Human Resources Management Assignment

Advantages and Disadvantages of using PCN,HCN,TCN as employees.

-R. Aditya MBA 1st year B Section AGBS

Who are PCNs?

A parent-country national is a person working in a country other than their country of origin. Such a person is also referred to as an expatriate. PCNs use different adaptation strategies to cope with their overseas assignments, and there are both advantages and disadvantages in using PCNs to staff international subsidiaries.

Advantages of being PCN

PCNs usually are considered by headquarters as being familiar with the organizations goals, products, services, technology, policies, and procedures. This familiarity may help facilitate coordination, control, and development of organizational strategy

Disadvantages of being PCN

PCNs may impose a culturally inappropriate management style on the host country subsidiary Using PCNs may limit the promotional opportunities of HCNs The compensation for PCNs usually is greater than that received by HCN staff, which may cause a degree of resentment among HCN staff. PCNs also may take a long time to adapt to the host country, which is likely to affect their work performance

Who are HCNs?

A host-country national (HCN) is an employee who is a citizen of a country in which an organization's branch or plant is located, but the organization is headquartered in another country. An impediment to hiring HCNs is that such employees may not understand the parent companys culture. To deal with this issue, companies may base hiring decisions on certain criteria that serve to increase identification with the company and its values.

Advantages of HCN
They are familiar with the local environment, culture, language, and customs already. They do not need to adapt so they may be productive right away, they are familiar with the local business situation, they may enhance the company's image or "goodwill" if they are in higher management positions. They are usually less expensive to employ.

Disadvantages of HCN

Loyalty may be to the country rather then the company

Its difficult to find more qualified people at the local level, there may be problems communicating with the home office, and they may not be moble.

Who are TCNs?

Third country nationals (TCNs) are citizens of neither the parent nor the host country. The role and function of a PCN depends on the organizations approach to international human resource management and the needs of the overseas subsidiary where the PCN is assigned.

Advantages of TCN

Salary & benefit requirements lower than that of PCNs.

May be better informed about host country environment. Truly international managers.

Disadvantages of TCN

Host country govt. may resent hiring TCNs. May not return to their country after assignment. Host countrys sensitivity with respect to nationals of specific countries.