Supply chain management refers to activities to plan organize lead and control

Supply chain management refers to activities to plan

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Supply chain management refers to activities to plan, organize, lead, and control the supply chain Section 15-1 Characteristics of PCNs, HCNs and TCNs. PCN - parent country nationals, come from parent country of the MNE and work at its local subsidiary HCN - host country nationals, locals TCN - come from neither parent or host country Understanding how three primary international staffing approaches apply to the types of employees used by MNEs. Parent-, Third-, and Host-Country Nationals Advantages Disadvantages Parent-country nationals (PCNs) Control by headquarters is facilitated PCNs may be the most qualified people Managers are given international experience Opportunities for HCNs are limited Adaptation may take a long time
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PCNs are usually very expensive Third-country nationals (TCNs) TCNs may bridge the gap between headquarters and the subsidiary (and between PCNs and HCNs) TCNs may be less expensive than PCNs Host government and employees may resent TCNs Similar to disadvantages for PCNs Host-country nationals (HCNs) Language and cultural barriers are eliminated Continuity of management improves, since Usually cheaper Control and coordination by headquarters may be impeded HCNs may have limited career opportunity International experience for PCNs are limited Section 15-1A Table 15.2 Multinational Strategies and Staffing Approaches MNE strategies Typical staffing approaches Typical top managers at local subsidiaries Home replication Ethnocentric Parent-country nationals Localization Polycentric Host-country nationals
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Global standardization Geocentric A mix of parent-, host-, and third-country nationals Transnational Geocentric A mix of parent-, host-, and third-country nationals Understanding the reasoning behind choosing how different types of international employees fit into the four strategic choices of multinational strategies and the Integration Responsiveness Framework. Ethnocentric approach - emphasizes norms and practices of the parent company Polycentric - focus on norms and practices of host country Geocentric - finding the most suitable managers who can be PCN HCN or TCN (doesn’t matter) Understanding how Staffing approaches relate to MNE strategy types. Section 15-2B Table 15.3 Problems with Repatriation Career anxiety—what kind of position will I have when I return (if I will have a position)? Work adjustment—from a big fish in a small pond (at the subsidiary) to a small fish in a big pond (at headquarters) Loss of status and pay—expatriate premiums are gone, chauffeured cars and maids are probably unavailable Difficult for the spouse and children to adjust—“going home” is not that easy Understanding the HRM issues associated with the repatriation of expatriates.
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