IHRM: Sustaining international business operations

1. IHRM: Sustaining international business operations

2. Approaches to staffing • Factors affecting approaches to staffing • General staffing policy on key positions at headquarters and subsidiaries • Ethnocentric • Polycentric • Geocentric • Regiocentric • Constraints placed by host government • Staff availability

3. Ethnocentric • Strategic decisions are made at headquarters • Limited subsidiary autonomy • Key positions in domestic and foreign operations are held by headquarters’ personnel; PCNs manage subsidiaries

4. Polycentric • Each subsidiary is a distinct national entity with some decision-making autonomy • HCNs manage subsidiaries who are seldom promoted to HQ positions • PCNs rarely transferred to subsidiary positions

5. Geocentric • A global approach - worldwide integration • View that each part of the organization makes a unique contribution • Nationality ignored in favour of ability: • Best person for the job • Colour of passport does not matter when it comes to rewards, promotion and development

6. Figure 3-1: Geocentric staffing requirements

7. Regiocentric • Reflects a regional strategy and structure • Regional autonomy in decision making • Staff move within the designated region, rather than globally • Staff transfers between regions are rare

8. Table 3-1: The advantages and disadvantages of using PCNs, TCNs and HCNs

9. Figure 3-2: Determinants of IHRM approaches and activities

10. Reasons for international assignments • Position filling • Eg. Skills gap, launch of new endeavour, technology transfer • Management development • Training and development purposes, assisting in developing common corporate values • Organizational development • Need for control, transfer of knowledge, competence, procedures and practices

11. Types of international assignments • Short term • Up to 3 months • Extended • Up to 1 year • Long term • Varies from 1 to 5 years • The traditional expatriate assignment

12. Non-standard assignments • Commuter assignments • Rotational assignments • Contractual assignments • Virtual assignments Some of these arrangements assist in overcoming the high cost of international assignments but are not always effective substitutes for the traditional expatriate assignment

13. Figure 3-3: Factors influencing virtual assignments

14. Roles of an expatriate • Agent of direct control • Agent of socialization • Network builder • Boundary spanner • Language node • Transfer of competence and knowledge

15. Figure 3-4: The roles of an expatriate

16. The role of non-expatriates • People who travel internationally yet are not considered expatriates as they do not relocate to another country • Road warriors, globetrotters, frequent fliers • Much of international business involves visits to foreign locations, eg. • Sales staff attending trade fairs • Periodic visits to foreign operations

17. A glamorous life? • International business travelers cite the positives as: • Excitement and thrills of conducting business deals in foreign locations • Life style (top hotels, duty-free shopping, business class travel) • General exotic nature

18. But a high level of stress! • Home and family issues – frequent absences • Work arrangements – domestic side of position still has to be attended to • Travel logistics – waiting in airports, etc. • Health concerns – poor diet, lack of sleep, etc. • Host culture issues – limited cultural training

19. Table 3-2: Various roles of corporate HR

20. The role of the corporate HR function • Can we manage our people like a global product? The feasibility of: • The concept of a global internal labour market • Standardization of work practices and HR activities • What HR matters require central control and what can be decentralized?