1. Chapter Sixteen: 16.1 STAFFING TO CONTROL
INTRODUCTION
BUREAUCRATIC AND CULTURAL CONTROL
EXPATRIATE OR LOCAL MANAGEMENT?
LOCAL MANAGERS
STAFFING THE IJV
IMPLICATIONS FOR THE MANAGER
SUMMARY
EXERCISE.

2. Chapter Sixteen: 16.2 CONTROLLING THE SUBSIDIARY CULTURE THROUGH BUREAUCRATIC AND CULTURAL CONTROLS (Jaeger, 1983).
By BUREAUCRATIC CONTROL, headquarters aims to
develop a culture of impersonal and bureaucratic
efficiency.
By CULTURAL CONTROL, headquarters aims to
develop a culture of loyalty to the company and
headquarters. Techniques used include
staffing with large numbers of expatriates who act as role-models
employee socialization programs

3. (16.2) frequent visits between the subsidiary and headquarters
social events.
Harzing (1999) distinguishes
bureaucratic formalized control
personalized centralized control
control by socialization and networks
output control.

4. Chapter Sixteen: 16.3 THE ADVANTAGES OF AN EXPATRIATE MANAGER include
Headquarters’ control is greater
Headquarters’ organizational culture is spread to the subsidiary
Headquarters’ staff gain experience abroad
headquarters becomes more sensitized to subsidiary needs
headquarters controls local managerial and skill levels
headquarters protects its technology
headquarters and the manager share a common national culture
communications between headquarters and subsidiary is stronger
headquarters can influence operations at critical times
closer links are made with other subsidiaries.

5. (16.3) THE ADVANTAGES OF A LOCAL MANAGER include
the multinational is “internationalized”
the subsidiary is empowered
the local manager is developed
the local manager is better connected in local markets
political risk is reduced
the local manager can better manage local staff
there is no need for expatriate training
expatriation costs are avoided
the local manager costs less to reward
ill-feeling arising from disparities in rewards are avoided.

6. Chapter Sixteen: 16.4 HEADQUARTERS RETAINS THE LOYALTY OF LOCAL MANAGERS by
showing that it trusts their judgment, particularly about local conditions
appraising and promoting them by criteria that recognize contributions to the MNC and the subsidiary
giving them responsibilities appropriate to their level in the MNC
compensating them at rates that are fair
providing opportunities to rotate to headquarters
having HR managers devote equivalent time to locals and expatriates
providing appropriate training.

7. Chapter Sixteen: 16.5 IJV STAFF may be recruited from
The foreign partner
The local partner
The country of the foreign partner
The country of the local partner
A third country / third countries
These different groups have different needs, cultures,
and long-term loyalties.