disadvantages that occur from hiring managers that originate from the difficult country

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Human Resource Management

There are companies, which have operations, in countries that are referred to as being difficult. There are disadvantages and advantages, which occur, as a result of ensuring that managers from that country are hired. The advantages are that is shows that the company trusts the local citizens, and in turn, gains favor from the citizens in the country. Low costs or labor is experienced as money is not spent on recruiting managers from other countries. Also, the company has a variety of managers to choose from the local environment and thus, maximizing on the opportunity. Furthermore, the company is recognized by the government for its contribution to the local economy (DeNisi & Griffin, 2011. 34). In turn, it can benefit from incentives, which are being offered by the government, such as tax cuts. A research carried out in China gave evidence that hiring local managers is better as compared to hiring expatriates. The findings were that the home country managers delivered better results as compared to the expatriates.

Also, there are disadvantages that occur from hiring managers that originate from the difficult country. There is a limitation, as the managers being recruited may not have the proper qualifications. Some of the managers in the difficult country may not have the exposure, as those who come from countries such as America and the United Kingdom. Moreover, the control exercised at the headquarters is reduced by hiring managers from difficult countries. Also, the managers might not be capable of balancing global priorities and the local demands. This will be difficult for the company, and it can incur extra costs in training the local managers.

In some scenarios, managers are sent from the headquarters to the difficult country to lead the existing operations. In turn, they are certain advantages that occur as a result of this action. Companies that use this approach believe that the expatriate employees are better off in managing subsidiaries that exist in the difficult country. In turn, it ensures that there is a closer coordination and control of the various international subsidiaries. The expatriate has knowledge concerning how they can run the subsidiary well. Also, it ensures that experienced managers with international knowledge become established (Stahl & Miller & Tung, 2002.220). This means that managers can acquire more knowledge in the difficult country and in turn, use it to the benefit of the rest of the company. Furthermore, it ensures that effective management and business practices are transferred to the subsidiary company. Diversification of culture takes place when the expatriate goes and works at the subsidiary company. Many cultures are brought together at the work place, and in turn, creates a conducive working environment. This means that a multinational orientation is given to employees by the manager from the headquarters.

Some of the disadvantages include high rates of failure, as the managers are usually affected by many negative factors. For example, the difficult country may experience insecurity and heavy pollution. This will in turn affect the manager’s perception and affect how they conduct their work. They might find it difficult to adjust the new culture and environment. Also, it leads to high salaries and transfer costs, which may sometimes affect the company’s finances. The up keep of expatriates is usually extremely high, and this is an added expense to the company. At the work place, the local management may be affected and not be motivated as they believe that hiring expatriates is a disincentive (Stahl & Miller & Tung, 2002.223). In turn, their work performance declines, and it might create problems in the company. Lastly, most of the expatriate managers suffer from family and personal problems as they are away from home, and this increases the chances of failure at the difficult country.

In some Human Resources companies, there is usually a need to cut down on costs. They choose to achieve the latter by making sure that managers are not entitled to hardship pay when they are required to work in difficult countries. Also, the managers can be denied the hardship pay when they work in countries where key facilities are located. There are many factors that are considered in finding out if paying the managers hardship allowances is an expense that is worthwhile. Through sending the managers to the difficult countries, they offer better expertise and parent control. Also, they will be able to advance their careers, also, develop professionally as well as personally (Stahl & Miller & Tung, 2002.226). If the manager, has shown that they have the capability of succeeding then they should be entitled to the hardship pay. The managers should be entitled to hardship pay depending on the country where they are working. For example, a manager sent to work in Somalia is more prone to being killed, as the one sent to work in China. In turn, the manager should be remunerated according to the working conditions that exist in the difficult country. If I obtained the opportunity to work in a difficult country as an expatriate, I would agree. The pay expatriates get is extremely enticing, and it enhances one’s career portfolio.

Work Cited

Stahl, G. & Miller, E. & Tung. R. “Toward the Boundary less Career: A Closer Look at the Expatriate Career Concept and the Perceived Implications of an International Assignment.” Journal of World Business 37, 3 (2002): 216–227.

DeNisi, Angelo. & Griffin. Ricky. HR 1st Ed .New York: South-Western College Pub. 2011. Print.