Expatriate Perspective

Human Resource Management for Expatriate Employees

Business is all about putting the right person into the right job in the right place at the right time for the right compensation. International business is no exception to this principle. However, this act of Human Resource Management is more difficult for an international organisation than its domestic counterpart. Some such difficulties can manifest in the form of differences in leadership styles and management practices; differences in labour markets’ laws, wages, efficiency; and the obvious cultural, political, economic and legal differences that affect the task of human resource management either directly or indirectly.

The Expatriate Perspective

An expatriate (or expat) in definitive

Another change in this field is the increasing expatriation of executives from leading emerging economies (like India) to more developed nations as opposed to a reverse expatriation that was the norm historically.

In such changing dynamics, the function of Human Resource Management acquires all the more importance and value. Staffing Policies in an MNC

For an MNC, staffing decisions revolve around deciding whether to run its international operations with a) local citizens of the host nation, b) expatriates sent from the home country or c) third country nationals.

As such, the staffing policies in an MNC can be of the following three types:

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Polycentric Approach uses host country citizens to manage the operations, following the principle that it is essential to adapt to the differences between the work systems, business practices and procedures of the host country. It is a key feature of a multi-domestic strategy. Various benefits that this approach provides are cost containment since the expatriation costs are saved, strengthening of political ties between the home and the host nation, improved employee morale and increased effectiveness and efficiency since the local managers know about the ins and outs of the domestic industry more closely than expatriates sent from the home country.

III. Geocentric Approach is not tied to any particular home or host country. Regardless of the nationality, the best employees are hired from all around the globe and developed as per the requirements of the organisation. A geocentric approach is especially useful to an organisation following a global and transnational strategy. This approach helps managers to utilise the best of the different kinds of expertise available in different countries. The only drawback of this approach is the escalation of training and relocation costs.

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