ECE _DSST _ Human Resource MGMT

Expatriates or home country nationals are employees

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Expatriates, or home-country nationals, are employees from the home country posted on international job assignments. Host-country nationals are nationals from the host country and third country nationals are nationals not from the host or home country. For example, if Coca-Cola starts an office in South Africa, then American employees working at that office would be expatriates, South Africans would be host-country nationals, and employees from any other country would be considered third-country nationals. At the early phases of internationalization, companies tend to rely on expatriates but later on there is usually a constant trend towards hiring host-country nationals. The reasons for this are cost. Locals are cheaper to hire because there is no need to pay for moving costs, transportation etc. No cultural adjustments are required of locals. Local governments usually prefer that companies hire locals and some may require it. When hiring expatriates, companies should tread carefully as there is normally a high rate of failure mainly due to family and lifestyle issues. It can be difficult to adjust to a completely new lifestyle. For example, living in less hospitable or remote conditions than one was used to. Training programs for international managers need to focus on language training, cultural training, career development assessment and tracking, as well as personal and family life management. Cultural training is very important to ensure that business relations with business people from foreign countries are smooth. For example, in Japan, greetings are traditionally carried out with a short bow rather than a handshake. One of the biggest problems an organization faces with managing their expatriate managers is with performance appraisals. It is difficult because the US management style (focus on individual) may be different to that which is applied in the host country – and hence this can cause problems. Also, the expectations of the superiors at the host country may be different to that of the home country. Many experts believe that performance evaluations of expatriates should be based on appraisal information from at least two sources. This information must come from at least 2 sources to be fair – the local perspective and the home-country perspective.
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The compensation package awarded to host-country managers has generally been lower than that of expatriate managers. The pay of host-country managers has traditionally been determined by local salary levels. In recent years, the salary levels of host-country managers have become more closely aligned to that of the expatriate managers due to increased competition . There has been increased competition for these host-country managers by the various international companies operating in the same country. The compensation package for an expatriate manager must act as an incentive to leave
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Expatriates or home country nationals are employees from...

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