Foreign versus local managers: Finding the perfect leaders for multinational hotel subsidiaries

Selection of senior managers in multinational corporations (MNCs) is a pivotal management decision that takes place within their subsidiaries. However, multinational corporation subsidiaries frequently encounter challenges in selecting host country managers that meet corporate qualification requirements. Thus, the aim of this study is to explore management practices in the selection process of senior managers within MNC subsidiaries. Particularly, this study provides an in-depth understanding of how the selection process affects the MNC subsidiaries in their human resource planning and management. Using a qualitative approach, semi-structured interviews were conducted in the context of international hotel subsidiaries in Jakarta, Indonesia. The interviews involved four different actors: expatriate (foreign) managers, local managers, regional executives and policy makers. The results reveal that the selection process of senior managers deviates from management ideal best practice, and that in this context, most senior managers are selected due to personal characteristics rather than their abilities.