In: Economics
Parent Company Nationals (PCNs) are the employees whose nationality is the same as that of the firm headquarters. For Example, a French employee of a French company who is working at an Indian subsidiary.
Many organizations have traditionally relied on PCNs for staffing top management positions abroad for a number of reasons:
1. The expatriate's technical and business expertise could play
major role in the business.
2. The ability to transfer the headquarters' culture to the foreign
operation could be another reason for hiring PCNs.
3. There could be a possibility of better political understanding
of the headquarters' organization.
4. Greater ability of expatriates to transfer know-how from the
parent company to its subsidiary as effective communication can
take place between the headquarters and its subsidiary.
5. Sometimes, there is a lack of qualified host country nationals
(HCNs) abroad.
6. It could be a measure of personnel development, career and
promotional opportunities for PCNs.
7. Rapid substitution of expatriates is possible when hiring PCNs
and thus there would be no need of well-developed international
internal labor market.