Parent country nationals (PCNs) are employees who are citizens of and are hired from the nation where an

organization has its original and current headquarters (the parent country). PCNs are distinct from host country

nationals (HCNs), who are staff hired from the country where the international subsidiary is operating (the host

country). Third country nationals (TCNs) are citizens of neither the parent nor the host country. The role and

function of a PCN depends on the organizations approach to international human resource management and

the needs of the overseas subsidiary where the PCN is assigned. PCNs use different adaptation strategies to

cope with their overseas assignments, and there are both advantages and disadvantages in using PCNs to

staff international subsidiaries.

The term parent country national usually is used only to identify an employee who is posted to an overseas

country as an expatriate (overseas assignment of more than one year), as a worker on a short-term

assignment (less than one year), or as a flexpatriate (several short-term overseas postings, sometimes referred

to as commuter assignments). The term became widespread in the business world in the 1960s and 1970s,

when it became apparent that the traditional employment dichotomy of expatriates and nationals could not

accommodate employees who were citizens of neither the host nor the parent country (TCNs). Researchers

and organizations replaced the dichotomy by distinguishing employees by parent, host, and third country

citizenship.

Global businesses now categorize employees by using frameworks that include length of assignment

(expatriate, short-term, and flexpatriate), direction of assignment (expatriate vs. inpatriate), and nature of

assignment (expatriation vs. virtual assignment). Virtual assignments are job assignments focused on projects

within a particular country that rely on electronic communications such as videoconferencing rather than require

the assignee to travel to the country itself. Inpatriates are transfers of HCNs or TCNs to corporate headquarters

for developmental purposes.

The role of PCNs in an international organization depends on the organizations approach to international

human resource management. Those management approaches can be categorized as (1) exportive/

ethnocentric, (2) integrative/regiocentric and geocentric, and (3) adaptive/polycentric. In the

export-ive/ethnocentric approach, PCN expatriates function in a control position, as this approach is

characterized by a transfer of the parent company’s human resource management system to the host country.

PCNs also benefit from international developmental experience while they are on expatriate assignment. The

integra-tive approach also allows for the employment of PCN expatriates; however, human resource

management policies and managerial practices are transfused and adapted from host country to parent

country, and vice versa. PCNs are learners in the adaptive approach, in which organizations focus on adopting

and localizing the practices and policies of the international organization to the host country.

PCNs are used for overseas assignments for several other reasons, including filling an existing overseas

position, developing managers in terms of global awareness and experience, fulfilling the role of organizational

development, and problem solving. Researchers have found differences in the importance of the reasons for

employing PCNs in subsidiaries, depending on the organizations headquarters country, demonstrating that

national culture can influence organizational reasons for expatriation. Japanese and European companies are

more likely to use PCNs, whereas U.S. companies are more likely to use HCNs.

PCNs tend to use different adaptation strategies when on overseas assignment. Researchers have categorized

PCN expatriates according to their degree of allegiance to the parent or host country as being outcomes of

adaptation. The categories are (1) free agents, who have low allegiance to both home and host countries; (2)

“going native” expatriates, who have high allegiance to the host country and little to the home country; (3)

“hearts at the parent” expatriates, who have high allegiance to the home country and little to the host country;

and (4) dual citizens, who have high allegiance to both countries. The choice of adaptation strategy appears to

be linked to the personality of the PCN.

Advantages and Disadvantages

Several advantages result from employing PCNs who have experience in the organization rather than HCNs or

TCNs. PCNs usually are considered by headquarters as being familiar with the organizations goals, products,

services, technology, policies, and procedures. This familiarity may help facilitate coordination, control, and

development of organizational strategy.

The use of PCNs also has several disadvantages. Among them: (1) PCNs may impose a culturally

inappropriate management style on the host country subsidiary; (2) using PCNs may limit the promotional

opportunities of HCNs; and (3) the compensation for PCNs usually is greater than that received by HCN staff,

which may cause a degree of resentment among HCN staff. PCNs also may take a long time to adapt to the

host country, which is likely to affect their work performance.

Some researchers have questioned whether HCNs, TCNs, and inpatriates maybe better equipped to deal with

the cultural challenges of international management than are PCN expatriates. The use of PCNs in global

organizations appears to continue to develop rather than diminish, however.