantages of these staffing models for Winch-It ?
The main advantage that comes from employing PCN’s is that Winch It still has a large sense of control. Decisions and directions chosen are complied with, and there are no unexpected actions taken by staff. Objectives, policies and companies ethics will also be upheld. The disadvantages include dealing with cultural differences in terms of relating to a host country as well as with HCN’s this could affect productivity and adaptability.
Utilising HCN’s can bring about a number of advantages also. Adapting to the overseas environment in terms of language barriers and relating to HCN workers becomes much simpler, as well as reduced hiring and labour costs in some situations. The disadvantages include a limited amount of coordination and collaboration along with Winch It’s headquarters wishes, as well as potential valuable experience for current Winch It managers also be lost.
Employing TCN’s enables Winch it to choose individuals that may have experience and knowledge with the host country, and may come at a lower cost than utilising and training internal employees