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Homework answers / question archive / A New York based MNC is in the process of staffing a subsidiary in New Delhi, India
A New York based MNC is in the process of staffing a subsidiary in New Delhi, India.
Why would it consider using expatriate managers in the unit? Local managers? Third-country managers?
Expatriate managers: Expatriate managers are the managers who go outside of their home country for work either by their own or because of the requirement of the job.
Local managers: The local manager is the person who is individually responsible for the group of people working under him and the person is the resident of the country where they are working in.
Third-country managers: Third-country managers are managers who are skilled and knowledgeable and are hired for technical stuff.
The New York-based MNC can use the option whichever suits the situation best.
If MNC chooses New Delhi operation as a start-up for the company, the MNC must go for the local managers. These type of managers have full knowledge of their country, which help them in identifying the upcoming threats to the business.
If MNC has started earning minimum profits and requires experts to function on the platform, then the MNC can choose the expatriate managers as the local managers may not be equipped with such expertise.
If MNC requires a manager with the skill and training that is available in other countries, then the MNC will choose the third-country managers for the company, as these managers provide the specialization which may not be available in the home country. They are generally hired when the MNC is at the advancing stage.