The paper "Benefits and Limitations of Using Expatriate Managers and Professionals" is a perfect example of management coursework. According to Gong, (2003 p256) an expatriate employee or professional is an employee who has been sent by their employer to go and work in another foreign country. The company that has sent the employee is known as the parent company while the foreign country that he has been sent to is known as the host country. For instance, if General Motors decided to send one of its managers to go and oversee a new project in Brazil, the manager is referred to as an expatriate manager.
General motor, in this case, is the host country while Brazil is the host country. Many companies are sending their employees to officially supervise their operations abroad. In fact, the demand for competent expatriate managers is likely to increase as more and more firms face global competition. There is a need for companies to understand the complex relationships between staffing and expected outcomes and how these relations can change over time. This essay will focus on the benefits and limitations of using expatriate managers and professionals in developing countries. 2.0 Managing international subsidiaries According to Delios & Bjorkman, (2000 p283 )When a company decides to go international, it can apply any one of the three approaches to manage the subsidiaries as well as its staff.
The first approach is known as ethnocentric. Under this arrangement, the company appoints most of its staff from the parent country. The headquarters from the parent country usually make the main decisions and the workers from the parent country are the ones who handle the main business of the company.
The subsidiary company usually follows the Human Resource Management policies of the home company. The other approach is a polycentric approach where each subsidiary of the parent company manages its operations locally. A local employee or professional is in charge of the subsidiary and the subsidiary company follows the Human Resource Management Policies that are developed locally. The last approach is known as Geocentric where the firm applies the globally integrated business strategy to manage the subsidiary as well as its staff. Expatriate managers and professional fall under ethnocentric (Punnett, 2004 p107). 3.0 Benefits of using expatriates to staff subsidiary companies There are several benefits that can be derived from using expatriates.
To begin with, it is a good way to get employees where the local employees do not qualify. A company in a developed country may wish to expand its operations to the developing countries. However, due to the low education levels in developing countries, it may not be possible to get qualified managers and employees to get the job done. In this case, expatriates become a better option for the staff of the subsidiary company.
Another reason why parent companies use expatriates to staff the subsidiaries is the ease of access to the expatriate’ s qualifications when there is a need to assign them some tasks. The parent company is already familiar with the profiles of the expatriate employees and therefore when there are some assignments to be conducted in the developing countries, the parent country knows exactly who to assign which task (Schuler, Budhwar, and Florkowski, 2004 p 77).
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