Inthe international context, organizations must choose from several types ofglobal staff members, who may be selected from among three different types:expatriates, host-country nationals, and third-country nationals. According toMondy et al. (2012), an expatriate is a citizen in the country in which theorganization´s headquarters are located. A host-country national has acitizenship of the country, where the organization´s subsidiary is placed,whereas a third-country national is employed by the companies headquarteredlocation but works in another country and has a citizenship of a third country (Mondy & Mondy, 2012, p.
387). 2.2 Staffing policiesWhensearching and hiring employees, organizations can follow different staffing policies.International staffing policies can be differentiated by ethnocentric, polycentricor geocentric approaches. In polycentric-oriented organizations home officeswill be filled by parent-country nationals whereas foreign subsidiaries willonly be staffed by host-country nationals. This approach is based on theassumption that host-country nationals are better provided to engage with localmarket conditions (Mondy & Mondy, 2012, p. 388).
Ageocentric approach attempts to fill the key positions only by the best personavailable, regardless of their nationality. Such worldwide integrated businessstrategies are most often used by global firms (Mondy & Mondy, 2012, p. 388).
Withan ethnocentric staffing policy, the organization aims to use parent-country nationalsin order to fill the key management positions, including high-level foreign positions.Reasons why organizations pursue ethnocentric policies are lacks of qualifiedhost-country talents, the need to maintain a good communication between headquartersand subsidiaries as well as the transfer from values from headquarters to foreignsubsidiaries (Mayrhofer & Brewster, 1996). An ethnocentric policy would be an examplefor an expatriate assignment. 2.3 International assignmentsAninternational assignment is the process of dispatching employees from the home countryto another country for work and business operations in a foreign office. Thedirection of delegation can either be from the headquarters to a foreign unitof the organization (expatriation) or from a foreign unit to the headquartersof the organization (inpatriation).Thepurpose to send employees abroad, either an expatriation or inpatriation, is greatlysimilar. For example, both are used, to reduce information non-uniformitybetween the organization´s headquarters and the subsidiaries located abroad (Stein & D.
, 2011).However,headquarters use inpatriation in order to integrate delegated managers into thecorporate culture. Furthermore, inpatriates are used to establish formless communicationnetworks (Reiche, 2006). Whereas, theexpatriation process focuses more on the control over subsidiaries, thecoordination of their activity in relation to them of the headquarters as wellas the transfer of knowledge from the headquarters to the operations in thehost country (Reiche, 2006). In a study from 2017, conducted byScheible, several human resource managers as well as expatriates from amechanical engineering company were interviewed with the purpose to identifyexpatriation as a tool to manage diversity.
Thereby, respondents mentionedaspects, like “the development of a global identification with thecompany, becoming acquainted with colleagues from the other sides, sharingexperiences and passing on knowledge” as essential parts of an expatriateassignment (Scheible, 2017).