PCN is preferable to an HCN

Hiring HR Managers for Global Operations

Hiring new overseas organs is one of the most important decisions made by an HR department when a corporation begins new global operations. Depending on the circumstances, the department may elect to hire a host country national (HCN) or a parent country national (PCN), also known as an expatriate, while looking for a suitable international HR manager.

Advantages of Hiring a PCN for Coca-Cola

Because of the considerations below, a PCN is preferable to an HCN for a firm like Coca-Cola.

Cost Considerations

The term “smartphone” refers to the use of a smartphone to communicate with another person. Therefore, there will be no traveling and hosting expenses which require fares, visas, and accommodation. HCNs usually are cheaper regarding pay package and rewards compared to PCNs who ask for relatively higher pay packages. They also present costly repatriation programs and are expensive to maintain while at the tenure. In the long run, HCNs are far much cheaper than PCNs mainly because of the disparity in incentives (Aswathappa & Sadhna 78).

Organizational Cultural Fit

Even though an HCN will require training and a little experience for them to master the organizational culture and adequate know-how of the organization’s products; it’s a small price to pay since for a PCN. Although conversant with the organization’s culture and products, will require orientation into the new country’s culture and applicable laws before establishing reliable connections to work with. An HCN normally registers a higher performance from the start given their already established networks and can influence policies and regulations for the company since they know the laws and have no cultural challenges. In the long run, an HCN is better than a PCN because a PCN’s success depends on their family situation, language skills, and motivational state.

Local Environment Knowledge

As a PCN undergoes culture adaptation in their new environment, their performance may be affected. Their families, who may be unwilling to move with them or offer the required support, may also affect their output. For a PCN to succeed in the overseas environment, he/she has to be very competent administratively, possess high interpersonal skills, have a stable marriage and be willing to acquire fresh behavior and attitudes as a consequence of the new culture (Dowling, Marion & Allen 112). Although a PCN may have better knowledge of the global environment, an HCN is better equipped with knowledge of the local environment. Apart from the organizational culture in which an HCN is disadvantaged in, he/she should perform better since most of the HR functions that he/she will be in charge of requiring more knowledge of the local environment to ensure compliance with authorities, motivate staff and act as a link between the parent company and its new home.

Knowledge of HR Policies and Initiatives

When choosing between two potential HR managers who have similar qualifications, one being an HCN and the other a PCN, an HCN will be preferred since he/she has better knowledge of the HR policies and initiatives in his/her country than a PCN. This will include government policy on hiring rules and any statutory requirements such as remittances and how this is done. For instance, some governments limit the number of employees an international company will bring as staff. Also, an HR department is very important in filling all the other positions for the subsidiary which in most cases are all filled by local people. A local manager will be better placed to fill these positions given his/her local knowledge of best training available in the country and best companies from which to look for potential employees who are skilled and experienced.

Works Cited

Aswathappa, K, and Sadhna Dash. International Human Resource Management: Text and Cases. New Delhi: Tata McGraw-Hill Pub, 2008. Print.

Dowling, Peter, Marion Festing, and Allen D. Engle. International Human Resource Management: Managing People in a Multinational Context. London: Thomson Learning, 2008. Print.