In the case under consideration, a British company, possessing a top secret manufacturing technology, decides to expand overseas, particularly, in China and Bangladesh. The company aims to establish new manufacturing factories in these countries. Therefore, the problem of choosing a suitable staffing policy arises.
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According to Subba Rao (2009), there are three primary sources of global recruitment. They are categorized as follows: “parent country nationals, host country nationals and third country nationals” (Subba Rao, 2009, p. 194). Therefore, the British company under consideration has to choose one of these three options. Parent country nationals (PCNs) include employees “who are the citizens of the country where the company’s headquarters are located” (Subba Rao, 2009, p. 194). In international business, PCNs usually hold such positions as managers, heads, and trouble-shooters of subsidiary companies. However, their recruitment usually implies considerable expenditures as well as cultural problems.
Correspondingly, host country nationals are people who are employed in the country where the subsidiary is located. It is advantageous to hire them because they are aware of peculiarities of local business; however, they are usually detached from the company’s overall strategies and needs. Finally, third country nationals (TCNs) represent people who are hired from the country where neither headquarters nor subsidiaries are located. It is possible to state in the case under discussion that the British company should consider hiring a couple of managers from PCNs, and the rest of the staff should be formed from TCNs (“International employees,” 2014). The rationale behind this recommendation is the following: the PCNs top managers will be under the control of the top secret technologies, and TCNs employees will possess enough skill with less expenditure.
International employees. (2014). Web.
Subba Rao, P. (2009). International business environment. Mumbai, India: Global Media.