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Multinational Corporations (Mncs)Employing Expatriate Managers

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A multinational corporation (MNC) is a corporation that has its facilities and other assets in at least one country other than its home country. There are three key organizational functions of expatriation: position filling, management development, and organization development. Expatriate are the person who goes to the foreign country on the international assignment. When a MNC open its new subsidiary in the new country, then it might not find the local person who has the specific skills that are required by the company, so, it send an employee from the host country to that new subsidiary. As this employee is aware of the working, business culture and all other process of the company and help the employees of new subsidiary to follow and understand them. (Lee and Croker, 2006).

For selecting an Expatriate, MNEs has two type of selection approach. The company can do it by:

1. Ethnocentric approach which means parent company makes the important decisions, employees from the parent company hold key position & the subsidiaries follow all the culture and practices of the parent company (Brewster, 2007). 2. Geocentric approach. The organisation that applies the worldwide incorporated business strategy, manages and recurit employees on a global basis (Brewster, 2007).

Since the expatriate is more familiar with the business and the working culture of the parent company, hence he or she can assure the better job performance and follow the organisation’s policy that are used in every subsidiary.

Advantages of Expatriate
Companies appoint the expatriate as he or she is likely to have tacit knowledge of global operations and help the local employees to identify and meet the company’s objectives. They are the means of applying the strategic control over the subsidiary (Philips and Fox, 2003).

· Management style: Expatriate help the subsidiary to

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