Categories of employees in an MNE

Parent-country
nationals (PCNs)
–Employees who were
born and live in a parent
country.
•A parent (or home) country:
the country in which a
company’s corporate
headquarters is located

Host-country nationals
(HCNs)
Employees born and raised
in a host country.
•Host country: a country in
which the MNE seeks to
locate or has already located a facility
TCN
Employees born in a
country other than a parent
or host country
EXPATRIATE

An employee who is working and

temporarily residing in a foreign country
•Some firms prefer to use the term
“international assignees”
•Expatriates arePCNs from the parent country
operations,TCNs transferred to either HQ or
another subsidiary, andHCNs transferred into
the parent country
Global flow of HR: more complexity in
activities and more involvement in
employees' lives
REASON FOR EXPATRIATE FAILURE

1.Inability of spouse to adjust

2.Manager’s inability to adjust

Manager’s inability to adjust

3.Other family problems

Other family problems

4.Manager’s personal or emotional

Manager’s personal or emotional
maturity

5.Inability to cope with larger overseas

Inability to cope with larger overseas
responsibility
responsibility
6.
6.Lack of technical competence
Lack of technical competence
7.
7.Difficulties with new environment
Difficulties with new environment

FACTORS INFLUENCING GLOBAL WORK ENVIRONMENT

FORCES FOR CHANGE

Global competition:

:
• Growth in mergers, acquisitions
and alliances
:
Organization restructuring

ADVANCES IN TECHNOLOGY AND COMMUNICATION

IMPACT OF MULTINATIOAL MANAGEMENT

NEED FOR FLEX

LOCAL RESPONSIVNESS
KNWLDG SHARING
TFR OF COMPETENCE

MANAGERIAL RESPONSES
Develo
ping a global “mindset”
•More weighting on informal control
More wei
ghting on informal control
mechanisms
mechanisms
•Fostering horizontal
Fosterin
g horizontal
communication
communication
•Using cross-border and virtual
Usin
g cross-border and virtual
teams
teams
•Using international assignments
Usin
g international assignments